Why Harris is splitting with (some of) Biden’s capital gains plans
On a day when Vice President Kamala Harris unveiled a new plan for small businesses, the Democratic nominee also announced a change in her plans to pay for it by saying that the long-term capital gains rate for the ultra-rich should be 28%.
It marked a split with President Joe Biden, who has proposed a rate about ten percentage points higher than that for Americans making over $1 million dollars a year.
The tax pivot from Harris came after a wave of critiques from many business leaders of the Biden-Harris approach to capital gains, which is sometimes described as unworkable and punitive — and likely to dampen innovation.
Wednesday’s move from Harris was announced in a speech in North Hampton, N.H., and was part of a larger attempt by the Democratic nominee this week to beef up her business world bona fides.
“My plan will make our tax code more fair while also prioritizing investment and innovation,” Harris said in the speech in North Hampton as she tried to outline an approach focused on encouraging innovation and the long-term Biden-Harris priority to make the ultra-rich pay their “fair share.”
“We know when the government encourages investment, it leads to broad-based economic growth, and it creates jobs which makes our economy stronger,” Harris added Wednesday.
Read more: Trump vs. Harris: 4 ways the next president could impact your bank accounts
Continued support for taxing the ‘unrealized’ gains of the richest
But Harris also obliquely reaffirmed Wednesday that she supports an even more controversial idea from Biden: taxing the unrealized gains of the ultra-wealthy. (Unrealized gains are the growth in one’s net worth that exists on paper but is still tied to an asset that hasn’t yet been sold.)
“I support a billionaire minimum tax,” Harris again said during the speech focused on economic policy at a picturesque small business near Portsmouth, N.H.
The billionaire minimum tax is a separate Biden plan that includes an effort to target the unrealized gains of households if their net worth exceeds $100 million.
It’s an echo of calls from figures like Democratic Senators Bernie Sanders and Elizabeth Warren for a “wealth tax” but with more limited effects. The plan has nevertheless faced a wave of criticism, especially on the question of how it would be implemented.
Donald Trump has zeroed in in particular on the unrealized gains proposal charging that the idea was “beyond socialism.”
A focus Wednesday on regular capital gains
What Harris was nonetheless focused on Wednesday — in addition to a tenfold expansion of a key small business tax credit and cutting red tape for small businesses — were these regular capital gains taxes.
These are taxes that are paid when investors sell their stocks or other assets and then actually reap the profits.
Long-term capital gains are currently taxed at 20% for the richest Americans.
Biden had proposed making those capital gains — at least for households making over $1 million a year — in line with the current top tax rate on wages. That rate is currently 37% but could rise to 39.6% in 2026 if Trump-era tax cuts are allowed to expire.
Harris, on Wednesday, clearly was attempting to find a middle ground with her 28% proposal, saying, “We will tax capital gains at a rate that rewards investment in America’s innovators, founders, and small businesses.”
Also on Wednesday, Harris reaffirmed that she supports increasing the federal corporate tax rate. A Harris aide previously told Yahoo Finance she wants that rate raised from 21% to 28%. Donald Trump has discussed lowering that rate to 15%-20%.
In any case, Harris’s varied tax ideas could face an uphill fight in Congress with many of these plans echoing ones that President Biden has been unsuccessfully pushing for years.
Those plans weren’t enacted even in 2021 and 2022, when Biden was in the White House and Democrats controlled both the House and the Senate.
But even with this week’s push for a middle ground on capital gains, Harris also signaled Wednesday that she will keep up a focus on tax fairness that has been a hallmark of the Biden years.
“It’s just not right that those who can most afford it are often paying a lower tax rate than our teachers and our nurses and our firefighters,” Harris said Wednesday. “It’s just not right. It’s just not right.”
Ben Werschkul is Washington correspondent for Yahoo Finance.
Read the latest financial and business news from Yahoo Finance
The North West Company Inc. Announces Second Quarter Earnings and an Increase in the Quarterly Dividend
WINNIPEG, Manitoba, Sept. 04, 2024 (GLOBE NEWSWIRE) — NWC: The North West Company Inc. (the “Company” or “North West”) today reported its unaudited financial results for the second quarter ended July 31, 2024. It also announced that the Board of Directors has declared a quarterly dividend of $0.40, an increase of $0.01 or 2.6% per share, to shareholders of record on September 30, 2024, to be paid on October 15, 2024.
“Overall, we are very pleased with the results this quarter where we delivered increases in adjusted EBITDA and adjusted net earnings in comparison to a strong second quarter last year,” commented President & CEO, Dan McConnell. “Looking ahead, we are optimistic about the foundation we are building across our company through our focus on operational excellence initiatives and the momentum in our Canadian business which collectively, are expected to offset near-term uncertainty related to economic and inflationary pressures in our International Operations.”
Financial Highlights
Sales Second quarter consolidated sales increased 4.6% to $646.5 million compared to $618.1 million last year driven by same store sales gains, the impact of foreign exchange on the translation of International Operations sales and new stores. Excluding the foreign exchange impact, consolidated sales increased 3.8%, with food sales increasing 3.9% and general merchandise and other sales increasing 3.4% compared to last year. On a same store basis, sales increased 4.3%1 compared to the second quarter last year led by a 6.8%1 increase in same store sales in Canadian Operations. A 0.9%1 increase in same store sales in International Operations was also a factor.
Gross Profit Gross profit increased 7.5% to $219.8 million compared to $204.4 million last year due to sales gains and a 91 basis point increase in gross profit rate compared to last year. The increase in gross profit rate was largely due to changes in sales blend, including a lower blend of wholesale food sales, and a decrease in markdowns.
Selling, Operating and Administrative Expenses Selling, operating and administrative expenses (“Expenses”) increased $15.1 million or 10.1% compared to last year and were up 127 basis points as a percentage to sales. The increase in Expenses is mainly due to cost inflation impacts, including higher wage costs, an increase in depreciation, the impact of foreign exchange on the translation of International Operations Expenses and higher vessel repairs incurred through our investment in Transport Nanuk Inc. (“TNI”) in Canadian Operations. The impact of a $5.5 million increase in share-based compensation costs primarily due to adjustments from changes in the Company’s share price partially offset by a $3.7 million loss on our Fox Lake, Alberta store that was destroyed by wild fire in the second quarter last year (collectively “Non-Comparable Expenses2“) were also factors.
Earnings From Operations Earnings from operations (“EBIT”) increased 0.4% to $54.9 million compared to $54.7 million last year and earnings before interest, income taxes, depreciation and amortization (“EBITDA2“) increased 4.1% to $83.4 million compared to $80.1 million last year due to the sales, gross profit and Expense factors previously noted. A $1.8 million decrease in earnings from our investment in TNI compared to last year resulting from an increase in vessel repairs, that also temporarily delayed the start of the sealift shipping season, combined with lower International shipping rates, was also a factor. Adjusted EBITDA2, which excludes the Non-Comparable Expenses, increased 6.1% to $88.4 million compared to $83.3 million last year and as a percentage to sales was 13.7% compared to 13.5% last year.
Income Tax Expense Income tax expense increased to $13.6 million compared to $12.0 million last year due to higher earnings and an increase in the effective tax rate to 27.0% compared to 24.0% last year. The increase in the effective tax rate is largely due to the impact of The Global Minimum Tax Act (“GMTA”) – Pillar Two legislation enacted in Canada on June 20, 2024, but is effective as of the beginning of the Company’s fiscal year. This legislation applies a minimum effective tax rate of 15% on income earned in each jurisdiction in which the Company operates resulting in a $1.0 million increase in income tax expense and a 198 basis point increase in the effective tax rate in the quarter.
Net Earnings Net earnings decreased 3.0% to $36.9 million compared to very strong net earnings of $38.0 million last year. Net earnings attributable to shareholders were $35.3 million and diluted earnings per share were $0.73 per share compared to $0.76 per share last year. Adjusted net earnings2, which excludes the after-tax impact of the Non-Comparable Expenses, increased $0.6 million or 1.6% to $40.7 million compared to $40.0 million last year due to the gross profit, Expense and GMTA – Pillar Two income tax expense factors.
Non-GAAP Financial Measures
The Company uses the following non-GAAP financial measures: earnings before interest, income taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA and adjusted net earnings. The Company believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company for the reasons outlined below.
Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA) is not a recognized measure under IFRS. Management believes that in addition to net earnings, EBITDA is a useful supplemental measure as it provides investors with an indication of the Company’s operational performance before allocating the cost of interest, income taxes and capital investments. Investors should be cautioned however, that EBITDA should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Company’s performance. The Company’s method of calculating EBITDA may differ from other companies and may not be comparable to measures used by other companies.
Adjusted EBITDA and Adjusted Net Earnings are not recognized measures under IFRS. Management uses these non-GAAP financial measures to exclude the impact of certain income and expenses that must be recognized under IFRS. The excluded amounts are either subject to volatility in the Company’s share price or may not necessarily be reflective of the Company’s underlying operating performance. These factors can make comparisons of the Company’s financial performance between periods more difficult. The Company may exclude additional items if it believes that doing so will result in a more effective analysis and explanation of the underlying financial performance. The exclusion of these items does not imply that they are non-recurring.
These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to the other financial measures determined in accordance with IFRS.
Reconciliation of consolidated earnings from operations (EBIT) to EBITDA and adjusted EBITDA:
| Second Quarter | ||||||
| ($ in thousands) | 2024 | 2023 | ||||
| Earnings from operations (EBIT) | $ | 54,881 | $ | 54,686 | ||
| Add: Amortization | 28,532 | 25,422 | ||||
| EBITDA | $ | 83,413 | $ | 80,108 | ||
| Adjusted for: | ||||||
| Fox Lake wild fire asset write-off(3) | — | 3,694 | ||||
| Share-based compensation expense | 5,014 | (471 | ) | |||
| Adjusted EBITDA | $ | 88,427 | $ | 83,331 | ||
(3) On May 5, 2023, the Company’s store in Fox Lake, Alberta was destroyed by wild fire which resulted in a write-off of assets.
1 Excluding the impact of foreign exchange
2 See Non-GAAP Measures Section of the news release
Reconciliation of consolidated net earnings to adjusted net earnings:
| Second Quarter | ||||||
| ($ in thousands) | 2024 | 2023 | ||||
| Net earnings | $ | 36,897 | $ | 38,045 | ||
| Adjusted for: | ||||||
| Fox Lake wild fire asset write-off, net of tax(3) | — | 2,551 | ||||
| Share-based compensation expense, net of tax | 3,776 | (559 | ) | |||
| Adjusted net earnings | $ | 40,673 | $ | 40,037 | ||
(3) On May 5, 2023, the Company’s store in Fox Lake, Alberta was destroyed by wild fire which resulted in a write-off of assets.
Certain share-based compensation costs are presented as liabilities on the Company’s consolidated balance sheets. The Company is exposed to market price fluctuations in its share price through these share-based compensation costs. These liabilities are recorded at fair value at each reporting date based on the market price of the Company’s shares at the end of each reporting period with the changes in fair value recorded in selling, operating and administrative expenses.
Further information on the financial results is available in the Company’s 2024 second quarter Report to Shareholders, Management’s Discussion and Analysis and unaudited interim period condensed consolidated financial statements which can be found in the investor section of the Company’s website at www.northwest.ca.
Second Quarter Conference Call
North West will host a conference call for its second quarter results on September 5, 2024 at 8:30 a.m. (Central Time). To access the call, please dial 416-406-0743 or 1-800-952-5114 with a pass code of 1022928#. The conference call will be archived and can be accessed by dialing 905-694-9451 or 1-800-408-3053 with a pass code of 7013862# on or before October 3, 2024.
Notice to Readers
Certain forward-looking statements are made in this news release, within the meaning of applicable securities laws. These statements reflect North West’s current expectations and are based on information currently available to management. Forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “intends”, “targets”, “projects”, “forecasts” or negative versions thereof and other similar expressions, or future or conditional future financial performance (including sales, earnings, growth rates, capital expenditures, dividends, debt levels, financial capacity, access to capital, and liquidity), ongoing business strategies or prospects, the Company’s intentions regarding a normal course issuer bid, the potential impact of a pandemic on the Company’s operations, supply chain and the Company’s related business continuity plans, the realization of cost savings from cost reduction plans, the anticipated impact of The Next 100 strategic priorities and possible future action by the Company.
Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the retail industry in general. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company due to changes in economic conditions, political and market factors in North America and internationally. These factors include, but are not limited to, changes in inflation, interest and foreign exchange rates, the Company’s ability to maintain an effective supply chain, changes in accounting policies and methods used to report financial condition, including uncertainties associated with critical accounting assumptions and estimates, the effect of applying future accounting changes, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company’s ability to complete and realize benefits from capital projects, E-Commerce investments, strategic transactions and the integration of acquisitions, the Company’s ability to realize benefits from investments in information technology (“IT”) and systems, including IT system implementations, or unanticipated results from these initiatives and the Company’s success in anticipating and managing the foregoing risks.
The reader is cautioned that the foregoing list of important factors is not exhaustive. Other risks are outlined in the Risk Management section of the 2023 Annual Report and in the Risk Factors sections of the Annual Information Form and Management Information Circular, material change reports and news releases. The reader is also cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company does not intend to update any forward-looking statements whether as a result of new information, future events or otherwise.
Additional information on the Company, including our Annual Information Form, can be found on SEDAR+ at www.sedarplus.com or on the Company’s website at www.northwest.ca.
Company Profile
The North West Company Inc., through its subsidiaries, is a leading retailer of food and everyday products and services to rural communities and urban neighbourhoods in Canada, Alaska, the South Pacific and the Caribbean. North West operates 229 stores under the trading names Northern, NorthMart, Giant Tiger, Alaska Commercial Company, Cost-U-Less and RiteWay Food Markets and has annualized sales of approximately CDN$2.5 billion.
The common shares of North West trade on the Toronto Stock Exchange under the symbol NWC.
For more information contact:
Dan McConnell, President and Chief Executive Officer, The North West Company Inc.
Phone 204-934-1482; fax 204-934-1317; email dmcconnell@northwest.ca
John King, Executive Vice-President and Chief Financial Officer, The North West Company Inc.
Phone 204-934-1397; fax 204-934-1317; email jking@northwest.ca
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
BSI Financial CEO and Founder Gagan Sharma Wins HousingWire Vanguard Award
Visionary recognized for his transformative leadership in mortgage fintech and servicing
IRVING, Texas, Sept. 4, 2024 /PRNewswire/ — HousingWire this week announced the recipients of its 2024 HousingWire Vanguard Awards and acknowledged BSI Financial Services‘ Founder and CEO Gagan Sharma for his visionary leadership and groundbreaking contributions to the mortgage industry. The HousingWire Vanguard Awards program recognizes C-level executives in the housing economy for their outstanding leadership.
Sharma was recognized for his unwavering commitment to transforming mortgage servicing and fostering sustainable homeownership through innovative solutions. Since leading an investment group to acquire BSI Financial Services in 2006, Sharma has steered the company from a small lender with just nine employees to a dominant force in the mortgage servicing arena that manages billions of dollars in assets and employs over 550 professionals.
Under Sharma’s leadership, BSI Financial Services has become known for its cutting-edge technology, operational excellence and a relentless focus on enhancing the borrower experience. Among Sharma’s most notable achievements is the creation of ASSET360, a life-of-loan mortgage servicing analytics technology that has revolutionized how servicers manage exceptions and ensure compliance.
Sharma also spearheaded the development of Bizzy Labs, which provides technology-driven solutions for compliance risk management. In March of this year, Bizzy Labs unveiled a significant enhancement to the company’s proprietary technology, Libretto, which streamlines and automates the loan boarding process for mortgage servicers. Leveraging generative AI, Libretto integrates with various data sources and approximately 1,200 business rules to provide the fastest and most accurate loan data boarding available in the industry. The innovation is helping servicers minimize exceptions, reduce costs and deliver unparalleled borrower experiences.
“I am deeply honored to be recognized by HousingWire,” Sharma said. “This award is a reflection of the incredible work of the entire BSI Financial Services team and our shared commitment to driving innovation and excellence in mortgage servicing. I am deeply grateful for their contributions and am excited to continue this journey.”
About BSI Financial Services
BSI Financial Services is leading the evolution of mortgage servicing for originators, investors, and homeowners. The company brings together a talented team with long mortgage industry expertise, scalable digital capabilities, and deep regulatory understanding. BSI Financial is one of the fastest growing mortgage servicers across the industry and currently services nearly $50 billion in mortgages. The company is approved as a servicer by Fannie Mae, Freddie Mac, FHA, and VA, approved as an issuer by Ginnie Mae, and rated by S&P, Fitch and DBRS as a servicer. For more information, visit www.bsifinancial.com.
Press Contact:
Mike Murray
Strategic Vantage Marketing & Public Relations
240.498.0863
MikeMurray@StrategicVantage.com
View original content:https://www.prnewswire.com/news-releases/bsi-financial-ceo-and-founder-gagan-sharma-wins-housingwire-vanguard-award-302238530.html
SOURCE BSI Financial Services
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Should You Buy Super Micro Computer Before its Upcoming Stock Split? Here's What History Says.
Super Micro Computer (NASDAQ: SMCI), one of the Nasdaq’s best performers this year, is offering investors a golden opportunity. The high-flying stock that even beat the first-half performance of market darling Nvidia, is splitting its stock in a few weeks. The idea is to lower the per-share price, making the stock more accessible to a broader range of investors.
This technology giant has soared over the past five years, advancing more than 2,200%, as it became a favorite of artificial intelligence (AI) customers. Companies focused on AI have been putting in their orders for Supermicro’s equipment, such as servers and full rack scale solutions, for their data centers. And this has helped the 30-year-old Supermicro report higher revenue in the latest quarter than it reported for the entirety of the 2022 fiscal year. The momentum continues, with the company forecasting as much as 230% revenue growth in the next quarter.
Considering all of this, Supermicro makes a great addition to any growth portfolio. But now the question is should you buy the stock before the upcoming split or wait? Let’s take a look at what history says.
The details of Supermicro’s stock split
First, a bit about stock splits in general and the details of Supermicro’s operation. Stock splits involve the issuance of additional shares to current holders to bring down the price of each individual share. They don’t change the total market value of the company or the total value of an investor’s holding. And they don’t change anything fundamental about the particular company so investors won’t go out and buy a stock just because it’s launching a split.
But there is something positive about a split. These operations make it easier for smaller investors to get in on a previously high-priced stock without turning to fractional shares. Fractional shares often are a good option, but they aren’t offered by every brokerage. So, a lower per-share price opens the door to all investors.
Supermicro announced a 10-for-1 stock split, meaning that for every share you own, you’ll receive nine additional shares. Considering the current price of about $430, the post-split price will be about $43 per share. The stock will begin trading at the split-adjusted price on Oct. 1.
Though Supermicro has been a top performer in recent years and even through the first half of this year, it’s had a rough couple of months. The stock has dropped more than 60% from its peak earlier this year. Investors frowned on a narrowing of gross margin and earnings per share that missed analysts’ expectations in the most recently reported quarter, delivered in early August.
Bad news for Supermicro
On top of this, two other pieces of news hit the stock later in the month: Hindenburg Research released a short report, alleging troubles at Supermicro, and separately, Supermicro announced it would be late filing its 10-K annual report. So stock has lost its positive momentum over the past several weeks, but I think these are short-term troubles and won’t alter the company’s long-term growth story.
Now, before deciding whether to buy Supermicro before or after the split, let’s look at what history tells us. From 1980 through today, stocks that have split delivered an average total return in the 12 months following the announcement of more than twice the return of the S&P 500 — 25.4% versus 11.9% for the index. This is according to Statista, based on Bank of America‘s Research Investment Committee data.
If Supermicro follows this pattern, more gains could be ahead for this technology stock, and that means you could benefit by buying the stock now, ahead of the split.
Two points to keep in mind
That said, it’s important to keep a couple of things in mind. First, history offers us a general idea of what may happen — but nothing is guaranteed. Stocks and the market itself could surprise us at any point. Second, the recent news weighing on Supermicro might continue to impact the stock’s performance in the coming weeks. It may take the filing of Supermicro’s 10-K and even an additional earnings report to help the stock regain its positive momentum.
So, what should investors do? It’s time to look at valuation. Now is a great time to buy Supermicro because you can get in on a great long-term growth story for a song — the stock is trading for only 12x forward earnings estimates. If Supermicro follows historical patterns it could lift your portfolio in the coming year, but even if it doesn’t, you still have a solid chance of winning with this company that has what it takes to deliver earnings growth and stock performance over the long term.
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Should You Buy Super Micro Computer Before its Upcoming Stock Split? Here’s What History Says. was originally published by The Motley Fool
How Rich Are You? Here's The Net Worth That Defines Upper, Middle, and Lower Class
You’ve heard the terms “upper class,” “middle class,” and “lower class” tossed around in conversations about money and society. But what do these labels mean? And, more importantly, where do you fit in?
Don’t Miss:
While there’s no perfect way to define economic classes, one common approach is to look at net worth. Your net worth isn’t just about how much cash you have in the bank – it’s the total value of everything you own minus what you owe. Think of it as a financial report card that shows your overall wealth.
According to recent data from the Federal Reserve, here’s how the numbers stack up:
If you’re in the upper class, you’re sitting pretty. The top 10% of earners have an average net worth of $2.65 million. Even if you’re squeaking into the upper class (the 80-90% range), you’re looking at about $793,000.
Moving down to the middle class, things get a bit more varied. The upper-middle class folks have an average net worth of around $300,800. Your typical middle-class family comes in at $169,420. And if you’re in the lower-middle class, you’re looking at about $58,550.
Trending: The average American couple has saved this much money for retirement — How do you compare?
Now, for the lower class, the numbers take a sharp dive. The average net worth here is just $16,900. That’s a pretty dramatic contrast to the millions at the top.
But here’s the thing – these are just averages. Your situation might look very different. Maybe you’re a recent college graduate with a mountain of student debt but a high-paying job. Or perhaps you’re retired with a modest income but a paid-off house and hefty savings. Life’s complicated, and so are finances.
It’s also worth noting that net worth isn’t everything. Your day-to-day life is probably more affected by your income and cost of living. A teacher in a small town might have a lower net worth than a struggling actor in New York City, but who’s better off?
See Also: Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
So, what can you do with this information? First, don’t panic if your net worth isn’t where you want it to be. Remember, building wealth takes time. If you’re young, you’ve got plenty of years to grow your nest egg.
If you want to boost your net worth, here are a few tips:
-
Pay off high-interest debt. It’s hard to build wealth when you’re bleeding money on interest payments.
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Save and invest regularly. Even small amounts add up over time.
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Consider buying a home. Home equity is a big part of many people’s net worth.
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Invest in yourself. Learning new skills can lead to higher-paying jobs.
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Live below your means. The less you spend, the more you can save and invest.
Trending: Are you rich? Here’s what Americans think you need to be considered wealthy.
If you’re nearing retirement or already enjoying your golden years, here are a few moves to boost your financial comfort:
-
Think about downsizing your home, too. This can unlock some of your equity and reduce your living costs. Also, if you’re still in the workforce, maxing out your retirement accounts with catch-up contributions is a smart way to pump up your savings as you approach retirement.
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Don’t overlook Health Savings Accounts (HSAs), either. They offer triple tax advantages and are an excellent way to stash away funds for those inevitable medical expenses that tend to pop up as we age.
-
Remember, your experience is invaluable. Many professionals with years of experience thrive in consulting or mentoring, turning decades of know-how into rewarding side jobs or even new careers.
Your value goes way beyond your bank balance! Remember, being ‘upper class’ or ‘lower class’ is just one way to slice it. What’s truly important is how you’re moving toward your own financial goals. Everyone’s journey is different, and chatting with a financial advisor could be a great move if you’re aiming for some tailored advice to hit those targets. They can help you map out a plan that fits just right for what you need.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Market Digest: LEN, NJR, MDB, DELL, ABNB
Summary
The calendar turned to September, historically the worst month of the year, and all of a sudden things go to heck and in a handbasket. Yet again, the largest drag on the stock market was the heavily weighted Information Technology (XLK -4.6%) sector. The group was once again dragged down by once-beloved semiconductor stocks, as the major semi indices getting pulverized by 7% to 8%. Since July 17, the iShares Semiconductor ETF (SOXX) and the VanEck Vectors Semi ETF (SMH) have dropped at least 6% on three different days. All three of those days featured very heavy volume, a clear sign of institutional distribution. We started to see distribution on the semis and the Nasdaq 100 (QQQ) back in the middle/latter part of July. Most of the major semi stocks have lost their 50-day average for the second time since late July, while a handful are breaking below their more-important 200-day averages and are closing in on their initial lows from early August. The QQQ cratered 3.2%, broke down out of a developing bull flag, and closed near a 38.2% retracement of the rally since the August 5 intraday low. We did see a minor 5/13 exponential moving average crossover sell signal, reversing the buy sig
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Kforce Inc. Announces Participation in the J.P. Morgan Ultimate Services Investor Conference
TAMPA, Fla., Sept. 04, 2024 (GLOBE NEWSWIRE) — Kforce Inc. KFRC, a provider of professional staffing services and solutions, today announced that management will participate in the J.P. Morgan Ultimate Services Investor Conference (USIC) in New York on November 14, 2024. The investor presentation can be accessed at http://investor.kforce.com/ under “Events and Presentations”.
About Kforce Inc.
Kforce is a solutions firm specializing in technology, finance and accounting, and professional staffing services. Our KNOWLEDGEforce® empowers industry-leading companies to achieve their digital transformation goals. We curate teams of technical experts who build solutions custom-tailored to each client’s needs. These scalable, flexible outcomes are shaped by deep market knowledge, thought leadership and our multi-industry expertise. Our integrated approach is rooted in 60 years of proven success deploying highly skilled professionals on a temporary and direct-hire basis. Each year, more than 20,000 talented experts work with a significant majority of the Fortune 500. Together, we deliver Great Results Through Strategic Partnership and Knowledge Sharing®.
Michael R. Blackman, Chief Corporate Development Officer
(813) 552-2927
Cautionary Note Regarding Forward-Looking Statements
All statements made at this conference, other than those of a historical nature, are forward-looking statements including, but not limited to, statements regarding the evolution and increasingly instrumental role of technology in driving businesses, demand drivers of technology spend, the acceleration of technological change as well as the Firm’s confidence in being well positioned for improving market conditions. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions; growth rate in temporary staffing and the general economy; competitive factors; risks due to shifts in the market demand; changes in client demand or our ability to adapt to such changes; a constraint in the supply of consultants and candidates or the Firm’s ability to attract and retain such individuals; the success of the Firm in attracting and retaining its management team and key operating employees; changes in business or service mix; the ability of the Firm to repurchase shares; the occurrence of unanticipated expenses, income, gains or losses; the effect of adverse weather conditions; changes in our effective tax rate; our ability to comply with government regulations, laws, orders, guidelines and policies that impact our business; risk of contract performance, delays, termination or the failure to obtain new assignments or contracts, or funding under contracts; ability to comply with our obligations in a remote work environment; continued performance and security of, and improvements to, our enterprise information systems; impacts of actual or potential litigation or other legal or regulatory matters or liabilities, including the risk factors and matters listed from time to time in the Firm’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Firm’s Form 10-K for the fiscal year ended December 31, 2023, as well as assumptions regarding the foregoing. The terms “should,” “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan” and similar expressions and variations thereof contained in this press release identify certain of such forward-looking statements, which speak only as of the date of this press release. As a result, such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Future events and actual results may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and the Firm undertakes no obligation to update any forward-looking statements.
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Super Micro Computer shares tumble on Barclays downgrade
Investing.com — Shares of Super Micro Computer, Inc (NASDAQ:SMCI) were down on Wednesday following a downgrade from Barclays.
Super Micro Computer shares were down 3% in pre-market trading at 8:18 am (1214 GMT)
Barclays’ analysts have raised concerns about SMCI’s future prospects, prompting a downgrade to an equal weight rating and a revised price target of $438. This is mainly due to the company’s declining gross margins, persistent customer losses, and issues with internal controls.
One of the key factors behind the downgrade is SMCI’s recent performance in terms of gross margins. In the June quarter, the company’s overall gross margin fell significantly to 11.3%, marking a 430 basis point decline from the previous quarter.
The gross margin for AI servers was reported to be in the high single digits, while Dedicated Liquid Cooling (DLC) server margins were even lower.
“MCI has been giving away DLC components for free to match or price below the air-cooled rack pricing provided by Dell (NYSE:DELL),” said analysts at Barclays.
The pricing strategy, combined with supply chain constraints, has pressured margins, leading to concerns about potential P/E multiple compression and diminished investor confidence.
“SMCI has been ceding shares in its top two customers: Musk entities and Coreweave (private, not covered, except for TSLA),” the analysts said.
Previously, SMCI had an exclusive supplier relationship with Musk Inc., but recent developments have seen the business split evenly between SMCI and Dell.
This shift has resulted in a drop in SMCI’s market share, to around 50% by June 2024 from 100% in 2023. Coreweave, another major customer, has also reduced its reliance on SMCI, a trend analysts attribute to improved GPU supply and Dell’s strengthened competitive position.
Adding to these challenges is the uncertainty surrounding the new GB200 server platform. Barclays’ analysts worry that SMCI might hold a smaller market share in GB200 servers compared to its position with Hopper-based servers.
The expected lower margins for GB200 servers could further pressure SMCI’s profitability. Additionally, the absence of definitive customer orders for the GB200 platform exacerbates the uncertainty, especially as competition heats up and margins could potentially shrink.
Another concern for Barclays is SMCI’s internal controls and corporate governance. The delay in filing the 10-K report has raised red flags, highlighting issues related to transparency and governance. SMCI’s lack of detailed financial disclosures, including quarterly order intake and backlog, has been a point of contention.
The company’s past history with regulatory issues and its previous delisting from Nasdaq have only intensified these concerns.
In light of these factors, Barclays has adjusted its price target for SMCI to $438, using a valuation multiple of 12x FY25E EPS of $36.48. This new target aligns more closely with Dell’s valuation multiple, reflecting a more cautious stance given the current margin trends and internal issues.
While Barclays remains optimistic about the long-term prospects of the AI sector, it has identified Flex (NASDAQ:FLEX) as a preferred alternative investment. Flex’s increasing involvement in switch tray and power components for GB200 systems, along with its gains in Google (NASDAQ:GOOGL) TPU server assembly, makes it a more attractive option in the current environment.
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George Weston Limited to Issue $250 Million of Senior Unsecured Notes
TORONTO, Sept. 3, 2024 /CNW/ – WN – George Weston Limited (the “Company”) announced today that it has agreed to issue, on a private placement basis to qualified accredited investors in each of the Provinces of Canada, $250 million aggregate principal amount of senior unsecured notes of the Company (the “Notes”) that will bear interest at a rate of 4.193% per annum and will mature on September 5, 2029 (the “Offering”).
The Notes are being offered on an agency basis by a syndicate of agents led by BMO Capital Markets, CIBC Capital Markets, and RBC Capital Markets. Subject to customary closing conditions, the Offering is expected to close on September 5, 2024.
The net proceeds of the Offering may be used by the Company for general corporate purposes.
It is a condition of closing of the Offering that the Notes be rated at least “BBB” with a “Stable” trend by DBRS Limited and at least “BBB” by Standard and Poor’s Rating Services. The Notes will be unsecured obligations of the Company and will rank equally with all existing and future unsecured and unsubordinated indebtedness of the Company.
The Notes have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Notes in any jurisdiction where such offer, solicitation or sale would be unlawful.
About George Weston Limited
George Weston Limited is a Canadian public company founded in 1882. The Company operates through its two reportable operating segments, Loblaw Companies Limited and Choice Properties Real Estate Investment Trust. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services. Choice Properties owns, manages and develops a high-quality portfolio of commercial and residential properties across Canada.
Forward-Looking Statements
This news release contains forward-looking statements about the Company’s current expectations regarding future events. Specific forward-looking statements in this news release include, but are not limited to, statements with respect to the expected final terms of the Notes, the ratings for the Notes, the closing of the Offering and the use of proceeds of the Offering.
Forward-looking statements reflect the Company’s estimates, beliefs and assumptions, which are based on management’s perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct.
Numerous risks and uncertainties could cause the Company’s actual results to differ materially from those expressed, implied, or disclosed in the forward-looking statements, including those described in the “Enterprise Risks and Risk Management” sections of the Management’s Discussion and Analysis in the Company’s 2023 Annual Report and the Company’s Annual Information Form for the year ended December 31, 2023.
Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company’s expectations only as of the date of this news release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE George Weston Limited
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2 Top Dividend Stocks I Plan to Buy Even More of This September
Dividend stocks are proven wealth builders. The average dividend stock has delivered above-average annual total returns over the long term, with the highest returns coming from companies that consistently increase their dividends. The average dividend grower has delivered a 10.2% annualized total return over the last five decades compared to 7.7% for the average member of the S&P 500, according to data from Hartford Funds and Ned Davis Research.
That data is driving me to load my portfolio with dividend growth stocks. I try to buy several each month to help build my wealth. Topping my list this September is Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) and Rexford Industrial Realty (NYSE: REXR). Here’s why I plan to buy even more of these top dividend stocks this month.
A powerful income generator
Brookfield Renewable has done a stellar job increasing its dividend over the years. The leading global renewable energy producer has grown its payout at a 6% compound annual rate over the last 20 years. It has delivered at least 5% annual dividend increases for 13 straight years.
The company’s high yield, which currently sits around 5%, and its steadily growing dividend have helped give it the power to produce strong total returns. Over the last decade, Brookfield has generated a 10.8% average annual total return.
Brookfield Renewable should have ample power to continue increasing its dividend in the future. It expects to grow its funds from operations (FFO) by more than 10% annually through 2028. Several factors power that forecast. Brookfield expects organic growth drivers like inflation-linked contractual rate increases, margin enhancement activities, and its massive renewable energy project development pipeline to drive 7% to 12% annual FFO per share growth through 2028. Meanwhile, it anticipates accretive acquisitions pushing its growth rate above 10% annually. This forecast easily supports its plan to grow its dividend by 5% to 9% annually over the long term. Add its high yield to its high growth rate, and Brookfield Renewable could generate average annual total returns in the mid-teens from here.
Focusing on a prime location continues to pay big dividends
Rexford Industrial Realty has been a dividend growth juggernaut. The industrial REIT has increased its payout every year since coming public in 2013. It has delivered a blistering 18% compound annual dividend growth rate over the last five years, nearly double the 10% compound annual growth rate of its peers. That has helped drive a roughly 15% compound annual total return for its shareholders since it came public.
The REIT has grown briskly by focusing on the high-demand, supply constrained Southern California industrial market. Those market fundamentals keep occupancy rates high, which drives robust rent growth. Rexford Industrial Realty further capitalizes on that market by making accretive acquisitions.
Rexford Industrial Realty recently bought a high-quality portfolio of 48 properties from Blackstone in a $1 billion deal. Those properties come with embedded growth upside from future rental increases. That acquisition helped drive a 20.9% increase in the REIT’s net operating income in the second quarter and an 11.1% jump in its core FFO per share.
The company has lots of embedded growth ahead from that baseline. It sees a combination of repositioning and redevelopment projects, embedded annual contractual rental increases, mark-to-market rent growth as legacy leases expire, and recent investments growing its net operating income by 35% over the next three years. Meanwhile, future accretive acquisitions would further enhance its growth rate. With a fortress-like balance sheet, Rexford has ample liquidity to capitalize on accretive acquisition opportunities as they arise. Those visible growth catalysts should enable the REIT to continue increasing its dividend, which currently yields more than 3%.
Wealth-building dividend growth stocks
Brookfield Renewable and Rexford Industrial Realty have done fantastic jobs increasing their dividends over the years. That’s enabled them to grow value for shareholders by delivering strong total returns. They both have lots of visible growth ahead and should have no trouble increasing their payouts and generating strong total returns in the future. That’s why I plan to add to my positions in each one again this month.
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Matt DiLallo has positions in Blackstone, Brookfield Renewable, Brookfield Renewable Partners, and Rexford Industrial Realty. The Motley Fool has positions in and recommends Blackstone, Brookfield Renewable, and Rexford Industrial Realty. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
2 Top Dividend Stocks I Plan to Buy Even More of This September was originally published by The Motley Fool