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Markets Are Loving Boeing Stock After Earnings, Time To Buy? 2023-07-26 - Large capitalization stocks (usually ranging from $50 to $100 billion in size) tend to move very slowly, sort of like a tanker ship trying to turn its course, as opposed to a speedboat trying to corner a turn at high speeds. Boeing NYSE: BA is one such stock, a giant in the industry with a valuable brand name to support its price action. Key Points Boeing stock is rising by nearly double-digits after markets digest the company's latest quarterly results, pushing management expectations closer to reality. These technical levels suggest that the worst is behind for the stock, as it has also blown past this close competitor; markets agree that Boeing is the industry's favorite child. Today's results close the loop as to why markets are jumping all over Boeing stock while also expecting further growth and higher potential ceilings in the price. 5 stocks we like better than Lockheed Martin Today, the story changes as shares of Boeing are rising by as much as 6.4% in the morning hours of Wednesday's trading session. The initially bullish reactions come as investors and markets digest the latest quarterly earnings results, which blew past expectations to place the company into a new expansionary path. After being in an official bear market (defined as a 20% retracement from all-time or recent highs), Boeing stock could be setting up to break a near five-year price action spell; perhaps investors will see a near double in the coming months. As bullish as this assumption may seem, markets are pointing toward this scenario carrying high probabilities, backed by expanding financials. Understanding the Playing Field Boeing stock reached an all-time high price of $446.01 back in the first half of 2019 and has suffered from a bear winter ever since, though this may be about to change. Today the stock has not only touched but also crossed with significant momentum, its 200-day moving average level. Understanding what this means can begin to lay the foundation for what could become a monster rally in Boeing stock. Typically, the 200-day moving average acts as a secondary proxy for bull or bear markets when a stock goes above and below it. Crossing above it with as much momentum as seen today can be taken as a majorly optimistic signal by investors. The above image shows the entire cycle for Boeing stock, from a sleepy period before a more than 100% rally before 2019 down to today's directionless behavior. The purple line across the white price bars will represent the 200-day moving average; as investors can see, the past quarter has been summed up into a battle attempting to rise above, one that has been won today. Taking this performance by itself is excellent, but it does not express whether Boeing is rising above competitors as much as it is rising above itself. In comparison, looking at another household name like Lockheed Martin NYSE: LMT can add bullish sentiment for investors still wondering about Boeing. Boeing stock has outperformed this close competitor by as much as 31% during the past twelve months, a massive gap pointing to which of the two stocks is the most popular in the eyes of the market today. Furthermore, forward-looking valuation metrics, such as the forward P/E, also provide a reliable gauge of what may be expected. By valuing the next twelve months of expected earnings via the forward P/E ratio, investors can determine where the perceived growth and quality are within a given sector. Boeing stock trades today for a 43.9x forward P/E, while Lockheed stock trades for an inferior 16.2x. Value investors may begin to argue that this only makes Boeing more expensive than the alternative; however, this market willingness to pay a premium for each dollar of future earnings should not be taken lightly. Taking the newfound momentum in the stock, alongside financial results, can piece together the 'why' behind this market viewpoint. Expanding Financials Free cash flow is the lifeblood of any business since it enables management to reinvest in the company via avenues like debt repayments, acquisitions, and share buybacks. Today, Boeing has flipped its free cash flow figures on their head, going from negative $182 million a year ago to today's $2.5 billion. The earnings report only gets better from there; revenues beat estimates by advancing 18% during the year. This growth is backed by a similar margin expansion, where gross margins grew from 8% to 10% as efficiency initiatives took effect. Boeing also used some of this new free cash flow and some of the existing cash balances to reduce the company's debt burden by a hefty $3.1 billion. Deliveries for the aircraft maker grew by an astonishing 12%, pushing the CEO's target to generate as much as $10 billion in free cash flow by 2025. Management commented that "... We are well positioned to meet the operational and financial goals we set for this year and for the long term," reiterating confidence that these targets will be met. Investors can now bet on the perfect storm when weighing their potential decision toward a purchase in Boeing stock, technicals and fundamentals seldom shake hands and agree on a direction for a stock, but not today. Boeing's stars have aligned at the right time for a summer vacation. Before you consider Lockheed Martin, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lockheed Martin wasn't on the list. While Lockheed Martin currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Nothing But Upside For High-Yield Verizon? 2023-07-26 - Key Points Verizon had a mixed quarter, but the margin is good, and the cash flow is strong. The high-yielding dividend appears safe and reliable in 2023. Institutions and analysts are buying this deep value and may drive it higher by the end of the year. 5 stocks we like better than Verizon Communications The price action in Verizon NYSE: VZ stock has been trying hard to put in a bottom, and the factors supporting the move are still in place. Verizon trades at a ridiculously low level for almost no reason, paying a safe and growing dividend. The dividend is among the most appealing aspects of the stock because it is worth more than 7.5%, with shares trading at a deep discount to their historical value. But don’t take my word for it. The analysts and institutional activity suggest that the sell-side is interested in Verizon for these reasons. The institutions have been buying Verizon on balance for 2 years. Their activity netted over $12 billion in shares and outpace selling by more than 2:1. The activity noticeably spiked in Q3 2023 when the shares moved to a new long-term low. That low coincides with a volume spike driven by the institutions and analysts. Analysts are among the most bullish factors supporting this stock and the idea of a bottom. There are 14 analysts with ratings on the stock, and they rate it at Hold. Fourteen is not a huge number, the most closely followed stocks have upward of 30 analysts following them, but 14 is significantly large. More importantly, the consensus price target, which has been edging lower, is still more than 25% above the current price action, and even the lowest price target assumes some upside. The low price target was set by Wells Fargo just days before the Q2 release and is $136. That’s about 4.5% above the price action and would put the market above critical support. Verizon Price Firms On Mixed Results: Reaffirms Guidance Verizon had a mixed quarter, but the report has some fine details. The revenue fell 3.6% YOY and missed the consensus estimate by 210 basis points, but margin and earnings were strong. The revenue was driven by 418,000 net additions driven by 3.8% growth in wireless and high-speed fiber optic. Fios net adds grew 20K YOY or up 55% on a YOY basis, evidence of growing momentum for high-speed fiber optic connections. The margin news is also mixed but favorable to shareholders. The company’s margin contracted compared to last year but less than expected, leaving GAAP and adjusted EPS down compared to last year. The good news is that the adjusted $1.21 is $0.04 better than expected, and other factors mitigate the decline. Among them is the 0.8% increase in consolidated adjusted EBITDA margin and the surge in cash and FCF. Cash and FCF increases are related to inventory charges and lower upgrade volumes; YTD FCF grew to $8 billion from last year’s $7.2 and allowed for some debt reduction. The guidance isn’t all that exciting but favors higher share prices. The company reiterated its outlook for FY2023, including adjusted EPS from $4.55 to $4.85. That brackets the consensus $4.66 with room for ample upside. The salient point is that earnings are stable relative to the outlook, there is no cause for the analyst to lower their performance targets, and the dividend is safe. Verizon’s High-Yield Looks Buyable Verizon’s high 7.6% yield looks buyable because it is only 55% of earnings at the mid-point of guidance, and cash flow is sufficient to cover it. The company carries debt but is managed and offers no significant red flags. Investors might not expect to see large distribution increases, but there is a high probability low single-digit increases will continue. The company has increased for 18 years and is on its way to Dividend Aristocrat status. The VZ price action firmed following the Q2 results. The market is showing a solid Hammer signal suggesting the market has hammered out a bottom. The market is struggling with resistance near $34.50, which could be a problem. A deeper decline may be brewing if the price can’t get above that level. However, given the results and the analyst's sentiment, a move above critical resistance seems likely. In that scenario, VZ stock may not rally strongly, but it should rebound and reenter its trading range. Before you consider Verizon Communications, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Verizon Communications wasn't on the list. While Verizon Communications currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Will Coca-Cola Stock Move To New Highs Or Fall Flat In 2023? 2023-07-26 - The Coca-Cola Company’s NYSE: KO Q2 results suggest that it can bubble to new highs in 2023, but there is at least 1 headwind for the market that could keep it from moving higher. The analysts. 13 of whom rate the stock a firm Moderate Buy, aren’t gushing with excitement, and their price target activity is unlikely to spur a rally. Key Points The Coca-Cola Company had a stellar quarter, showing pricing power is strong. Adjusted margin improved YOY and led to solid results on the bottom line. The earnings guidance was raised and may lead the analysts to raise their targets. 5 stocks we like better than Coca-Cola At least not yet. The analysts have yet to come out with revisions following the release; when they do, it will set the tone for the next few months. As it is, their price target is only 8% above the stock price action, which is little incentive for investors looking for returns this year. The Coca-Cola Has Strong Quarter: Pricing Power Is Evident The Coca-Cola Company had a solid quarter with strength in all regions. The company reported $12 billion in net revenue for a gain of 6.2% compared to last year, beating the consensus by 210 basis points. The gain was driven by flat case volume, a 1% increase in concentrated, and a 10% contribution from price/mix offset by FX headwinds. Organic growth came in at 11%, with Latin America up 25%, the EU and North America at 9%, APAC at 5%, Global Ventures at 10%, and Bottling Investments at 15%. The margin news is mixed with GAAP margin contracting and adjusted margin expanding. GAAP margins contracted due to FX headwinds and 1-offs related to growth and repositioning. The adjusted operating margin improved by 90 basis points to 31.6% to help leverage the top-line strength. The adjusted EPS of $0.78 is up 11% compared to last year, beating the consensus by $0.06, playing into management's decision to increase the guidance. The guidance has a cautious tone and does not include specifics for Q3, but it does include upward revisions for the year. The company expects organic revenue growth in the range of 8% to 9%, with EPS growth in the range of 9% to 11%. That puts adjusted EPS at $2.70 at the low end, above the consensus target. This should get the analyst to up their EPS targets; it may spark some upward price target revisions. The Coca-Cola Company Capital Returns; Dividend Growth The Coca-Cola Company generated $4 billion in FCF on a YTD basis. This is down slightly from the previous year but sufficient to maintain a solid balance sheet and pay dividends. The company is a Dividend King, so there is a high expectation for sustained annual distribution increases. The problem is that The Coca-Cola Company is a mature Dividend King paying out 70% of its earnings. It can sustain dividend increases, but there is a limit to how long and what pace they will come. The distribution CAGR is running at 3.5%, which isn’t enough to offset inflation in 2023; competitor PepsiCo NASDAQ: PEP is in similar shape but able to grow its dividend by more than the pace of inflation for a similar valuation. Other stocks in the consumer staples sector offer even better yields at deep-value pricing. Institutional interest in KO shares supports the action and may help it sustain current levels, if not higher. The institutions own nearly 70% of the stock and have been buying at a pace of 2:1 compared to selling. This is consistent with the $60 support level, which is the critical support line. A move below that level could lead to a significant correction in the stock price. So long as it holds, the market should continue to move sideways, if not drift higher. A move higher may depend on the analysts; if they begin to hike their price targets again, the market should follow them higher. Before you consider Coca-Cola, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Coca-Cola wasn't on the list. While Coca-Cola currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
BullFrog AI: Soaring On Breaking News And AI Potential 2023-07-26 - BullFrog AI NASDAQ: BFRG surged 44.22% higher yesterday on breaking news and traded almost 55 million shares. The digital pharmaceutical company encompassing artificial intelligence (AI) and machine learning (ML) could be a name to watch. Key Points BullFrog AI surged 44.22% and traded almost 55 million shares on breaking news about their novel prodrugs derived from mebendazole for cancer treatment. The patented compounds exhibit improved solubility and oral bioavailability, addressing a key challenge in using mebendazole for oncology treatments. BFRG's stock performance has been volatile due to its micro float and market cap, but the recent news may lead to a potential short-term target of $6 if support is maintained above $4.50. 5 stocks we like better than Bullfrog AI BullFrog AI is a digital biopharmaceutical company in the United States that uses AI and ML to analyze medical and healthcare data sets. The company's main product is bfLEAP, an AI/ML platform designed to analyze preclinical and clinical data. Additionally, BullFrog AI has licensing agreements with George Washington University and Johns Hopkins University, allowing them to use siRNA targeting Beta2-spectrin for treating human diseases and a formulation of Mebendazole for testing human cancer or neoplastic disease. The Breaking News Catalyst The company announced yesterday that the United States Patent and Trademark Office will issue U.S. Patent No. 11,712,435 on August 1, 2023. The patent protects BullFrog AI’s novel prodrugs derived from mebendazole and its use in treating cancers and other diseases. The patented compounds show improved solubility and oral bioavailability compared to the original drug, which addresses a significant challenge in using mebendazole for oncology treatments. This patent is the first resulting from the intellectual property that BullFrog licensed from Johns Hopkins University in October 2022. BullFrog AI’s exclusive royalty-bearing license includes the rights to commercialize prodrugs of mebendazole that demonstrate improved solubility and bioavailability relative to the parent compound. CEO Vin Singh expressed that this patent enhances the protection of their licensed product portfolio and signifies a promising advancement in cancer treatment. BFRG Stock Performance Since debuting on NASDAQ in February this year, after pricing its IPO of 1,297,318 units for $6.50 per unit for a total of $8.4 million of gross proceeds, shares of BFRG have experienced significant volatility. The stock has a 52-week range of a $2.47 low and $9.50 high. The volatility directly results from the stock’s float size, market cap, and link to the AI sector and hype. BFRG has a market cap of just $29 million and about 6 million shares outstanding, making the stock susceptible to higher fluctuations. Over the past several months, shares of BFRG have steadily traded lower on average volume, roughly 1.3 million daily shares. However, due to yesterday's breaking news, shares are trading above the downtrend’s resistance and a declining 50-day SMA. Going forward, if shares of BFRG can find support above $4.50, an area of previous resistance, and buyers can maintain volume and firm bids, a push above yesterday’s high towards $6 is a potential short-term target for the stock. As mentioned above, though, due to the stock’s micro float and market cap, volatility and broad intraday range moves are probable, and therefore risk management and thorough due diligence is required before making an investment decision. Before you consider Bullfrog AI, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Bullfrog AI wasn't on the list. While Bullfrog AI currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Microsoft Corrects On Solid Results: AI Is Priced Into The Market 2023-07-26 - Key Points Microsoft had a stellar quarter driven by Cloud and AI, but the strength was priced in. Guidance is good but not enough to spur the bulls to rally. Analysts see the stock trading at new highs, but they may have front-run the market. 5 stocks we like better than Microsoft Microsoft NASDAQ: MSFT had an outstanding quarter, but it was not enough to spur the market to rally. The takeaway from the post-release action is that AI is priced into the market, and the stock may not reach new highs this year. The AI hype plays into Microsoft’s standing as a Top-Rated, Most Upgraded, and Most Searched/Followed Stock on the Marketbeat.com platform, factors that pushed the stock to its current highs. Even the analysts front-run market, opening the door to downward revisions this quarter. Thirty-five analysts have Microsoft pegged at a consensus of Moderate Buy with a price target trending strongly higher. The most recent targets are well above the current price action, consistent with the broad consensus. This could lead the market to new highs, but it will take more conviction from the analyst community. The market should follow if they come out reiterating current above-consensus targets or even raising them. If not, the analysts may cap gains in the market until later in the year. If they lower their targets, shares of MSFT will fall further. In this scenario, Microsoft will return to more attractive levels, presenting a better bargain and yield. Microsoft stock trades at 32X earnings, consistent with other mega-tech like Apple NASDAQ: AAPL, but it only pays about 0.77% in yield. Investors looking for growth may be stymied by the valuation, which is no attraction for income investors. The bottom line is that Microsoft’s stellar quarter, good as it was, was nothing more than what the market was secretly hoping for, and the guidance might not be enough to keep the bulls running. Microsoft Has Solid Quarter Powered By AI Microsoft had an outstanding quarter with revenue of $56.2 billion, up 8.3% compared to last year. The gains were driven by strength in most segments and outperformed the Marketbeat.com consensus estimate by $0.710 billion or 130 basis points. Intelligent Cloud was the strongest performing segment, with a gain of 15% underpinned by a 26% increase in Azure Cloud. Product and Business Processes grew by 10% while More Personal Computing fell by 4.0%. The margin news is also good, with GAAP earnings outpacing the top-line strength by 400 basis points. The GAAP earnings were reported at $2.69 or up 20% YOY and 540 bps better than expected. The factor weighing on the market most heavily is guidance. The company is guiding for systemwide growth and strength in AI and cloud, but nothing more than was expected. The news failed to inspire any analyst commentary in the first 12 hours after the report, suggesting they are rethinking their targets. If the good news were actually "good," the analysts would be gushing. An Institutional Headwind For MSFT Share Prices The institutions own a lot of Microsoft, about 73%, so they are a force to be reckoned with. They’ve been buying on balance for the last year at a pace of more than 2:1, but a shift in the activity suggests a top could be in play. Institutional activity spiked in Q1 when shares were confirming a bottom at a long-term low, and it has slacked off since. The Q3 activity is bearish on balance and suggests profit-taking has begun within the group. If this continues, MSFT shares will have difficulty moving higher. The post-release price action is not favorable to higher share prices. The market is down 3.5% in premarket action and could move lower. The correction could take the stock to $320 or lower if the market does not regain traction soon. That is consistent with the long-term EMA. MSFT could be in for a much bigger decline if that fails as support. Before you consider Microsoft, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Microsoft wasn't on the list. While Microsoft currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Is Abercrombie & Fitch Stock's Next Stop $40 or $20? 2023-07-26 - Key Points The Abercrombie brand has been retooled to cater to young adults in their 20’s, 30’s and even 40’s. ANF saw a return to top-line growth in the last two quarters, punctuated by a shockingly good profit in Q1 that caused shares to gap up in eight-times normal volume. Analysts are expecting Q2 earnings per share of $0.13 which would mark a huge turnaround from the $0.30 per share net loss a year ago. Based on the Street’s projection for 2023 EPS, Abercrombie & Fitch shares are trading at 17.5x earnings. 5 stocks we like better than Abercrombie & Fitch Consistent with its “every day should feel as exceptional as the start of a long weekend” credence, Abercrombie & Fitch Co. NYSE: ANF opened a new store on famed 5th Avenue on Friday. The lavish, multilevel location echoes not only the glitz of New York City but also how far the clothing retailer has come over the past year. After its core teen customers bought significantly less in 2022, ANF turned to new audiences to strengthen sales and reduce its teen dependency. The Abercrombie brand has been retooled to cater to young adults in their 20’s, 30’s and even 40’s. A broadened ANF wardrobe also includes apparel and accessories for the office worker and for ‘special occasions.’ In conjunction with the pivot, management has been working hard to lower costs, reduce inventories and bolster the company’s digital offerings. The result: a return to top-line growth in the last two quarters — punctuated by a shockingly good profit in Q1 that caused ANF shares to gap up in eight times normal volume. The stock has trended higher since and is trading near its 52-week high of $38.21. Heading into next month’s Q2 earnings release, though, is this momentum play still worth trying on? Will Abercrombie & Fitch Top Q2 Estimates? Wall Street is projecting another profitable quarter driven by improving demand and markets — but plenty of hurdles could get in the way. High prices and interest rates may have led to cautious clothes spending, especially absent a major shopping season like back-to-school. The extent to which ANF’s newfound adult customer base spent on summer outfits could make or break the quarter. The consensus forecast of 4% revenue growth is far from a lock considering the company missed Q2 estimates badly last year. Yet with the stock having more than doubled since then, shareholders are hoping Abercrombie & Fitch is a different company this time around. A move into new consumer segments has undoubtedly expanded the company’s total addressable market (TAM). Improved digital capabilities through ANF’s websites and apps should also be supportive of sales growth. The company seems more clearly defined with its Hollister brands (including Gilly Hicks and Social Tourist) focused on the teen market, Abercrombie targeting adults and Abercrombie Kids all about kids. The business is well-balanced too, with Abercrombie and Hollister each accounting for roughly half of total revenue. Weakness in one could be offset by strength in the other. Analysts are expecting Q2 earnings per share (EPS) of $0.13, which would mark a huge turnaround from the $0.30 per share net loss a year ago. Along with lower freight costs and inventories, ANF will certainly have more levers to pull en route to another potential positive surprise. Is ANF Stock Undervalued or Overvalued? Based on the Street’s projection for 2023 EPS, Abercrombie & Fitch shares are trading at 17.5x earnings. This is below the midpoint of the stock’s five-year P/E range of 9x to 32x. A reversion to the historical midpoint would add 17% to ANF’s share price. Looking ahead to 2024 EPS, the stock looks even more attractive at 15x. Small cap apparel retail peers Zumiez (28x) and Revolve Group (25x) are trading at much higher multiples. Mid-cap peer Boot Barn is slightly more expensive at 16x, while American Eagle (12x) and Urban Outfitters (11x) are cheaper. Although ANF looks undervalued strictly from a P/E ratio perspective, Wall Street is clearly a house divided. Last week, Jeffries reiterated its Buy rating, saying the company is on track to meet its long-term operating margin goals. The analyst offered a Street-high $43.00 price target which implies a 15% upside over the next 12 months. This is a sharp contrast to the Sell rating that Morgan Stanley issued last month, along with a $18.00 target that suggests at least 50% downside. Overall, the average target calls for the stock to head back to around $30.00 over time. However, the Street has been playing catch up as ANF’s financial performances have improved. A better-than-expected Q2 report could easily push ANF’s share price into the $40’s (if it doesn’t get there prior). Expectations will be higher than usual, though, so a disappointment could ignite a move back to the $20’s. Before you consider Abercrombie & Fitch, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Abercrombie & Fitch wasn't on the list. While Abercrombie & Fitch currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Oddity Tech's AI-Powered Debut Sparks Optimism For '23 IPO Market 2023-07-26 - The better-than-expected June public offering of restaurant operator Cava Group Inc. NYSE: CAVA provided a needed lift for a dormant IPO market. Key Points Oddity's shares rose from $35 to $47.53 on their opening day of trading. The company and backers raise $424 million in the IPO. Oddity's success, which closely follows Cava's successful public market debut, hints at a potential IPO recovery. IPO researcher Renaissance Capital predicts a second-half IPO market upswing, as factors such as an improved stock market and easing inflation attract candidates. Eagerly anticipated IPOs include chipmaker Arm, Discord and Instacart. 5 stocks we like better than ODDITY Tech Shares are up 135% from the company’s IPO price of $22. Its market capitalization is currently $5.876 billion. A glance at the Cava Group chart shows you the strong post-IPO trajectory. The most recent IPO star is Israel-based Oddity Tech Ltd. NASDAQ: ODD, which markets beauty products under the Il Makiage and Spoiled Chlild brands. Both sell directly to consumers. The stock went public on July 19, with shares priced at $35 apiece, higher than an earlier range of $32 to $34. When you see an IPO price being increased, that’s a signal that there’s plenty of demand from institutions that want a piece of the action. Shares closed on opening day at $47.53, for a market value close to $2.7 billion. The company and its early backers raised approximately $424 million in the IPO. IPO Market Waking Up From Its Slumber? The company’s public-market debut was much better than anticipated. Because it followed so closely on the heels of Cava’s successful IPO, analysts are now predicting that the market for public offerings could wake up in the second half of the year, following a freeze as markets declined last year. In case you’re wondering why shares of a make-up company are going through the roof, here’s a reason that may seem familiar: AI. The company was founded in 2018 by siblings Oran Holtzman, the company’s CEO, and his sister Shiran Holtzman Erel, who serves as chief product officer. Their aim was to create a prestige beauty line with technological underpinnings. Oddity uses data and AI to create personalized product recommendations with the goal of replacing traditional in-store experiences. The company’s proprietary technology has been a key to its success: Unlike other direct-to-consumer retailers that have gone public in recent years, Oddity has achieved not only growth but also profitability. The company has posted a profit in each of the past three years, with a three-year earnings growth rate of 43% and a three-year revenue growth rate of 70%. Researcher Renaissance: Deal Size Points To An Uptick According to a July 3 report by Renaissance Capital, an IPO researcher that also runs the Renaissance IPO ETF NYSEARCA: IPO, activity points to a pickup in the second half of the year. In its report, “US IPO Market Gains Momentum in the 2Q,” Renaissance noted that not all IPO deals are whopping successes, of course. However, the larger ones have been delivering 20% gains. “Looking ahead, we believe the summer IPO market is poised to capitalize on several positive developments from the past quarter: The pause in rate hikes, the pickup in larger deals at quarter end, and improving returns,” Renaissance analysts wrote. The improved stock market has also been playing a role in attracting new companies back to the public markets, as has the easing of inflation. Backlog Brimming With Candidates “The backlog appears brimming with solid IPO candidates, and we expect a steady rise in listings in the second half,” Renaissance analysts added. Closely-watched candidates include U.K.-based chip designer Arm, which could go public as soon as mid-September, according to reports. Analysts expect the company to raise at least $10 billion, bringing its valuation to more than $50 billion. Other eagerly anticipated 2023 IPOs include communications app Discord, electric vehicle startup Vinfast, grocery ordering and delivery service Instacart, car-sharing service Turo, footwear maker Birkenstock, and marketing-automation service Klaviyo. Stripe, Reddit Could Have Been Contenders High-profile companies, including Stripe and Reddit, have removed themselves as IPO contenders for the moment, although early private equity and venture capital backers will eventually want their exit via an IPO. Institutional investors, who are among the early buyers of IPO shares, are typically not in it for quick profits, although there’s often some selling at around the 90-day mark when most lockup periods end. Instead, institutions generally buy in when they see good profit potential in the coming years. While analysts don’t expect 2023 to look like the IPO market of 2020 and 2021, when low-interest rates attracted investment, it’s becoming a better bet every day that it will look a lot better than 2022 and could set the stage for more growth next year. Before you consider ODDITY Tech, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ODDITY Tech wasn't on the list. While ODDITY Tech currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Fed raises interest rates to 22-year high as it continues to fight inflation 2023-07-26 - The US Federal Reserve raised interest rates to a 22-year high on Wednesday as it continued its fight against rising inflation. The decision to increase rates by a quarter-percentage point to a range of 5.25% to 5.5% comes after the Fed paused its rate-rising cycle last month. US inflation has now declined for 12 straight months and is currently running at an annual rate of 3%, down from over 9% in June last year. The Fed has raised rates from near zero in an attempt to cool the economy and bring prices down. The US economy has remained robust despite the 11 rate rises the Fed has now implemented – its most aggressive rate-rising cycle in 40 years. Hiring has slowed but remains strong and the unemployment rate is still close to a record low. Fed chair Jerome Powell said the central bank was closely monitoring the economic data ahead of its next meeting in September. “It is certainly possible that we would raise funds again at the September meeting if the data warranted,” he said. “And I would also say it’s possible that we would choose to hold steady at that meeting. We’re going to be making careful assessments, as I said, meeting by meeting.” Some Fed officials have expressed fears that recent falls in the pace of price rises may be temporary. This month Fed governor Christopher Waller said the last inflation report “warmed my heart, but … I’ve got to make policy with my head. And I can’t do that on one data point.” But Waller has also warned that the full effect of the Fed’s rate rises may not yet be apparent in the economy and that the US could face a “‘Wile E Coyote’ moment where nothing happens for a long time and then wham … off the cliff we go as the full force of past policy actions suddenly take effect”. The rate rises have sent mortgage rates and car loan prices soaring. The average long-term US mortgage rate climbed to just under 7% this week, the highest level since November. skip past newsletter promotion Sign up to First Thing Free daily newsletter Start the day with the top stories from the US, plus the day’s must-reads from across the Guardian 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 Rising rates are making it more difficult for Americans to obtain credit. According to the New York Fed, in June the rejection rate for credit applicants increased to 21.8%, the highest level since June 2018, with would-be car buyers hit hardest. In June the rejection rate for auto loans increased to a record 14.2% from 9.1% in February.
Kwarteng went ahead with mini-budget despite OBR warning, FOI reveals 2023-07-26 - Ten months after former chancellor Kwasi Kwarteng’s disastrous mini-budget, the public has for the first time been given the chance to see the Office for Budget Responsibility’s autumn 2022 forecast on the state of the economy. The Government spending watchdog’s pre-budget report was handed to Kwarteng on 5 September, days before he gave MPs details of his growth package, one of the worst-received Treasury measures in recent history. In a break with tradition, the chancellor refused to publish the OBR forecast, but it was finally made public on Wednesday thanks to a freedom of information request. It reveals that Kwarteng went ahead with a package of tax cuts despite being told by the OBR that the economy was on course for a yearlong recession and that higher interest rates were pushing up the cost of servicing the UK’s debts. The decision to withhold the OBR forecast contributed to the financial market jitters before an event that subsequently led to a run on the pound, sharply higher borrowing costs and a crisis in the UK pensions industry. Kwarteng was sacked by the prime minister, Liz Truss, three weeks after the mini-budget and after only 38 days as chancellor. “The economic outlook has worsened significantly since we last produced a forecast in March,” the note says. “Historically high gas prices have already driven inflation to its highest level in 40 years and we expect inflation to rise even further over the next few months.” Based on the assumption that there were no tax cuts or spending increases, the OBR report, obtained after the SNP MP Stuart McDonald put in a freedom of information request, predicted the sharpest fall in living standards in modern times. “The resulting sharp drop in real consumer spending in this forecast pushes the economy into a yearlong recession, with GDP falling from the fourth quarter of 2022 until the third quarter of 2023.” The report also said borrowing in the five years from 2022-23 to 2026-27 was on course to be cumulatively £109bn higher than the OBR had predicted at the time of the March 2022 budget. In a letter to McDonald, the OBR’s director, Richard Hughes, said the note was produced 18 days before Kwarteng’s growth plan, hailed by the then chancellor as the biggest package of tax cuts in generations. The economic and fiscal forecasts did not reflect any of the measures in Kwarteng’s statement or from Truss’s energy support package. The OBR made its forecasts before the sharp fall in wholesale gas prices, on a lower peak for interest rates, and before the increase in taxes announced by Kwarteng’s successor Jeremy Hunt in November last year. “So, relative to what has transpired, the draft forecasts described in the note are conditioned on more challenging wholesale gas prices, more favourable market interest rates, and less supportive near-term fiscal policy,” Hughes said in his letter to the MP. 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 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 In the six months following Kwarteng’s mini-budget, the OBR has produced two separate economic and fiscal assessments for Kwarteng’s successor, Jeremy Hunt, in which it has become less gloomy about the state of the economy. Its report in November 2022 predicted a 1.4% growth contraction in 2023, and by March it was forecasting a fall in output of 0.2%. A Treasury spokesperson said: “The document published reflects the OBR’s preparatory work sent to the then chancellor on his first day in office. The draft forecast did not include any policies ultimately announced in the growth plan.”
Moulding has the right to buy City AM – but he shouldn’t use THG’s cash 2023-07-26 - Matthew Moulding, media magnate, has a certain ring about it. And since the founder and chief executive of online retailer THG – The Hut Group, as was – is interested in newspapers, in the sense that he can be prickly about what’s written about the company, one can understand why he is buying City AM, the London-based business free sheet that put itself up for sale at the start of the month. Yet one has to ask a few related questions. How on Earth does this deal fit with the rest of THG’s operations, which are dominated by nutrition and beauty products via websites including Myprotein and Lookfantastic? Isn’t this an example of the sort of corporate sprawl and drift that Lord Allen, the former chief executive of ITV, was hired as chairman last year to stop? And shouldn’t Moulding be buying City AM with his own money rather than the funds of THG shareholders? He owns only 25% of the company. The strategic logic, apparently, is that City AM will broaden THG’s “reach” for its own brands and those it promotes for third parties. Well, OK, the paper distributes 70,000 copies a day and its target audience is financial workers who tend to be attractive to advertisers. Plus there’s a monthly online readership of up to 2 million, which THG might seek to increase. 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 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 Come on, though, advertisers normally confine themselves to buying adverts rather than whole newspapers. As for the idea that City AM should be considered an addition to a fledgling media unit within THG, that’s stretching things. The other titles seem to be promotional digital magazines for nutrition and health and beauty enthusiasts. City AM, employing 40 staff, is a punchy publication with a specialism in zinging front page headlines. THG’s formal strategy is “to create and grow category leading brands on a global scale”, which is vague enough to allow almost anything to be considered a fit. Yet the company seemed to be conducting an overdue tidying-up exercise recently. A small cycling equipment operation was sold to Frasers Group last week in the name of simplification and streamlining. A mini-adventure into newspaper ownership would turn the dial back in the old direction; that analysis is not altered by news that City AM will expand its coverage of “wellness technology and beauty” (groan). Moulding’s time would be better spent on THG’s core operations as a way to improve a share price that, even after a little rally this year, is still down by four-fifths from 2020’s float price. He has belatedly given up his controversial takeover-blocking “golden share” in THG to try to restore City trust, but it’s hard to see how this deal will help the process of normalising the company’s governance in investors’ eyes. On plus side, THG won’t be paying much because City AM is being acquired via a pre-pack administration. Allen might also have a few media industry tips to pass on from his old TV days. Really, though, this purchase looks like an indulgence and a distraction. In the round, we shouldn’t complain about people wanting to own and invest in newspapers. But Moulding should be using his own money, not his shareholders’.
City AM bought by Matthew Moulding’s online beauty retailer THG 2023-07-26 - City AM, the free London-based business newspaper, has been sold to THG, the online health and beauty retail platform run by the multimillionaire businessman Matthew Moulding. The 18-year-old freesheet, which had been on the brink of collapsing into administration, announced on Wednesday that it had been bought by THG for an undisclosed sum. THG, which sells own-brand and third-party cosmetics, dietary supplements and luxury goods online, appears to be an unlikely owner of a newspaper that distributes 70,000 copies a day targeting financial workers in the capital. However, City AM’s co-founder Lawson Muncaster said the deal was a “perfect fit”. “We both believe firmly in the power of business to make people’s lives better and we cannot wait to get started with our new partners,” he said. Moulding, who has attacked journalists over what he claims was unfair coverage of THG, said: “We’ve long been reviewing opportunities in the disruptive media space but have waited for the right time and the right opportunity to make a digital step-change in adtech capabilities for Ingenuity”, referring to the firm’s digital brand building and e-commerce platform. The “pre-pack” acquisition from appointed administrators BDO will result in City AM’s 40 editorial and commercial staff joining the THG Group. The City AM co-founder and longtime chief executive Jens Torpe will retire from the business. The freesheet’s founders had previously said they were in talks with potential new investors, before targeting an outright sale, after it built up £1.2m in debt by the end of 2021. City AM has been hit hard by the change in commuter habits after the coronavirus pandemic, coupled with a slump in the advertising market and the soaring costs of printing and paper required for its print edition. Before Covid, City AM had been published every weekday but decided in January to make its Friday edition digital only because of the reduced number of financial workers going to the office at the end of the week. Free newspapers in the UK, including the Evening Standard and Metro, have suffered in recent years, with advertising revenues declining and circulation dropping as commuters increasingly turned to their smartphones. At the same time, the cost of printing hundreds of thousands of newspapers and getting them on to the streets has rocketed, with paper shortages and printworks closures hitting hard. Evgeny Lebedev’s Evening Standard has cut its circulation to 310,000, is heavily loss-making and on some days prints just 28 pages. It recently appointed the former GQ boss Dylan Jones as editor, the first person to hold that post on a permanent basis since Emily Sheffield left in October 2021. Metro, owned by the Daily Mail’s parent company, continues to distribute 950,000 copies a day but has made deep cuts to its staffing levels with many longstanding journalists leaving. 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 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 THG’s media arm launched its own print magazine channel in early 2022, including the title the Supplement, which it made available to all Myprotein customers. Muncaster, who founded City AM with Torpe in 2005, said his partner had “worked tirelessly over the years to ensure that the good ship City AM sailed on through not just a financial crisis but a pandemic, too” and that Torpe would be much missed by colleagues. “I am so proud to have embarked with Jens on an extraordinary journey,” he added. Torpe said: “During our 18 years we’ve faced a few storms but none as turbulent as the past three years. We managed to survive lockdown but unfortunately we didn’t have the money to invest in digital and build on the strong progress we saw during the pandemic. “I’m therefore delighted that a business like THG has taken over City AM. Their digital expertise will be a great asset, so after 18 years I take comfort in the knowledge that our ‘little baby’ will grow and become more than a teenager.” City AM claims to have a monthly online readership between 1.8 million and 2 million, and print circulation of 67,714. It is distributed from about 400 travel hubs and commuter locations, as well as about 1,600 London offices. The BDO partner Danny Dartnaill said: “The impact of Covid and changing commuter habits, combined with reductions in traditional advertising revenues, significantly affected City AM’s business. The sale of the business to THG is a positive one. It provides the best outcome for creditors in the circumstances, as well as saving the jobs of all staff and preserving the City AM brand.”
Sunak and Hunt accused of ‘damaging UK plc’ over NatWest boss’s exit 2023-07-26 - The prime minister and the chancellor have been accused of “damaging UK plc” and failing to follow due process amid concern over anonymous briefings that triggered the early-hours resignation of NatWest boss Dame Alison Rose. “There is a real sense of disquiet that political pressure has led to a midnight exit for such an important banking CEO,” an official at the City regulator, the Financial Conduct Authority, told the Guardian. “They should have allowed due process.” The comments were echoed by a Treasury source, who described “a sense of disbelief” and “frustration” among banking bosses about the government’s handling of the row, and by the shadow chancellor, Rachel Reeves, who called out “bullying attitudes” towards Rose. The first woman to run a big UK bank, Rose was forced to quit in a row over the decision to close accounts held by the former Ukip leader Nigel Farage at the exclusive private bank Coutts, a subsidary of NatWest. In a surprise to City observers, the announcement of her departure came at 1.29am on Wednesday. NatWest’s chair, Howard Davies, had released a statement just before 6pm on Tuesday expressing support for Rose. However, from about 10pm that night, newspapers began reporting sources close to No 10 and the chancellor as saying that the government had “serious concerns” about her staying in post. The board was forced to reconvene at 11pm, when it was agreed that Rose had to leave. It is understood that NatWest was in regular communication with the Treasury throughout the discussions, and that it was notified of the board’s original decision to back Rose before the statement endorsing her was released. There was no pushback from ministers or Treasury officials at that time, they added. The Guardian has been told that there was a change in position only after the release of NatWest’s statement – even though its contents had been discussed with officials – resulting in the Treasury putting in calls to the bank’s board to voice its lack of confidence in Rose. Without support from its largest shareholder, the board reversed its decision. The turmoil reverberated on the stock market, with NatWest the biggest loser on the UK’s FTSE 100 index on Wednesday, falling by 3.7%. That wiped more than £840m from its value, including hitting the taxpayer’s stake by about £320m. The change in approach came as a shock to the bank’s employees, given Rose’s long list of government-backed accolades. She led state reviews of female entrepreneurship and UK energy efficiency, and was included in the 2022 honours list. However, on Wednesday Rose was sacked by the government from the female entrepreneurship initiative, known as the Rose Review. In an interview to be broadcast on Channel 4 on Wednesday, recorded before Rose stepped down from the bank, Reeves defended her and attacked Treasury ministers, accusing the government of “picking a fight with banks on behalf of Nigel Farage”. Reeves said: “I don’t like some of what I see as bullying attitudes towards her. She’s the first female chief executive of NatWest. She took over at a time when that bank had real big problems. It seems to me that Alison Rose has done a good job turning that bank around.” Darren Jones, the chair of the business select committee, suggested that No 10 had demonstrated double standards over the Farage case by pressuring a chief executive to resign. The government, he argued, had previously failed to intervene directly in matters involving bosses breaking employment law, treating staff unfairly and failing to protect customers’ money. “If ministers really wanted to crack down on CEO behaviour, they would have done so in many cases by now,” the Labour MP said. “So why intervene in the Coutts-Farage case? It’s about power. The power Farage seems to have over the Tories and the lack of it that everyday workers and customers have.” The government is the largest shareholder in NatWest, with a 39% stake. Day to day, the relationship is managed at arm’s length and on a commercial basis by UK Government Investments (UKGI). This makes the level of recent political intervention especially unusual, according to Treasury sources. “This should not have been a matter decided by anonymous briefings to the press,” a source at the Treasury told the Guardian. “There is frustration among some banking CEOs about what this means for their relationship with the government.” “There was a sense of disbelief [in Treasury] that they [Downing Street] decided to add to pressure on her and precipitate a late-night exit. It was a damaging decision for UK plc.” 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 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 Multiple sources accepted that Rose’s days may have been numbered given the importance of banking confidentiality, but her chaotic exit was unnecessary. An FCA source echoed the concerns, saying the government “should have allowed due process,” noting that NatWest had committed to an independent review of how it handled the former Ukip leader’s banking and confidentiality. Aside from financial crisis-era interventions on executive pay and conversations around the departure of the former chief executive Stephen Hester in 2013, ministers have taken a largely hands-off approach to the management of NatWest. The bank came under majority state control in 2008 after the government stepped in with a £45bn bailout in order to protect customer deposits. Speaking on Wednesday after a meeting with bank bosses about how to treat customers regardless of their views or political status, Andrew Griffith MP, the economic secretary to the Treasury, said it was right that Rose had resigned. “This would never have happened if NatWest had not taken it upon itself to withdraw a bank account due to someone’s lawful political views. That was and is always unacceptable,” Griffith said. “I hope the whole financial sector learns from this incident. Its role is to serve customers well and fairly – not to tell them how or what to think.” In a contrast to the position taken by Labour’s shadow chancellor, the party’s leader, Keir Starmer, expressed sympathy for Farage, saying NatWest had “got this one wrong” and that it was right for Rose to go. In a radio phone-in on BBC Radio 5 Live, he was asked if he felt sorry for Nigel Farage. “Yeah, he shouldn’t have had his personal details revealed like that. It doesn’t matter who you are, that’s a general rule,” he said. “I certainly don’t think anybody should be refused banking services because of their political views, whoever they are.” A Treasury spokesperson said: “This was a decision made by the NatWest board and Alison Rose. The NatWest board is responsible for the bank’s strategic and operational management. “The government has been clear throughout that, as a matter of public policy, it is wrong to remove someone’s bank account because of their political views or something that they said. Free speech within the law and the legitimate expression of differing views is an important British liberty.” The FCA and No 10 declined to comment. NatWest was approached for comment.
Spurs billionaire Joe Lewis pleads not guilty to securities fraud 2023-07-26 - Lawyers for the British billionaire Joe Lewis have accused prosecutors of making an “egregious” mistake, as the 86-year-old pleaded not guilty to multiple counts of securities fraud and conspiracy. Lewis, who heads the family that owns Tottenham Hotspur FC, was arraigned on Tuesday in Manhattan federal court with 16 counts of securities fraud and three of conspiracy to commit fraud, which prosecutors called a “brazen” insider trading scheme to enrich his friends, lovers and employees, including two private jet pilots. Asked to enter a plea to the charges by magistrate judge Valerie Figueredo, Lewis responded: “Not guilty, your honour.” Lewis was arrested by the FBI at 6.30am, prosecutors said. In court he was flanked by three attorneys. Lewis offered no comment as he left the 20-minute arraignment hearing. Under the terms of a $300m bond to secure his release, Lewis agreed to surrender his private yacht Aviva, which he is now prohibited from boarding, and his personal plane, which can be used – with prior notification to prosecutors – for domestic US travel. Lewis was ordered to surrender his passport, barred from international travel, and will be restricted to New York, northern Georgia, where he owns a home, and Florida. He was also ordered to have no contact with three government witnesses, believed to be his personal assistants. Co-defendants Patrick O’Connor and Bryan “Marty” Waugh, both pilots of his private plane, also pleaded not guilty at the hearing. They were released on a $250,000 bond. All three men were ordered to surrender any firearms. The defendants are due back in court on 5 September. In a statement released Monday, US attorney for the southern district of New York, Damian Williams, said Lewis had “abused his access to corporate boardrooms” in order to provide confidential information to people who used his tips to make millions of dollars betting on the stock market. “Thanks to Lewis, those bets were a sure thing,” said Williams. Buying or selling shares in listed companies using information that has not yet been disclosed to the markets is illegal in the US and every major economy. Williams said Lewis, who appeared in court on Wednesday, had knowingly deployed the tactic “as a way to compensate his employees or to shower gifts on his friends and lovers”. Lewis entered a not guilty plea before US magistrate judge Valerie Figueredo in Manhattan federal court on Wednesday. The US markets regulator, the Securities and Exchange Commission (SEC), also filed civil insider trading charges against Lewis, pilots Patrick O’Connor, 66, and Bryan Waugh, 64, as well as against Lewis’s girlfriend, Carolyn Carter, 33. In a 29-page indictment, detailing three counts of conspiracy and 16 counts of securities fraud, which carries a maximum sentence of 25 years, the US attorney cited evidence including WhatsApps and emails. In one such message, O’Connor told a friend that “the boss has inside info” after the billionaire allegedly lent him and Waugh $500,000 each to invest in the cancer treatment company Mirati Therapeutics. Lewis was one of Mirati’s largest shareholders and had allegedly received information about a positive clinical trial that would cause the company’s share price to rise. Carter and the two pilots invested $3m collectively in Mirati as a result of information supplied by Lewis, the SEC said, making a combined profit of $373,000. The US attorney cited four companies in which Lewis was an investor, via a hedge fund he controlled or through his vast investment firm, Tavistock Group. Lewis allegedly used information passed to him by insiders at those companies, including board members who he had been able to install thanks to his sizeable shareholdings. He is accused of passing that information on to girlfriends, friends and employees, in some cases encouraging them to make stock market trades before the information was publicly disclosed. Carter is alleged to have made more than $849,000 in less than a month, after acting on a tip from Lewis about a company called Solid Biosciences. Williams said: “That’s classic corporate corruption. It’s cheating and it’s against the law.” But on Wednesday, lawyers for Lewis said that he denied the charges and would contest them. “The government has made an egregious error in judgment in charging Mr Lewis, an 86-year-old man of impeccable integrity and prodigious accomplishment,” said David M Zornow of Skadden, Arps, Slate, Meagher and Flom. “Mr Lewis has come to the US voluntarily to answer these ill-conceived charges, and we will defend him vigorously in court.” Lewis, who was born above a pub in the East End of London, made his fortune from currency trading, before investing in sectors from pubs and tourism to biosciences. He is now worth $6.55bn (£5bn), according to Bloomberg. Lewis took control of Tottenham in the 1990s, but on Wednesday sources close to the club indicated that he no longer owned it, after a reorganisation of the Lewis family assets late last year. The beneficiaries of the trust that own Enic group, which in turn owns the majority of Tottenham, are understood to be members of the Lewis family but not the billionaire himself. Lewis’s wealth is tied to Tavistock, a Bahamas-based holding company that controls stakes in more than 200 businesses in 13 countries, with investments in real estate, restaurants and resorts. He also owns a 27% stake in the pub and restaurant chain Mitchells & Butlers, which owns chains including All Bar One, Harvester and O’Neills and is valued on the London Stock Exchange at £1.2bn. Lewis spends much of his time in the Bahamas, or aboard his 95-metre yacht, the Aviva. He is seldom spotted in the UK and is not thought to have attended a Tottenham Hotspur match since March 2022.
Irn-Bru workers call strikes that could ‘dry up supplies in weeks’ 2023-07-26 - Irn-Bru supplies could “dry up” within weeks, a union leader has said, after workers at the manufacturer announced dates for strikes over pay. The industrial action was called after Unite members rejected a 5% pay deal from the Scottish firm AG Barr. Unite confirmed that nine 24-hour strikes will take place between 11 August and 6 October, as well as a continuous ban on overtime beginning on 8 August. The strikes will involve 10 truck and shunter drivers, and will take place at the soft drink’s distribution centre in Cumbernauld, Dunbartonshire. AG Barr has described its pay offer as “fair and competitive”, but earlier this month staff members backed strike action by 83%. Sharon Graham, the general secretary of Unite, said: “Supplies of Irn-Bru could dry up in a few weeks due to the key role our members carry out for AG Barr. “The company is cash rich with £52.9m chilling in the bank. Yet, they are offering our members a significant real terms pay cut when they can easily afford to pay more. We will back our members all the way in their fight for better jobs, pay and conditions.” 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 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 Andy Brown, Unite’s industrial officer said: “Despite our best efforts to resolve this dispute through negotiation, AG Barr has not moved beyond 5%. The only way it seems they will pay attention is if supplies of its popular products including Irn-Bru start to fizzle out, which is exactly what is now on the cards.” Unite also claims that AG Barr had not improved its offer despite increasing its revenue by 18.2% to £317.6m in the last financial year. An AG Barr spokesperson said: “We are disappointed in the decision by about 10 of our Scottish based HGV1 drivers to take industrial action. “We made an offer that we believe is fair and competitive – in line with what has been agreed with our other employees. We believe we have a responsibility to be fair to everyone. “We have contingency plans in place to maintain customer service and we will continue to work with Unite representatives and Acas to find a positive and constructive resolution.” The company, which also produces popular brands such as Tizer and Rubicon, increased its adjusted profit before tax to £43.5m, and due to strong revenue generation, it reported a net cash position of £52.9m.
The rise and fall of FTX's Sam Bankman-Fried, the onetime crypto billionaire prosecutors now want jailed after they say he interfered with witnesses in his criminal case 2023-07-26 - Sam Bankman-Fried catapulted into a crypto billionaire, but it took just one day for most of his fortune to be wiped out. He was extradited to the US and released on $250 million bail on December 22. In late July 2023, prosecutors said he was tampering with witnesses and asked for him to be jailed. Morning Brew Insider recommends waking up with, a daily newsletter. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking “Sign Up,” you also agree to marketing emails from both Insider and Morning Brew; and you accept Insider’s Terms and Privacy Policy Click here for Morning Brew’s privacy policy. Just months ago, Sam Bankman-Fried was a 30-year-old with a mop of brown hair and enough clout to go by his initials, SBF. He had a cryptocurrency exchange called FTX, a trading firm called Alameda Research, and $15.6 billion to his name, according to estimates from Bloomberg. He had catapulted into one of the biggest names in crypto in a matter of four years and was setting his sights on mainstream finance. Now, all he has left are his initials, and several legal proceedings ahead of him. Bankman-Fried was arrested on December 12 by Bahamian authorities at the US government's request. He's since been extradited to the US and released on bail of $250 million. He's staying with parents in Palo Alto, California as he awaits the trial of FTX. Bankman-Fried originally faced eight criminal counts that included charges of wire fraud, securities fraud, commodities fraud, and money laundering. But on February 23, federal prosecutors unsealed an updated indictment that poses 12 total criminal charges against him including more counts of conspiracy. Here's how SBF went from crypto's poster child to its greatest cautionary tale:
Garmin Venu 2 review: A solid activity tracker that offers unique, actionable health insights like stress and hydration tracking 2023-07-26 - When you buy through our links, Insider may earn an affiliate commission. Learn more. Garmin's wide range of wearables are capable of tracking everything, which is why they're often considered among the best fitness trackers, the best running watches, and the best Android smartwatch. But sometimes, you don't need every single bell and whistle; and this is exactly where the Venu 2 slots into the brand's lineup. The Venu 2 is a solid all-around activity tracker with built-in GPS, music-storing capabilities, and comprehensive health, wellness, and fitness features. While it does have some amount of basic smartwatch capability, it's obvious this is first and foremost a watch intended for active folks. And while it can be seen as an upgrade over the less-capable Vivofit series, and a more casual alternative to something like the Forerunner 745, the Venu 2 still has its limits compared to the wider fitness tracker space. For instance, app support is thin and its interface isn't that intuitive. But with powerful battery life and a suite of advanced health-tracking options, I still feel as though the Venu 2 is a solid contender as a worthy all-in-one fitness device. What works Five-day battery life Comprehensive health and wellness tracking Useful workout builder and activity recommendations What doesn't Watch face is large and uncomfortable Display is difficult to navigate It's a huge watch, especially for folks with smaller wrists Shannon Ullman/Insider Let's start with the bad news: the Venu 2 is the most uncomfortable fitness tracker I've ever worn. This is due mainly to its incredibly large watch face, which measures a whopping 1.2 inches in diameter. Wearing it normally throughout the day was more annoying than painful, but workouts — especially when they involved things like pushups, planks, or a down-dog — were a constant battle of the watch digging into my wrist. Folks with larger wrists may not find the size of the display too much of an issue, but for me, it was a serious distraction. There is an easy solution for this, however, and that's the Venu 2S, a smaller version of the Venu 2 that would be far better for folks with smaller wrists. It comes in a 40mm case size and the screen is slightly smaller at 1.1 inches. It's not drastic but it would make a difference. Thankfully, the band that comes with the Venu 2 is a different story. With tons of sizing slots and a soft silicone material, it's a far cry in terms of comfort compared to the watch face. Plus, there are over 40 band options you can purchase via Garmin if you want to customize your look. Shannon Ullman/Insider The display itself is a bit of a mixed bag. It does have an impressive resolution — it's Garmin's first AMOLED display, after all — but it's a little difficult to navigate, especially for first-time users. There are just two side buttons (the Venu 2 Plus offers three), and it takes some practice to understand how to operate each one. I accidentally started a strength-training workout more times than I can count. If health tracking is your main priority, you'll like how accessible your stats are. Simply swiping up gives you a full picture of your daily activity, sleep patterns, and heart rate. However, I did still find myself checking the Garmin Connect App for data more than the actual watch itself. The workout builder is great for DIY athletes and gym newbies Shannon Ullman/Insider The Venu 2 excels as a fitness tracker, particularly regarding the workout builder that allows you to create a routine in the Garmin Connect app and then download it to the watch for easy access. There are also tons of pre-existing workouts within the app you can pull from, and the watch even displays animated images of each move for you to follow along. While I enjoyed the tracking and workout creation features on my lift days, I didn't find much use for the other exercise options. I thought the HITT activity would be perfect for my HITT workout class but the constant starting and stopping of the timer made it more of a hassle than an aid. Over time, I just used the cardio option, which at least kept my heart rate levels and how many calories I burned in check. One feature that makes the Venu 2 especially worth wearing is its built-in GPS. I'm not a runner, but did use it while on long walks with my pup. I found it to be highly accurate, which is a major plus for anyone intending to meticulously track their workouts. Additionally, the built-in personal running coach (which is free when you buy the watch) also makes it a decent option for aspiring marathoners. Just know that if you plan on regularly using the GPS and the music, it does whittle the battery life down from five days to just six hours. While I didn't have access to test the watch's supposed 5 ATM water rating (an abbreviation of atmosphere, meaning it's waterproof up to 50-meter depths), it did hold up fine in the shower. That alone makes it a quality contender for anyone looking to track their swimming workouts. Features advanced health tracking with useful insights for hardcore or casual athletes alike Shannon Ullman/Insider There's no shortage of information the Venu 2 provides about your health as it can track your steps, calories burned, hydration, stress, sleep, blood oxygen, menstrual cycle, and respiration, among others. Some of it does require manual entry (like hydration tracking), but most of the analysis and tracking is automatic. Like most similar wearables, the more you wear it, the more insights you'll receive. For instance, it offers new, holistic health tracking for stress levels and sleep patterns. While these sounded great in theory, I did find it hard to wear the Venu 2 for prolonged periods of time due to the uncomfortable watch face, and the insights weren't compelling enough for me to stick it out. It was nice to have my cycle monitored but the tracking wasn't nearly as comprehensive as some of the other apps I use on my phone. After wearing the Venu 2 for a few days, it compiles all your amassed data and creates what Garmin calls your Body Battery. The Body Battery is a combination of your resting heart rate, stress levels, and other factors that give you an overall measurement of your body's energy reserves between 1 and 100. In other words, the higher your battery, the more energy you have. I found this to be an especially helpful feature when deciding what kind of workout I should do on any given day, and whether I should push myself or take it easy. It offers basic smartwatch capability plus the ability to store and play music Shannon Ullman/Insider One of the best features of the Venu 2 is that it offers music storage capabilities, allowing you to download playlists and songs from either Spotify, Deezer, or Amazon Music. While you can't access your entire library via the watch, you can at least put your favorite workout tunes in one place for easy listening. Plus, this means you don't have to tote your phone along on a run. As a smartwatch, the Venu 2 is quite basic. It gets app notifications, as well as alerts for calls and texts, but only Android users have the ability to respond to messages (iPhone users still get the notifications but that's it). If you opt for the Venu 2 Plus, you'd then have access to a built-in microphone that allows you to make calls and receive "voice assistant support" via Bluetooth. Multi-day battery life is one of the Venu 2's highlights Battery life among wearables is an incredibly polarizing feature as some barely make it through a day before needing a recharge while others can last upwards of five, six, or seven days. The Venu 2 falls in the latter category, with a maximum battery life of roughly five days (so long as the GPS and music capability aren't always on). Even when you do use the tracking features and the music playback normally, you can still expect to get several days of battery life out of the watch. Plus, once it does finally die, it never took more than an hour or so to fully recharge. Should you buy it? If you're in the market for a wearable that offers advanced health metrics and accurate fitness tracking, the Venu 2 is highly worth considering. Though its bulky design may not be for everyone, it is available in smaller sizes via Garmin, so folks with smaller wrists shouldn't be entirely dissuaded. It doesn't offer the latest smartwatch capabilities, but it's a watch that's made entirely for the active crowd and is even a solid choice for first-time wearers or those just beginning their fitness journey (though the learning curve for navigating the watch is quite steep). Overall, its comprehensive approach to health, wellness, and fitness makes it a valuable asset for anyone looking to stay in shape.
The US military once detonated a nuclear bomb directly above the heads of 5 officers 2023-07-26 - In 1957, the US military conducted an test of an unguided nuclear rocket. Five Air Force officers reportedly volunteered to stand directly underneath the test. All five men are said to have later developed cancer. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy The history of US nuclear testing is full of bad ideas, and among them is undoubtedly five US military men standing at ground zero during an atmospheric test in the late 1950s. While Christopher Nolan's new film "Oppenheimer" is prompting plenty of discussion about the US military's early nuclear bomb tests and the effects of radiation, it doesn't capture in full some of the reckless oddities of nuclear testing. On July 19, 1957, the Nevada Test Site conducted a test of an unguided nuclear air-to-air rocket. The purpose of the weapon — known as Genie — was to counter potential nuclear-armed Soviet Union bombers, according to a Popular Mechanics report. The test was concerned with whether or not the rocket could be effectively aimed at and hit a bomber without a guidance system. Nuclear air-to-air rockets are a questionable concept, but a number of unusual experiments were conducted at the Nevada Test Site during the early years of the Atomic Age. A really odd thing about this test, the "John" shot of the Operation Plumbbob test series, is that for some reason, a group of five US Air Force officers decided to plant themselves at ground zero of the site, standing 18,500 feet directly below where the Genie rocket would ultimately explode. The men — identified by NPR as Col. Sidney Bruce, Lt. Col Frank Ball, Maj. Normal "Bodie" Bodinger, Maj. John Hughes, and Don Luttrell — weren't required to be involved in or even attend the test. Popular Mechanics reported they volunteered. Although it's not clear what the purpose was, a theory has been put forward that it was intended to help alleviate any concerns about nuclear fallout from nuclear air-to-air missiles. What is clear, though, is how the "John" shot went down, thanks to US government footage shot by a man named George Yoshitake. In the footage, the five men stand at what they've labeled "Ground Zero: Population 5," looking upwards at the F-89 Scorpion interceptors flying above them. A voiceover countdowns before the Genie launches and explodes, causing a bright light that prompts the five men to shield their eyes. And then the sound of the explosion startles the men before the video shows the fireball from the nuke. In the aftermath, the five men shake hands, congratulating each other. "My only regrets right now," Col. Bruce says, "are that everybody couldn't have been out here at ground zero with us." After the "John" experiment, the Genie was never tested again. Decades later, civilian cameraman Yoshitake told Fox News about the incident, saying he hadn't volunteered for the shoot. "I had a call saying they needed me out for a special test," Yoshitake said, according to The Rafu Shimpo, a bilingual Japanese-English newspaper. "I found out when I got to Nevada that I was going to be standing at Ground Zero. It was going to explode 10,000 feet above my head... I asked what kind of protective gear I was going to have, and they said, 'Nothing.' I had a baseball cap with me, and I said, 'I better wear that just in case.'" He said that he and the five Air Force officers present developed cancer later in life, though it's unclear if it was the result of that test or others. Yoshitake developed stomach cancer. He died on October 17, 2013, at the age of 84 due to complications from a stroke. NPR attempted to tracked down the other five men but couldn't confirm what exactly happened to them or what types of cancers they may have developed. The outlet was only able to determine when some of them died. Yoshitake told The New York Times in 2010 that few of his fellow "atomic cameraman" — photographers and videographers who documented US nuke tests in Nevada and the Pacific Ocean — were still alive, but many apparently paid a tragic price for their work. "Quite a few have died from cancer," he said. "No doubt it was related to the testing."
Melania Trump retreated from the public eye because of tell-all books and her rocky relationship with Jared Kushner and Ivanka Trump, report says 2023-07-26 - Former first lady Melania Trump has not been a major presence on the campaign trail. A NYT report revealed that she has kept a low profile in part because of feelings of betrayal. People close to the first lady brought up tell-all books which cast her in an unfavorable light. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy Former first lady Melania Trump has thrown her support behind former President Donald Trump's bid to win the White House next year, and in recent months has openly praised his administration's accomplishments. But according to people in Melania Trump's inner orbit, she felt betrayed and disappointed by an array of friends, aides, and select family members, which has led her to maintain a lower public profile, The New York Times reported. Per The Times, Melania Trump had a sometimes strained relationship with Ivanka Trump — her stepdaughter — and son-in-law Jared Kushner. And books written by Melania Trump's former press secretary, Stephanie Grisham, and former friend and ex-aide, Stephanie Winston Wolkoff, at times painted the former first lady in unfavorable light. Grisham's memoir, "I'll Take Your Questions Now," was a scathing indictment of the Trump administration, with the ex-press secretary alleging that she received a "vague and cold" note from Melania Trump after leaving her post following the January 6, 2021, riot at the US Capitol. And Wolkoff's book, "Melania and Me: The Rise and Fall of My Friendship with the First Lady," also presented Melania Trump unfavorably. "Her selfishness is so deep, it enables her to keep her distance from the rest of the world," Wolkoff wrote of the former first lady in the book. Per the report, seeing such statements come from once-trusted friends has been a major part of her relatively low profile, even as the 2024 presidential campaign heats up. While Melania Trump has so far chosen not to join her husband on the campaign trail this year, she is poised to be a more visible presence next year. Trump remains the frontrunner in the Republican primary, with a wide national polling lead against candidates including Gov. Ron DeSantis of Florida and Sen. Tim Scott of South Carolina. But many state polls are closer, reflecting the competitiveness of the race in the early-voting states of Iowa, New Hampshire, and South Carolina.
Fox News' Greg Gutfeld is facing new backlash — this time over his comment about Holocaust victims' work skills 2023-07-26 - Fox News is facing fresh backlash after one of its hosts made comments about concentration camp victims' work skills. Greg Gutfeld said that those in the work camps with skills survived during the Holocaust — a clear simplification. "Being skilled or useful did not spare them from the horrors of the gas chambers," the Auschwitz memorial said in response. Morning Brew Insider recommends waking up with, a daily newsletter. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking “Sign Up,” you also agree to marketing emails from both Insider and Morning Brew; and you accept Insider’s Terms and Privacy Policy Click here for Morning Brew’s privacy policy. Fox News is facing a slew of backlash after one of its primetime hosts suggested that Holocaust survivors who had work skills survived in concentration camps. On an episode of "The Five" Monday, Greg Gutfeld referenced a book by Holocaust survivor Viktor Frankl and said "you had to survive in a concentration camp by having skills. You had to be useful… Utility kept you alive." Gutfeld's Holocaust remark was meant to defend Florida's new educational guideline to teach students that slaves learned skills that could be "applied for their personal benefit." Representatives for Fox News did not immediately respond to Insider's request for comment. Early Tuesday, the Auschwitz Memorial shared a lengthy statement on Twitter condemning Gutfeld. "While it is true that some Jews may have used their skills or usefulness to increase their chances of survival during the Holocaust, it is essential to contextualize this statement properly and understand that it does not represent the complex history of the genocide perpetrated by Nazi Germany," the statement began. The statement went on to contextualize Frankl's observations that Gutfeld was referencing, noting that some Jews who were stationed at Auschwitz — which was both a work and extermination camp — "became registered prisoners and might have used their skills to gain favor or prolong their lives in that particular setting. Yet, it never gave them complete protection." "However, we must not overlook the larger picture of the Holocaust," the statement continued. "Millions of Jews were brutally murdered in execution sites ... with entire communities wiped out regardless of their usefulness or contributions to society. "Being skilled or useful did not spare them from the horrors of the gas chambers," the statement said. "We should avoid such oversimplifications in talking about this complex tragic story," the Auschwitz Memorial concluded. Shortly after, the White House strongly rebuked Gutfeld's comments in a statement shared with The Hill. "What Fox News allowed to be said on their air yesterday — and has so far failed to condemn — is an obscenity," spokesperson Andrew Bates said in a statement to The Hill. "In defending a horrid, dangerous, extreme lie that insults the memory of the millions of Americans who suffered from the evil of enslavement, a Fox News host told another horrid, dangerous, and extreme lie that insults the memory of the millions of people who suffered from the evils of the Holocaust," the statement continued. And on CNN Tuesday night, a Holocaust survivor told host Abby Phillip that he is "disgusted" by Gutfeld's comments. Michael Bornstein recalled how his father and brother, who possessed "skills," were gassed in Auschwitz. "There's no silver lining to killing six million people or talking about slaves and the benefits of slaves and learning and what they were doing," Bornstein said. "There's absolutely no room for fake news like that." Gutfelds' comments have sparked criticism in the past. Last year, he suggested that US reporters were exaggerating how devastating Russia's invasion of Ukraine had been and in May, he made a joke that a teacher accused of having sex with an underage student was a "hero" — because the teacher was female and the student was a teen boy.
The rise and fall of the Gap: The iconic but beleaguered brand is counting on a new CEO poached from Mattel 2023-07-26 - Gap was once one of America's most beloved apparel retailers, known for its laid-back basics and classic denim. The company announced Mattel executive Richard Dickson will become Gap's new CEO. Here's the story of the company's rise to mall brand darling and eventual fall from grace. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy Gap announced on Wednesday that its new CEO will be Mattel executive Richard Dickson. Dickson has been credited with reviving the Barbie franchise during his tenure at the toy company. Gap is hoping he'll produce similar results after years of sales woes and strategic missteps. Dickson is scheduled to begin his new position in August. For decades, Gap was one of the most beloved retailers in the US and an emblematic part of American fashion and style. With its laid-back classics and iconic denim, the company became the go-to destination to obtain the effortless jeans-and-t-shirt look at an accessible price. Its vibrant marketing campaigns brimmed with catchy jingles and popular celebrities, and for a period in the 1990s and early 2000s, it seemed impossible to walk down a street in the US without seeing a Gap sweatshirt. However, the retailer has been caught in an uphill battle for relevance in an era where mall brands continue to lose their luster, falling behind trendy e-commerce sites and direct-to-consumer brands. Gap suddenly went from basic to bland, and now even bright spots like Old Navy, which is part of the brand's portfolio, may be losing their footing. Though Gap still remains the largest specialty retail company in the US — in addition to its namesake company and Old Navy, it also operates Banana Republic and Athleta — whether it will be able to gain relevance remains to be seen. Here's a look at Gap's humble beginnings of selling Levis and records, through its meteoric rise across America to its eventual fall.