Monday, June 25, 2018

The State Pension Model Isn't Working

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-945843846&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/945843846/960x0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; Kentucky Public school teachers protest outside the Kentucky House Chamber as they rally for a &s;day of action&s; at the Kentucky State Capitol to try to pressure legislators to override Kentucky Governor Matt Bevin&s;s recent veto of the state&s;s tax and budget bills April 13, 2018 in Frankfort, Kentucky. The teachers also oppose a controversial pension reform bill which Gov. Bevin signed into law. (Photo by Bill Pugliano/Getty Images)

Last September, I issued a rather dire&a;nbsp;&l;a href=&q;http://www.mauldineconomics.com/go/v39d7g/FOR&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;Pension Storm Warning&l;/a&g;. I said that I expect more cities to go bankrupt, as Detroit did.

Not because they want to, but because they have no choice. You can&a;rsquo;t get blood from a rock, which is what will be left after the top taxpayers move away and those who stay vote to not raise taxes.

The citizens that vote not to pay the committed debt will be fed up with paying more taxes because they will be at the end of their tax rope. I am not arguing that is fair, but it is already happening and will happen more.

&l;strong&g;States Are a Different and Larger Problem&l;/strong&g;

Under our federal system, states can&a;rsquo;t go bankrupt. Lenders perversely see this as positive because it removes one potential default avenue. They forget that a state&a;rsquo;s credit is only as good as its tax base, and the tax base is mobile.

Let me say this again because it&a;rsquo;s critical.

&l;a href=&q;http://www.mauldineconomics.com/go/v39d7k/FOR&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;The federal government can (but shouldn&a;rsquo;t) run perpetual deficits&l;/a&g; because it controls the currency. It also has a mostly captive tax base. People can migrate within the U.S., but escaping the IRS completely is a lot harder.

States don&a;rsquo;t have those two advantages. They have tighter credit limits and their taxpayers can freely move to other states.

Many elected officials and civil servants seem not to grasp those differences. They want something that can&a;rsquo;t be done, except in Washington, D.C. I think this has probably meant slower response by those who might be able to help. No one wants to admit they screwed up.

In theory, state pensions are stand-alone entities that collect contributions, invest them for growth, and then disburse benefits. Very simple. But in many places, all three of those components aren&a;rsquo;t working.

&l;/p&g;&l;ul&g;&l;li&g;Employers (governments) and/or workers haven&a;rsquo;t contributed enough.&l;/li&g;

&l;/ul&g;&l;ul&g;&l;li&g;Investment returns have badly lagged the assumed levels.&l;/li&g;

&l;/ul&g;&l;ul&g;&l;li&g;Expenses are more than expected because they were often set too high in the first place, and workers lived longer.&l;/li&g;

&l;/ul&g;&l;!--donotpaginate--&g;&l;strong&g;The Next Recession Will Aggravate this Problem&l;/strong&g;

Any real solution will have to solve all three challenges&a;mdash;difficult even if the political will exists. A few states are making tough choices, but most are not. This is not going to end well for taxpayers or retirees in those places.

Worse, it isn&a;rsquo;t just a long-term problem. Some public pension systems will be in deep trouble when the next recession hits, &l;a href=&q;http://www.mauldineconomics.com/go/v39d7n/FOR&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;which I think will happen in the next two years at most&l;/a&g;.

Almost everyone involved is in deep denial about this. They think a miracle will save them, apparently. I don&a;rsquo;t rule out anything, but I think bankruptcy and/or default is the more likely outcome in many cases.

Sunday, June 24, 2018

Miracle Mile Advisors LLC Boosts Position in Microsoft Co. (MSFT)

Miracle Mile Advisors LLC lifted its position in shares of Microsoft Co. (NASDAQ:MSFT) by 127.1% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 31,683 shares of the software giant’s stock after acquiring an additional 17,731 shares during the period. Miracle Mile Advisors LLC’s holdings in Microsoft were worth $2,892,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Mitchell Sinkler & Starr PA grew its stake in Microsoft by 9.0% during the 4th quarter. Mitchell Sinkler & Starr PA now owns 6,990 shares of the software giant’s stock worth $598,000 after buying an additional 580 shares during the last quarter. Searle & CO. grew its stake in Microsoft by 1.8% during the 4th quarter. Searle & CO. now owns 34,161 shares of the software giant’s stock worth $2,922,000 after buying an additional 589 shares during the last quarter. Lehman Financial Resources Inc. grew its stake in Microsoft by 18.7% during the 4th quarter. Lehman Financial Resources Inc. now owns 3,750 shares of the software giant’s stock worth $320,000 after buying an additional 590 shares during the last quarter. Fagan Associates Inc. grew its stake in Microsoft by 0.6% during the 4th quarter. Fagan Associates Inc. now owns 94,714 shares of the software giant’s stock worth $8,102,000 after buying an additional 594 shares during the last quarter. Finally, Clear Harbor Asset Management LLC grew its stake in Microsoft by 1.8% during the 4th quarter. Clear Harbor Asset Management LLC now owns 33,732 shares of the software giant’s stock worth $2,885,000 after buying an additional 600 shares during the last quarter. 72.27% of the stock is currently owned by institutional investors and hedge funds.

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Shares of Microsoft opened at $100.41 on Friday, Marketbeat.com reports. The company has a quick ratio of 3.35, a current ratio of 3.40 and a debt-to-equity ratio of 1.00. The firm has a market capitalization of $778.76 billion, a PE ratio of 30.34, a PEG ratio of 2.21 and a beta of 1.04. Microsoft Co. has a fifty-two week low of $68.02 and a fifty-two week high of $102.69.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings data on Thursday, April 26th. The software giant reported $0.95 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.85 by $0.10. The business had revenue of $26.82 billion during the quarter, compared to analyst estimates of $25.78 billion. Microsoft had a return on equity of 36.49% and a net margin of 13.72%. The company’s revenue was up 15.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.73 earnings per share. equities analysts anticipate that Microsoft Co. will post 3.84 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 13th. Stockholders of record on Thursday, August 16th will be issued a $0.42 dividend. The ex-dividend date is Wednesday, August 15th. This represents a $1.68 annualized dividend and a dividend yield of 1.67%. Microsoft’s dividend payout ratio (DPR) is 50.76%.

MSFT has been the subject of a number of recent research reports. Vetr upgraded Microsoft from a “hold” rating to a “buy” rating and set a $97.68 price objective for the company in a research note on Thursday, March 1st. Zacks Investment Research downgraded Microsoft from a “buy” rating to a “hold” rating in a research note on Tuesday, March 6th. Deutsche Bank set a $120.00 price objective on Microsoft and gave the stock a “buy” rating in a research note on Monday, March 12th. William Blair restated a “buy” rating on shares of Microsoft in a research note on Wednesday, March 21st. Finally, Morgan Stanley upped their price objective on Microsoft from $110.00 to $130.00 and gave the stock an “overweight” rating in a research note on Monday, March 26th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, thirty have given a buy rating and one has assigned a strong buy rating to the company. The company has a consensus rating of “Buy” and an average target price of $105.49.

In other news, Director Sandra E. Peterson acquired 5,400 shares of the business’s stock in a transaction dated Tuesday, June 5th. The stock was acquired at an average price of $101.96 per share, for a total transaction of $550,584.00. Following the completion of the acquisition, the director now directly owns 5,400 shares in the company, valued at approximately $550,584. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Christopher C. Capossela sold 10,000 shares of the company’s stock in a transaction on Thursday, June 7th. The shares were sold at an average price of $100.99, for a total value of $1,009,900.00. Following the completion of the sale, the executive vice president now owns 158,601 shares of the company’s stock, valued at approximately $16,017,114.99. The disclosure for this sale can be found here. Corporate insiders own 1.49% of the company’s stock.

About Microsoft

Microsoft Corporation develops, licenses, and supports software products, services, and devices worldwide. The company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, Skype for Business, and related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.com, and OneDrive; Dynamics business solutions, such as financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of enterprises; and LinkedIn online professional network.

Institutional Ownership by Quarter for Microsoft (NASDAQ:MSFT)

Wednesday, June 20, 2018

Trust Co. of Vermont Cuts Holdings in Atmos Energy Co. (ATO)

Trust Co. of Vermont cut its stake in shares of Atmos Energy Co. (NYSE:ATO) by 2.5% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 34,428 shares of the utilities provider’s stock after selling 898 shares during the period. Trust Co. of Vermont’s holdings in Atmos Energy were worth $2,900,000 at the end of the most recent quarter.

Other hedge funds also recently modified their holdings of the company. Trustcore Financial Services LLC acquired a new stake in Atmos Energy during the fourth quarter worth approximately $105,000. Envestnet Asset Management Inc. lifted its position in Atmos Energy by 184.2% during the fourth quarter. Envestnet Asset Management Inc. now owns 1,603 shares of the utilities provider’s stock worth $138,000 after acquiring an additional 1,039 shares during the last quarter. Tower Research Capital LLC TRC lifted its position in Atmos Energy by 273.9% during the fourth quarter. Tower Research Capital LLC TRC now owns 1,690 shares of the utilities provider’s stock worth $145,000 after acquiring an additional 1,238 shares during the last quarter. Wedbush Securities Inc. acquired a new stake in Atmos Energy during the fourth quarter worth approximately $200,000. Finally, Commerce Bank acquired a new stake in Atmos Energy during the fourth quarter worth approximately $202,000. Hedge funds and other institutional investors own 73.70% of the company’s stock.

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Atmos Energy opened at $87.11 on Tuesday, according to MarketBeat.com. Atmos Energy Co. has a 1-year low of $76.46 and a 1-year high of $93.56. The company has a market capitalization of $9.64 billion, a PE ratio of 24.20, a price-to-earnings-growth ratio of 3.11 and a beta of 0.25. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.46 and a quick ratio of 0.40.

Atmos Energy (NYSE:ATO) last announced its quarterly earnings results on Wednesday, May 2nd. The utilities provider reported $1.57 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.54 by $0.03. The business had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.11 billion. The business’s revenue for the quarter was up 23.4% compared to the same quarter last year. During the same period last year, the company earned $1.52 earnings per share. sell-side analysts anticipate that Atmos Energy Co. will post 3.98 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which was paid on Monday, June 4th. Investors of record on Monday, May 21st were issued a $0.485 dividend. This represents a $1.94 dividend on an annualized basis and a yield of 2.23%. The ex-dividend date of this dividend was Friday, May 18th. Atmos Energy’s dividend payout ratio (DPR) is 53.89%.

Several equities research analysts have issued reports on ATO shares. Zacks Investment Research downgraded shares of Atmos Energy from a “buy” rating to a “hold” rating in a research report on Thursday, April 12th. Bank of America reiterated a “buy” rating on shares of Atmos Energy in a research report on Tuesday, February 27th. JPMorgan Chase & Co. lifted their price target on shares of Atmos Energy from $87.00 to $90.00 and gave the company a “buy” rating in a research report on Tuesday, April 10th. Morgan Stanley dropped their price target on shares of Atmos Energy from $94.00 to $91.00 and set an “equal weight” rating for the company in a research report on Wednesday, June 13th. Finally, Citigroup lifted their price target on shares of Atmos Energy from $82.00 to $88.00 and gave the company a “neutral” rating in a research report on Tuesday, June 12th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and five have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $87.14.

Atmos Energy Company Profile

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through Distribution, and Pipeline and Storage segments. The Distribution segment is involved in regulated natural gas distribution, and related sales and storage operations.

Institutional Ownership by Quarter for Atmos Energy (NYSE:ATO)

Tuesday, June 19, 2018

Top Tech Stocks To Buy Right Now

tags:CIX,MASI,WYNN,

As the world moves toward self-driving autonomous autos, there will be great changes in technology, explains international investing expert Vivian Lewis, editor of Global Investing.

Autoliv (ALV) is my growth stock Top Pick for 2017. The company makes non-explosive airbags -- but that is not the full extent of the Swedish firm's ambitions for auto safety.

Autoliv  — and its shattered rival, Takata (TKTDY) of Japan — sell their systems to many auto companies in many countries, via an open supply chain. Takata, which neglected safety, will pay as much as $1 billion in fines related to bad air bags.

Takata's airbag crisis is good for Autoliv, which is now moving in on this market and thanks to replacement orders is now the seller of more than half the airbags installed in the USA.

Autoliv's other passive safety products include child seats, collapsing stereing wheels, and side impact and whiplash protection systems.

Top Tech Stocks To Buy Right Now: CompX International Inc.(CIX)

Advisors' Opinion:
  • [By Shane Hupp]

    CI Financial (TSE:CIX) will issue its quarterly earnings data before the market opens on Thursday, May 10th. Analysts expect the company to announce earnings of C$0.63 per share for the quarter.

Top Tech Stocks To Buy Right Now: Masimo Corporation(MASI)

Advisors' Opinion:
  • [By Max Byerly]

    Masimo Co. (NASDAQ:MASI) Director Steven Barker sold 10,000 shares of the stock in a transaction on Wednesday, May 30th. The stock was sold at an average price of $100.00, for a total value of $1,000,000.00. Following the completion of the transaction, the director now directly owns 73,249 shares of the company’s stock, valued at approximately $7,324,900. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

  • [By Logan Wallace]

    HL Financial Services LLC raised its holdings in shares of Masimo (NASDAQ:MASI) by 9.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 37,977 shares of the medical equipment provider’s stock after purchasing an additional 3,260 shares during the quarter. HL Financial Services LLC’s holdings in Masimo were worth $3,340,000 at the end of the most recent reporting period.

  • [By Brian Feroldi, Keith Speights, and Sean Williams]

    So which stocks do our healthcare experts have their eye on right now? We asked these three Motley Fool investors to weigh in, and they picked�AbbVie (NYSE:ABBV),�Cardinal Health (NYSE:CAH), and Masimo (NASDAQ:MASI).�

Top Tech Stocks To Buy Right Now: Wynn Resorts, Limited(WYNN)

Advisors' Opinion:
  • [By Stephan Byrd]

    Investors sold shares of Wynn Resorts (NASDAQ:WYNN) on strength during trading on Thursday after an insider sold shares in the company. $66.19 million flowed into the stock on the tick-up and $100.37 million flowed out of the stock on the tick-down, for a money net flow of $34.18 million out of the stock. Of all stocks tracked, Wynn Resorts had the 0th highest net out-flow for the day. Wynn Resorts traded up $0.59 for the day and closed at $191.62Specifically, CEO Matt Maddox sold 18,450 shares of the business’s stock in a transaction that occurred on Tuesday, May 1st. The shares were sold at an average price of $191.09, for a total value of $3,525,610.50. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, major shareholder Stephen A. Wynn sold 4,104,999 shares of the business’s stock in a transaction that occurred on Wednesday, March 21st. The shares were sold at an average price of $180.00, for a total transaction of $738,899,820.00. The disclosure for this sale can be found here. 0.95% of the stock is owned by insiders.

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Friday was Wynn Resorts, Limited (NASDAQ: WYNN) which traded down roughly 10% at $179.56. The stock��s 52-week range is $92.67 to $203.63. Volume was about 22 million compared to the daily average volume of 1.8 million.

  • [By Rich Duprey]

    Yet not all casinos will benefit equally. Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN), for example, derive most of their revenues from operations in Macau. Sands earns 60% there; Wynn, 73%. They could certainly expand their sports books beyond their Vegas operations, but they have so few casinos elsewhere (and Wynn's Boston Harbor isn't even completed), it's only going to be a tiny portion of their overall revenues.

Friday, June 1, 2018

Accumulate Bank of Baroda; target of Rs 163: Prabhudas Lilladher


Prabhudas Lilladher's research report on Bank of Baroda


BOB reported Rs21.8bn of loss on back of recognition of NPAs mainly from the existing stressed asset pool keeping provisions at much higher levels. Momentum on business front has been encouraging post consolidation in FY17 on both liabilities & assets. Retail remains in forefront (42% YoY growth), while CASA has touched +41% best in many quarters and has started coming in-line with peer banks. Management's efforts towards lending strategy seems to be working gradually mainly in retail, while fee income has seen renewed focus. Key development to watch out for will be ending of the current MD's term in Q2FY19 and succession plan remains important.


Outlook


Retain Accumulate with PT of Rs163 (from Rs174) based on 1.4x Mar-20 ABV (rolled over from Sep-19 ABV).


For all recommendations report, click here


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Read More First Published on Jun 1, 2018 04:26 pm