Leveraged exchange-traded funds (ETFs) initially sound like cheat codes to double your exposure to a publicly traded company without taking out margin. However, these same funds can decimate your portfolio, and it gets worse the longer you hold on to them. The mechanics of these funds do not warrant long-term positions in your portfolio since they are different from actual margin trading. It's muc...
Leveraged exchange-traded funds (ETFs) initially sound like cheat codes to double your exposure to a publicly traded company without taking out margin. However, these same funds can decimate your portfolio, and it gets worse the longer you hold on to them. The mechanics of these funds do not warrant long-term positions in your portfolio since they are different from actual margin trading. It's much better to buy and hold individual stocks for the long run instead of trying to make flashy plays with margin and leveraged ETFs . These are some of the reasons leveraged ETFs are nothing more than speculative bets, even though they may look like smart tools to investors who don't know the intricacies of these types of funds. Image source: Getty Images. Continue reading
Robert Buchel/iStock Editorial via Getty Images In January, I downgraded Bombardier ( BDRAF , BDRBF ) stock from strong buy to buy as strong share price appreciation left little fundamental upside while Bombardier got caught up in a rift between the US and Canada over the certification of Gulfstream business jets. Since then, Bombardier shares have lost 9% of their value. The company recently prov...
Robert Buchel/iStock Editorial via Getty Images In January, I downgraded Bombardier ( BDRAF , BDRBF ) stock from strong buy to buy as strong share price appreciation left little fundamental upside while Bombardier got caught up in a rift between the US and Canada over the certification of Gulfstream business jets. Since then, Bombardier shares have lost 9% of their value. The company recently provided its full year and outlook for 2026, which provides a good moment to revisit Bombardier’s investment case. Bombardier Sales and Margins Expand In 2025 On Successful Turnaround Bombardier (Earnings Presentation) Bombardier's earnings presentation shows that 2025 revenues grew 10.2% to $9.55 billion. Manufacturing revenues rose 9% to $7.25 billion, driven by a 7.5% increase in airplane deliveries, with the remainder being driven by the delivery mix leaning more towards large-cabin business jets. Services sales increased 13% to $2.3 billion as Bombardier’s installed base keeps growing and the global services footprint is increasing. Services now account for 24% of sales, providing a strong recurring revenue stream. We also note that the company had $1 billion in defense-related sales, which the company sees as a growth opportunity in the years ahead. Adjusted EBITDA grew almost 15% to $1.56 billion. Margins expanded 60 basis points to 16.3%. The margins were driven by defense sales, which come at a higher margin; the higher overall delivery profile driving operating leverage; and the mix leaning towards bigger business jets, which come at better margins. Services sales and sales growth also provide strong structural margin support. We note that supply chain issues brought a 150 basis point headwind. So, absent supply chain challenges, the margins would have looked even more impressive. Free cash flow increased substantially from $232 million to $1.07 billion, driven by lower capital expenditures and customer advances. The Growth Drivers for Bombardier Bombardier Bombardier...
Japan’s 20-year government bond auction drew weaker demand than its 12-month average as a decline in yields after Prime Minister Sanae Takaichi’s election victory damped investor appetite. The bid-to-cover ratio was 3.08 compared with 3.19 at the last auction and a 12-month average of 3.29. Japan’s bond futures edged lower after the sale. The 20-year yield is currently hovering around 2.97%, dropp...
Japan’s 20-year government bond auction drew weaker demand than its 12-month average as a decline in yields after Prime Minister Sanae Takaichi’s election victory damped investor appetite. The bid-to-cover ratio was 3.08 compared with 3.19 at the last auction and a 12-month average of 3.29. Japan’s bond futures edged lower after the sale. The 20-year yield is currently hovering around 2.97%, dropping off considerably from last month’s peak of 3.46%, the highest level seen since 1997 , after Takaichi secured an unexpected supermajority of seats that may allow her breathing space for clearer policy and more restrained fiscal spending. Yields jumped to multi-year highs in a January debt market meltdown triggered by Takaichi’s campaign pledge to lower the sales tax on food for two years. Investors are still waiting for more clarity on how Takaichi will manage to cut the sales tax on food as well as ramp up spending on defense and strategic industries. She said in a news conference Wednesday that the proposed tax cut would not rely on issuing deficit bonds. A rise in unrealized losses on Japanese bonds held by four of the nation’s biggest life insurers exposes the risks of investing in a volatile debt market. Overseas investors were the biggest buyers of intermediate- and super-long Japanese government bonds last year, according to data from the Japan Securities Dealers Association. Japan’s bonds may have been supported this week by an accounting-rule proposal that could change the way insurers report the performance of their holdings of fixed-income securities, according to analysts. A smooth five-year government bond auction Tuesday helped boost sentiment amid receding expectations of an early rate hike by the Bank of Japan.
Abandoned beaches, public health warning signs and seagulls eating human waste are now features of the popular coastline in New Zealand A tide of anger is rising in New Zealand’s capital, Wellington, as the city’s toilets continue to flush directly into the ocean more than two weeks after the catastrophic collapse of its wastewater treatment plant. Millions of litres of raw and partially screened ...
Abandoned beaches, public health warning signs and seagulls eating human waste are now features of the popular coastline in New Zealand A tide of anger is rising in New Zealand’s capital, Wellington, as the city’s toilets continue to flush directly into the ocean more than two weeks after the catastrophic collapse of its wastewater treatment plant. Millions of litres of raw and partially screened sewage have been pouring into pristine reefs and a marine reserve along the south coast daily since 4 February, prompting a national inquiry, as the authorities struggle to get the decimated plant operational. Continue reading...
jacoblund/iStock via Getty Images Since my last article in August, "Incyte: Wall Street Underestimates Strength of Ruxolitinib Portfolio," Incyte shares ( INCY ) are up 19.1%. Thus, it outperformed the S&P 500 [6.8% return] ( SPY ), as well as the so-called 'bellwether' for the biotech investors, the VanEck Biotech ETF [19.3%] ( BBH ). Source: TradingView And I ask myself: What has aroused investo...
jacoblund/iStock via Getty Images Since my last article in August, "Incyte: Wall Street Underestimates Strength of Ruxolitinib Portfolio," Incyte shares ( INCY ) are up 19.1%. Thus, it outperformed the S&P 500 [6.8% return] ( SPY ), as well as the so-called 'bellwether' for the biotech investors, the VanEck Biotech ETF [19.3%] ( BBH ). Source: TradingView And I ask myself: What has aroused investors' interest in it? Maybe solid sales of Minjuvi/ Monjuvi, Opzelura or Incyte's R&D achievements? On December 22 last year , Japan's MHLW approved Zynyz with chemotherapy medications, carboplatin and paclitaxel, for 1L treatment of advanced anal cancer . Also, in my opinion, Wall Street sees that under CEO Bill Meury, Incyte's EBITDA is becoming less dependent on its flagship cancer drug called Jakafi, whose U.S. exclusivity ends in 2028 . In turn, its sales grew 7.1% year-over-year to $828.2 million in Q4, beating even my 'best case' scenario by $15 million. Source: graph was made by Author based on the financial reports of Incyte And in this quarter, Jakafi's share of Incyte's total revenue dropped sharply to 55% from about 65%, the level around which it had fluctuated from Q3 2024 to Q1 2025. I believe this shift happened because of the launch of Niktimvo on August 14 last year for the treatment of GVHD and label expansion for Opzelura. While Zynyz and Minjuvi/ Monjuvi generated $73.6 million in net revenues for Incyte in Q4, up 115.2% year-on-year , they remain in the shadow of its other drugs. Source: graph was made by Author based on the financial reports of Incyte I'm now talking about Opzelura and Niktimvo, because of which, as well as other factors included in my "ALLKA 4D Rating" model, I continue to cover Incyte with a 'Buy' rating. Opzelura continues to strengthen Incyte's ruxolitinib franchise First, let me remind you that Opzelura [ruxolitinib] is a cream formulation of ruxolitinib . On July 18, 2022, this JAK1/JAK2 inhibitor became the first FDA-approved agen...
How A Water War Is Brewing Over A Drying Lake In Nevada Authored by John Haughey via The Epoch Times, A Nevada lawsuit trickling toward trial could determine how the nation’s most arid state balances the legal rights of upstream landowners to divert water from rivers for agricultural irrigation with the impacts those withdrawals have on downstream ecologies and economies. Water rights exceed water...
How A Water War Is Brewing Over A Drying Lake In Nevada Authored by John Haughey via The Epoch Times, A Nevada lawsuit trickling toward trial could determine how the nation’s most arid state balances the legal rights of upstream landowners to divert water from rivers for agricultural irrigation with the impacts those withdrawals have on downstream ecologies and economies. Water rights exceed water supply across much of the western United States. With many watersheds failing to deliver enough water for local needs, the suit is being watched by attorneys, state water managers, and federal agencies. It could potentially set a precedent in revising how states across the West regulate access to water. The Nevada case, filed by the Walker River Paiute Tribe and Mineral County, may also present an opportunity for a win-win solution, in which nonprofits and government entities purchase private water rights from willing upstream sellers and dedicate them to downstream public benefit. Without public-private intervention and the changes in state water law that the suit seeks, geologists and environmental experts agree the future is bleak for Walker Lake, a 13-mile long terminal lake about 75 miles southeast of Reno near the California state line in rural, sparsely populated Mineral County. The lake is completely dependent on diminishing Sierra Nevada snowmelt runoff into the Walker River—runoff that, for decades now, has been almost entirely diverted for irrigation by upstream farmers and ranchers. As a result, a desert oasis that once generated more than half of Mineral County’s economic activity through recreational pursuits such as fishing, migratory bird-watching, boating, and camping is now a lifeless “sludge pond,” while the town of Walker Lake faces an accelerating prospect of extinction. “The last fish was caught in 2013 or 2015, I believe. When the fish died, the fishing died; boating, recreation, that all just disappeared,” Mineral County Commissioner Tony Ruse said....