Dilok Klaisataporn/iStock via Getty Images If you follow my work closely, you very likely know that I am skeptical about a lot of high-yield opportunities. Many of them are suboptimal investments. And some are downright awful. But there have been some that I have been bullish about in the past. One example of this can be seen by looking at Virtus InfraCap US Preferred Stock ETF ( PFFA ), which cur...
Dilok Klaisataporn/iStock via Getty Images If you follow my work closely, you very likely know that I am skeptical about a lot of high-yield opportunities. Many of them are suboptimal investments. And some are downright awful. But there have been some that I have been bullish about in the past. One example of this can be seen by looking at Virtus InfraCap US Preferred Stock ETF ( PFFA ), which currently offers a yield of 9.5%. As its name suggests, instead of investing in common stock or bonds, it invests in preferred units of companies. For the uninitiated, preferred stock ranks senior to common stock when it comes to getting paid back, including in situations like bankruptcies. However, they typically don't provide upside that matches what the common stock can achieve as time goes on. Instead, they make up for this in the form of hefty distributions. It stands to reason, then, that an ETF dedicated to preferred units could do quite well on a risk-adjusted basis. Even during tough times, when the holdings of the ETF drop, you would expect payouts to continue to pad returns. So while this approach to investing might not outperform the market in the long run, it can provide stability and returns that are comparable to the market. That is why, back in February of this year, I reaffirmed PFFA as a ‘buy’ candidate. My view is that its structure is perfect for what I believe is an oncoming recession . So even though I don't expect it to outperform the market, I do suspect that it will serve as a good counterweight to protect my portfolio should my holdings perform worse than expected in the worst-case scenario. And if things don't go the way I expect, at least I get a nice distribution in the process. Taking A Fresh Look At PFFA Author - Virtus Investment Partners Data Structurally, I believe that PFFA is an attractive prospect. For starters, the individual holdings that it has grant investors the benefits of diversification. As the chart above illustrates, the most sign...
On Sunday, Futurum Group CEO Daniel Newman endorsed investor Gavin Baker's argument that allowing Nvidia Corp. to sell older-generation AI chips to China could serve U.S. national security interests. Analysts Push Controlled Nvidia GPU Exports To China Baker argued on X that allowing China to purchase less advanced U.S. chips could reduce the likelihood that Beijing would develop more sophisticate...
On Sunday, Futurum Group CEO Daniel Newman endorsed investor Gavin Baker's argument that allowing Nvidia Corp. to sell older-generation AI chips to China could serve U.S. national security interests. Analysts Push Controlled Nvidia GPU Exports To China Baker argued on X that allowing China to purchase less advanced U.S. chips could reduce the likelihood that Beijing would develop more sophisticated domestic alternatives that might eventually surpass American technology. "The argument for selling
In early April, I argued that shares of Pinterest (NYSE: PINS) looked oversold . Concerns about tariffs and a soft advertising backdrop had pushed the stock down sharply, creating a good buying opportunity. Since then, however, shares have climbed significantly. And on Monday afternoon, they tacked on another big gain after the visual discovery platform reported a strong first quarter. Revenue top...
In early April, I argued that shares of Pinterest (NYSE: PINS) looked oversold . Concerns about tariffs and a soft advertising backdrop had pushed the stock down sharply, creating a good buying opportunity. Since then, however, shares have climbed significantly. And on Monday afternoon, they tacked on another big gain after the visual discovery platform reported a strong first quarter. Revenue topped $1 billion, growth reaccelerated, and management's guidance for the second quarter was strong. As of this writing, Pinterest stock has soared about 25% from early April. So the obvious question now is whether new investors should still be buying. To answer that, it helps to look closely at what is and isn't working in Pinterest's business right now. Continue reading
Sterling Infrastructure Inc. ’s earnings, fueled by the race to buildout artificial intelligence infrastructure, are putting the stock on track for its best day in more than two decades. Other construction and engineering firms also soared. Shares of Houston-based Sterling climbed as much as 51% to $799.49 by 3:27 p.m. in New York, marking the biggest intraday gain since 1998. The civil engineerin...
Sterling Infrastructure Inc. ’s earnings, fueled by the race to buildout artificial intelligence infrastructure, are putting the stock on track for its best day in more than two decades. Other construction and engineering firms also soared. Shares of Houston-based Sterling climbed as much as 51% to $799.49 by 3:27 p.m. in New York, marking the biggest intraday gain since 1998. The civil engineering company’s boosted profit and revenue guidance for the full year far exceeded Wall Street expectations. “I would characterize Sterling as a good way to play the data center buildout, including the new AI mega campuses,” said Adam Thalhimer , an analyst with Thompson, Davis & Co. The company is “by far number one in data center site preparation in the US” and has significant exposure to the data center market, he added. Big technology companies have embarked on a massive borrowing spree to quickly lay down the backbone for AI development and are spending heavily on construction and equipment to erect new data centers. Sterling’s results lifted the shares of several other construction and engineering companies on Tuesday. Stocks of construction peers including Primoris Services Corp. and Everus Construction Group Inc. also gained as much as 11% and 13%, respectively. Centuri Holdings Inc. , an infrastructure firm, rose 6.8%, while Tutor Perini Corp. climbed 7.2%. “Sterling results reinforce investor confidence in the infrastructure plays, many of which have been part of the AI trade,” said Michael O’Rourke , chief market strategist at JonesTrading.
The CEO who helped define the meme-stock era has proposed a brash, unsolicited $56 billion offer for the online commerce company. Cecilia D'Anastasio has more (Source: Bloomberg)
The CEO who helped define the meme-stock era has proposed a brash, unsolicited $56 billion offer for the online commerce company. Cecilia D'Anastasio has more (Source: Bloomberg)
Mexican infrastructure investment manager MIP Real Assets is seeking to invest more than $12 billion for projects involving renewable energy and highways in Mexico, one of the most ambitious private-sector programs yet as President Claudia Sheinbaum pushes for more development. The firm is working to raise money, including about $6 billion in equity and $6 billion in debt, for its five-year pipeli...
Mexican infrastructure investment manager MIP Real Assets is seeking to invest more than $12 billion for projects involving renewable energy and highways in Mexico, one of the most ambitious private-sector programs yet as President Claudia Sheinbaum pushes for more development. The firm is working to raise money, including about $6 billion in equity and $6 billion in debt, for its five-year pipeline of projects, lining up investments from major institutional investors, sovereign wealth funds and Mexico’s pension funds. MIP plans to direct around $8 billion to renewable power generation, $2.5 billion to highways, $1 billion to midstream opportunities, and $500 million to digital infrastructure. “We have the projects, we have the partners, and we have the capital,” Guillermo Fonseca , a partner at the firm, said in a statement Tuesday. So far, the firm has already committed more than $1 billion to a deal to acquire a highway from conglomerate Grupo Mexico and the purchase of a stake in two wind farms from Spain’s Acciona Energia and a US portfolio. More announcements will be made in the coming months, the firm said. Since unveiling her development plan early last year, Mexico’s Sheinbaum has been stumping for more private investment in Mexico. But the country’s embrace of rules that favor state-owned energy companies has limited interest. Even her allies have tried to find ways to speed up the pace of investments. MIP, or Mexico Infrastructure Partners , has expanded in recent years amid the constraints on private energy investments. It helped structure the government’s purchase of $6 billion in power plants from Spain’s Iberdrola in 2023 as well as subsequent debt and equity offerings that gave investors and pension funds a stake in the government-owned plants that are operated by MIP. In April, Mexico’s Senate approved a bill proposed by Sheinbaum to promote public and private investment in infrastructure projects. The government also issued new rules for power gene...
Ocular Therapeutix (NASDAQ:OCUL) management used its first-quarter 2026 earnings call to highlight clinical and regulatory progress for AXPAXLI, the company’s investigational therapy for wet age-related macular degeneration (wet AMD), while also outlining next steps for its broader retinal disease p
Ocular Therapeutix (NASDAQ:OCUL) management used its first-quarter 2026 earnings call to highlight clinical and regulatory progress for AXPAXLI, the company’s investigational therapy for wet age-related macular degeneration (wet AMD), while also outlining next steps for its broader retinal disease p
The US risks falling behind in development of artificial intelligence because of the need to upgrade the electricity grid, Guggenheim Capital Executive Chair Alan Schwartz says. He speaks with Bloomberg's Romaine Bostick and Katie Greifeld at the Milken Institute Global Conference in Beverly Hills, California. (Source: Bloomberg)
The US risks falling behind in development of artificial intelligence because of the need to upgrade the electricity grid, Guggenheim Capital Executive Chair Alan Schwartz says. He speaks with Bloomberg's Romaine Bostick and Katie Greifeld at the Milken Institute Global Conference in Beverly Hills, California. (Source: Bloomberg)
HJBC/iStock Editorial via Getty Images The Estée Lauder Companies Inc. ( EL ) reported topline growth, driven by higher sales in each product category and increased sales in 3 out of 4 reported geographic regions. At the same time, the gross margin of the company expanded, as a result of their "Profit Recovery and Growth Plan" initiative, but the operating margin contracted due to restructuring ch...
HJBC/iStock Editorial via Getty Images The Estée Lauder Companies Inc. ( EL ) reported topline growth, driven by higher sales in each product category and increased sales in 3 out of 4 reported geographic regions. At the same time, the gross margin of the company expanded, as a result of their "Profit Recovery and Growth Plan" initiative, but the operating margin contracted due to restructuring charges and probable litigations. The macroeconomic landscape remains challenging not only for EL but for most businesses, as consumer confidence remains depressed and crude oil prices continue to be elevated. Today, I am going to give you a balanced overview of why I believe that my previously established hold rating is still warranted. Sales And Profitability Let us start our discussion with looking at the key sales and profitability metrics from the most recent quarter . In this section, my discussions will be revolving around the drivers of the sales growth and its durability, based on the geopolitical and macroeconomic landscape. In the most recent quarter, EL managed to grow its sales by more than 4%, reaching more than $3.7 billion, while it also expanded its gross margin by 140 bps to 67.4%, as a result of the " Profit Recovery and Growth Plan ". Income statement (Estee Lauder) At the same time, the firm's operating margin took a meaningful hit, which was a result of the restructuring charges. Restructuring charges are normally not continuous in nature, and for this reason I am not particularly worried that the bottom-line results came in lower than in the same quarter in the previous year. However, I am somewhat more worried about the litigation. While it is not a large sum right now, litigation and lawsuits can lead to larger costs, not just in terms of settlement but also due to overhead costs. In the most recent quarter, litigation cost 2.3% of the revenue, significantly contributing to the compression of the operating margin. Results of operation (Estee Lauder) T...