Cost Basis – After Hours http://after-hours.org/ Thu, 23 Jun 2022 14:17:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://after-hours.org/wp-content/uploads/2021/07/icon-1-150x150.png Cost Basis – After Hours http://after-hours.org/ 32 32 Study creates basis for vaccine – ScienceDaily https://after-hours.org/study-creates-basis-for-vaccine-sciencedaily/ Thu, 23 Jun 2022 13:26:14 +0000 https://after-hours.org/study-creates-basis-for-vaccine-sciencedaily/ A research team from MedUni Vienna has uncovered the key mechanisms of mugwort pollen allergy, laying the groundwork for the development of the world’s first vaccine. Mugwort (Artemisia vulgaris) poses a serious problem for allergy sufferers in our latitudes from July to September. Currently, the symptoms, which often lead to asthma, can only be treated […]]]>

A research team from MedUni Vienna has uncovered the key mechanisms of mugwort pollen allergy, laying the groundwork for the development of the world’s first vaccine. Mugwort (Artemisia vulgaris) poses a serious problem for allergy sufferers in our latitudes from July to September. Currently, the symptoms, which often lead to asthma, can only be treated symptomatically. Recent findings are an essential first step towards causative therapy and prevention of mugwort pollen allergy. The landmark study has just been published in the Journal of Allergy and Clinical Immunology.

In their preclinical research, scientists began at the point of origin of mugwort pollen allergy. They discovered where and how immunoglobulin E (IgE) antibodies detect the major mugwort pollen allergen (Art v 1) and trigger the exaggerated immune response. They also discovered that the distinct protein building blocks of the major mugwort pollen allergen are in such a configuration that they can be blocked by IgG (immunoglobulin G) antibodies.

These findings by the research team led by Maja Zabel and Winfried Pickl, in collaboration with the research team of Rudolf Valenta (all from the Center for Pathophysiology, Infectious Diseases and Immunology of MedUni Vienna), laid the groundwork development of a mugwort allergy vaccine: “Our shows how fragments of the major mugwort pollen allergen can be used for an effective and safe treatment,” says Winfried Pickl, study leader. “Our observations of the vaccine’s mode of action show that one end of the main mugwort pollen allergen provides important docking sites for pathogenic IgE antibodies from allergy sufferers, which can be used to create a new vaccine. “, says Winfried Pickl. . The first author of the study is Maja Zabel, who conducted the work during her doctoral studies at MedUni Vienna as part of the FWF-funded doctoral program “Molecular, Cellular and Clinical Allergology, MCCA”. This program is now part of the Danube Allergy Research Cluster (Danube ARC), which is funded by the state of Lower Austria.

Widespread in the northern hemisphere

Mugwort is widespread in the northern hemisphere, where its pollen causes discomfort and even asthma in sensitized people from July to September. The only treatments available for about 10% of the mugwort-sensitive population are limited to symptomatic relief. The current MedUni Vienna study is an internationally recognized first step towards causal therapy and prevention. “Then we will use the results of our research to produce a synthetic vaccine that can be evaluated in a clinical trial,” says Rudolf Valenta, describing the next step on the path to developing an effective vaccine.

Source of the story:

Materials provided by Medical University of Vienna. Note: Content may be edited for style and length.

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‘Rock Bottom’: Bitcoin Holders Realize $7 Billion Losses During the Week https://after-hours.org/rock-bottom-bitcoin-holders-realize-7-billion-losses-during-the-week/ Tue, 21 Jun 2022 18:38:40 +0000 https://after-hours.org/rock-bottom-bitcoin-holders-realize-7-billion-losses-during-the-week/ On-chain data shows that Bitcoin BTC/USD carriers have reached historically high pain thresholds in terms of realized losses. What happened: According to an on-chain analytics company glass knotcurrent market conditions have resulted in realized losses reaching a new all-time high. Over the past week, realized losses hit a record high of $7.325 billion and market-wide […]]]>

On-chain data shows that Bitcoin BTC/USD carriers have reached historically high pain thresholds in terms of realized losses.

What happened: According to an on-chain analytics company glass knotcurrent market conditions have resulted in realized losses reaching a new all-time high.

Over the past week, realized losses hit a record high of $7.325 billion and market-wide losses topped $2.4 billion a day.

According to Glassnode analysts, both long-term and short-term holders are now at a loss and holding coins below their average cost.

They noted that any previous instances where these cohorts experienced an unrealized loss had only coincided with late bear market capitulations, which concurred with the profitability measures above.

“The current market has this metric [net flows] returning a net outflow of -2.8% which is similar to post-COVID crisis outflows,” the analysts said.

“As such, despite a sharp drop in prices, FX balances have seen a net balance depletion at a rate of 2.8% of the total this week.”

See also: IS BITCOIN A GOOD INVESTMENT?

Price action: According to data from BenzingaPro, Bitcoin was trading at $21,157, gaining 5.82% in the past 24 hours. The leading digital asset is down 69% from its all-time high.

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UPDATE: Free vaccinations and booster shots available across the city https://after-hours.org/update-free-vaccinations-and-booster-shots-available-across-the-city/ Sat, 18 Jun 2022 05:31:12 +0000 https://after-hours.org/update-free-vaccinations-and-booster-shots-available-across-the-city/ CORPUS CHRISTI, TX – Multiple locations are available next week for COVID-19 vaccines and first and second dose booster shots. City-County Public Health District immunization clinics will be closed Monday, June 20 for the June 19 holiday, but will reopen Tuesday, June 21. However, clinics at La Palmera Mall and former Corpus Christi Bay outlets […]]]>

CORPUS CHRISTI, TX – Multiple locations are available next week for COVID-19 vaccines and first and second dose booster shots. City-County Public Health District immunization clinics will be closed Monday, June 20 for the June 19 holiday, but will reopen Tuesday, June 21. However, clinics at La Palmera Mall and former Corpus Christi Bay outlets in Robstown will remain open as planned. Vaccines for children are available free of charge with parental consent at all city and county public health district immunization clinics.

Vaccines

The CDC recommends that Pfizer’s COVID-19 vaccine be given to children age five and older given as a series of two doses, three weeks apart. People between the ages of 5 and 17 must have verbal or written parental permission to receive a Pfizer vaccine.

  • The first and second doses of the Pfizer vaccine are available for anyone over the age of 5
  • The first and second doses of the Moderna vaccine are available to anyone over the age of 18
  • Johnson & Johnson’s ‘one and done’ vaccine is available to anyone over 18

Third doses of the COVID-19 vaccine are available for the following Pfizer and Moderna vaccinees who completed their initial series at least 28 days ago and are:

The CDC recommends immunocompromised people who have received a primary Johnson & Johnson vaccine receive an additional Pfizer or Moderna vaccine four weeks after their initial dose.

Things to know:

  • To pre-register online, go to www.cctexas.com/vaccineregistration and click on the “Vaccination Registration” link. You must obtain a Quick Response (QR) code during online pre-registration once online pre-registration reaches the limit, you will not be able to register until additional vaccines become available
  • Walk-ins are welcome on a first-come, first-served basis
  • If you received the Moderna vaccine for your first dose, you should receive the Moderna vaccine for your second dose
  • If you registered for the first dose, you do not need to re-register for the second dose
  • Pre-register by calling 361-826-7200, option 2

recall shots

The Centers for Disease Control and Prevention (CDC) updated their clinical recommendations to include the following:

First dose reminder shots:

  • Pfizer-BioNTech COVID-19 vaccine as a single booster dose for children aged 5 to 11 years, five months after receiving their first series of COVID-19 vaccines
  • The first booster doses of Pfizer COVID-19 can be given to anyone aged 12 years and over at least five months after receiving a primary series of 2 doses of mRNA: can be given after three months if immunocompromised
  • Moderna COVID-19 first-dose booster shots can be given to anyone 18 years of age or older at least five months after receiving a primary series of 2 doses of mRNA; can be administered after three months if immunocompromised
  • People who received the Johnson & Johnson vaccine for their primary series can receive any first COVID-19 booster dose after two months

Second dose reminder shots

  • The booster injections of the second dose of the Pfizer or Moderna The COVID-19 vaccine can be given to people aged 50 and over at least four months after receiving a first booster dose of any licensed or approved COVID-19 vaccine
  • The booster injections of the second dose of the Pfizer The COVID-19 vaccine can be given to immunocompromised people aged 12 and over at least four months after receiving a first booster dose of any authorized or approved COVID-19 vaccine
  • The booster injections of the second dose of the Modern The COVID-19 vaccine can be given to immunocompromised people aged 18 and over at least four months after receiving a first booster dose of any licensed or approved COVID-19 vaccine
  • Adults who have received a primary vaccine and a booster dose of Johnson & Johnson The COVID-19 vaccine can be given a second booster dose using the Pfizer or Moderna Covid-19 vaccine

Visit www.cctexas.com/coronavirus for more information. You can also find updates on the city’s social networks Facebook @citygov and Twitter @cityofcc.

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AWS, Azure and Google Cloud are redefining telecommunications business models, platforms and digital services https://after-hours.org/aws-azure-and-google-cloud-are-redefining-telecommunications-business-models-platforms-and-digital-services/ Wed, 15 Jun 2022 07:59:44 +0000 https://after-hours.org/aws-azure-and-google-cloud-are-redefining-telecommunications-business-models-platforms-and-digital-services/ 5G is the first “G” of cellular technologies that paves the way for communications service providers (CSPs) to operate in the software layer. The software represents a break with the transactional model characteristic of telecommunications equipment manufacturing. Software points to a more consistent and predictable recurring revenue model, similar to that of hyperscalers. According to […]]]>

5G is the first “G” of cellular technologies that paves the way for communications service providers (CSPs) to operate in the software layer. The software represents a break with the transactional model characteristic of telecommunications equipment manufacturing. Software points to a more consistent and predictable recurring revenue model, similar to that of hyperscalers. According to global technology watch firm ABI Research, this has implications for the business models that underpin the industry.

“With the growing importance of software, the business imperative from a vendor perspective is clear: move from a finite supply of equipment (3G and 4G), characterized by scarcity, to monetization models based on software (5G) where the supply is essentially endless,” says Don Alusha, principal analyst 5G Core & Edge Networks at ABI Research.

With the 3G and 4G networks, the commercial arrangements revolve around a CAPEX purchase model. FSCs pay a specific price to own an asset. This can be hardware (cellular antennas) or software based on a perpetual license. The value can be paid in cash, financed or leased. But what is most relevant, however, is that there is a fixed price. Once the deal is done, Network Equipment Vendors (NEVs) like Ericsson, Huawei, Nokia and ZTE are assured of upfront payment upon signing a contract. In a CAPEX model, NEVs have one point of tension: winning the deal. The risk of implementing purchased technology rests with the CSPs. A key point to note is that usually by the time a product is adopted and used, most of the budget has already been spent on installation, integration and other professional services needed to get the product operational. .

In contrast, in a 5G ecosystem, and by extension, in the cloud and software world, there may not be a “product” sale. Technology vendors have yet to channel the research and development (R&D) needed to develop the technology and win a market. They have to invest in marketing, run the sales cycle in hopes of winning the deal. In this respect, there is not much difference with the CAPEX model. The difference is that OPEX models are associated with recurring (micro) transactions: additional compute, more storage, more modules, etc. offset volume due to a higher cost structure associated with software; the marginal cost of producing an additional copy is very low. This underpins the business model and strategy of hyperscalers (Amazon, Google and Microsoft),” says Alusha.

Although very subtle, there is a growing consumerization of telecommunications technologies due to growing cloud and software adoption. The software business is an economic enterprise of scale. A considerable investment is made initially to develop a software product, and then the marginal cost of producing each is very low. The fundamental difference between construction software and manufacturing equipment is that the latter involves the creation and transfer of ownership of a product, while the former is much more intangible. There are benefits from a balance sheet perspective, as CSPs now pay for software based on a rough approximation of usage over time – an operational expense – as opposed to a fixed cost basis in a CAPEX-centric world. . This improves their return-on-investment (ROIC) metrics.

In the new world of cloud and software, in addition to selling a transaction, NEVs must also have a material and positive impact on the recipient of the service to create value. “It allows the industry to explore new business models that look beyond where the money is in the value chain, to see where it will be in the years to come. Cloudification of telecommunications equipment offers unprecedented opportunities (eg innovation, better economics, business agility, etc.) but it is inherently new technologies for the industry and carries risk. There will be challenges, given the lack of maturity and many unknowns around performance, best practices, and control of technology assets. But those operators who address these challenges first may well gain a competitive advantage in the market,” concludes Alusha.

These findings are taken from ABI Research’s Cloudification of Telecom Technologies and Equipment application analysis report. This report is part of the company’s 5G Core & Edge Networks research service, which includes research, data and analyst insights. Based on in-depth primary interviews, application analytics reports present an in-depth analysis of trends and key market drivers for a specific technology.

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US corporate debt hit hard as inflationary shock heightens economic fears https://after-hours.org/us-corporate-debt-hit-hard-as-inflationary-shock-heightens-economic-fears/ Mon, 13 Jun 2022 18:20:00 +0000 https://after-hours.org/us-corporate-debt-hit-hard-as-inflationary-shock-heightens-economic-fears/ June 13 (Reuters) – U.S. corporate bonds took a hit on Monday as expectations of an aggressive rate hike cycle following stronger-than-expected inflation data last week intensified concerns over the economic outlook and the ability of companies to repay their debt. Prices of major exchange-traded funds that track both the investment-grade bond market and the […]]]>

June 13 (Reuters) – U.S. corporate bonds took a hit on Monday as expectations of an aggressive rate hike cycle following stronger-than-expected inflation data last week intensified concerns over the economic outlook and the ability of companies to repay their debt.

Prices of major exchange-traded funds that track both the investment-grade bond market and the U.S. high-yield bond market have fallen, while the cost of insuring against potential defaults has risen sharply, a sign of aversion to risk.

The U.S. Federal Reserve will meet on Wednesday amid strong selling in stocks and bonds following May data that showed U.S. consumer prices rose at their fastest pace since 1981, led by soaring gasoline and food prices.

Join now for FREE unlimited access to Reuters.com

Relentless inflation could push the Fed to raise rates more than the market previously expected, with some investment banks forecasting a 75 basis point hike this week or even eyeing a possible 100 basis point hike. Read more

A sell-off in short-term Treasuries pushed two-year US government bond yields to their highest level since late 2007, impacting credit markets.

“Yields are going up, which will make it harder for small businesses to refinance and as a result, it will be harder for them to repay debt,” said Thomas Hayes, managing member of Great Hill Capital in New York.

BlackRock’s iShares iBoxx $ High Yield Corporate Bond ETF (HYG.P) — an exchange-traded fund that tracks the US junk bond market — fell 2.1% to trade at $74 l share, its lowest since April 2020, when markets were rocked by the coronavirus crisis.

The spread on the Markit High Yield Credit Default Swap Index – which tracks the cost of insuring high yield corporate debt and is a junk market indicator – has risen to more than 570 basis points. base on Monday against 532 on Friday, reaching its highest level. since May 2020.

The spread on the equivalent investment grade index rose to 96.7 basis points on Monday from 91.1 on Friday. The spreads of the two indices have widened since the beginning of the year.

Standard Chartered said in a note on Monday that while it expected a half-point hike this week, that did not preclude larger increases of 75 basis points or even a full percentage point. .

Signs of an economic slowdown — including a survey last week showing U.S. consumer confidence plunged to a record low in early June — weren’t enough to dissuade the central bank from tackling inflation, a- she declared.

“Various parts of the credit markets are showing signs of strain…suggesting that financial markets are very concerned about the potential underpinnings of the economy here,” said Ryan Detrick, senior market strategist at LPL Financial.

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Reporting by Mehnaz Yasmin and Davide Barbuscia; Editing by Bill Berkrot

Our standards: The Thomson Reuters Trust Principles.

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APAC Week Ahead: A 75bp Rise? https://after-hours.org/apac-week-ahead-a-75bp-rise/ Sun, 12 Jun 2022 02:20:48 +0000 https://after-hours.org/apac-week-ahead-a-75bp-rise/ JHigher-than-expected US CPI data completely killed the “Fed pause” bets that had spurred the market’s fleeting rebound. Yields on short-term US bonds rose above those on long-term bonds, with US 5- and 30-year bond yields returning to inversion, again signaling economic recession warning. But it should be noted that historically, a recession usually occurs 18-24 […]]]>

JHigher-than-expected US CPI data completely killed the “Fed pause” bets that had spurred the market’s fleeting rebound. Yields on short-term US bonds rose above those on long-term bonds, with US 5- and 30-year bond yields returning to inversion, again signaling economic recession warning. But it should be noted that historically, a recession usually occurs 18-24 months after reversal and is followed by negative GDP growth and falling inflation. This signals that the Fed needs to “front” rate hikes to ease inflationary pressures at the expense of economic growth. It might be difficult to achieve a “soft landing” if that’s what happens.

With the high expectation of a 50 basis point rate hike by the Fed this week, any softening in Chairman Jerome Powell’s tone could be seen as a positive sign in extreme fear sentiment, although bond markets now price in an oversized rate hike of 75 basis points.

In China, Beijing and Shanghai have restarted disorderly testing for Covid-19 in some areas, with Shanghai once again shutting down part of the city, adding to bear market fear factors. However, Asian stock markets have outperformed their US and European peers over the past three months, with the devaluation of the Japanese yen and Chinese yuan supporting stocks in both countries, which could become alternative flows from investment funds.

Key points

  • Are oil prices likely to remain subdued? Despite a 3-month high in crude prices, oil markets slowed last week on renewed fears of recession and China’s partial shutdowns. See oil prices
  • US equities have yet to bottom, with the S&P 500 once again approaching the year’s low. Will the Fed’s dot-plot projection provide positive clues? SPX Motion Monitoring
  • Australian equities ended last week badly, hit hard by the RBA’s oversized rate hikes. From a technical standpoint, the ASX 200 may continue its downtrend, heading towards an 18-month low. See the Australia 200 trend
  • USD/JPY hit a new 20-year high as US 10-year bond yields continue to climb. There is little chance that the BOJ will provide a ceiling for the pair this week. View USD/JPY price
  • Cryptocurrencies have been hammered to the edge, with Ethereum heading towards the lowest level seen in March 2021. Will financial market turmoil bring digital assets back to pre-pandemic levels? See cryptocurrency movements

Key economic data and events (June 13 – June 19)

China Retail Sales (May) – Wednesday

China’s economy was hit hard by strict Covid lockdowns in April, when retail data fell 11.1% year-on-year. It should recover quickly since, with a growth forecast of 0.5% in May. Industrial production is also expected to improve to -0.1% in May, from -2.9% the previous month.

FOMC Meeting – Thursday

As previously expected, the Fed will raise interest rates an additional 50 basis points to 1.5% on Thursday and 50 basis points in July to 2%. The Reserve Bank will also begin trimming its balance sheet by $47.5 billion, or “QT,” starting this week, with the aim of increasing the size to $95 billion a month by September. Futures markets have priced in a 50 basis point rate hike at each of the next meetings, driving the benchmark rate to 3.5% by the end of the year, according to Bloomberg. The Fed’s dot chart will be a key element in assessing the future trajectory of funds rates.

US PPI data and retail sales for May will be released on Tuesday and Wednesday respectively, which are the main economic indicators for gauging the cost of goods that have been made and consumer demands, providing clues on the path of inflation. . According to Thomson Reuters, the consensus calls for a high PPI of 0.8% in May against 0.5% in April. Retail sales are expected to fall to 0.2% in May from 0.9% in April, signaling that the rising cost of living may begin to dampen demand.

Employment Australia (May) – Thursday

Another strong Australian jobs data is expected for May, 25,000 new jobs are expected, which is not good news for stocks and local currencies. Currently, central banks are becoming very aggressive in rate hikes, making strong economic data bad news for risky assets.

New Zealand GDP (Q1) – Thursday

The consensus calls for a slowdown in the first quarter of New Zealand GDP growth, with 5.3% y/y against 5.6% in the previous quarter, and 0.6% q/q, against 3% in Q4 in reason for the omicron outbreak. But it is a lagging indicator for the economy which should have recovered since April when the country raised the Covid alert level to orange.

BOJ policy meeting

The Bank of Japan is not expected to change its guidance to control the government bond yield curve by keeping the 10-year JGB yield below 0.25%, although the Japanese CPI just hit the target inflation rate above 2%. Any hint of less dovish rhetoric from the BOJ will certainly put a cap on the rally in USD/JPY. However, luck is low in this encounter.

BOE policy meeting – Thursday

The Bank of England is expected to raise the interest rate by another 25 basis points, to 1.25% at the next meeting, as UK inflation climbed to 9% in April, despite a recession warning from the bank central. The country’s economy is stagnating due to the war-triggered energy crisis and soaring consumer prices, causing the bank to struggle to deploy a 50 basis point hike.

Upcoming European Week

  • Average earnings in the UK (April)
  • JD Sports full year
  • Tesco first quarter results

Read more

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Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not expressing opinions) is provided for informational purposes only and does not take into account your personal circumstances or objectives. Nothing in this document is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically restricted from processing prior to providing such material, we do not seek to take advantage of the material prior to its dissemination.

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Campbell Soup Company is the reason core stocks will outperform https://after-hours.org/campbell-soup-company-is-the-reason-core-stocks-will-outperform/ Fri, 10 Jun 2022 08:00:00 +0000 https://after-hours.org/campbell-soup-company-is-the-reason-core-stocks-will-outperform/ Value and performance are the reasons Campbell Soup Company will outperform The Q3 report of Campbell’s Soup Company (New York Stock Exchange: CPB) is a good reason why consumer staples stocks will outperform over the next 12-24 months. The main conclusion of the report is that inflation continues to rise, but society has been able […]]]>

Value and performance are the reasons Campbell Soup Company will outperform

The Q3 report of Campbell’s Soup Company (New York Stock Exchange: CPB) is a good reason why consumer staples stocks will outperform over the next 12-24 months. The main conclusion of the report is that inflation continues to rise, but society has been able to mitigate its impact. This means for investors that the earnings outlook will hold or even improve in the face of a decline among the average S&P 500 companies. In the case of Campbell Soup Company, the low 17X earnings it trades and the high dividend of 3.15% he pays will help him outperform others in the consumer staples sector. High flyers like Hormel, Clorox and McCormick are trading at much higher valuations of 24X, 25X and 28X while paying much lower dividends.


MarketBeat.com – MarketBeat

“Our improved supply chain execution along with inflation-driven pricing has begun to ease the margin pressure we have experienced over the past 12 months. Although the operating environment remains challenging and we keep expecting significant inflation (emphasis added), our team is working well, and Campbell is on a much stronger footing today,” said company CEO Mark Clouse.

Campbell Soup Company has a tasty neighborhood

Campbell Soup Company results show that the company outperformed at all levels. The company had net revenue of $2.31 billion, a 7.6% gain over last year, despite divestitures made during the period. Revenue beat consensus by $0.090 billion or 400 basis points on strength across all segments. On an organic basis, sales from continuing operations increased 9% as prices offset lower volumes. Volume fell 3% from last year’s pandemic-spurred competition, while prices rose 11%. On a consumption basis, including inventory levels, sales are up 4% for the year and 14% from pre-pandemic competition.

The company reported margin compression despite efforts to mitigate it, but far less than expected. The 50 basis point decline in GAAP margin is offset by a 90 basis point improvement in adjusted margin which led to a solid improvement in net income. On the earnings side, Adjusted EBIT is up 23% YoY, GAAP EPS is up 32% and Adjusted EPS is up 37% and beat the Marketbeat.com consensus by one penny. Not bad considering the conditions, but the real upside is that this consumer staples company not only benefits from a shift to lower-cost items, but also from pricing power.

The guidance is a bit mixed but ultimately bullish for the stock. The company is raising its revenue outlook by 200 basis points at both ends of the range, but keeping the EPS guidance stable. The company says inflation will be higher than expected in the 2nd half and will continue to put pressure on margins for the foreseeable future.

The Technical Outlook: Campbell’s Bottoms On Firming Sentiment

At least 3 of 10 analysts covering Campbell Soup Company announced target price increases following the earnings release. The caveat is that their consensus of $49 is only 9% above the Marketbeat.com consensus which itself is lower than the current price action. While Campbell’s has thoroughly, it looks like the rebound will leave the stock range-bound in the near term at least. Longer term, assuming the company can continue to execute on its inflation mitigation efforts, we see CPB progressing to a new high by the end of the year.
Campbell Soup Company is the reason core stocks will outperform

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Buying when there is blood in the streets: the pros and cons. Three examples from the Ukrainian war. https://after-hours.org/buying-when-there-is-blood-in-the-streets-the-pros-and-cons-three-examples-from-the-ukrainian-war/ Wed, 08 Jun 2022 17:07:46 +0000 https://after-hours.org/buying-when-there-is-blood-in-the-streets-the-pros-and-cons-three-examples-from-the-ukrainian-war/ Buy when there’s blood in the streets A few days after Russia’s invasion of Ukraine, putting into practice Baron Rothschild’s famous aphorism, I noted in an article here (“Russia’s Invasion of Ukraine: Risks and Opportunities”) that I had bought shares of some Russian companies: Yandex, N.V. YNDX* and American Depository Receipts (ADR) for Gazprom Public […]]]>

Buy when there’s blood in the streets

A few days after Russia’s invasion of Ukraine, putting into practice Baron Rothschild’s famous aphorism, I noted in an article here (“Russia’s Invasion of Ukraine: Risks and Opportunities”) that I had bought shares of some Russian companies: Yandex, N.V. YNDX* and American Depository Receipts (ADR) for Gazprom Public Joint Stock Company OGZPY:

In our personal account, we bought shares of two of them on Thursday and Friday: Yandex (YNDX) and Gazprom (OGZPY). Just to clarify: none of these actions were Portfolio Armor picks.

The following week, I mentioned on my personal Twitter account that I had purchased some of the ADRs from Sberbank of Russia (SBRCY).

Came in at 66 cents and now it’s at 52. These prices only make sense if there is a high percentage of expropriation. pic.twitter.com/lFWrGtOTac

—David Pinsen (@dpinsen) March 3, 2022

They were all blue chips: Yandex is sort of the Russian version of Google; Gazprom is its state-owned gas giant that delivers natural gas to the EU through pipelines; and Sberbank is Russia’s oldest and largest bank. In this article, I will update how it has worked so far. First, a quick update on yesterday’s post about other war-related professions.

Also in March: Long Oil & Gas, Short Treasuries

In my post yesterday (Another victim of the economic war), I mentioned that Portfolio Armor was bearish on US Treasuries in March and bullish on oil and gas.

Up since March: oil and gas, Russia’s current account surplus. � � Down since March: US Treasuries $GUSH $USO $UGA $TBT https://t.co/FlWIRCBN1c

– Portfolio Armor (@PortfolioArmor) June 7, 2022

In that post, I wrote that our bearish bet on treasury bills, the Cash ProShares UltraShort 20+ years The ETF (TBT) has climbed 29.41% since hitting our biggest names in March:

Fast forward to this week, and here’s how TBT (and our other mid-March big names) have done so far since then.




Four of our top ten names in mid-March have so far seen double-digit gains, and they’re all playing on the backlash of our economic sanctions on Russia: our bet against Treasuries, TBT, plus three bets on oil and gas: Direction Daily S&P Oil & Gas Exp. & Prod. Bull 2X shares (JET), US Gasoline Fund, LP (UGA), and United States Petroleum, LP (USO). Overall, our top ten names on March 14 are up 15.72% so faron average, compared to -0.95% for the SPDR S&P 500 Trust (TO SPY).

A quick update: Treasuries caught a bid on Tuesday and as a result, TBT fell 2%. So as of Tuesday’s close, it was up 26.8% since hitting our top names in mid-March.

Now let’s move on to the Russian stocks update.

Advantages: Earnings; Disadvantages: You can’t make them

Yandex, Gazprom and Sberbank all ceased trading in the United States in early March. The Moscow Stock Exchange was also closed2, but reopened at the end of March. Each of these stocks is traded there. Here’s how they were doing at Tuesday’s close.

  • Yandex: This closed at 1,497 rubles, or $24.34 per share. This one has actually gone down a lot in terms of rubles since I bought it, but thanks to the ruble’s surge against the dollar, that’s up 6.6% of my cost basis of $22.82 per share. However, it is not traded outside of Russia.
  • Sberbank. 118.32 rubles yesterday. Each ADR represents 4 Russian stocks, so it was worth $7.67 per ADR. My cost base was $0.66 per ADR, so this is up 1,062%. The ADR is no longer marketed and Russia does not allow its renewal, so JPMorgan, the administrator of the ADR, terminates it. I am exchanging my ADR for Russian shares, which I will also not be able to sell (Russia does not let foreigners sell shares now).
  • Gazprom: 297.99 rubles yesterday. Each ADR represents 2 Russian stocks, so it was worth $9.65 per ADR. My cost basis was $4, so that’s up 141% since early March. This ADR will also be removed in August, so it will probably be the same agreement as Sberbank.

So in a nutshell: one of them is about flat, one is a ten sack, and the other is more of a double, but they’re all basically frozen until the end of the war, probably, and the relations end up thawing between Russia and the United States

*To be precise, Yandex is domiciled in the Netherlands, but almost all of its revenue is generated in Russia.

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Confidence plummets as cost pressures mount https://after-hours.org/confidence-plummets-as-cost-pressures-mount/ Mon, 06 Jun 2022 23:26:15 +0000 https://after-hours.org/confidence-plummets-as-cost-pressures-mount/ Consumer confidence deteriorated further last week as cost of living pressures mount, a situation that is expected to be made worse by another interest rate hike by the Reserve Bank of Australia. The weekly ANZ-Roy Morgan Consumer Confidence Index – a gauge of future household spending – fell 4.1% to 87, its lowest level since […]]]>

Consumer confidence deteriorated further last week as cost of living pressures mount, a situation that is expected to be made worse by another interest rate hike by the Reserve Bank of Australia.

The weekly ANZ-Roy Morgan Consumer Confidence Index – a gauge of future household spending – fell 4.1% to 87, its lowest level since mid-August 2020.

Consumer inflation expectations also rose 0.2 percentage points to 5.7%, the highest reading since early April.

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“Consumers are particularly pessimistic about the current economic outlook and their current financial situation,” said ANZ Australian economics chief David Plank.

Australia’s services sector is also under cloud with flat sales in May after several buoyant months, falling employment and a slight drop in new orders, Ai Group chief executive Innes Willox said.

At the same time, price pressures remained high, supply disruptions continued and difficulties in finding staff remained.

“Stable sales and steam from new orders could be an initial reaction to actual and anticipated interest rate hikes,” Willox said.

The Australian Industry Group’s services performance index fell 8.6 points to 49.2 in May, dropping below the 50-point mark that separates contraction from expansion in the sector for the first time in six months.

Homebuyers are bracing for a further increase in loan repayments, with a further increase in the official cash interest rate expected after the RBA’s monthly board meeting on Tuesday.

Treasurer Jim Chalmers admits it will be a “difficult day”.

“We are not anticipating the decisions of the Independent Reserve Bank, but it is universally expected today that these rates will rise,” he told Sky News.

“Our government’s responsibility during this cost of living crisis that we have inherited from our predecessors is to ensure that there is cost of living relief in the October budget that will come after the current round reductions in the cost of living outside.”

Opinions are divided on the potential size of the increase, following the RBA’s decision to raise the rate to 0.35% last month from a record high of 0.1% – the first hike in over a decade.

Economists’ forecasts range from a further 25 basis point hike – a size the RBA has described as “a return to normal operating procedures” – to 40 or even 50 basis points.

At the May board meeting, the RBA discussed the option of a 40 basis point hike for its first rate hike since November 2010.

Economists expecting a bigger rate hike point to growing inflationary pressures since May’s board meeting, rising gas and fuel costs, and signs that wage growth could finally accelerating.

The potential for higher wage growth, as the unemployment rate falls to its lowest level in nearly 50 years, has been a central bank priority for some time.

But those anticipating a slight increase say there is no hard evidence from reliable wage data at this stage, and the central bank would like to avoid undermining already fragile confidence.

Commonwealth Securities calculates that on a standard $500,000 variable mortgage, the monthly repayment would increase by $75.96 on a 25 basis point increase in cash rate, or $122.03 on a 40 basis point increase .

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Brezik: Bear markets present opportunities | Columns https://after-hours.org/brezik-bear-markets-present-opportunities-columns/ Sat, 04 Jun 2022 13:00:00 +0000 https://after-hours.org/brezik-bear-markets-present-opportunities-columns/ Stock markets have corrections. If you are an investor, you should expect losses. This is a normal part of investing and hopefully your long term plan incorporates this risk. So far in 2022, equities and fixed income securities have posted declines, while some alternative investments have performed very well. Depending on your portfolio structure and […]]]>

Stock markets have corrections. If you are an investor, you should expect losses. This is a normal part of investing and hopefully your long term plan incorporates this risk.

So far in 2022, equities and fixed income securities have posted declines, while some alternative investments have performed very well. Depending on your portfolio structure and the types of accounts you hold, look for opportunities in these bear markets.

If you have investments in taxable accounts, reap your losses for tax purposes. No one wants to pay more income tax than necessary. Harvesting at a loss is a way to save on taxes this year and maybe in the years to come. Make sure your cost base records are up to date. If the value of an investment has fallen below its tax base, which is the original cost plus reinvested dividends, you can sell the investment and claim a capital loss. You can use capital losses to offset capital gains this year. Specifically, you can deduct $3,000 of net capital losses currently, with any remaining net losses carried forward to future years. These losses do not expire and allow you to offset gains in the future.

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You can immediately take the proceeds from the sale and reinvest it in a similar investment, keeping you in the market. You cannot buy identical or substantially identical securities within 30 days before or after your sale to realize capital losses.

This is also the time to rebalance your portfolio to get back to your desired asset allocation. Diversifying your investment portfolio means building a mix of stocks, bonds, and other investments that take into account your financial goals, time horizon, and risk tolerance. Your mix is ​​called your asset allocation. The idea behind diversification is that, overall, owning different types of investments should earn you higher returns with less risk than owning an individual investment.

Each investment in your portfolio will increase or decrease in value at varying rates, changing your asset allocation. Asset classes, or groupings of similar types of investments, will have months, years or even decades when they outperform or underperform other asset classes. Examples of major asset classes are stocks or stocks, bonds or fixed income investments, and real estate or other tangible assets. Each major asset class can be further categorized. For example, stocks can be divided into large cap, small cap, US (domestic), international, growth, value, and others.

As you should know, investment results can change quickly, although low market volatility has spoiled many investors in recent years. This year, volatility has increased, causing investors to worry about what might happen from here. It’s human nature to want to believe that someone can predict short-term market movements. But that is impossible and spending time trying to guess the market is not productive. Instead, look for opportunities in your portfolio. Harvest those available tax losses and rebalance your portfolio. And if you have spare cash, buying when prices are falling should reward you in the future when markets recover. It’s much more productive and could turn this year’s market correction into something good.

For educational purposes only and should not be construed as legal advice. Connie Brezik is a Casper-based wealth advisor at Buckingham Strategic Wealth. If you have a question or topic of interest that you would like to see covered in this monthly column, please email him at cbrezik@buckinghamgroup.com.

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