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We tested the new Toyota Land Cruiser against its legendary predecessor. It lives up to the hype, even without a third row. 2024-06-27 20:22:57+00:00 - Toyota launched new Land Cruiser in the US, reviving the iconic SUV . The original Land Cruiser, known for its durability, debuted in the 1950s. The latest model aims to blend the classic ruggedness with modern features. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement The original Land Cruiser launched in the 1950s and rightly earned a reputation as an unbreakable beast of a car. It was everything an SUV was supposed to be. It was so hardy that the United Nations relied on it in war-torn and famine-ravaged parts of the world. Those white UN Land Cruisers are an image burned into my teenage mind as the ultimate, go-anywhere reliability. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
I'm delighted by this car dealership's parody of 'The Office' 2024-06-27 20:18:02+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Forget season three of "The Bear." The workplace drama I'm now highly invested in is from the Mohawk Chevrolet dealership in Ballston Spa, New York. The dealer's TikTok feed typically features videos you'd expect: information about cars and some introductions to the people who sell them. The three-person marketing team in charge of posting on social media would sometimes try to jump on a TikTok trend or some other kind of lighthearted fare. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. So far, nothing out of the ordinary for a car dealership, this one founded in 1919 with the slogan "We go out of our way to please you." But then, somehow, they made a masterpiece — a mockumentary about the dealership in the style of "The Office." Advertisement So far they've released six parts, but Part 5 is the pinnacle. It's gone viral on TikTok: Are we suckers for being charmed and amused by a piece of advertising? Sure. But what joy do we have left if we can't smile at the creativity of the small team in the marketing department of a Chevy dealership near Saratoga? Related stories I spoke with the dealership's Nathanael Greklek, Ben Bushen, and Grace Kerber, who starred in the video and were part of its production team. Their inspiration? Things that actually happened during their workdays, they told me. Advertisement Kerber does indeed always want to be the one to drive the truck whenever they have to move one around the lot. The day before, she and Bushen got stuck making a (nearly) 38-point turn trying to pull a Silverado out of a tight space. And Bushen does tend to get carsick if he's in the passenger seat. The idea for an "Office" parody came to the team after another coworker did a prank hiding tiny plastic ducks around the dealership, which made the marketing team think it would be good for a video. Bushen, the in-house video editor, is a huge fan of the sitcom and was able to pull off the feel. That this video was a hit came as a pleasant surprise, they told me. The video has about 1.8 million views, which isn't a megahit in TikTok terms but certainly is way more than a typical local dealer gets. (In comparison, the official Chevrolet account has only a few videos that have cracked a million views, and those were ones with celebrities like Guy Fieri.) But is a viral video from a local car dealership actually good for sales? Advertisement Kerber told me they don't expect these videos to win over someone shopping for a Honda or a BMW. "If they want a Chevy, they're going to buy a Chevy," she said. They've gotten comments from people outside the Saratoga area saying they plan to drive hours just to buy from their dealership based on their funny videos. (They also deliver, they let me know.) "Part of doing these fun videos is it makes people feel like they know you and are comfortable going there, and they love the environment from what they see online, and that's where they might want to get their next car," Kerber said.
Here's a rapid fire update on all 33 stocks in our portfolio, including a few names to buy now 2024-06-27 20:17:00+00:00 - Here's a rapid-fire update on all 33 stocks in Jim Cramer's Charitable Trust, the portfolio we use for the CNBC Investing Club. Jim broke down the portfolio Thursday during the June Monthly Meeting. Apple : The stock has been misunderstood by Wall Street, viewed simply as a smartphone maker, rather than the maker of the best consumer technology. This has allowed Apple to amass a large and loyal customer base. And as the company brings in more users, Apple's high-margin services revenue becomes even more important. We maintain our "own it, don't trade it" stance on shares, particularly ahead of an expected AI-fueled upgrade cycle for iPhones. Abbott Laboratories : The health-care company is the kind of high-quality, defensive stock to own in a slowing economy. Still, the baby formula lawsuits have been a significant drag since March. A case against Abbott set to go to trial in July will be closely watched. Jim reiterated his view that Abbott's legal challenges are far different than Johnson & Johnson 's yearslong talc overhang. Amazon : The state of the advertising market is increasingly important to Amazon, as it leans into ads on both its e-commerce marketplace and Prime Video offering . Of course, Amazon Web Services remains a huge contributor to profits, but its retail operations are becoming more profitable . On Wednesday, Amazon broke above the $2 trillion market cap for the first time and kept its climb going Thursday. Broadcom : We took profits in Broadcom on June 18 after the stock had a dramatic move higher following a strong earnings report. While its fundamental business prospects remain bright, our discipline kicked told us to trim. Data center is driving the Broadcom story right now, but we're hopeful the aforementioned iPhone upgrade cycle provides a lift to its struggling wireless business. Recently acquired VMWare is another driver. Best Buy : Jim said Best Buy's pullback in recent days has created a buying opportunity in the electronics retailer. After a post-earnings surge from late May into June, the stock is down more than 10% since June 18. We're sticking to our thesis on an AI-driven upgrade cycle for hardware, especially personal computers, can fuel sales growth for Best Buy in the quarters ahead. Costco Wholesale : Costco has been a well-oiled machine for many years, but its value-focused ethos is really shining in this current economic moment. That's how you get a stock up more than 29% year to date. We're still awaiting a membership fee hike and remain intrigued by the new management team's opportunity to grow its e-commerce business . Salesforce : The stock has in recent weeks clawed back some of its post-earnings plunge , even before Thursday's 6% surge. We're monitoring the recent shift in investor preference within tech toward hardware names away from software vendors. The AI boom is a tailwind for hardware spending, but it also raises questions about the seat-based licensing model that software companies such as Salesforce have relied on for years. Coterra Energy : The issue for Coterra shares, which are up around 5.5% this year, is the market perception of its business. Despite being a healthy mix between oil and natural gas, the stock seemingly gets credit when natural gas prices go up — but it doesn't do much when oil climbs. It may seem unfair, Jim said, but it's the reality. DuPont : Following DuPont's May 23 announcement to split into three publicly traded companies, the stock's performance has been levered to the mergers and acquisitions (M & A) market and the possibility of a takeover of its water business. These reports haven't been confirmed, but when there's smoke, there's usually fire. Any deal will send the stock higher. We're sticking by our $100 sum-of-the-parts price target. Jim reiterated his view that DuPont is a buy under $80 a share, just as it was Thursday. Danaher : The life-sciences company has landed in the unfortunate camp of trading based on its China exposure, even if the majority of its sales happen outside the world's second-largest economy. While the stock had a nice move from mid-to-late April into June, it's given back some of those gains in recent weeks. The negative investor sentiment toward China impacts a whole host of stocks. Walt Disney : Part of the reason Disney's stock fell on hard times, Jim argued, is the company has struggled to deliver movies and shows that people want to watch. Disney's issues here have weighed on sentiment, even as its theme park business has been strong after reopening from Covid shutdowns. Throw in declining cable subscribers, and we're hesitant to endorse buying more Disney shares here . Dover : The company has years of growth ahead of it. A boom in investments into data center construction — a product of the AI frenzy — will increase demand for Dover's offerings. Dover is a key ecosystem partner of fellow Club holding Nvidia and manufactures the thermal connectors used in liquid cooling of these data center facilities. We added to our Dover position on June 5. Estee Lauder : We should have cut our losses in this troubled cosmetics maker already. That was a mistake, Jim acknowledged, but he indicated he's going to give the company one more quarter before heading to the exits. Eaton : Like Dover, the conglomerate is a growth machine because it's levered to the data center buildout. The industrial stock has room to run because of this exposure, boosting sales for the company's power management solutions. We wouldn't own it if it weren't such a solid AI play. Ford Motor : Jim tripled down on his call for Ford to initiate a stock buyback to ignite its stock and close the performance cap between the Blue Oval and its crosstown rival General Motors . He indicated he plans to continue to apply pressure on management. GE Healthcare : Like Danaher, GE Healthcare's business in China has been a problem for the stock. Management explained on its late April earnings call that customers in the country are delaying orders while they await more details on a government stimulus plan for health care. However, we still haven't seen those details just yet. At around $78 a share Thursday, GE Healthcare trades about $10 below where the stock closed before its earnings sell-off two months ago. Alphabet : The Google parent is another portfolio name with significant exposure to the advertising market, which historically is sensitive to economic growth. However, some of that sensitivity has been masked by the move to digital ads from traditional channels like television and print news. As time goes on, though, Jim said it would be a mistake to think that Alphabet would be immune from a major downturn in the ad market. Honeywell International : This industrial conglomerate could break up in a similar fashion to DuPont. But it may not be necessary because the company has the balance sheet to improve its disparate portfolio. Honeywell could acquire more profitable businesses that fit their three mega-trends — automation, the future of aviation, and energy transition. Honeywell completed its $4.95 billion purchase of Carrier's security business earlier in June. The deal leans into the firm's automation theme. Some of its recent momentum, following a period of underperformance, may be traced back to that move. Linde : The stock has been able to ride out weakness among industrial-focused names. Limited competition due to the scarcity of industrial gas companies has given Linde more pricing power. Plus, the company has been performing well despite little volume growth for its end markets. Linde's hand is in several industries, ranging from semiconductors to wine and even helium balloons. Eli Lilly : The key for Eli Lilly shares to sustain their recent success is improved insurance coverage for its pricey GLP-1 drugs: Zepbound for obesity and Mounjaro for type-2 diabetes. The company's ability to demonstrate that these treatments provide a broader range of health benefits will help convince the insurers to provide reimbursement. There's strong evidence that this class of drugs can improve heart health , and Lilly on Friday demonstrated that there's benefits for obstructive sleep apnea, too . Meta Platforms : Similar to Alphabet, Meta's fortunes are tied to the ad market even though it has other irons in the fire, such as WhatsApp and its Quest virtual reality headsets. The stock has been steadily climbing out of the hole it entered in late April in response to first-quarter earnings. Morgan Stanley : This stock has perturbed us. Its most prominent rival, Goldman Sachs , has outperformed Morgan Stanley, leaving us to question if the stock is the right play for a rebound in investment banking. There's still hope for Morgan Stanley, though, especially after management posted solid quarterly earnings results in April. So, we're going to wait it out and see. Microsoft : The tech giant dominates any industry it choses. Most notably, its Azure cloud computing business — the second largest in the world behind AWS — and sizable stake in ChatGPT creator OpenAI have given Microsoft a comfortable lead in the heated AI arms race. That's why the portfolio name sits as the most valuable publicly traded company in the world. Nextracker : Our newest position , we called up the maker of solar tracking systems from our Bullpen on Thursday. The stock has pulled back quite a bit in recent weeks, creating an attractive opportunity for us to start a stake. Alongside that purchase, we exited Foot Locker . Nvidia : Despite some recent volatility in the stock, we remain convinced that Nvidia is at the heart of one of the biggest themes of our era: the growth of the data center to support generative AI. The stock's now-elevated valuation is riding on it, Jim acknowledged, but the Jensen Huang-led company is well-positioned to deliver the earnings growth to warrant the premium. Palo Alto Networks : You have to own a stock that's levered to a long-term growth theme like cybersecurity. For us, that's Palo Alto. Although shares have underperformed peer CrowdStrike this year, we're beginning to believe that CEO Nikesh Arora's platformization strategy — which resulted in management lowering its revenue guidance for 2024 — will allow the company to win bigger cybersecurity deals in the long term. The stock rallied 5.5% on Thursday. Procter & Gamble : Raw costs are critical to a mature company like P & G because keeping those under control while demand hangs in will allow for margins and profits to expand. That's what matters to P & G, the business. What matters right now to P & G, the stock, is that some investors believe the U.S. economy is slowing, so they look to classic defensive plays like consumer staples. It's no surprise then to see P & G within a few bucks of its all-time high set on June 18. Starbucks : The Club's not throwing in the towel on Starbucks yet despite the company's lackluster April 30 quarterly earnings report and dismal year-to-date stock performance. Our thinking: The coffee chain is still a quality brand, and it would be hard for shares to get much worse from here — down 17% since the start of 2024. We're hoping an activist investor steps in to hold management accountable and turn its luck around. Constellation Brands : The perception that beer consumption will be hurt by GLP-1 weight-loss drugs could be one factor holding back shares of the Modelo and Corona parent, Jim said. Over the past 12 months, the stock is up less than 4%. However, we see lots of future growth for the company, which has demographic trends in the U.S. on its side. And in the near term, Constellation is primed to gain more prime real estate in grocery stores . Stanley Black & Decker : We want an interest rate play in the portfolio, and this stock will do the job . Despite its recent underperformance — down more than 4% in the past month — when the Fed eventually lowers rates, shares should climb as the housing market picks up and customers buy more of the toolmaker's offerings. Plus, it pays to stay in the stock, with a more than 3% dividend yield. TJX Companies : Like Costco, TJX has been a big winner because it operates in the sweet spot of appealing to bargain hunters. Shares are up about 18% year to date and trading less than a $1 from its record close on June 24. We've debated booking profits, but still love the T.J. Maxx parent's multiyear potential. Wells Fargo : We're bullish on the firm's push into investment banking as CEO Charlie Scharf poaches senior hires from heavyweight peers like JPMorgan . These efforts help Wells Fargo diversify its revenues, relying less on interest-based income streams, which are at the mercy of the central bank's monetary policy. This division, however, will take time to build out. Wynn Resorts : Wynn is another stock in the portfolio that, it's become increasingly clear, trades based on its exposure to China. Even though it's business in Las Vegas has been crushing it, Wynn shares have been drifting lower since April to under $90 each. China is just too dicey for the big money managers to take a swing at it. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Traders work on the floor of the New York Stock Exchange. Michael M. Santiago | Getty Images
New report reveals a major reason Michelle Obama isn't campaigning for Biden 2024-06-27 20:16:17+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview At a time when President Joe Biden needs all the political allies he can get, Michelle Obama is upset with his family over its treatment of Kathleen Buhle, her close friend and Hunter Biden's ex-wife, anonymous sources told Axios. According to the sources — whose claims Michelle Obama's spokespeople and the White House denied — the former first lady has refrained from campaigning for the president partly because of her friendship with Buhle, who the Bidens have distanced themselves from in the years since her divorce. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. The women became friends during the Obama administration and have remained close. As Axios noted, Hunter Biden wrote in his memoir that the two women used to work out and have cocktails together during the Obama administration. Michelle Obama also appeared to mention Buhle in her own book, writing that she still takes regular walks with her friend Kathleen. Advertisement Though Michelle Obama did repost President Biden's campaign announcement on Twitter in 2023, she hasn't tweeted about the election since. Meanwhile, Barack Obama has appeared solo at campaign fundraisers and a recent state dinner. Related stories Since splitting from Hunter Biden in 2017, Buhle has remained on the outskirts of the Biden clan. She testified at her ex-husband's recent criminal trial, which resulted in three guilty verdicts for federal gun crimes. Though the president has staunchly supported his son, the saga — including Buhle's testimony about the younger Biden's drug use during their marriage — has added an additional level of drama to the reelection campaign. It marked the first time that the child of a sitting president was convicted of a crime. Advertisement Michelle Obama's representatives and the White House have denied any tension between the families, instead attributing the former first lady's absence from the presidential campaign to her distaste for partisan politics. In 2018, Michelle Obama launched a nonpartisan voter engagement organization, When We All Vote, where she has since focused much of her political energy. "Mrs. Obama has already said she supports President Joe Biden and Vice President Kamala Harris' campaign," Crystal Carson, the communications director for Michelle Obama, said in a statement. "She is friends with Kathleen and with the Bidens. Two things can be true." Carson pointed Business Insider to the fact that Jill Biden attended the funeral of Michelle Obama's mother on Monday as evidence of the families' continued closeness. Obama's spokesperson also affirmed Michelle Obama's support for the president earlier this spring amid unsubstantiated speculation that the former first lady planned to run in his stead. Andrew Bates, deputy press secretary at the White House, said in a statement to Business Insider that the "former President and First Lady have been two of the strongest supporters of President Biden's leadership and agenda." Advertisement Bates said that the anonymous sources, whoever they are, aren't familiar with the substance of the relations between the Biden and Obama families. Michelle Obama may soon become more present in Biden's reelection campaign, as Axios reported that one of her top aides recently met with a White House aide to discuss increasing her involvement. There may be some precedent to Michelle Obama getting involved later in the election cycle. She waited until August 2020 to start consistently posting her support during the first Biden-Trump match-up.
Trump Biopic Inches Toward Distribution Deal 2024-06-27 20:15:03+00:00 - Hollywood executives love to characterize themselves as fearless. The truth is that they spend most of their time trying to minimize risk. It’s why theaters are clogged with vacuous sequels. It’s why so many Hollywood power players hide behind P.R. people. And it’s why all of the big movie studios and streaming services — and, in fact, most indie film companies — declined to distribute “The Apprentice,” a dramatized origin story about Donald J. Trump that the former president has called “malicious defamation” and showered with cease-and-desist letters. But the movie business still has at least one wildcatter: Tom Ortenberg. Mr. Ortenberg, 63, and his Briarcliff Entertainment are pushing to complete a deal to acquire “The Apprentice” for wide release in theaters in the United States in September or early October — close enough to the presidential election to bask in its heat, but far enough away to avoid final-stretch media overload. Briarcliff’s pursuit of the $16 million film was confirmed by five people involved with the sale process, who spoke on the condition of anonymity to discuss a private negotiation. “Tom’s got more courage than most people in Hollywood combined,” said Stephen Galloway, the dean of Chapman University’s film school. “His interest in this kind of movie involves business, of course. He sees money to be made by leveraging millions of dollars in free publicity. But part of it is wanting to do his bit. He’s liberal and cares about social issues.”
NBC's decision to use an AI version of a 'very much alive' sportscaster during the Olympics is making people nervous 2024-06-27 20:06:33+00:00 - NBC will use an AI version of Al Michaels to cover the Paris Olympics this summer. Michaels was skeptical at first but agreed to the proposal once he heard his AI voice, reports say. The AI recaps will be available on Peacock and contain customized event highlights. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement The Summer Olympics in Paris will feature an element of artificial intelligence. NBC, the network carrying the Summer Olympics next month, is home to several sportscasting legends who grace American televisions every few years for the Olympic games. This year, NBC is creating an AI version of Al Michaels, one of those acclaimed reporters. "Frankly, it was astonishing. It was amazing," Michaels, 79, told Vanity Fair. "And it was a little bit frightening." This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Hedge Funds Sell Tech Stocks ‘Aggressively,’ Goldman Says 2024-06-27 19:57:00+00:00 - (Bloomberg) -- In a month when Nvidia Corp. briefly became the world’s largest company, hedge funds were “aggressively” selling tech stocks, according to analysis from Goldman Sachs Group Inc. Most Read from Bloomberg This month’s net selling in the US tech sector is on track to be the largest on record going back in data since 2017, according to Goldman’s prime brokerage data. Semiconductor and semiconductor equipment stocks were the ones offloaded the most by hedge funds, followed by software and internet stocks. Nvidia shares have been choppy after losing $430 billion in market value late last week. And, June has been a volatile month for Big Tech stocks after the meteoric rise of Nvidia, Microsoft Corp., Amazon.com Inc., Meta Platforms Inc., Apple Inc. accounted for well over half of the 15% advance in the S&P 500 this year. The trimming of exposure by hedge funds is in sharp contrast to the record inflows seen into tech-related funds last week, which saw the tech-heavy Nasdaq 100 index hit its latest record high on June 18. The weight of the tech sector in the S&P 500 hit 33% last week, the highest level in about 24 years. What’s more, the momentum factor-style investing that drove the likes of Nvidia to all-time highs this year is also faltering. Hedge funds’ momentum exposure is poised to decrease for the first time in six months, the Goldman data showed. “Long concentration” and “long crowdedness” have both seen notable declines and are at the lowest levels this year, suggesting long-short fund managers have become more mindful of a potential drawdown in those factors after strong returns. The unwind is not just hitting tech alone. Hedge funds are now tilting more defensively than usual. Their gross leverage — a measure of risk appetite — has been declining, with North America and Europe by far the most notionally net sold regions so far in June. “After adding risk to their portfolio in all but one week so far this year, trading flows from recent sessions point to some risk unwinds, driven by long sales and to a lesser extent short covers,” Goldman wrote in a note. --With assistance from Thyagu Adinarayan. (Updates to clarify timeline of research.) Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
5 Things To Know In Investing This Week: The Taylor Swift Is Responsible For Inflation Issue - GameStop (NYSE:GME) 2024-06-27 19:56:00+00:00 - Loading... Loading... Yet another government agency revises its projections. This seems to be a weekly thing these days. Anyone want to guess which direction the revisions headed? The Bank of England disappoints UK doves and holds rates steady. DKI thinks it’s all Taylor Swift’s fault. GameStop $GME management combined with Roaring Kitty’s memes have been great for company shareholders, but their performance at last week’s meeting was not well-received. Retail sales indicate the private economy is getting weaker. Finally, you’re not the only one feeling like there’s not much sales help in your local stores. But at least we’re all getting experience with self-checkout and bagging. This week, we’ll address the following topics: New CBO debt projections only go in one direction. The Bank of England doesn’t lower rates. Is it Taylor Swift’s fault? GameStop $GME proposal for non-business effort gets obliterated. Is management focused on the right things? Retail sales up less than expected. The economic news about the private economy continues to slide towards negative. Customer experience continues to decline. Another round of applause for the DKI Interns. With Andrew Brown traveling in Scotland, he’s still managed to handle all the video editing and posting from vacation demonstrating his usual excellent work ethic. New Intern, Alexander Petrou, who comes to us from the University of Exeter Business School, stepped in and in his first week made valuable contributions. Alex pitched several of this week’s 5 Things, did much of the writing, and produced most of the images for this issue. We are pleased, but not surprised, to see him make a meaningful contribution in just his first week. Great job Andrew and Alex! DKI strenuously denies any rumor that while in the UK either Andrew or Alex was involved in the Taylor Swift tour and are therefore not responsible for UK inflation. Ready for a new week of Swift-related central bank news? Let’s dive in: The CBO Blowout Projections: The Congressional Budget Office (CBO) has dramatically revised its deficit projections, and now expects a surge from $1.5 trillion to $1.9 trillion for this year. New legislation, foreign aid, massive stimulus spending, and skyrocketing interest expense are all contributing to consistently higher debt and deficit expectations. Congress has elected to fund this spending with debt that leads to increased future inflation in order to deflect blame from their desire to throw money at anything that could win them a few more votes in November. They may act like the money is free, but when you see the increase in your monthly living costs, you’ll know the reason why. Always adjusted in the same direction. DKI Takeaway: A few months ago, DKI highlighted the inability of the Federal Reserve to predict the fed funds rate which they control. A few weeks ago, we wrote about the constant massive revisions to the employment data. And last week, we highlighted comments from Fed Chairman, Jerome Powell, who acknowledged the Fed has little confidence in their own projections. Recently, I’ve had polite debates with smart market participants who publicly express confidence in government statistics and claim they are a valid way to evaluate the economy. While I respect these individuals, every month there is increasing evidence that government statistics do not reflect reality, and that government projections are worthless. These statistics move markets, but don’t expect the “data” to have much empirical value. Said another way: The next time the CBO offers debt projections, do you think they’ll be higher or lower? The Bank of England’s Dilemma: Swiftly Navigating Inflation and Rates: As the Bank of England (BoE) readied for its interest rate decision this Thursday, a rather unexpected influencer threw a glittery wrench into the works: Taylor Swift’s Eras Tour ( #TaylorSwift ). According to TD Securities analysts, the tour's impact could inflate services prices by 0.3%, potentially upending the BoE's rate-cut plans. Picture this: Swifties descending on London, not just singing along to "Shake It Off" but also driving up hotel prices and boosting local businesses (the horror!). This "Swiftonomics" phenomenon could significantly skew inflation metrics, especially with a tour date landing on a key inflation index day. Financially, Swift's Edinburgh concerts injected £77 million ($98 million) into the local economy, with the UK poised to rake in nearly £1 billion from the tour through tickets, lodging, travel, and merchandise sales. As the BoE deliberates, it's evident that Swift's influence stretches far beyond her music. Her ability to drive consumer spending underscores how pop culture can unexpectedly sway economic policies. So, as Swift dazzles London, the BoE must consider how this fan-fueled economic boost fits into its inflation strategy. Who knew a pop star could rock the world of monetary policy? The BoE holds at what looks like a reasonable level if you look back more than a few years. In the US, my X followers blame Fed Chair Powell for inflation with Swift a close second. DKI Takeaway: In the backdrop, UK inflation has finally hit the 2% target, giving Prime Minister Rishi Sunak a pre-election boost. However, unexpected service price hikes dampened hopes of imminent rate cuts, nudging up sterling and bond yields. Sunak, celebrating Tory economic stability amid a 20-point poll deficit, is eyeing potential tax cuts. With UK service and core inflation outpacing the Eurozone levels, a rate freeze at 5.25% this week seemed likely. While UK services inflation dipped to 5.7% in May and Core CPI eased to 3.5%, a summer rate cut remains a distant dream. The Bank of England decided to hold interest rates steady at 5.25% in a "finely balanced" decision, disappointing Conservative hopes for a financial uplift just two weeks before the UK's July 4th election. The seven-to-two decision by the Monetary Policy Committee was expected, keeping rates at a 16-year high despite headline inflation hitting the BoE's 2% target for the first time in three years. GameStop $GME Meeting DEspIsed: Many GMEApes (a term for enthusiastic GameStop shareholders) were disappointed by the outcome of the postponed GameStop meeting. Following the dramatic events involving Roaring Kitty, the meme expert who led the stock's meteoric rise resulting in a subsequent secondary offering. The offering created a $4 billion war chest for CEO, Ryan Cohen, and investors eagerly anticipated clear and bold guidance from the $GME Board. Instead, they were left with a focus on a DEI initiative, proposing that the board report diversity, equity, and inclusion statistics in company annual filings. Shareholders were further disillusioned by the absence of any substantial discussion on GameStop's strategic plans for the recently raised billions in cash. The pressing issues of executive turnover and the returns on previous investments were scarcely addressed. Instead of a forward-looking strategy, the meeting was dominated by regulatory formalities and proposals, with an excessive emphasis on DEI reporting that did not resonate with many investors. A super-majority of $GME shareholders want the company focused on the core business instead of social issues. DKI Takeaway: CEO, Ryan Cohen, emphasized, "Having a strong balance sheet, especially in times of economic uncertainty, is a strategic advantage. Exiting from an ultra-low interest rate environment is likely to have unforeseen reverberating effects across the economy, with inflation hitting 40-year highs in 2022." Yet, this strategic vision was overshadowed by the lack of concrete steps on how the $4 billion would be utilized. Cohen concluded by saying, "We are focused on building shareholder value over the long term. We are not here to make promises or hype things up. We're here to work." Despite this, the emotional let-down was palpable among the shareholders. They had hoped for a visionary roadmap to capitalize on the unique position GameStop found itself in but were met with regulatory compliance discussions and uninspiring reassurances. The glaring omission of a clear strategic direction for leveraging the substantial cash reserves, coupled with the focus on DEI, left investors feeling ignored and frustrated. If you’re a $GME shareholder, let us know what you thought about the meeting. Did you like what you heard, or were you hoping for something different? Retail Sales Are Indicating the Consumer is Stretched: In two of the past four months, retail sales were down. In May, retail sales were up 0.1% which annualizes to just 1.2% and was below the 0.2% estimate. That is below the annual inflation rate meaning consumers are spending a little more to receive reduced amounts of goods and services. At this point, Americans have exhausted the Covid “stimmies”, the “free” money that temporarily inflated bank accounts. DKI has previously reported on increasing levels of personal and credit card debt. One miss doesn’t mean the economy is in terrible shape, but this isn’t a great sign in a consumer-led economy. As the consumer gets more stretched, the line gets flatter. Not an encouraging trend if you own a retail store. DKI Takeaway: A common and contentious theme here at DKI has been the bifurcation of the economy. A relatively small number of wealthy people are doing extremely well due to high asset prices and are bringing up the averages for economic markers. Massive overspending by Congress is adding stimulus to the economy and keeping GDP growth positive even as that same spending destroys value. However, that excess spending is crowding out investment in the private economy and more families are struggling to make ends meet after years of high inflation. Many are at the point where they’re starting to cut back on discretionary purchases. Companies Have Pushed Customer Patience to New Lows: A new report by Forrester (reported by the Wall Street Journal) indicates customers’ feelings about their experiences with companies have hit a new low. Everyone is feeling inflationary pressure, and companies are dealing with higher supply costs, higher fuel costs, and higher labor costs by raising prices, cutting in-store assistance, reducing customer support staffing, and adding all kinds of unexpected fees. The airlines are now the poster child for this behavior. They advertise appealing fares, but then charge for things like reserving a seat, checking baggage, bringing baggage on the plane, putting carry-on baggage in the overhead compartments, drinks, meals, and even the ability to board before other people who might want to put their bags in the overhead compartments. By the time you’re done, the actual price is much higher than the advertised fare. Survey by Forrester. Graph from the Wall Street Journal. DKI Takeaway: I understand why companies are doing this. It’s hard to staff a store with knowledgeable helpful but expensive salespeople when Amazon is selling the same products cheaper. These businesses hope that customers will pay more for a good customer experience, but too often, those businesses can’t recover the additional expenses involved in providing high-quality service. The other side of this is that as customers, we’re all doing a lot of extra work. In so many cases, we’re using self-checkout, bagging our own groceries, and being asked to tip store staff for work we did ourselves. Software companies used to have to send out completed product because it was delivered via physical disks. Now, buggy software gets sent and is patched over time. With constant debates over whether the problem rests with a device, a wireless carrier, the operating system manufacturer, or the app maker, we’re all now acting as our own tech support. Consumers are being asked to do more, and have reached the point of increasing frustration. What do you think? Are you having better or worse experiences with the companies in your life? Information contained in this report, and in each of its reports, is believed by Deep Knowledge Investing (“DKI”) to be accurate and/or derived from sources which it believes to be reliable; however, such information is presented without warranty of any kind, whether express or implied. DKI makes no representation as to the completeness, timeliness, accuracy or soundness of the information and opinions contained therein or regarding any results that may be obtained from their use. The information and opinions contained in this report and in each of our reports and all other DKI Services shall not obligate DKI to provide updated or similar information in the future, except to the extent it is required by law to do so. The information we provide in this and in each of our reports, is publicly available. This report and each of our reports are neither an offer nor a solicitation to buy or sell securities. All expressions of opinion in this and in each of our reports are precisely that. Our opinions are subject to change, which DKI may not convey. DKI, affiliates of DKI or its principal or others associated with DKI may have, taken or sold, or may in the future take or sell positions in securities of companies about which we write, without disclosing any such transactions. None of the information we provide or the opinions we express, including those in this report, or in any of our reports, are advice of any kind, including, without limitation, advice that investment in a company’s securities is prudent or suitable for any investor. In making any investment decision, each investor should consult with and rely on his or its own investigation, due diligence and the recommendations of investment professionals whom the investor has engaged for that purpose. In no event shall DKI be liable, based on this or any of its reports, or on any information or opinions DKI expresses or provides for any losses or damages of any kind or nature including, without limitation, costs, liabilities, trading losses, expenses (including, without limitation, attorneys’ fees), direct, indirect, punitive, incidental, special or consequential damages.
After split with NYC July 4 hot dog competition, Joey Chestnut heads to army base event in Texas 2024-06-27 19:46:49+00:00 - NEW YORK (AP) — Competitive eater Joey “Jaws” Chestnut will take his hot dog-downing talents to an army base in Texas for America’s Independence Day this year after a falling out with organizers of the event that made him famous, the annual 4th of July eating contest in Brooklyn’s Coney Island. Chestnut, of Indiana, will compete against soldiers in Fort Bliss, in El Paso, in a 5-minute hot dog eating contest. That’s instead of the 10-minute Nathan’s Famous Fourth of July hot dog eating contest, where he competed against the world’s top competitive eaters since 2005 and hadn’t lost since 2015. In 2021 he set the current record of 76 hot dogs, in 10 minutes. Organizers of that event initially said he couldn’t attend due to a sponsorship conflict, which Chestnut said involved a deal with Impossible Foods, which makes plant-based hot dogs. Chestnut said he was “ gutted ” he couldn’t compete in the event in Coney Island, where he said he loved the atmosphere and the sometimes-sweltering crowds. “Those people have been sitting in the sun, waiting. They know what to expect. And they’re not shocked. They’re cheering and yelling and pushing me,” Chestnut said Thursday in a phone interview. But Chestnut says he’s not going to sit home and do nothing. And he’s hopeful the soldiers will push him to perform. Fearful of being “lazy” in competition with amateurs, the perennial world champion will try to out-eat four soldiers, pitting his frank-swallowing total against theirs combined. If they work together, they might even beat him. “If they (each) break ten, that’d be pretty good,” Chestnut said Thursday as he fasted on water, lemon juice and liquified calories as part of his pre-competition routine. Around 15,000 people, mostly soldiers and their families, are expected to attend the annual “Pop Goes the Fort” celebration at Fort Bliss. It also is to include fireworks and performances by the El Paso Symphony Orchestra and the 1st Armored Division Band, according to Fort Bliss Morale Welfare and Recreation organization spokesperson Marlo Brestar. Chestnut said he’ll do a practice routine Friday, then ingest oils to “make sure there’s a clean highway, there won’t be any traffic jams” in his digestive system before heading to Fort Bliss, the sprawling desert army base that’s home to the 1st Armored Division. It will be his first visit to El Paso. “Maybe I’ll get to get on a tank,” he said. Fans can watch Chestnut compete on Netflix against rival Takeru Kobayashi in September. He’s hopeful that he can get back to competing on July 4th next year, either with Netflix or at the Nathan’s Famous contest. To head back to his cherished Coney Island event though, he’d need to make up with the event organizers, Major League Eating. “I feel bullied,” he said. “If I’m ever going to work with them again, they’re going to have to apologize,” Chestnut said. Major League Eating says it eventually conceded the sponsorship issue, according to a statement from spokesman George Shea. “Unfortunately, this was not enough to get us to an agreement,” the statement said. “We think this is a powerful tribute to our armed forces and we wish Joey the best of luck at his event.” —- This story has been updated to correct the first name of the Fort Bliss spokesperson. It’s spelled Marlo, now Marlow.
Beam Therapeutics Begins Dosing in Phase I/II AATD Study - Acrivon Therapeutics (NASDAQ:ACRV), Aligos Therapeutics (NASDAQ:ALGS) 2024-06-27 19:43:00+00:00 - Loading... Loading... Beam Therapeutics Inc. BEAM announced that it has dosed the first patient in the phase I/II study, evaluating its investigational in vivo base editing therapy, BEAM-302, for the treatment of alpha-1 antitrypsin deficiency (AATD). The open-label, dose-escalation study will investigate the safety, pharmacodynamics, pharmacokinetics and efficacy of BEAM-302 for the given indication. The study is designed to identify the optimal dosage of BEAM-302. AATD is an inherited genetic disorder that can cause early onset of emphysema and liver disease. Currently, there are no curative treatments approved for AATD. BEAM received clearance for its clinical trial authorization application from the United Kingdom Medicines and Healthcare Products Regulatory Agency for BEAM-302 in March 2024. Shares of Beam Therapeutics have declined 8.7% year to date compared with the industry's decrease of 4.6%. BEAM is also developing another pipeline candidate in its genetic disease portfolio, BEAM-301. The company is looking to initiate a clinical study on BEAM-301 for the treatment of glycogen storage disease 1a in the United States. An investigational new drug application for BEAM-301 is expected to be filed shortly. We remind investors that BEAM is developing its leading ex-vivo genome-editing candidate, BEAM-101, in the phase I/II BEACON study for the treatment of adult patients with sickle cell disease. The company has completed dosing and engraftment for the three patients in the sentinel cohort of the BEACON study. Data from multiple patients in the study is expected in the second half of 2024. Though still in the early stage, BEAM's pipeline holds great potential. If successfully developed and commercialized, BEAM-101 can boost the company's prospects in the days ahead. Zacks Rank & Stocks to Consider Beam Therapeutics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Acrivon Therapeutics, Inc. ACRV, Aligos Therapeutics, Inc. ALGS and RAPT Therapeutics, Inc. RAPT, each carrying a Zacks Rank #2 (Buy) at present. In the past 60 days, estimates for Acrivon Therapeutics' 2024 loss per share have narrowed from $3.16 to $2.47. Loss per share estimates for 2025 have narrowed from $3.07 to $2.55. Year to date, shares of ACRV have risen 17.9%. ACRV's earnings beat estimates in three of the trailing four quarters and missed the same on the remaining one occasion, the average surprise being 3.56%. In the past 60 days, estimates for Aligos Therapeutics' 2024 loss per share have narrowed from 84 cents to 73 cents, while loss per share estimates for 2025 have narrowed from 82 cents to 71 cents. Year to date, shares of ALGS have declined 40%. ALGS's earnings beat estimates in three of the trailing four quarters and missed on the other occasion, the average surprise being 7.83%. In the past 60 days, estimates for RAPT Therapeutics' 2024 loss per share have narrowed from $3.19 to $2.93. Loss per share estimates for 2025 have narrowed from $2.40 to $2.05. Year to date, shares of RAPT have plunged 87.7%. RAPT's earnings beat estimates in two of the trailing four quarters while missing on the remaining two occasions, the average surprise being 3.19%. To read this article on Zacks.com click here.
Dr. Reddy's to Acquire Haleon's Nicotine Addiction Drug - Dr Reddy's Laboratories (NYSE:RDY), Haleon (NYSE:HLN) 2024-06-27 19:42:00+00:00 - Loading... Loading... Dr. Reddy's Laboratories RDY has announced a definitive agreement with Haleon plc HLN to acquire its global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy category, excluding the United States. The impending acquisition will add Nicotinell, Haleon's leading NRT brand with a presence in more than 30 countries across the EU, Asia (including Japan) and Latin America, to RDY's portfolio of global consumer healthcare over-the-counter (OTC) drugs. It also encompasses local market-leading brands, such as Nicabate in Australia, Thrive in Canada and Habitrol in New Zealand and Canada. The acquisition will cover all product formats, including lozenge, patch, gum and pipeline products, in all applicable global markets outside the United States. The strategic move is set to further strengthen Dr. Reddy's OTC business. Please note that Haleon's Nicotinell is the world's second-largest brand in the NRT category, excluding the United States. It holds either the first or second position in 14 out of the top 17 global markets, with its lozenge/mini lozenge format being the top choice globally. Additionally, Nicotinell is among the top 15 OTC brands in Europe (excluding Russia and Italy) and ranks 32nd among all OTC brands globally (excluding the United States). In 2023, Nicotinell generated approximately GBP 217 million in revenues. The proposed acquisition of Nicotinell and its related portfolio will provide a strong presence in the EU and other global markets, complementing and expanding Dr. Reddy's existing global footprint and capabilities. Year to date, shares of RDY have gained 3.5% compared with the industry's 6.7% growth. In consideration of the transaction, Dr. Reddy's is liable to make an upfront cash payment of GBP 458 million and performance-based contingent payments of up to GBP 42 million, payable in 2025 and 2026, to Haleon. This brings the total deal value to GBP 500 million. Subject to the fulfillment of certain customary conditions, including regulatory approvals, the transaction is expected to close early in the fourth quarter of 2024. Consequently, Dr. Reddy's will acquire Haleon's NRT business in all countries outside of the United States. However, operations will transition to Dr. Reddy's in a phased approach to ensure successful integration of the business. Tobacco use causes eight million deaths annually from health issues like cardiovascular diseases, lung disorders, cancers and diabetes. The World Health Organization (WHO) reports that 60% of the 1.3 billion tobacco users globally want to quit, but only 30% have access to the necessary tools. Although safe and effective medical treatments are available, they are not always accessible or sufficiently provided. Please note that NRT is recommended by the WHO's Model List of Essential Medicines for treating nicotine use disorders. NRT also played a crucial role in the WHO's Access Initiative for Quitting Tobacco, which was launched in 2020 and aimed at helping tobacco users quit to reduce the risk of severe outcomes from COVID-19 infection. Dr. Reddy's focuses on generics, branded generics, Active Pharmaceutical Ingredients, OTC products and biosimilars while investing in growth areas like novel molecules (NCEs, NBEs, CAR-T), digital therapeutics and consumer healthcare. In the United States, it has acquired brands like Habitrol, Doan's, Premama and the MenoLabs portfolio. In India, its portfolio includes hydration, cough-cold-allergy and skincare products, with a joint venture with Nestlé India for nutritional health solutions. Dr. Reddy's also has a strong OTC presence in emerging markets. It recently entered into the U.K. market with Histallay. The company is enhancing its brand-building, marketing, digital and e-commerce capabilities. Zacks Rank and Stocks to Consider Dr. Reddy's currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the drug/biotech industry are ALX Oncology Holdings and Annovis Bio, each carrying a Zacks Rank #2 (Buy) at present. In the past 30 days, the Zacks Consensus Estimate for ALX Oncology's 2024 loss per share has remained constant at $2.89. During the same period, the consensus estimate for 2025 loss per share has remained constant at $2.73. Year to date, shares of ALXO have plunged 60.5%. ALX Oncology beat estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 8.83%. In the past 30 days, the Zacks Consensus Estimate for Annovis' 2024 loss per share has remained constant at $2.46. During the same period, the consensus estimate for 2025 loss per share has remained constant at $1.95. Year to date, shares of ANVS have plunged 69.4%. ANVS beat estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 1.39%. To read this article on Zacks.com click here.
Charles River's RMS Growth Aids Amid FX Headwind - Hims & Hers Health (NYSE:HIMS), Charles River (NYSE:CRL) 2024-06-27 19:41:00+00:00 - Loading... Loading... Charles River Laboratories' CRL Research Models and Services (RMS) business continues to benefit from the Charles River Accelerator and Development Labs (CRADL) initiative. Yet, the global business environment remains challenging, denting the company's growth. The stock carries a Zacks Rank #3 (Hold). RMS business services are in high demand among the company's clients in the field of basic research and screening of non-clinical drug candidates. These service offerings provide greater flexibility for clients' research and also support increased scientific complexity. The RMS segment continues to benefit from higher NHP (nonhuman primate) revenues as well as broad-based growth in all geographic regions for small research models. Over the past several quarters, the company has been witnessing strong growth within the insourcing solutions (IS) business led by the CRADL initiative. These days, clients are increasingly adopting CRADL's flexible model to access laboratory space without having to invest in internal infrastructure. To support client demand, Charles River is consistently expanding CRADL's footprint both organically and through the acquisition of Explora BioLabs (done in 2022), a provider of contract vivarium research services. During the first quarter of 2024, the company signed new contracts for its legacy IS Vivarium management solutions and noted that the CRADL growth rate is expected to accelerate during 2024. Meanwhile, Charles River has been broadening the scope of its products and services across the drug discovery and early-stage development continuum through focused acquisitions. Within Discovery and Safety Assessment (DSA), the 2021 acquisitions of Retrogenix (an early-stage contract research organization) and Vigene Biosciences (a premier gene therapy contract development and manufacturing organization or CDMO) are currently contributing strongly to the company's top line. Charles River Laboratories International, Inc. Price Charles River Laboratories International, Inc. price | Charles River Laboratories International, Inc. Quote Within RMS, the company, in November 2023, acquired a 41% additional stake in Noveprim, a NHP provider of Mauritius. This acquisition led to a 90% controlling interest in Noveprim, firmly supporting Charles River's NHP supply strategy. The company also acquired Explora Biolabs in April 2022. San Diego-based Explora complements the company's existing Insourcing Solutions business, specifically its CRADL footprint and offers incremental opportunities to partner with an emerging client base. On the flip side, a significant chunk of Charles River's RMS and DSA revenues is generated in China. Any trade policy related conflict between the United States and China might hamper the company's business developments in this region. Further, the Manufacturing Solutions segment is experiencing softness across the broader end markets, which, according to the company, is due to a post-COVID slowdown from biopharma manufacturers, CDMOs and their suppliers. Clients, particularly CDMOs, are cutting costs as part of their COVID-19 destocking efforts and reducing testing volumes. According to Charles River, in Microbial Solutions, the global biopharma demand environment is affecting the Endosafe endotoxin testing product line as clients are reducing both testing volumes and investments in new instruments. These market conditions more noticeably impacted the Microbial Solutions business in the quarters of 2023. At the end of the first quarter of 2024 too, the company recognized similar destocking activities. However, Charles River assumes that the winding down of the destocking activities is now largely complete. Further, foreign exchange is a major headwind for Charles River as a considerable percentage of its revenues comes from outside the United States. The strengthening of the euro and some other developed market currencies has been constantly hampering the company's performance in the international markets. Key Picks Some better-ranked stocks in the broader medical space are Hims & Hers Health HIMS, ResMed RMD and Medpace MEDP. While Hims & Hers Health sports a Zacks Rank #1 (Strong Buy), ResMed and Medpace carry a Zacks Rank #2 (Buy) each at present. Hims & Hers Heath shares have surged 154.5% in the past year. Estimates for the company's earnings have increased from 18 cents to 19 cents for 2024 and from 33 cents to 35 cents for 2025 in the past 30 days. HIMS' earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%. Estimates for ResMed's fiscal 2024 earnings per share have remained constant at $7.70 in the past 30 days. Shares of the company have plunged 13.1% in the past year compared with the industry's decline of 1.8%. RMD's earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 10.9%. Estimates for Medpace's 2024 earnings per share have remained constant at $11.29 in the past 30 days. Shares of the company have surged 76.9% in the past year compared with the industry's 4.9% growth. MEDP's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an earnings surprise of 30.6%. To read this article on Zacks.com click here.
Women's Health-Focused Hologic Has Significant Capacity For Expansion Via M&A, Bullish Analyst Says - Hologic (NASDAQ:HOLX) 2024-06-27 19:39:00+00:00 - Loading... Loading... Stephens initiated coverage on Hologic Inc HOLX, citing it as a major player in women’s health, known for its consistent revenue growth, strong free cash flow, and attractive profit margins, is well-positioned in the molecular diagnostics sector post-COVID. Stephens analyst writes, “Hologic is a leader in women’s health with a portfolio of products that have become the gold standard for care. Hologic emerged from the pandemic with new growth drivers, a scaled installed base, and a stronger balance sheet.” The analyst says Hologic is well-positioned to execute on near-term targets and fuel long-term growth. A change to cervical cancer screening guidelines can potentially cause near-term share volatility. However, the impact from the change will be manageable, won’t impact near-term numbers, and will ultimately be immaterial to Hologic’s long-term growth profile. Stephens initiates with an Overweight rating and a price target of $87. In the near term, 5%- 7% growth seems achievable. However, longer-term growth will be dependent on M&A. With its leverage ratio at a 10-year low, the Stephens analyst expects Hologic to deploy capital and thinks M&A represents a key opportunity to bolster both near-term and long-term growth and drive multiple expansions. Stephens writes that mergers and acquisitions are crucial for Hologic’s long-term growth, and this strategy is expected to drive its stock performance over the next year. Management has prioritized M&A for capital allocation. While the company will likely continue with smaller tuck-in deals, it is also prepared to pursue larger acquisitions (over $1 billion) if the right opportunity arises. This focus on M&A presents a significant opportunity for multiple expansion. Price Action: HOLX shares are up 2.05% at $73.76 at the last check on Thursday.
Novo Nordisk's Hypertension Drug Study Fails to Meet Goal - Annovis Bio (NYSE:ANVS), ALX Oncology Holdings (NASDAQ:ALXO) 2024-06-27 19:38:00+00:00 - Loading... Loading... Novo Nordisk NVO lost 2.2% on Jun 26 after the company announced the failure of a late-stage study evaluating ocedurenone to treat patients with uncontrolled hypertension and advanced chronic kidney disease (CKD). Consequently, the company said that it will recognize an impairment loss of around DKK 5.7 billion related to the intangible assets in the second quarter of 2024. Such recognition is expected to negatively impact operating profit growth by around 6 percentage points at the constant exchange rate (CER) in 2024. This adjustment revises the previously stated operating profit outlook of 22% to 30% growth at CER, as communicated in their financial report for the first quarter of 2024. Novo Nordisk is slated to announce its financial results for the first six months of 2024 and update its financial outlook for 2024 on Aug 7, 2024. Based on interim analysis, an independent data monitoring determined that the study did not meet its primary endpoint of reducing systolic blood pressure from baseline. This conclusion triggered Novo Nordisk's decision to halt the CLARION-CKD study. Year to date, shares of NVO have jumped 38.9% compared with the industry's 23.1% growth. The investigational candidate, ocedurenone, is a novel third-generation non-steroidal mineralocorticoid receptor antagonist known for its distinct pharmacokinetic profile, featuring a prolonged half-life and strong affinity for the mineralocorticoid receptor. Novo Nordisk acquired ocedurenone from KBP Biosciences in 2023. The phase III CLARION-CKD study, conducted by KBP Biosciences, aimed to assess ocedurenone's efficacy inmore than 600 enrolled patients with uncontrolled hypertension and advanced CKD, a condition for which effective treatments are critically needed. The study included a prespecified interim analysis after 12 weeks of treatment for all patients. The decision to stop the trial underscores the challenges in developing effective therapies for complex conditions like advanced CKD and uncontrolled hypertension. The failure of ocedurenone brought into question the viability of the KBP Biosciences deal. Zacks Rank and Stocks to Consider Novo Nordisk currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the drug/biotech industry are ALX Oncology Holdings ALXO, Annovis Bio ANVS and Compugen CGEN, each carrying a Zacks Rank #2 (Buy) at present. In the past 30 days, the Zacks Consensus Estimate for ALX Oncology's 2024 loss per share has remained constant at $2.89. During the same period, the consensus estimate for 2025 loss per share has remained constant at $2.73. Year to date, shares of ALXO have plunged 60.5%. ALX Oncology beat estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 8.83%. In the past 30 days, the Zacks Consensus Estimate for Annovis' 2024 loss per share has remained constant at $2.46. During the same period, the consensus estimate for 2025 loss per share has remained constant at $1.95. Year to date, shares of ANVS have plunged 69.4%. ANVS beat estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 1.39%. In the past 30 days, the Zacks Consensus Estimate for Compugen's 2024 earnings per share has remained constant at 5 cents. The consensus estimate for 2025 loss per share is currently pegged at 11 cents. Year to date, shares of CGEN have lost 11.6%. CGEN's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 5.79%. To read this article on Zacks.com click here.
Bragg Gaming Expands in Pennsylvania With BetMGM - PlayAGS (NYSE:AGS), Adtalem Glb Education (NYSE:ATGE) 2024-06-27 19:37:00+00:00 - Loading... Loading... Bragg Gaming Group Inc. BRAG advanced its collaboration with BetMGM by launching its newest games and Remote Game Server ("RGS") technology in Pennsylvania. Before this launch, the company extended its content's market reach in New Jersey in 2023 and Michigan in 2022 with BetMGM. From this launch, Pennsylvania's BetMGM players can access content titles from Bragg's Atomic Slot Lab proprietary content studio including Egyptian Magic, Fairy Dust, and many more upcoming titles. Furthermore, the players will soon enjoy forthcoming content from Bragg's Las Vegas-based proprietary content studio, Wild Streak Gaming, and titles from multiple exclusive content partners under the Powered By Bragg program comprising King Show Games and Sega Sammy Creation. Every casino game available on Bragg Gaming's new RGS technology houses its Fuze promotional tools, which offer player engagement features on games such as free rounds, tournaments, and quests. BRAG is optimistic about entering the Pennsylvania gaming market as it will take the company a step forward in meeting its commitment to delivering innovative and engaging content to players across North America. Online Gaming – Growth Driver of BRAG Bragg Gaming is diligently focusing on transforming itself into a content-focused iGaming solutions provider across expanding North American and European markets. This strategic move is backed by expanding and diversifying its content portfolio through organic and inorganic initiatives, entering into accretive partnerships, and focusing on expanding its footprint. Focusing on expanding its product portfolio, during the first quarter of 2024, Bragg Gaming released 19 new exclusive online casino games, including seven from its in-house Bragg's Studios. The company also launched online games in the United States for the first time from the popular land-based slots developer King Show Games, which further boosted its strong exclusive games road map for North America. Furthermore, Bragg Gaming delivered and deployed its second custom slot game developed for Caesars Digital, Boardwalk Slots Bankers in cash, which is now exclusively live on Caesars Palace online casino and Caesars Sportsbook online casino in Michigan and New Jersey. Given the robust progress in new and existing markets regarding online gaming, Bragg Gaming remains bullish on the opportunities ahead as the trend of iGaming regulation continues globally. The company has observed exciting potential in the newly regulated markets of Brazil, Peru, and Finland, accompanied by untapped opportunities in regions like Africa. Shares of this content and technology solutions provider to the iGaming industry have surged 88.7% in the past year, outperforming the Zacks Gaming industry's 9.2% growth. Zacks Rank & Key Picks Bragg Gaming currently carries a Zacks Rank #4 (Sell). Here are some better-ranked stocks from the Consumer Discretionary sector. Royal Caribbean Cruises Ltd. RCL currently sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has gained 56.5% in the past year. The Zacks Consensus Estimate for RCL's 2024 sales and earnings per share implies growth of 16.9% and 64%, respectively, from the year-ago levels. PlayAGS, Inc. AGS presently sports a Zacks Rank of 1. AGS has a trailing four-quarter earnings surprise of 33.3%, on average. The stock has gained 106.3% in the past year. The consensus estimate for AGS's 2024 sales and EPS implies growth of 6.5% and 3,000%, respectively, from the year-ago levels. Adtalem Global Education Inc. ATGE currently sports a Zacks Rank of 1. ATGE has a trailing four-quarter earnings surprise of 18.8%, on average. The stock has surged 95% in the past year. The Zacks Consensus Estimate for ATGE's fiscal 2025 sales and EPS indicates an increase of 5.3% and 16.6%, respectively, from the year-ago levels. To read this article on Zacks.com click here.
BrewDog sacks Asian woman after reaction to EDL members meeting in bar 2024-06-27 19:05:00+00:00 - BrewDog has been accused of sacking an Asian woman after she voiced her distress when members of the far-right English Defence League met in the London bar where she worked. The former staff member said members of the EDL had gathered unchallenged at the “punk” brewer’s flagship bar in Waterloo, ahead of a rally to mark St George’s Day on 23 April. Police went on to arrest 10 people at the event, after groups of men tried to break through cordons in an areas of Whitehall, while glass bottles were also thrown. The former BrewDog staff member said she had gone to see her manager in a podcast studio located in the bar after she arrived at work to find that suspected members of the EDL were drinking in the bar before the rally. BrewDog accused her of “aggressive behaviour and use of inappropriate language” after she raised her concerns, according to documents seen by the Guardian. “This was not the case at all,” Myriam – not her real name – told Tribune magazine, which first reported the story. “All I said was ‘I can’t fucking believe this. This is fucking unbelievable.’ I didn’t swear at my manager … When I read the accusation, it completely broke me. I was scared, upset, heartbroken. I felt powerless. This is my job. I have bills to pay. I had a breakdown.” Myriam sent a message to her manager apologising for the strength of her emotions and asked him to put himself “in the shoes of a brown woman in this situation”, adding that her family had faced racial abuse from the EDL when she was growing up. In a letter to Myriam, BrewDog said it acknowledged her “past trauma and emotional state” but that she had been guilty of serious misconduct worthy of dismissal with notice. The trade union Unite said it was concerned about BrewDog’s treatment of staff. “We shall be doing everything we can legally and industrially to ensure that our members at this and every Brewdog receive the justice they deserve,” said Bryan Simpson, lead organiser at Unite Hospitality. While the EDL did not make a booking at the BrewDog bar, Myriam said they were “allowed to sit there and drink before their rally, which always end up violent”. BrewDog, based in Aberdeenshire, is understood to have been informed by police a day earlier that EDL members were likely to gather in the Waterloo area and might visit the bar. Police told the company not to close the venue and offered assurances that officers would be present. Myriam said staff were not told about this and said the lack of advance warning was a factor in her reaction. Colleagues were extremely uncomfortable about the presence of the EDL and one was in tears, she claimed. skip past newsletter promotion Sign up to First Edition Free daily newsletter Our morning email breaks down the key stories of the day, telling you what’s happening and why it matters Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion One member of BrewDog staff who dealt with her disciplinary hearing appeared to be unaware of what the EDL was, she added. BrewDog, which built a reputation as a “punk” challenger to mainstream beer brands, has faced multiple allegations of poor treatment of staff. In 2021, the company apologised to former employees who accused the company and its co-founder, James Watt, of fostering a “culture of fear” in which workers were bullied and “treated like objects”. Watt has since stood down as chief executive, saying he wanted to focus on other ventures, although he remains on the board. BrewDog told Tribune: “The standards of behaviour we expect from our colleagues are set out in our workplace code of conduct. There was a clear and unacceptable breach of this code in this instance. We followed all relevant processes and complied with our investigation and disciplinary policies, and we stand by our decision.” The Guardian has approached the company separately for comment.
BP has scaled back its green energy plans – don’t be surprised if it happens again | Nils Pratley 2024-06-27 18:54:00+00:00 - Grand corporate strategies are launched in weighty declarations by chief executives who fancy themselves as visionaries. That was how Bernard Looney, the then chief executive of BP, did it back in February 2020 when he said the company would get serious about cutting greenhouse gas emissions and investing in renewables. “The direction is set. We are heading to net zero. There is no turning back,” Looney told his City audience. By contrast, the watering down of ambition tends to happen in increments. Thus, when Looney last year scrapped BP’s aim to reduce hydrocarbon output by 40% by 2030, versus 2019’s level, in favour of a 25% cut, he claimed the change was a case of “leaning in” to the same strategy, just in the new circumstance of a world that was worrying more about energy security after Russia’s invasion of Ukraine. And now comes today’s BP chief executive, Murray Auchincloss, with his own adjustment. This one is genuinely more of a tweak: BP will slow its investment in low-carbon projects, which mostly means offshore wind in this case. The intention – at least for now – is still to complete the 9.5GW of capacity in unbuilt off-shore projects in the UK, Germany and the US. But don’t expect to see BP turbine blades start spinning until late in this decade, and don’t expect the company to bid for more wind licences unless the circumstances are truly exceptional. The corporate game is now about delivering “a simpler, more focused and higher value company”. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion BP, it should be said, is still streets ahead of most of its rivals in terms of its transition strategy. Chevron and ExxonMobil in the US, for example, are unembarrassed about their determination to be oily for longer. And BP is the only major to have a formal target to reduce oil and gas output. It is why Auchincloss can still maintain that his refrain about moving from “IOC to IEC” – from international oil company to integrated energy company – is intact. Yet his next action will be the one to watch. The stock market, as everybody knows by now, is rewarding the US titans with higher share ratings because they have an easier financial story to tell: energy transition globally is happening at a slower pace than imagined a few years ago, and their expertise lies in oil and gas, where immediate demand is still high. BP, by contrast, is in “trust us” financial territory for what it calls its “five transition growth engines”, which also include biogas, electric vehicle charging points, hydrogen and – nonsensically – convenience stores on forecourts. Since it hasn’t actually built any windfarms yet, it is not in position to demonstrate achieved returns. Therein lies its credibility issue with the market. So where does Auchincloss go next? As the continuity choice for the top job, radical change was never on the cards in year one. But you have to wonder what year two will bring. Would anyone be surprised if BP’s renewables ambitions were scaled back again? Increments add up, and Looney’s “no turning back” mantra feels a long time ago.
Panel’s approval of liquefied natural gas export terminal puts more pressure on Biden to block it 2024-06-27 18:51:16+00:00 - NEW ORLEANS (AP) — What would be the nation’s largest export terminal for liquefied natural gas won approval from a federal commission Thursday, although when the Louisiana project will be completed remains unclear in light of a Biden administration delay announced this year on such projects. Venture Global’s Calcasieu Pass 2 southwestern Louisiana project, often referred to as CP2, was approved with little discussion by the Federal Energy Regulatory Commission during a livestreamed meeting. However, the project, which would be Venture Global’s second such facility in the area, still needs Department of Energy approval, and its immediate prospects are uncertain, given the administration’s January pause. The DOE issued a statement saying the project’s application at the department “remains pending.” “The United States already is and will remain the largest exporter of LNG in the world throughout this decade by a substantial margin based on the authorized export capacity that is currently operational or under construction after having reached a final investment decision,” the department said. The January pause aligned President Joe Biden with environmentalists who fear the huge increase in exports, in the form of liquefied natural gas, or LNG, is locking in potentially catastrophic planet-warming emissions. Louisiana’s two Republican U.S. senators, officials from other energy producing states and industry officials have derided the pause as shortsighted and a boon to U.S. adversaries that produce energy, including Iran and Russia. But, some residents and environmentalists in the state — dependent on oil and gas dollars but also vulnerable to the effects of climate change — are wary of more LNG development. Venture Global issued a statement praising the FERC approval. “This project will be critical to global energy security and supporting the energy transition, as well as provide jobs and economic growth across Louisiana and the United States,” said Mike Sabel, CEO of Venture Global LNG. FERC’s approval brings new pressure on Biden from environmentalists. “The temporary pause on LNG export permitting was a good first step; now President Biden must make the pause permanent and do whatever is necessary to clamp down on fossil fuels throughout the country,” the group Food & Water Watch said in an emailed statement critical of the FERC decision. “New LNG export terminals are simply not compatible with a healthy, livable future,” said a statement from the environmental group Evergreen Action. Outgoing FERC member Allison Clements spoke against the projects Thursday morning. “These projects will have enormous emissions of greenhouse gases, equivalent to putting more than 1.8 million new gas-fueled cars on the road each year. The order does not meaningfully assess those emissions,” Clements said. FERC chair Willie Phillips said after the meeting that the commission had to maintain “a delicate balance” between the environmental concerns of communities and following the law governing project approval. “When matters are complete, when our review is final, we give those matters a vote. And this matter is consistent with the standard that we’ve set for every other project,” Phillips said when asked about critics’ claims that FERC gave “rubber stamp” approval to the project. He said the commission’s actions, in requiring about 130 conditions on the CP2 project, go “above and beyond” what the panel is required to do under the National Environmental Policy Act, a bedrock environmental law that requires extensive study and public input before major environmental projects can be approved. ___ Associated Press reporter Matthew Daly in Washington contributed to this report.
Aileen Cannon orders yet another hearing in classified documents case 2024-06-27 18:42:32+00:00 - U.S. District Judge Aileen Cannon did something normal Thursday when she denied one of former President Donald Trump’s motions that never stood much of a chance of success. But she also continued her practice of ordering hearings that will at least further put off a trial in the classified documents case, which still has no trial date but plenty of other unresolved issues. The motion Cannon denied Thursday was for a so-called Franks hearing, which contests the truthfulness of a warrant affidavit — in this case, for the search warrant at Mar-a-Lago. There’s a high bar for such motions, and the judge uncontroversially found that Trump failed to make the required “substantial preliminary showing." But in that same order, Cannon said she’ll hold (at some yet-undetermined date) an evidentiary hearing on Trump’s suppression challenge regarding the crime-fraud exception to attorney-client privilege and on the “particularity” of the warrant. The first issue involves notes belonging to former Trump lawyer Evan Corcoran that could prove damning for the defendant at trial. Another court previously found that the crime-fraud exception applied here, but Cannon said that she’s obliged to “make factual findings afresh” on the subject. The second issue involves the rule that warrants be sufficiently detailed to comply with the Fourth Amendment. Cannon wrote that “ambiguities” in an attachment to the warrant require a hearing. She conceded that special counsel Jack Smith raised “compelling arguments” about the warrant’s lawfulness but nonetheless decided that more factual development is needed. As with any hearing, we may learn more about where she’s headed when Cannon questions the lawyers. Siding with Trump on one or both issues would threaten the case, though she would risk being overturned on appeal. And like other hearings she's held, their mere occurrence provides at least a short-term victory for Trump, by further pushing off a trial in a case that he’s likely to crush if he wins the presidency again in November. Subscribe to the Deadline: Legal Newsletter for weekly updates on the top legal stories, including news from the Supreme Court, the Donald Trump cases and more.
Mass shooting shutters Arkansas town’s only grocery store — for now 2024-06-27 18:37:34+00:00 - FORDYCE, Ark. (AP) — A steady rain was falling outside Fordyce High School, but that didn’t deter an army of volunteers who raced to hand out jugs of milk and bags of groceries to a line of cars snaked around the parking lot. In the days since a shooter killed four people and injured 10 others at the Mad Butcher grocery, this town of 3,200 people has been grieving and grappling with the shock of a mass killing. But the community has also faced the void left by the temporary closure of its only grocery store. While the Mad Butcher’s workers have been cleaning up from the aftermath of the violence in the south Arkansas store, residents have few nearby alternatives. Though the town has a Walmart and discount retailers with some food options, the closest grocery stores or supermarkets are located in neighboring cities at least half an hour away. “A lot of people don’t have the ability to get there or elderly people don’t want to go that far,” said Darrin Brazil, the school’s basketball coach, who organized the food pickup with two former classmates. “We just want to do that for the community for help people that really need that.” The school, a city facility and churches are among sites set up for residents to pick up groceries while the store is closed and being cleaned up. The struggle has highlighted concerns about “food deserts,” areas without access to affordable, healthy food nearby. Similar efforts sprung up in Buffalo in 2022 after a white supremacist killed 10 people at a supermarket. “It’s a basic need that people have. It’s kind of bringing us together, to be honest,” said Roderick Rogers, a city council member and pastor. “We’re trying to respond with love to overcome this tragedy.” The front of the Mad Butcher was still riddled with bullets on Wednesday as workers were inside cleaning up and making repairs. A makeshift memorial for the victims — including crosses, flowers and candles — was set up next to the parking lot. A banner reading “#WeAreFordyceStrong” hung under the store’s name and green awning. “Temporarily closed” signs were taped to the store’s front doors. “Please pray for our community,” they said. Police have not given a motive for the shooting. Travis Eugene Posey, 44, pleaded not guilty this week to four counts of capital murder and ten counts of attempted capital murder and is being held in a neighboring county’s jail without bond. Posey was injured after a shootout with police officers who responded to the attack, authorities said. Police have said Posey was armed with a handgun and a shotgun, and multiple gunshot victims were found in the store and its parking lot. Authorities have said Posey did not appear to have a personal connection to any of the victims. Many of the volunteers stocking up bags and handing them out at the school on Wednesday knew the victims or someone who was in the store as the shooting unfolded. “The whole city of Fordyce is hurting over this,” said Elvis Smith, the maintenance director for the school district. His wife was in the store during the attack and escaped through a back door. Houchens Industries, the Kentucky-based company that owns Mad Butcher, said it expected to reopen the store in the coming week, Little Rock television station KTHV reported. Residents driving through the school’s parking lot said they hoped it would be sooner rather than later. “You definitely don’t know what to do,” said Jayda Carlson, who dropped by the school to pick up groceries with her grandmother-in-law on Wednesday. “Am I going to have to spend more money on gas to get groceries and stuff that we need?”