buy sell – Piazza Carlo Giuliani http://piazzacarlogiuliani.org/ Wed, 16 Mar 2022 11:13:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://piazzacarlogiuliani.org/wp-content/uploads/2021/03/cropped-icon-1-32x32.png buy sell – Piazza Carlo Giuliani http://piazzacarlogiuliani.org/ 32 32 The recent rise could appease institutional owners of The Boeing Company (NYSE:BA) after losing 30% in the past year https://piazzacarlogiuliani.org/the-recent-rise-could-appease-institutional-owners-of-the-boeing-company-nyseba-after-losing-30-in-the-past-year/ Wed, 16 Mar 2022 11:13:28 +0000 https://piazzacarlogiuliani.org/the-recent-rise-could-appease-institutional-owners-of-the-boeing-company-nyseba-after-losing-30-in-the-past-year/

To get a sense of who really controls The Boeing Company Inc (NYSE: BA), it’s important to understand the company’s ownership structure. And the group that holds the biggest slice of the pie are institutions with 47% ownership. In other words, the group faces the maximum upside potential (or downside risk).

After a year of 30% losses, last week’s 3.5% gain would be welcomed by institutional investors as a likely sign that yields may start to rise.

Let’s take a closer look at what different types of shareholders can tell us about Boeing.

See our latest analysis for Boeing

NYSE: BA Ownership Breakdown March 16, 2022

What does institutional ownership tell us about Boeing?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Boeing already has institutions on the stock register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Boeing’s historic earnings and revenue below, but keep in mind there’s always more to tell.

earnings-and-revenue-growth
NYSE:BA Earnings and Revenue Growth March 16, 2022

Hedge funds don’t have a lot of shares in Boeing. Our data shows that The Boeing Company Employee Savings Plans Master Trust is the largest shareholder with 7.5% of shares outstanding. In comparison, the second and third shareholders hold approximately 7.4% and 5.3% of the shares.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely distributed and there is no dominant shareholder.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Boeing Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our data suggests that insiders hold less than 1% of The Boeing Company in their own name. It’s a very big company, so it would be surprising to see insiders owning much of the company. Although their stake is less than 1%, we can see that the board members collectively own $99 million worth of stock (at today’s prices). In this kind of situation, it may be more interesting to see whether these insiders have been buying or selling.

General public property

With a 44% stake, the general public, made up mostly of individual investors, has some influence over Boeing. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Know that Boeing shows 2 warning signs in our investment analysis and 1 of them is significant…

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Should you investigate RBG Holdings plc (LON:RBGP) at £1.02 in the UK? https://piazzacarlogiuliani.org/should-you-investigate-rbg-holdings-plc-lonrbgp-at-1-02-in-the-uk/ Sat, 05 Mar 2022 08:33:21 +0000 https://piazzacarlogiuliani.org/should-you-investigate-rbg-holdings-plc-lonrbgp-at-1-02-in-the-uk/

While RBG Holdings plc (LON:RBGP) may not be the best-known stock right now, it has seen significant price moves over the past few months on AIM, reaching highs from UK£1.37 and falling to lows of UK£1.02. . Certain movements in the stock price can give investors a better opportunity to get into the stock and potentially buy at a lower price. A question that needs to be answered is whether RBG Holdings’ current trading price of UK£1.02 reflects the true value of the small cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of RBG Holdings based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for RBG Holdings

What is the opportunity at RBG Holdings?

Good news for investors – RBG Holdings is still trading at a fairly cheap price according to my multiple price model, where I compare the company’s price-earnings ratio to the industry average. In this case, I used the Price/Earnings (PE) ratio since there is not enough information to reliably predict the stock’s cash flow. I find RBG Holdings’ ratio of 11.67x to be below its average of 25.46x, indicating that the stock is trading at a lower price than the professional services sector. However, there may be another chance to buy again in the future. This is because RBG Holdings’ beta (a measure of stock price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s stock will likely fall more than the rest of the market, providing an excellent buying opportunity.

What does the future of RBG Holdings look like?

TARGET: RBGP Earnings and Revenue Growth March 5, 2022

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Buying a big company with solid prospects at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With revenues expected to grow 38% over the next year, the future looks bright for RBG Holdings. If the level of spending can be maintained, it looks like higher cash flow is expected for the stock over the coming year, which should translate into a higher valuation for the stock.

What does this mean to you :

Are you a shareholder? Given that RBGP is currently trading below the industry PE ratio, now may be the perfect time to build up more of your holdings in the stock. With an optimistic outlook on the horizon, it appears that this growth has yet to be fully priced into the stock price. However, there are also other factors such as the capital structure to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been watching RBGP for a while, it might be time to get into the stock. Its prosperous future prospects are yet to be fully reflected in the current share price, meaning it’s not too late to buy RBGP. But before making investment decisions, consider other factors such as the track record of its management team, in order to make an informed assessment.

So while earnings quality is important, it is equally important to consider the risks that RBG Holdings currently faces. For example, we found 3 warning signs which you should browse to get a better picture of RBG Holdings.

If you are no longer interested in RBG Holdings, you can use our free platform to view our list of over 50 other stocks with high growth potential.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Features of Electronic Gold Receipt Gold Trading on Gold Exchanges -Narinder Wadhwa https://piazzacarlogiuliani.org/features-of-electronic-gold-receipt-gold-trading-on-gold-exchanges-narinder-wadhwa/ Thu, 03 Mar 2022 18:58:28 +0000 https://piazzacarlogiuliani.org/features-of-electronic-gold-receipt-gold-trading-on-gold-exchanges-narinder-wadhwa/

In the modern history of investing, gold has retained its importance with the emergence of financial derivatives based on gold as the underlying asset. Traditionally, gold has always been considered a safe investment because not only has it traditionally been seen as a store of value regardless of economic cycles, but also because of the perceived intrinsic value associated with the yellow metal. The financialization of gold took root with the emergence of the Gold ETF which allowed an investor to gain exposure to this gold in portfolios. ETFs follow the price of real gold; you can’t take delivery of the metal when you need it.

A proper mechanism was needed for transparent discovery of the gold spot price. The Spot Gold Exchange and trading ecosystem through EGR, which have been notified as securities, will reduce market inefficiencies and help integrate spot gold trading with derivatives markets and pave the way for a flat – transparent shape for gold.

SEBI at its board meeting in September 2021 approved a gold exchange proposal, in which the yellow metal will be traded in the form of EGR and will help to have a transparent mechanism for discovery of national spot prices. India currently only trades gold derivatives and gold ETFs, unlike several other countries that have spot exchanges for physical gold trading. The holder of the EGR can continue to hold the EGR for as long as planned since the EGR will have perpetual validity.

An EGR holder, at their discretion, may also remove the underlying gold from the vaults upon delivery of such receipts. To reduce the costs associated with removing gold from vaults, EGRs have been made “fungible” and “interoperability between vault managers” will be allowed. EGR brings the interoperability of the physical and electronic form of gold comfortable for the investor

The SEBI unveiled on February 14, 2022 the trading functionalities relating to electronic receipts of gold (EGR) on the exchange platforms. With this notification, SEBI had completed the process of implementing the framework for operationalizing Gold Exchange in India after issuing a circular on January 10, 2022 for Gold Exchange – which is the trading ecosystem of EGR and physical delivery of gold, would be a national platform to buy and sell EGR issued against physical gold.

Trading Features

SEBI has issued guidelines on trading hours, trading fees by exchanges, pre-opening session call bidding, bulk and block trading, price ranges, unique client code , the Investor Protection Fund and the Investor Servicing Fund.

  • Trading hours: According to the guidelines, trading on the EGR segment will be permitted Monday through Friday and exchanges may set their trading hours within the timeframe of 9:00 a.m. to 11:30 p.m./11:55 p.m. (in accordance with daylight saving time from the United States in the spring/fall). Season).
  • commercial holiday: The list of holidays for EGR should be consistent with the list of holidays for derivatives markets to provide effective hedging support.
  • During public holidays, stock exchanges may authorize trading in the evening session, ie after 5:00 p.m., in the event that the corresponding international reference markets are open.

Our view on the trade calendar and holidays – This is well thought out with a view to integration between spot and derivatives markets as well as it takes into account trading on other international exchanges.

  • ·Call the pre-opening auction: The pre-opening session will last 15 minutes from 8:45 a.m. to 9:00 a.m., of which 8 minutes will be allocated for order entry, modification and cancellation, 4 minutes for order matching and confirmation of the trade and the remaining 3 minutes will be the buffer period to facilitate the transition from the pre-open session to the normal market. The session will close randomly during the last minute of order entry – anytime between the 7th and 8th minute of order entry. Such random closing will be driven by the system.
  • Reference price – Only for the first day of trading of EGR, the exchanges will discover and disclose a reference price for EGR during the pre-opening session. This reference price would be discovered using the “Spot Price Inquiry Mechanism” as set forth in SEBI Circular no. SEBI/HO/CDMRD/DMP/CIR/P/2016/78 dated September 2, 2016. This one-time survey would be conducted one business day prior to the launch of EGRs on an exchange.

Narinder Wadhwa, President, Commodity Participants Association of India (CPAI)Our Take on Call option in pre-opening: It was kept simple and similar to the successful pre-opening mechanism in the equity segment. Similarly, there is a well-established spot price inquiry mechanism that SEBI notified in 2016 after taking over commodity derivatives regulation in 2015, which works well for international benchmark commodities. The equilibrium price, the pending order, the risk management is similar to the mechanism of the stock segment.

  • Block the deal– A block trade window between 3:05 p.m. and 3:20 p.m. and the reference price for block trades will be the volume-weighted average market price (VWAP) of trades executed on the EGR segment between 2:45 p.m. and 3:00 p.m. and the order minimum size of Rs 10 crore.
  • Wholesale – EGR bought/sold representing 5% of the market-wide limit will constitute a block transaction and the market-wide limit means the sum of the underlying gold, on which EGR was issued and outstanding, on all contracts launched by stock exchanges.

Our take on BLOCK and BULK Deal: Unlike the equity segment which has 2 deal block windows – morning 8:45-9:00 a.m. and afternoon window 2:05-2:20 p.m. and a minimum order size of 5 crore , SEBI has taken into account that the EGR is a new safety class and therefore only one window is allowed. We hope SEBI will revise this and maybe even allow 3 windows once liquidity picks up. However, the minimum order size is expected to be Rs 5 crore.

In the equity segment, a block trade is a trade where the total quantity of shares bought or sold is greater than 0.5% of the number of shares of a listed company. SEBI correctly considered the market-wide limit to be the sum of underlying gold, on which EGR was issued and outstanding, across all contracts issued by exchanges.

  • Price range – The initial limit price of the price range will be set at 10% of the previous closing price. If the market moves in one direction or the other, the dynamic price ranges are relaxed by the exchanges in increments of 5%.

Our view on BLOCK and BULK Deal: Similar to scripts that have derivatives, SEBI has designed a suitable framework for EGR.

  • Unique Customer Code (UCC) – For transactions in the EGR segment, it will be mandatory for members to have a unique client code (UCC) for all their clients transacting on the exchange. The exchanges will not allow trades to be executed without the uploading of UCC details by members of the exchanges. – E-PAN, members should verify the authenticity of e-PAN with the details on the IT department website and keep the electronic copy of PAN for their records.

Our take on UCC: This is natural because EGR is notified as a safety.

The financialization of gold is the need of the hour, including the priority of developing bullion exchanges that can focus on price discovery and provide an entire ecosystem of gold financial products and physical deliveries. EGR can realize the financialization potential of gold. SEBI established the framework to operationalize the Bullion Exchange. SEBI completed the process by releasing EGR’s thoughtful business features.

Warning: The views expressed in the above article are those of the authors and do not necessarily represent or reflect the views of this publishing house. Unless otherwise indicated, the author writes in a personal capacity. They are not intended and should not be taken to represent the official ideas, attitudes or policies of any agency or institution.


]]> What does the ownership structure of Hardwoods Distribution Inc. (TSE: HDI) look like? https://piazzacarlogiuliani.org/what-does-the-ownership-structure-of-hardwoods-distribution-inc-tse-hdi-look-like/ Wed, 02 Feb 2022 11:23:22 +0000 https://piazzacarlogiuliani.org/what-does-the-ownership-structure-of-hardwoods-distribution-inc-tse-hdi-look-like/

Every investor in Hardwoods Distribution Inc. (TSE:HDI) should know the most powerful shareholder groups. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of C$1.1 billion, Hardwoods Distribution is a decent size, so it’s probably on the radar of institutional investors. Our analysis of societal ownership below shows that institutions own shares in society. Let’s dig deeper into each type of owner to learn more about Hardwoods Distribution.

Check out our latest analysis for Hardwoods Distribution

TSX:HDI Ownership Allocation February 2, 2022

What does institutional ownership tell us about the distribution of hardwoods?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Hardwoods Distribution has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Hardwoods Distribution’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
TSX:HDI Earnings and Revenue Growth February 2, 2022

Our data shows that hedge funds own 8.4% of Hardwoods Distribution. This catches my attention because hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Arbutus Distributors Ltd. is currently the largest shareholder of the company with 17% of the outstanding shares. Polar Asset Management Partners Inc. is the second largest shareholder with 8.4% of common stock and David Hughes owns approximately 1.4% of the company’s stock. Additionally, the company’s CEO, Robert Brown, directly owns 0.8% of the total shares outstanding.

A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider ownership of Hardwoods Distribution

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

We can report that insiders hold shares in Hardwoods Distribution Inc. Its market capitalization is only C$1.1 billion, and insiders hold C$48 million of shares, in their own name. This shows at least some alignment. You can click here to see if these insiders have been buying or selling.

General public property

The general public, who are usually retail investors, hold a substantial 58% stake in Hardwoods Distribution, which suggests it is quite a popular stock. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.

Private Company Ownership

We can see that private companies hold 17% of the issued shares. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Take for example the ubiquitous specter of investment risk. We have identified 4 warning signs with Hardwoods Distribution (at least 2 which don’t sit well with us), and understanding them should be part of your investment process.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Is Aston Martin Lagonda Global Holdings plc (LON:AML) potentially undervalued? https://piazzacarlogiuliani.org/is-aston-martin-lagonda-global-holdings-plc-lonaml-potentially-undervalued/ Sat, 29 Jan 2022 07:09:30 +0000 https://piazzacarlogiuliani.org/is-aston-martin-lagonda-global-holdings-plc-lonaml-potentially-undervalued/

Aston Martin Lagonda Global Holdings plc (LON:AML), may not be a large-cap stock, but it has garnered a lot of attention due to substantial price movement on the LSE in recent months , rising to UK£17.92 at one point, and falling to a UK low of £11.41. Certain movements in the stock price can give investors a better opportunity to get into the stock and potentially buy at a lower price. One question to answer is does Aston Martin Lagonda Global Holdings’ current trading price of £11.62 in the UK reflect the true value of the small cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of Aston Martin Lagonda Global Holdings based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Aston Martin Lagonda Global Holdings

What is Aston Martin Lagonda Global Holdings worth?

Good news, investors! Aston Martin Lagonda Global Holdings is still a bargain right now. According to my assessment, the intrinsic value of the stock is £14.57, but it is currently trading at £11.62 in the equity market, which means there is still a buying opportunity now. What is more interesting is that the Aston Martin Lagonda Global Holdings stock price is quite volatile, which gives us more of a chance to buy since the stock price could go down (or up) at the end of the day. ‘to come up. This is based on its high beta, which is a good indicator of how the stock is doing relative to the rest of the market.

Can we expect growth from Aston Martin Lagonda Global Holdings?

LSE: AML Earnings and Revenue Growth January 29, 2022

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Although value investors argue that it is intrinsic value relative to price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. With profits expected to increase by 76% over the next two years, the future looks bright for Aston Martin Lagonda Global Holdings. It seems that a higher cash flow is expected for the stock, which should translate into a higher valuation of the stock.

What does this mean to you :

Are you a shareholder? Given that AML is currently undervalued, now may be the perfect time to accumulate more of your stock holdings. With a positive outlook on the horizon, it appears that this growth has yet to be fully priced into the stock price. However, other factors such as capital structure must also be taken into account, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping tabs on AML for a while, it might be time to take the plunge. Its buoyant future outlook is not yet fully reflected in the current share price, meaning it’s not too late to buy AML. But before making investment decisions, consider other factors such as the track record of its management team, in order to make an informed investment decision.

So, if you want to dig deeper into this stock, it is crucial to consider the risks it faces. During our analysis, we found that Aston Martin Lagonda Global Holdings had 2 warning signs and it would be unwise to ignore them.

If you are no longer interested in Aston Martin Lagonda Global Holdings, you can use our free platform to view our list of over 50 other stocks with high growth potential.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Individual investors are the largest owners of Mills Estruturas e Serviços de Engenharia SA (BVMF:MILS3) and have been rewarded after the market capitalization increased by 166 million reais last week https://piazzacarlogiuliani.org/individual-investors-are-the-largest-owners-of-mills-estruturas-e-servicos-de-engenharia-sa-bvmfmils3-and-have-been-rewarded-after-the-market-capitalization-increased-by-166-million-reais-last-week/ Thu, 27 Jan 2022 09:18:21 +0000 https://piazzacarlogiuliani.org/individual-investors-are-the-largest-owners-of-mills-estruturas-e-servicos-de-engenharia-sa-bvmfmils3-and-have-been-rewarded-after-the-market-capitalization-increased-by-166-million-re

To get an idea of ​​who really controls Mills Estruturas e Serviços de Engenharia SA (BVMF:MILS3), it is important to understand the ownership structure of the company. We can see that individual investors hold the lion’s share of the company with 32% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

Clearly, individual investors benefited the most after the company’s market capitalization rose by 166 million reais last week.

In the table below we zoom in on the different ownership groups of Mills Estruturas e Serviços de Engenharia.

Check out our latest review for Mills Estruturas e Serviços de Engenharia

BOVESPA: Distribution of ownership of MILS3 January 27, 2022

What does institutional ownership tell us about Mills Estruturas e Serviços de Engenharia?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

As you can see, institutional investors hold a significant share of Mills Estruturas e Serviços de Engenharia. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Mills Estruturas e Serviços de Engenharia’s historical revenue and earnings below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
BOVESPA:MILS3 Earnings and Revenue Growth January 27, 2022

Hedge funds do not have many shares in Mills Estruturas e Serviços de Engenharia. Southern Cross Group is currently the largest shareholder, with 21% of the outstanding shares. Snow Petrel SL is the second largest shareholder with 9.7% of the ordinary shares, and Sullair Argentina, SA owns approximately 9.0% of the company’s shares.

Upon closer inspection, we found that more than half of the company’s shares are held by the top 6 shareholders, suggesting that the interests of the larger shareholders are to some extent balanced by those of the smaller ones.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

Property of Estruturas e Serviços de Engenharia Mills Insiders

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders hold a significant stake in Mills Estruturas e Serviços de Engenharia SA. Insiders have a stake of R$222 million in this R$1.5 billion venture. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have been buying or selling.

General public property

The general public, who are usually individual investors, hold a 32% stake in Mills Estruturas e Serviços de Engenharia. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Private equity ownership

With a 21% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private capital sticking around for the long haul, but generally they have a shorter investment horizon and, as the name suggests, don’t invest heavily in public companies. After a while, they may look to sell and redeploy capital elsewhere.

Private Company Ownership

We can see that private companies hold 19% of the issued shares. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Example: we have identified 1 warning sign for Mills Estruturas e Serviços de Engenharia you should be aware.

Sure this may not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Stars align for rebound in eurozone wage growth https://piazzacarlogiuliani.org/stars-align-for-rebound-in-eurozone-wage-growth/ Thu, 20 Jan 2022 12:00:00 +0000 https://piazzacarlogiuliani.org/stars-align-for-rebound-in-eurozone-wage-growth/

ronstik/iStock via Getty Images

By Bert Colijn, Carsten Brzeski

Everyone in Frankfurt and beyond is watching the labor market to see if the second-round effects of the current inflationary shock are already visible in the data. We, and the European Central Bank (ECB), see no evidence of this so far, as the ECB’s Negotiated Wage Index actually hit its lowest wage growth figure in decades in 3Q21 (1.3% YoY). If the labor market is a lagging indicator, however, wage developments are the mother of all lagging indicators. Looking ahead, we expect wage growth to pick up significantly in 2022 and 2023 to around 3.5%, with the main drivers of wage growth signaling strong increases.

Labor shortages continue to grow

The last few months have seen a surprisingly rapid decline in unemployment and the economy has recovered faster than expected, leading to a stronger than expected rebound in the labor market. Leave schemes – key to keeping unemployment relatively low in 2020 – saw a sharp drop in participation in 2021, even as global supply chain frictions led to renewed demand for leave schemes in manufacturing . A significant increase in structural unemployment has fortunately not materialized, and we now expect unemployment to continue its downward trend over the coming year as employers’ expectations for hiring remain very strong for the start of 2022.

Late last year, we wrote in depth about emerging labor shortages, and since then new data shows the labor market has tightened further. Vacancy rates are now higher than before the pandemic, while companies have already indicated that the availability of labor has never been more problematic for their production than it is now. In the euro area, there are still fewer people in the labor force than before the crisis, which means that there is still some slack on the fringes of the labor market which could help alleviate these problems to some extent – unless people leave the labor force permanently. Either way, it looks like labor shortages are set to remain a dominant economic theme in 2022.

The relationship between wage growth and unemployment has weakened over the past decade, fueling debate over whether the relationship between unemployment and inflation – the Phillips curve – is dead. It seems that the relationship between unemployment and wage growth is still alive, at least, but with a year lag and flatter than before. Simply put: it takes longer for wage growth to emerge from low unemployment, and it also leads to lower wage growth. It is important to note that the last decade has been marked by poor employment development and slight shortages. Now that labor market tightness has become more pressing, it seems logical that this would once again have a bigger impact on wage growth. Let’s go back to 2019, for example, when shortages also led to a slight acceleration in wage growth, which was halted by the pandemic. It is possible that with labor shortages returning to pre-pandemic levels, wage growth will pick up where it left off in 2019.

The Phillips curve has flattened over the past decade

The Phillips curve has flattened over the past decade in the euro area.

Eurozone Phillips Curve

Eurostat, ECB, ING Research

Inflation strengthens union demands

It’s not just labor shortages that point to higher wage growth. Inflation is another key driver of wage growth in the Eurozone, especially since wage setting in the Eurozone is done mainly through collective bargaining and inflation is an important input used in these negotiations. Purchasing power is currently squeezed by inflation at its highest level since the 1980s, and wages negotiated in the Eurozone have historically tracked inflation closely.

In some countries, such as Belgium and France for example, inflation has a direct impact on wage growth via indexation. Other countries are seeing inflation come through higher union demands which, in turn, result in better bargaining outcomes for workers. In the past, unions have used either actual inflation rates or the ECB’s medium-term inflation target in the bargaining process. The two were very close to each other. In the current rounds of negotiations, current inflation rates and the loss of purchasing power are expected to play a greater role than in the past. Labor market shortages are likely to increase the bargaining power of unions, which may prioritize higher wages over job security.

Overall, the relevance of wage deals depends on how much of a country’s employment is covered by collective agreements – and in the eurozone, that’s a lot. On the other hand, collective bargaining agreements, whether centralized or decentralized, have a strong signaling effect on wage agreements in the private sector. The result is a strong relationship between aggregate wage growth and “negotiated” wage growth.

For the euro zone, we find that the correlation between negotiated wages and inflation is the strongest with a two-quarter lead for inflation. This means that wage growth historically tracks inflation by about six months.

Inflation drives wage growth, as it is an important driver of wage negotiations

Inflation leads wage growth in the Eurozone, being an important driver of wage negotiations

Inflation and wage growth in the euro area

Eurostat, ECB, ING Research

Corporate earnings have been strong, supporting wage growth

Besides factors such as labor shortages and purchasing power, another important driver of wage growth in the Eurozone is the ability of companies to afford wage increases. If corporate profits have weakened, we can expect a slowdown in wage growth. However, healthy corporate profits should increase the likelihood of wage increases, sharing corporate profits with employees. The relationship historically shows a lag of five quarters. At the current juncture, corporate earnings have shown a particularly strong rebound since economies reopened in mid-2020, suggesting ample room for higher labor compensation over the course of 2022.

A high share of corporate profits paves the way for earnings growth

The high share of corporate profits creates room for growth in compensation.

Share of gross profits of non-financial corporations in the euro area, annual change in negotiated wages

Eurostat, ECB, ING Research

Minimum wage increases have been generous this year

Another important factor contributing to higher wage growth in 2022 is the significant increase in the minimum wage in several countries. Germany is the most notable, of course, with an expected increase to €12 per hour promised by the new coalition (an increase of almost 30%). Other countries have also seen the minimum wage increase, such as Portugal with a 6% increase, while France and Belgium will adjust to inflation, which will result in a significant jump. The Netherlands has also agreed to raise the minimum wage by 7.5%, but will do so in stages throughout the government’s term. The impact of a higher minimum wage is of course passed on to the average, also because it generally affects wage categories above the minimum as well.

Expect wage growth to rebound to around 3% this year

A simple empirical model that has worked well historically would suggest that nominal wage growth would recover to around 3-3.5% over the course of 2022, but the relationships in economics are rarely mechanical. Keep in mind that Germany has relatively few upcoming wage negotiations, which is holding back the growth of negotiated wages. Furthermore, a key question is whether unions – whose positions have weakened in recent decades – can convert better bargaining positions into higher wage growth.

On the other hand, aggregate wage growth in sectors without collective bargaining already appears to be significantly higher than wages negotiated in some euro area markets, although the data on this is currently heavily skewed due to composition effects in labor cost index data. Overall, therefore, we believe that wage growth of around 3% seems like a reasonable number for wage growth to rebound, possibly over the next couple of years.

We expect wage growth to reach the 3-3.5% range this year

ING Research expects wage growth to reach 3-3.5% this year.

Negotiated wage growth, historic and expected rise (ING forecast)

ECB calculations, ING Research

So, is the Phillips curve alive and active then? It seems so, although it looks like he needed supply shock therapy to revive. The current high inflation is of course not the result of low unemployment, but it will in turn feed through to the wage growth channel, which in turn will inflate medium-term inflation estimates. . This is only the beginning, but it seems that the relationship between unemployment and inflation is becoming more important again.

For the ECB, this will be an important argument for a rate hike in early 2023. For the current inflation peak, policy is not so relevant. The ECB can hardly fill the gas reserves or add to the shortage of containers. What it can do is act on cyclical developments that look favourable, with the economy recovering faster than expected and wage growth expected to rebound this year. With inflation expectations around 2%, ECB President Christine Lagarde will have the luxury that former President Mario Draghi never had: raise interest rates.

Content Disclaimer

This publication has been prepared by ING for information purposes only, regardless of the means, financial situation or investment objectives of any particular user. The information does not constitute an investment recommendation, nor investment, legal or tax advice, nor an offer or solicitation to buy or sell a financial instrument. Read more

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What does the ownership structure look like for IsoPlexis Corporation (NASDAQ: ISO)? https://piazzacarlogiuliani.org/what-does-the-ownership-structure-look-like-for-isoplexis-corporation-nasdaq-iso/ Sat, 08 Jan 2022 13:56:41 +0000 https://piazzacarlogiuliani.org/what-does-the-ownership-structure-look-like-for-isoplexis-corporation-nasdaq-iso/

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The large shareholder groups of IsoPlexis Corporation (NASDAQ: ISO) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.

IsoPlexis is a small company with a market cap of US $ 314 million, so it may still go under the radar of many institutional investors. Looking at our data on ownership groups (below), it looks like institutional investors have bought the company. Let’s take a closer look at what different types of shareholders can tell us about IsoPlexis.

See our latest review for IsoPlexis

ownership distribution

What does institutional ownership tell us about IsoPlexis?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

IsoPlexis already has institutions on the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out IsoPlexis’ past income trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth

profit and revenue growth

It appears that hedge funds hold 16% of IsoPlexis shares. This is worth noting, as hedge funds are often quite active investors, who can try to influence management. Many want to see value creation (and a higher stock price) in the short to medium term. The company’s largest shareholder is Northpond Ventures, LLC, with a 23% stake. With 16% and 10% of shares outstanding, respectively, Spring Mountain Capital, LP and Perceptive Advisors LLC are the second and third largest shareholders. Additionally, we found that Sean Mackay, the CEO, owns 2.1% of the shares attributed to their name.

Looking further, we found that 55% of the shares are owned by the 4 largest shareholders. In other words, these shareholders have a say in the decisions of the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.

Insider property of IsoPlexis

The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

We can see that the insiders own shares in IsoPlexis Corporation. It has a market capitalization of only US $ 314 million and insiders have shares worth US $ 28 million in their own name. It’s good to see some investment from insiders, but it can be worth checking out if those insiders have bought.

General public property

The general public, including retail investors, own a 23% stake in the company and therefore cannot be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Private shareholders

Private equity firms hold a 40% stake in IsoPlexis. This suggests that they can influence key policy decisions. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may look to sell and redeploy their capital elsewhere.

Public enterprise ownership

Public companies currently own 5.1% of the shares of IsoPlexis. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Take risks for example – IsoPlexis has 3 warning signs (and 1 which makes us a little uncomfortable) we think you should be aware of.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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Institutions hold 38% of the shares of Neoenergia SA (BVMF: NEOE3) but public companies control 51% of the company https://piazzacarlogiuliani.org/institutions-hold-38-of-the-shares-of-neoenergia-sa-bvmf-neoe3-but-public-companies-control-51-of-the-company/ Fri, 17 Dec 2021 09:23:42 +0000 https://piazzacarlogiuliani.org/institutions-hold-38-of-the-shares-of-neoenergia-sa-bvmf-neoe3-but-public-companies-control-51-of-the-company/

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To get a sense of who actually controls Neoenergia SA (BVMF: NEOE3), it is important to understand the ownership structure of the business. And the group that holds the biggest slice of the pie are the 51% -owned state-owned companies. In other words, the group has everything to gain (or lose the most) from its investment in the business.

Institutions, for their part, represent 38% of the company’s shareholders. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time.

In the graphic below, we zoom in on the different Neoenergia property groups.

See our latest analysis for Neoenergia

Breakdown of BOVESPA property: NEOE3 December 17, 2021

What does institutional ownership tell us about Neoenergia?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

We can see that Neoenergia has institutional investors; and they own a large portion of the company’s stock. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Neoenergia’s past revenue trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
BOVESPA: NEOE3 Profits and Revenue Growth December 17, 2021

We find that the hedge funds do not have a significant investment in Neoenergia. Looking at our data we can see that the largest shareholder is Iberdrola, SA with 51% of the shares outstanding. This implies that they have majority control over the future of the business. With respectively 30% and 1.1% of the shares outstanding, Caixa De Previdencia Dos Funcionarios Do Banco Do Brasil and Moat Capital Gestao De Recursos Ltda are the second and third shareholders.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

Insider ownership of Neoenergia

The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We note that our data does not show any member of the board of directors owning shares, personally. It is unusual not to have at least some personal holdings of board members, so our data may be wrong. A good next step would be to check how much the CEO is paid.

General public property

With an 11% stake, the general public, made up mainly of individual investors, has some influence over Neoenergia. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.

Public enterprise ownership

It appears to us that public companies hold 51% of Neoenergia. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Concrete example: we have spotted 4 warning signs for Neoenergia you need to be aware of this, and 3 of them cannot be ignored.

If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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Is Enel Américas SA (SNSE: ENELAM) potentially undervalued? https://piazzacarlogiuliani.org/is-enel-americas-sa-snse-enelam-potentially-undervalued/ Mon, 13 Dec 2021 10:28:09 +0000 https://piazzacarlogiuliani.org/is-enel-americas-sa-snse-enelam-potentially-undervalued/

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Enel Américas SA (SNSE: ENELAM) has recorded a double-digit increase in its share price of more than 10% in the last two months on the SNSE. With many analysts covering large cap stocks, we can expect any price sensitive announcement to have already factored into the share price. However, could the stock still trade for a relatively cheap price? Today, I’m going to analyze the most recent data on the outlook and valuation of Enel Américas to see if the opportunity still exists.

Discover our latest analysis for Enel Américas

Is Enel Américas still cheap?

Good news for investors – Enel Américas is still trading fairly low. My valuation model shows that the stock’s intrinsic value is CLP 169.92, but it is currently trading at CL $ 103 in the stock market, which means there is still an opportunity to buy. now. Another thing to keep in mind is that the Enel Américas share price can be quite stable relative to the rest of the market as indicated by its low beta. This means that if you think the current stock price should move towards its intrinsic value over time, a low beta might suggest that it is not likely to reach that level anytime soon, and once it does. ‘There it can be difficult to fall back into an attractive buying range again.

What kind of growth will Enel Américas generate?

SNSE: ENELAM Revenue and Revenue Growth December 13, 2021

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s also take a look at the future expectations of the business. Profits at Enel Américas over the next few years are expected to increase by 78%, indicating a very optimistic future. This should lead to more robust cash flow, fueling a higher value of the stock.

What this means for you:

Are you a shareholder? Considering that ENELAM is currently undervalued, perhaps now is a great time to accumulate more of your holdings in inventory. With an optimistic outlook on the horizon, it appears that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you have been keeping an eye on ENELAM for a while, maybe now is the time to get into the stock. Its prosperous future prospects are not yet fully reflected in the current share price, which means that it is not too late to buy ENELAM. But before making any investment decision, consider other factors such as the track record of its management team, in order to make an informed purchase.

If you are interested in learning more about Enel Américas as a business, it is important to be aware of the risks it faces. During our analysis, we found that Enel Américas has 2 warning signs and it would be unwise to ignore them.

If you are no longer interested in Enel Américas, you can use our free platform to view our list of over 50 other high growth potential stocks.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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