Chinese President Xi Jinping holds talks with U.S. President Donald Trump at the Great Hall of the People in Beijing on Thursday morning during Trump’s state visit to China. Photo: Xinhua News Agency Chinese President Xi Jinping and U.S. President Donald Trump agreed to recast the relationship between the world’s two largest powers under a new banner of “constructive strategic stability,” signalin...
Chinese President Xi Jinping holds talks with U.S. President Donald Trump at the Great Hall of the People in Beijing on Thursday morning during Trump’s state visit to China. Photo: Xinhua News Agency Chinese President Xi Jinping and U.S. President Donald Trump agreed to recast the relationship between the world’s two largest powers under a new banner of “constructive strategic stability,” signaling an effort to manage fierce competition and expand economic cooperation following talks Thursday in the Chinese capital. Meeting at the Great Hall of the People, Xi told Trump that the two nations must determine whether they can avoid the Thucydides Trap — a historical tendency toward conflict between a rising power and a ruling one — and forge a new paradigm for major-power relations.
Getty Images In my last article on Costco ( COST ), I assigned a sell rating ( check it here ). As many may already imagine, the main reason is valuation. The margin of safety is too small, as the market already attributes a gigantic moat to Costco and sees it as a bond proxy, so it ends up accepting a high single-digit return. And of course, although in this article I will eventually have to touc...
Getty Images In my last article on Costco ( COST ), I assigned a sell rating ( check it here ). As many may already imagine, the main reason is valuation. The margin of safety is too small, as the market already attributes a gigantic moat to Costco and sees it as a bond proxy, so it ends up accepting a high single-digit return. And of course, although in this article I will eventually have to touch on the valuation point again, I would like to focus on another reason to avoid the COST stock: the shift (slowdown) in momentum that may eventually happen. Upside Risks: Costco Is Still A Compelling Business Before talking exactly about the risks I see for Costco's business, I need to mention the upside risks, since although I do not believe the stock is attractive, the company certainly is. It is no coincidence that the market sees Costco as a company with impenetrable moats and financials with an extremely high level of predictability; there are interesting fundamentals behind that. The track-record is really exceptional. The CAGR (compound annual growth rate) of the top line was 9% over the last 10 years, and for EBITDA the rate was almost 11%. This is very attractive compounding. Seeking Alpha Just to illustrate this, let's say Costco's EV-to-EBITDA remains the same over the next years. This means EBITDA would be a proxy for shareholder value. If the CAGR is ~11% for the next 10 years, we are talking about a company that would go from a ~$447 billion market cap now to $1.4 trillion by mid-2036. A total return of more than 200%. This is the power of compounding. And the longer the holding period, the greater this effect. If you are willing to hold Costco for 20 years, at this CAGR, the market cap in 2046 would be something close to $4 trillion. Although a CAGR of ~11% for EBITDA is really challenging to maintain over a long period, it is not exactly impossible. Costco's comp sales in Q2 were 6.7%. This is because the company had a ticket increase of ~3.5% and also a tr...
Hong Kong’s latest quarterly figures look better than many observers expected. Despite the disruption caused by the war in the Middle East and an unsettled global backdrop, growth has been steady, markets have remained buoyant and visitors have been returning. On the surface, the numbers point to a resilient economy despite heightened global geopolitical tensions and elevated risk. Yet in conversa...
Hong Kong’s latest quarterly figures look better than many observers expected. Despite the disruption caused by the war in the Middle East and an unsettled global backdrop, growth has been steady, markets have remained buoyant and visitors have been returning. On the surface, the numbers point to a resilient economy despite heightened global geopolitical tensions and elevated risk. Yet in conversations with many business leaders overseas, there is a quiet unease that has not yet entered the...
jittawit.21/iStock via Getty Images The Invesco S&P 500® High Dividend Low Volatility ETF ( SPHD ) is a passively managed exchange-traded fund designed to provide investors with exposure to high dividend-paying stocks within the S&P 500 ( SPX ). At a high level, dividend-paying companies tend to be in the more mature phase of the business life cycle and may exhibit lower volatility relative to gro...
jittawit.21/iStock via Getty Images The Invesco S&P 500® High Dividend Low Volatility ETF ( SPHD ) is a passively managed exchange-traded fund designed to provide investors with exposure to high dividend-paying stocks within the S&P 500 ( SPX ). At a high level, dividend-paying companies tend to be in the more mature phase of the business life cycle and may exhibit lower volatility relative to growth stocks, presenting an appealing investment case for investors seeking income, durability, and consistency. With the market experiencing heightened volatility in recent months since the start of the war in Iran, durability may be an ideal investment style to protect one’s portfolio in the medium term. This is particularly true as the global economy faces shifting dynamics resulting from supply chain disruptions, inflationary pressures, and uncertainty relating to the duration of the war. Given the appealing positioning of SPHD, I believe this strategy can play a critical role in a diversified portfolio strategy as a defensive position to wait out the market uncertainty; I am recommending SPHD with a "Buy" rating. Investment Thesis for SPHD SPHD was designed to provide coverage as a subindex to the S&P 500, covering high dividend-paying companies that may offer moderate volatility with respect to the index. Theoretically, dividend-paying companies tend to exhibit operational discipline, consistent cash flow generation, and moderate growth. Given that the subindex is a component of the S&P 500, we can presume that these companies play a prominent role in their respective sectors and can achieve operational excellence throughout the market cycles. SPHD is largely allocated to the real estate sector with a portfolio weight of 20.10%, consumer staples at nearly 18%, and financials at 15.61%. Given the makeup of the fund, SPHD can be considered a defensive strategy with companies that may be less affected by shifts in the business cycle. Corporate Filings As a top sector alloc...
Shares of memory chips maker Micron (NASDAQ:MU) jumped 5.3% in the morning session after reports revealed a potential global chip shortage stemming from a competitor's labor issues.
Shares of memory chips maker Micron (NASDAQ:MU) jumped 5.3% in the morning session after reports revealed a potential global chip shortage stemming from a competitor's labor issues.
Brandon Bell/Getty Images News Honda Motor ( HMC ) posted its first annual loss since it first went public about 70 years ago, hit by over $9B in costs as the Japanese automaker overhauled its electric vehicle business. But it expects to return to profit this fiscal year. The company swung to an operating loss of $2.6B for the year ended March 31, which was within the estimate it provided in March...
Brandon Bell/Getty Images News Honda Motor ( HMC ) posted its first annual loss since it first went public about 70 years ago, hit by over $9B in costs as the Japanese automaker overhauled its electric vehicle business. But it expects to return to profit this fiscal year. The company swung to an operating loss of $2.6B for the year ended March 31, which was within the estimate it provided in March, from an operating profit of nearly $7.6B in the prior year. "Although the automobile business faced a harsh business environment — including higher tariff burdens and lower unit sales due to factors such as semiconductor supply shortages — we implemented company-wide cost reductions as one team, and excluding EV-related losses, we were profitable," Honda ( HMC ) stated. The automaker forecast EV-related losses of over $3.1B for the fiscal year ending March 2027, excluding which operating profit is expected to total $6.3B. EV-related losses will be resolved by the fiscal year ending March 31, 2029. Honda ( HMC ) plans to expand motorcycle production capacity in India to meet strong demand, aiming for record high sales of 22.8M units. "As for the automobile business, in Asia we will support sales volumes throughmodel changes, while in North America we will aim to expand profitability bystrengthening sales of ICE and hybrid EV models," the company said . Honda ( HMC ) plans to launch 15 next-generation hybrid models globally by March 2030, primarily in North America, CEO Toshihiro Mibe announced . It will also suspend its plan for an EV and battery manufacturing hub in Canada. "The project is currently frozen for two years, but discussions with relevant stakeholders, including the Canadian government, are ongoing," Mibe told analysts. Honda's Tokyo-listed shares ended 3.8% higher on Thursday, paring gains after gaining as much as 8.7% earlier in the session. More on Honda Motor Honda Motor: Dead Money Honda GAAP EPS of -¥106.06, revenue of ¥21796.61B; gives FY27 outlook Fore...
Orchid Island Capital ( ORC ) declares $0.10/share monthly dividend , in line with previous. Forward yield 17.24% Payable June 29; for shareholders of record May 29; ex-div May 29. The company plans on announcing its next common stock dividend on June 9, 2026. See ORC Dividend Scorecard, Yield Chart, & Dividend Growth. More on Orchid Island Capital Orchid Island Capital: Dividend Cut Hurts But Doe...
Orchid Island Capital ( ORC ) declares $0.10/share monthly dividend , in line with previous. Forward yield 17.24% Payable June 29; for shareholders of record May 29; ex-div May 29. The company plans on announcing its next common stock dividend on June 9, 2026. See ORC Dividend Scorecard, Yield Chart, & Dividend Growth. More on Orchid Island Capital Orchid Island Capital: Dividend Cut Hurts But Doesn't Change Thesis Orchid Island Capital, Inc. 2026 Q1 - Results - Earnings Call Presentation Orchid Island Capital, Inc. (ORC) Q1 2026 Earnings Call Transcript Orchid Island Capital outlines 15%-17% modeled return range while adding $108M and lifting leverage to 7.9% Orchid Island stock up despite Q1 loss as returns still attractive in historical context