Are stock splits good for investors?

stock-split

Dollarama recently posted another strong quarter. In addition to the quarterly results, the company also announced the proposal of a stock split in the ratio 1: 3. Dollarama shareholders can expect to receive two additional shares for each stock they own. According to the press release, only “shareholders registered at the close of business on 14 June 2018 are entitled to receive the two additional shares”. Does a split benefit the investors?

There is a major reason why companies are executing stock splits to improve liquidity. If the stock price of a company becomes too high for smaller investors, or if it is significantly higher than that of its competitors, a stock split leads to an impairment of the company’s share price. Therefore, a split can have the psychological effect of making the company more affordable for smaller investors, who in turn should buy more shares.

A study examining the 30 largest US companies in terms of market capitalization that conducted a stock split between 2001 and 2010 revealed no significant benefit. Exactly half of the companies achieved a positive return over a period of one year after the split and the other half a negative one.

Continue reading “Are stock splits good for investors?”

Google is trying to get television advertising

google

Google may dominate digital advertising, but there is still a $ 70 billion television advertising market in the United States, from which the subsidiary of Alphabet (WKN: A14Y6F) (WKN: A14Y6H) is pretty much excluded.

Walt Disney (WKN: 855686) is supposed to change its ad technology. It may not be a coincidence that Disney is reevaluating its advertising technology provider – the company is currently relying on Freewheel, a Comcast (WKN: 157484) company, as Disney takes steps to streamline.

Google has gained a lot of momentum over the past year since launching a new set of advertising tools in conjunction with the launch of YouTube TV. The company has signed multiple contracts with major media companies, most notably CBS for its all-access service, but Disney represents the biggest Google opportunity yet.

What Google offers
As a leading online search provider, Google has a plethora of data that Google can offer to media companies to make their ads more effective. Continue reading “Google is trying to get television advertising”

Rocket Internet has an eye on the 2018 profit zone

Rocket-Internet

The start-up blacksmith Rocket Internet from Berlin keeps an eye on the profit zone for certain holdings after further reduced losses in 2017. “For 2018, we expect further progress,” said CEO Oliver Samwer on Friday. Specifically, he did not want to commit himself, however, from what time which money should contribute to the coffers.

“Most companies are strong enough to formulate their own goals.” The past year has been very successful, emphasized Samwer. Rocket had failed to reach the goal of bringing three of his companies to profitability.

HelloFresh and Delivery Hero want in the black
The cooking box sender HelloFresh and the food delivery service Delivery Hero announced in recent weeks that they want to hit the black in the current business this year. Both companies have been listed since last year. According to media reports, the furniture retailer Home24 and the African retailer Jumia go public, but Samwer did not want to comment on that.

Continue reading “Rocket Internet has an eye on the 2018 profit zone”

Facebook: No one is interested in the data scandal

facebook

The data scandal around Cambridge Analytica currently has Facebook firmly under control. These days, CEO Zuckerberg is summoned to the US Congress and is confronted with unpleasant questions. Zuckerberg’s defense that “Facebook is an idealistic and optimistic company” and has never seriously argued that the platform could be misused for malicious purposes is quite naïve anyway.

However, there are signs that Facebook users are largely ignoring the news. A survey by Deutsche Bank Markets Research earlier this month revealed that only one percent of respondents (n = 500) disable or even delete their accounts. Investors now have another meaningful number that supports this assumption.

Interaction still strong
Jefferies has now shared the findings of a study stating that the scandal does not affect the central Facebook platform. Analyst Brent Hill notes that the time spent from March 2017 to March 2018 has actually risen by 15%. The analyst also says Facebook’s profitability would first of all suffer because all the measures to improve security cost money. Ultimately, they would be worthwhile.

 

“In light of the recent difficulties, we believe FB is likely to employ a significant amount of staff and consultants to focus on privacy and security. This will affect margins in the near future, “Hill wrote. “We do not consider this as negative, however, as investments focus on areas where consumer confidence is built, which will be beneficial over the long term.”

Continue reading “Facebook: No one is interested in the data scandal”

Volkswagen wants full throttle forward – a new era for the largest car maker in the world?

vw

New staff, new goals and new problems at VW. A new era begins for the Volkswagen Group. Herbert Diess, the new CEO, wants to rebuild the world’s largest carmaker into a true mobility group. The most important topics at a glance.

How the pictures are alike. In the middle of the exhaust gas scandal, in autumn 2015, the then strong new men wanted to push through a structural reform at Volkswagen. In the main roles: Matthias Müller, who is now being replaced, and chief overseer Hans Dieter Pötsch. It should be a “new beginning”, “faster” one wanted to be, less controlled from Wolfsburg. And today? The group reinvents itself once again. Müller’s successor Herbert Diess wants to accelerate decisions and give the brands more responsibility.

Works council chief Bernd Osterloh supports the project – forgotten seem the days when both men in the dispute over the “future pact” said austerity package were cross. The changes in detail: Continue reading “Volkswagen wants full throttle forward – a new era for the largest car maker in the world?”

US economy faces first stagflation in 40 years

Stagflation

Apr 13 – Over the past few years, the US Federal Reserve and the world’s central banks have pushed interest rates down with massive money printing and thus the stock markets to record levels. Now, however, the Fed is tightening its monetary policy. British hedge fund manager Crispin Odey warns of the consequences of this policy, especially as US President Donald Trump is fueling the economy.

The S & P500 is well on the way to recovery: there are many reasons for this. The Syrian crisis has eased a bit after US President Donald Trump has described an intervention in Syria as “an option”. At the same time, he is considering re-entering the negotiations on the Trans-Pacific Free Trade Pact TPP. In addition, the US president said that a trade war with China could be prevented if China opened its market more for US products. In the environment, investors are buying heavily US stocks.

Fed slows down the economy considerably
How long the recovery lasts depends on two factors: On the one hand by Trump. Largely due to its tax reform, according to the Congressional Budget Office (CBO), the new borrowing Fiscal Year 2017/18, which ends in September, is expected to rise more than 20 percent to $ 804 billion. For the coming fiscal year, a further increase to $ 981 billion is planned. With that, Trump is fueling the economy, trying to position the Republican electoral chances well into the 6/5 midterm elections.

 

Continue reading “US economy faces first stagflation in 40 years”

IPO of superlatives: Finally, hot details about Saudi Aramco

saudi_Aramco

For decades, Saudi Aramco was a giant with no profile: everyone knew that the oil company was making billions, but how much was always unclear. Now, before the historic IPO, details leaked for the first time.

Apple, Amazon and the Google mother alphabet are running a race for the first group with a market value of one trillion dollars. But it would have to be more precise: the first group with a market capitalization of more than 1,000 billion US dollars.

Currently, Apple comes to 883 billion, Amazon to 701 billion and Alphabet to 719 billion US dollars stock market value. But that’s nothing compared to Saudi Aramco, the Saudi oil giant, which is said to be worth $ 2 trillion

A small part of the Saudis want to go public, and for the first time leaked to the business Saudi Aramcos concrete figures to the outside. For decades, the result of the group was accessible only to a small circle of initiates.

Continue reading “IPO of superlatives: Finally, hot details about Saudi Aramco”

Singapore private home prices rise 3.1pc, highest quarterly price jump since 2010

singapore property

Private home prices rose the highest in almost eight years for the first quarter, to the surprise of analysts who were predicting a moderate price increase.

This prompted some of them to revise their market forecast for non-landed private home prices to rise by up to 10 per cent this year — likely to be boosted by the growing momentum of transactions and by displaced homeowners from en-bloc sales who are looking for newer homes.

On the back of positive economic growth numbers — barring no changes to the existing cooling measures put in place by the authorities — another factor for the projected increase are higher prices for new launches due to higher land costs.

Eugene Lim, key executive officer of real estate agency ERA Realty, said: “The market was expecting a moderate price increase; this jump came quite as a surprise. With almost all the cooling measures still in place, this indicates a very positive market sentiment; and the market is on an uptrend.

Continue reading “Singapore private home prices rise 3.1pc, highest quarterly price jump since 2010”

CIMB targets RM200m in non-life insurance premiums for 2018

cimb

KUALA LUMPUR, April 3 — CIMB Group Holdings Bhd is on track to achieve its target of RM200 million gross written premiums for its non-life insurance business this year.

Chief Executive Officer (Group Consumer Banking), Samir Gupta, said the group had been partnering with Sompo Holdings (Asia) Pte Ltd to market and distribute Sompo’s non-life insurance products through its distribution network, which includes Singapore and Indonesia.

“We started off in 2016 in Singapore and Indonesia, and in Malaysia in August last year.

“In Malaysia, the response has been good. In the first four months in the market last year, the group managed to collect a total premium of RM22 million while in the first two months of this year, the group had already achieved 20 per cent of the target,” he told reporters after the launch of CIMB-Sompo bancassurance partnership in Malaysia.

Continue reading “CIMB targets RM200m in non-life insurance premiums for 2018”

Spotify makes impressive debut on the stock market

spotify

Spotify Technology SA yesterday completed the largest-ever direct listing, valuing the world’s leading streaming music service at as much as US$30 billion (RM115.8 billion), but its shares fell  after an early spike.

Smooth early trading dispelled market worries that Spotify’s New York Stock Exchange debut might be marred by volatility, given the company’s choice to ditch Wall Street underwriters and other safeguards of a usual  initial public offering.

Its shares opened at US$165.90, up nearly 26 per cent from a reference price of US$132 a share set by the NYSE late on Monday, but later pared gains to trade at US$149.30, as some investors expressed concerns about the company’s costs and the difficulty of going heads on  against Apple.

The size of the Stockholm-founded company’s market debut puts it on a par with Snap Inc, which went public last year, and was smaller than only Facebook Inc and Alibaba Group Holding Ltd among recent tech stock listings.

Continue reading “Spotify makes impressive debut on the stock market”