Technological advancements have radically altered the way we shop. From online ordering to flexible and swift delivery systems, consumers can choose from a variety of options that suit their lifestyle and convenience. E-commerce and related services reached a whole new high amid the COVID-19 pandemic as consumers looked for ways to meet their daily needs, while avoiding crowded places.
Although the surge in online deliveries last year has gradually slowed, given less stock hoarding practices, consumers’ preference for online deliveries have gone up much higher than the pre-pandemic levels. Retailers, especially those engaged in groceries, are competing among themselves to offer best-in-class delivery services. The companies have been coming up with revolutionary concepts like deliveries in less than an hour, contactless lockers and employment of drone services.
Whether such services are offered by the companies or through forging partnerships, it calls for considerable investments pertaining to technology, labor and transportation. The expansion of delivery systems has also helped the industry participants to provide greater employment opportunities.
From startups to giants, several companies are making radical moves in delivery systems. Supermarket biggies like Walmart Inc. WMT, The Kroger Co.’s KR and Albertsons Companies, Inc. ACI and a few others have continued to ramp up their delivery game amid growing competition from Amazon.com Inc. AMZN. That said, let’s take a closer look at some of the prudent delivery solutions being offered by some of the renowned companies in the grocery retail space.
Kroger Promises Delivery in 30 Minutes
Kroger’s latest move, in its partnership with Instacart, is aimed at pushing the grocery delivery game to a new level. This well-known supermarket chain is extending its partnership with Instacart by launching the new ‘Kroger Delivery Now’ service that will provide customers with food and household staples in 30 minutes. The service will cover as many as 25,000 items across several categories, to approximately 50 million households. The new solution will make use of the company’s existing network of more than 2,700 stores. The move is likely to elevate the supermarket giant’s positioning in an already-crowded and highly-competitive grocery delivery space.
Kroger has been quite active when it comes to enhancing its delivery solutions. Its partnership with Instacart dates back to 2017. Through the alliance, the company has been offering two-hour grocery delivery. It has been focusing on no-contact delivery option, low-contact pickup service and ship-to-home orders. Kroger continues to expand contactless payment solutions like Kroger Pay, Scan as well as Bag and Go and has been accepting Supplemental Nutrition Assistance Program (SNAP) benefits for pickup orders. The company is expanding the Customer Fulfillment Center (CFC) to ensure efficient deliveries. It also opened its first two Kroger Delivery facilities, powered by Ocado, in Ohio and Florida. Kroger’s buyout of meal kit provider, Home Chef, is noteworthy. The company has announced the Kroger Drone Delivery pilot in partnership with Drone Express.
The company is doing everything to meet the rising demand for Pickup orders, reinforcing the importance of timely delivery to customers. Last year, the company achieved more than $10 billion in e-commerce sales. It is committed toward doubling online revenues and profitability by 2023. Shares of this Zacks Rank #2 (Buy) company have increased 16.6% in the past six months.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Walmart is Being Futuristic, Exploring Drone Deliveries
Walmart believes that autonomous technologies can elevate retail operations to the next level. This retail behemoth has been exploring opportunities in drone delivery and invested in DroneUp. The move comes after successful trials during the pandemic. It has also been piloting drone delivery in the United States with Flytrex and Zipline. Apart from exploring drone deliveries, Walmart is venturing into self-driving cars to expand last mile delivery ecosystem. In April 2021, Walmart made an investment in San Francisco-based autonomous vehicles company — Cruise.
Other prudent investments made by the company for bolstering its delivery arm includes HomeValet, introduction of Carrier Pickup by FedEx and launch of Walmart+ membership program among others. The company’s alliance with DoorDash DASH, Instacart as well as efforts to expand Scan & Go services are noteworthy. Walmart’s Express Delivery solutions help fulfill orders in less than two hours.
In earlier developments, Walmart teamed up with Point Pickup, Roadie and Postmates as well as acquired Parcel to enhance its delivery service. The company’s store and curbside pickup options add to customers’ convenience. As of second-quarter fiscal 2022, Walmart U.S. had 3,900 pickup locations and 3,250 same-day delivery stores. The company is undertaking every effort to develop a futuristic and well-coordinated delivery network that spans across the streets, sidewalks and the skies. Shares of this Zacks Rank #2 company have increased 8.1% in the past six months.
Albertsons Boost Deliveries With Partnerships, PickUp Services
Leading food and drug products retailer, Albertsons, has been focused on strengthening its grocery delivery capabilities to make shopping more seamless. In June, the company announced its partnership with the technology firm DoorDash to boost on-demand grocery delivery services. Through this tie-up, customers can get products delivered from about 2,000 Albertsons banner stores in the country. Also, the Albertsons-DoorDash tie-up launched a digital gaming experience for its customers. The company also holds partnerships with Uber Technologies Inc.’s UBER Uber Eats and Instacart
Earlier this year, Albertsons installed a contactless automated grocery PickUp kiosk at one of its Jewel-Osco stores in Chicago. In fact, the company prides in being one of the first American grocery retailers to offer such automated kiosk-related services.
The company has been particularly focused on expanding contactless services. Last year, it installed PickUp lockers across several Jewel-Osco stores. Its pickup services such as Drive Up & Go options have been attracting greater household spending. Through the collaboration with third-party vendors, the company offers deliveries within two hours. The launch of Deals & Delivery app as well as ‘Albertsons for U’ loyalty program are also aiding to provide efficient delivery services to customers. Shares of this Zacks Rank #2 company have increased 55.9% in the past six months.
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The FTSE 100 was struggling for a foothold on gains Tuesday, as its heavily weighted mining sector logged losses.
VANCOUVER, British Columbia, Sept. 14, 2021 (GLOBE NEWSWIRE) — SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) is issuing this announcement in response to a request from the Investment Industry Regulatory Organization of Canada (“IIROC”) to comment on the trading activity of the shares of the Company (the “Shares”) on the Toronto Stock Exchange on Monday, September 13, 2021.
The Company is not aware of any material, undisclosed information related to the Company’s operations and affairs that would account for the recent increase in the market price and level of trading volume of the Shares or any information which must be announced to avoid a false market in the Company’s securities.
Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Shares.
About SouthGobi
SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.
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+852 2156 1438 (Hong Kong) |
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Grocery delivery has become a competitive market as companies ranging from upstarts to giants like Amazon.com try to grab a bigger slice of consumer spending.
MELBOURNE (Reuters) – BHP Group on Tuesday laid out its aim to achieve net zero emissions by 2050 from the operations of its customers by working with them to cut carbon out of their processes.
BHP, the world's biggest miner, has already committed to extinguishing emissions directly from its own operations and lowering its indirect emissions through means such as using more power from renewable sources by then as well.
Steelmaking is one of the world's most heavily polluting industries and the shift to focus on net zero emissions from the use of its raw materials by the sector marks an escalation in its efforts. BHP said its definition of reaching net zero includes the use of carbon offsets.
The miner characterised its aim as an ambitious "goal" rather than a concrete target, since it has yet to determine a specific pathway to reach it.
Steelmaking is expected to be one of the slower sectors to decarbonise because it requires the combustion of carbon and iron at high temperatures, creating carbon dioxide as a byproduct.
Although steelmakers and Australia's iron ore miners are working on the production of carbon-free steel from iron ore, potentially using hydrogen, the process is not expected to become economic until late this decade at the earliest.
"The most significant contributions to our reported Scope 3 inventory come from the emissions generated by steelmaking through the processing of iron ore and metallurgical coal," BHP said.
Those emissions represent 96% of BHP’s total reported emissions, which during last financial year stood at 418.7 million tonnes of carbon dioxide equivalent.
(Reporting by Melanie Burton; Editing by Tom Hogue)
(Bloomberg) — Copper might be BHP Group’s most prized metal, but the world’s biggest mining company spent little more than it earned in an average 12-hour period last year exploring for new deposits.
The company spent just $53 million looking for the metal last year, when it posted record profit of $37.4 billion. In total it spent $516 million on exploration, with more than two-thirds directed at oil and gas, a business it’s in the process of exiting.
The world’s biggest miners are universally bullish on copper, expecting a surge in demand as the global economy decarbonizes, while long-term supply looks constrained by the lack of new mine development. Yet part of the reason copper is so favored by miners and investors alike is because new deposits have been so hard to find.
Still, BHP does have growth plans in copper, but from buying into smaller developers rather then spending a fortune on exploration.
The company has built a stake in SolGold Plc, which is developing Ecuador’s Cascabel project, potentially one of the biggest copper mines in the world. BHP is also in the process of trying to buy Noront Resources Ltd. to gain control of a nickel project in Canada.
The company expects its total exploration spend to jump to $800 million this year.
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(Bloomberg) — In quick succession, mining companies in Chile have resolved a series of labor conflicts to all but end threats to supply in the biggest copper-producing nation.
On Friday, plant workers at Codelco’s Andina mine agreed to end a more than three-week stoppage. The next day, workers at BHP Group’s Cerro Colorado mine accepted an offer hammered out by the two negotiating teams in mediated talks, avoiding a strike. Union members at Salvador, Codelco’s smallest mine, are scheduled to vote Monday on a new offer delivered during mediation.
The recent breakthroughs follow strike-ending agreements earlier this month with the two main unions at Andina and at a mine owned by JX Nippon Mining & Metals. The industry also managed to avoid stoppages at top-tier mines such as Escondida and El Teniente.
Chile is coming to the end of an intense period of contract renewals in which workers used high prices as leverage and companies fought to contain costs in a cyclical business that’s seen an uptick in input inflation.
The wage deals, in a country that accounts for more than a quarter of the world’s mined copper, remove a layer for support for prices of the metal that have recovered much of the ground lost in an early August selloff. Futures were down 0.3% at 1:03 p.m. in London on Monday.
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©2021 Bloomberg L.P.
The food industry is comprised of companies that focus primarily on offering food and non-alcoholic beverage products. It includes grocery stores, food distribution companies, and other companies offering consumer staples that consumers either eat or drink.
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So on that note, Albertsons Companies (NYSE:ACI) looks quite promising in regards to its trends of return on capital.
What is Return On Capital Employed (ROCE)?
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Albertsons Companies:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)
0.098 = US$2.0b ÷ (US$27b – US$6.7b) (Based on the trailing twelve months to June 2021).
Therefore, Albertsons Companies has an ROCE of 9.8%. On its own, that's a low figure but it's around the 8.3% average generated by the Consumer Retailing industry.
See our latest analysis for Albertsons Companies
Above you can see how the current ROCE for Albertsons Companies compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
What The Trend Of ROCE Can Tell Us
Albertsons Companies' ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 114% in that same time. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects.
The Bottom Line On Albertsons Companies' ROCE
As discussed above, Albertsons Companies appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And a remarkable 117% total return over the last year tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.
If you'd like to know about the risks facing Albertsons Companies, we've discovered 4 warning signs that you should be aware of.
While Albertsons Companies may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
(Bloomberg) — Plant workers at a Codelco mine in Chile agreed to end a strike while union members at a BHP Group mine accepted a new wage proposal, easing labor tensions in the top copper-producing nation.
Codelco reached a deal to end a more than three-week stoppage by members of the Suplant union at its Andina mine, the state-owned company said Friday, allowing the central Chilean operation to ramp back up.
At BHP’s Cerro Colorado mine, workers voted Saturday to accept an offer hammered out by the two negotiating teams in mediated talks this week, avoiding a strike. Union members at Salvador, Codelco’s smallest mine, are scheduled to vote Monday on a new offer delivered during mediation.
The breakthroughs follow strike-ending agreements earlier this month with the two main unions at Andina and at a mine owned by JX Nippon Mining & Metals. Chile is coming to the end of an intense period of contract renewals, with the industry so far managing to avoid stoppages at top-tier mines such as Escondida and El Teniente.
Workers used high copper prices and profits as leverage in the talks while companies looked to contain labor costs in a cyclical industry that has seen input prices start to rise.
(Adds result of Cerro Colorado vote)
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(Bloomberg) — Plant workers at a Codelco mine in Chile agreed to end a strike while union members at a BHP Group mine will vote a new wage proposal in the latest signs of easing labor tensions in the top copper-producing nation.
Codelco reached a deal to end a more than three-week-long stoppage by members of the Suplant union at its Andina mine, the state-owned company said Friday.
At BHP’s Cerro Colorado mine, workers will vote on the new offer Saturday after the two negotiating teams hammered out terms in mediated talks this week, the union said in a text message. Voting is scheduled to conclude at 4 p.m. Santiago time.
The breakthroughs follow strike-ending agreements earlier this month with the two main unions at Andina and at a mine owned by JX Nippon Mining & Metals. Chile is coming toward the end of an intense period of contract renewals, with the industry so far managing to avoid stoppages at top-tier mines such as Escondida and El Teniente.
To be sure, there is still a possibility of a stoppage at Codelco’s smallest mine, Salvador. Workers used high copper prices and profits as leverage in the talks while companies looked to contain labor costs in a cyclical industry that has seen input prices start to rise.
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©2021 Bloomberg L.P.
Bullish sentiment appeared to return to markets on Friday morning as a combination of supply disruptions and an apparent detente between the U.S. and China gave oil markets hope.
Oil Prices Today: Friday, September 10th, 2021
With three-quarters of crude production still shut in the Gulf of Mexico, Hurricane Ida remained one of the key factors determining price movements this week. In addition to tight US supplies, with the EIA reporting a 1.5 million b/d week-on-week drop in total production, Friday provided some additional bullish sentiment as the Xi-Biden phone call sparked hopes of a smoother US-China relationship, offsetting downside factors like the Chinese strategic stock auction. As of today, Brent traded around $73 per barrel, whilst WTI was just south of $70 per barrel.
China Releases Strategic Reserves of Crude.
For the first time ever, China’s Strategic Reserves Administration will hold an auction on SPR volumes to be provided to integrated refiners and chemical plants (i.e. state-owned firms) in a bid to tame increasing feedstock prices.
Related: 3 Bearish Catalysts For Oil This Fall
US Natgas Futures Hit $5/mmBtu For First Time Since 2014.
US natural gas futures soared this week as expectations of warmer-than-anticipated weather coincided with Hurricane Ida-induced production outages, with October delivery prices surpassing the $5 per mmBtu mark for the first time since February 2014.
Saudi Aramco Moves into Steel.
Moving beyond its traditional sphere of activity, the world’s largest oil producer Saudi Aramco (Tadawul:2222) signed a deal with Chinese steelmaker Baoshan (600019) to build a steel plate factory in Saudi Arabia, marking the second metals-related venture of the Saudi NOC.
Libyan Export Terminals Blocked by Protesters.
Libya’s Es Sider and Ras Lanuf terminals were blocked by protesters who forced vessels to halt loading operations as calls for the dismissal of NOC head Mustafa Sanalla gained strength, in what might trigger another prolonged period of infighting in the North African country.
Gazprom Waits for German Nod on Nord Stream 2.
Having completed the construction of the Nord Stream 2 gas pipeline, Russian gas giant Gazprom (MCX:GAZP) is now waiting for an approval from Germany’s regulator, a process that could take several months.
LyondellBasell Eyes Houston Refinery Exit.
US chemicals firm LyondellBasell (NYSE:LYB) is reportedly trying to sell its 265kbpd Houston Refinery as soon as possible. This is the second time LyondellBasell has attempted to sell after the 2016 talks with Saudi Aramco yielded no result.
Papua New Guinea Might Derail Santos Merger.
Fearing that the pending merger between Australian energy firms Santos (ASX:STO) and Oil Search (ASX:OSH)might give the company too much control over PNG oil and gas, the Papua New Guinea government is mulling its options to veto the deal.
India Expedites Ethanol Blending Target.
The Indian government brought forward its 2030 objective to see 20% ethanol blending in gasoline flows by five years to 2025, requiring an effective tripling of its ethanol production and breathing life into its grain-to-ethanol output which has been all but non-existent so far, relying primarily on sugarcane.
Nigeria’s NNPC Mulls IPO Options.
Nigeria’s state-owned oil company NNPC, which is to become a limited liability company under the country’s new oil code, could consider an initial public offering within three years, buoyed by news that the company recorded its first-ever profit last year, Reuters reports.
Exxon Tries Methane Integrity Grading.
Under increasing pressure from environmentalist groups, US major ExxonMobil (NYSE:XOM) will offer some of its gas assets in the Permian Basin for a third-party assessment on potential methane leaks from its production sites.
Colombia Desperate for New Upstream Investment.
The Colombian government is pinning its hopes on a November licensing round that will see the national hydrocarbons agency offering 28 areas of potential interest, desperate to breathe new life into its declining production rates. Colombia’s oil reserves have fallen to the equivalent of 6 years’ production.
PEMEX Impacted by KMZ Explosion After All.
Despite PEMEX claiming to have fully recovered from the Ku-Maloob-Zaap platform explosion in late August, Mexico’s Finance Ministry revised its 2022 crude production estimate downwards by some 50,000 b/d to 1.826 million b/d. The draft version of Mexico’s 2022 budget also has PEMEX’s profit-sharing duty dropping from the current rate of 54% to 40%.
BHP Teams Up with Billionaire-Backed Firm.
Australian miner BHP (NYSE:BHP)signed a partnership deal with Kobold Metals, a recently launched AI exploration company that is backed by Bill Gates, Michael Bloomberg, and Jeff Bezos, in a bid to find more battery metals like copper and nickel in Australia.
Hyundai to Present Next-Gen Hydrogen Technology.
The South Korean carmaker Hyundai Motors (KRX:005380) pledged to present its new hydrogen drivetrain in 2023, with the aim of applying fuel cell systems to all commercial models by 2028, claiming overall costs would be some 50% lower than currently existing technologies.
Nickel Prices Soar Despite Chinese Stock Releases.
Nickel prices rose to their highest level in 7 years – going beyond $20,200 per metric ton – as continuously robust demand has started to reduce global stockpiles. Most notably Shanghai warehouse stocks have decreased by 80% year-on-year, standing at less than 6,000 tonnes.
By Tom Kool for Oilprice.com
More Top Reads From Oilprice.com:
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DALLAS, Sept. 10, 2021 /PRNewswire/ — Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® MLP Market Cap Index (the "Index") as part of normal index operations. After the markets close on September 17, 2021, the 30 constituents of the Index will be rebalanced, and the following changes will be effective on September 20, 2021:
Constituent added:
Alliance Resource Partners, L.P. (NASDAQ: ARLP)
Constituent removed:
Global Partners LP (NYSE: GLP)
ABOUT THE CUSHING® MLP MARKET CAP INDEX
The Cushing® MLP Market Cap Index provides a benchmark that is designed to track the performance of widely held midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). The Index is weighted on a float-adjusted market capitalization basis, with the weight of each constituent capped at 7.5% at rebalance. The Index price level is calculated by S&P Dow Jones Indices while the constituents are selected from the entire universe of publicly traded Midstream Companies. The Cushing® MLP Market Cap Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CMCI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts, providing active management in markets where inefficiencies exist.
Contact:
Jon Abel
214-692-6334
http://www.cushingasset.com/
The Cushing® MLP Market Cap Index (the "Index") is the property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, "S&P Dow Jones Indices"). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. "Calculated by S&P Dow Jones Indices" and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Cushing Asset Management, LP. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").
View original content:https://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-mlp-market-cap-index-301373217.html
SOURCE Cushing® Asset Management, LP and Swank Capital, LLC
We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt.
Given this risk, we thought we'd take a look at whether Investigator Resources (ASX:IVR) shareholders should be worried about its cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Let's start with an examination of the business' cash, relative to its cash burn.
View our latest analysis for Investigator Resources
When Might Investigator Resources Run Out Of Money?
A company's cash runway is calculated by dividing its cash hoard by its cash burn. In December 2020, Investigator Resources had AU$14m in cash, and was debt-free. In the last year, its cash burn was AU$4.7m. Therefore, from December 2020 it had 2.9 years of cash runway. That's decent, giving the company a couple years to develop its business. Importantly, if we extrapolate recent cash burn trends, the cash runway would be noticeably longer. Depicted below, you can see how its cash holdings have changed over time.
How Is Investigator Resources' Cash Burn Changing Over Time?
In our view, Investigator Resources doesn't yet produce significant amounts of operating revenue, since it reported just AU$70k in the last twelve months. As a result, we think it's a bit early to focus on the revenue growth, so we'll limit ourselves to looking at how the cash burn is changing over time. In fact, it ramped its spending strongly over the last year, increasing cash burn by 179%. It's fair to say that sort of rate of increase cannot be maintained for very long, without putting pressure on the balance sheet. Investigator Resources makes us a little nervous due to its lack of substantial operating revenue. We prefer most of the stocks on this list of stocks that analysts expect to grow.
Can Investigator Resources Raise More Cash Easily?
Given its cash burn trajectory, Investigator Resources shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Commonly, a business will sell new shares in itself to raise cash and drive growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.
Since it has a market capitalisation of AU$86m, Investigator Resources' AU$4.7m in cash burn equates to about 5.4% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan.
So, Should We Worry About Investigator Resources' Cash Burn?
As you can probably tell by now, we're not too worried about Investigator Resources' cash burn. For example, we think its cash runway suggests that the company is on a good path. While we must concede that its increasing cash burn is a bit worrying, the other factors mentioned in this article provide great comfort when it comes to the cash burn. Considering all the factors discussed in this article, we're not overly concerned about the company's cash burn, although we do think shareholders should keep an eye on how it develops. Separately, we looked at different risks affecting the company and spotted 5 warning signs for Investigator Resources (of which 2 are concerning!) you should know about.
If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
(Bloomberg) — BHP Group is joining forces to explore for metals crucial to the energy transition with a startup backed by a group of tycoons including Jeff Bezos and Bill Gates.
The world’s biggest miner has entered an alliance with Silicon Valley-based KoBold Metals Co. to deploy its artificial intelligence technology to look for metals like cobalt, nickel and copper, which are used in electrical vehicle chargers and batteries. The two companies will jointly fund and operate exploration programs — initially in Western Australia — and will each have the right to share in any identified prospects.
KoBold has used data-crunching algorithms to build what’s been described as a Google Maps for the Earth’s crust. The technology can locate resources that may have eluded more traditionally-minded geologists, and helps miners to decide where to acquire land and drill, the company said.
See also: Algorithms Join Cobalt Hunt Backed by Gates, Bezos and Dalio
The tie-up offers an opportunity to access exploration databases built up by BHP over many years, Kurt House, KoBold’s chief executive officer, said in an interview. “In Western Australia, there’s extensive information. A lot of this data is dark data – it hasn’t been used more than once.”
Shareholders of KoBold Metals also include Silicon Valley venture capital firm Andreessen Horowitz, Norwegian oil major Equinor ASA and Breakthrough Energy Ventures, a fund backed by a dozen high-profile investors including Bezos, Gates and Ray Dalio, as well as Michael Bloomberg, founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.
“Globally, shallow ore deposits have largely been discovered, and remaining resources are likely deeper underground and harder to see from the surface,” Keenan Jennings, vice president at BHP Metals Exploration, said in a statement. “This alliance will combine historical data, artificial intelligence, and geoscience expertise to uncover what has previously been hidden.”
KoBold now has about a dozen exploration properties around the world that have resulted from joint ventures and tie-ups like the one with BHP, House said. “BHP engaged us, and we had many detailed discussions about KoBold’s technology,” he said. “Our approach is very different, and as such, various partners are keen to have ringside seats to see it deployed.”
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MELBOURNE (Reuters) – BHP Group will team up with billionaire-backed AI exploration firm KoBold Metals to look for battery minerals like copper and nickel in Australia and other global locations, the companies said on Wednesday.
The world's largest miner is building out its portfolio in what it calls "future facing commodities", expecting demand for electric vehicles and green energy to determine the minerals that will drive profits in coming years.
Privately held KoBold uses machine learning and artificial intelligence to hunt for raw materials. Its principal investors include Breakthrough Energy Ventures, a climate and technology fund backed by Microsoft's Bill Gates, Bloomberg founder Michael Bloomberg and Amazon's Jeff Bezos.
Miners have been moving towards machine learning to find underground deposits in recent years, leading to some big discoveries, such as Rio Tinto's copper project Winu.
"Globally, shallow ore deposits have largely been discovered, and remaining resources are likely deeper underground and harder to see from the surface," said Keenan Jennings, vice-president of BHP Metals Exploration.
"We need new approaches to find the next generation of essential minerals, and this alliance will combine historical data, artificial intelligence, and geoscience expertise to uncover what has previously been hidden," he said.
The alliance will cover an area in Western Australia of more than 500,000 sq km (193,000 sq miles), KoBold CEO Kurt House told Reuters.
"Exploration success rates have been declining over the last couple of decades … because the easy things have been found," House said.
The discovery zones over the next 20 years will be at depths of 200 m to 1,500 m, he said.
"That’s the area that is very poorly explored (and) is likely to host a tremendous number of ore bodies."
KoBold has a dozen tie-ups across about 20 locations including Sub-Saharan Africa, North America and Australia, looking for copper, cobalt, nickel and lithium, House said.
Australia has some of the world's best mapping data for prospective minerals, while its solid regulatory environment also make it an attractive destination, House said.
KoBold, however, said it is closely watching development of a bill to protect Aboriginal heritage in Western Australia. Indigenous groups have protested a draft of the bill because it denies them final say-so over protection of their sacred sites, which could become a governance issue for miners and investors.
KoBold is planning to set up an Australian office in the next 12 months and is looking for other exploration partners.
"Inside the area of interest we are exclusive for BHP, but outside we are open for business."
(Reporting by Melanie Burton; Editing by Tom Hogue)
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Peabody Energy (BTU), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Peabody Energy currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if BTU is a promising momentum pick, let's examine some Momentum Style elements to see if this coal mining company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For BTU, shares are up 12.44% over the past week while the Zacks Coal industry is up 4.37% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 47.25% compares favorably with the industry's 7.83% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Peabody Energy have increased 116.78% over the past quarter, and have gained 612.17% in the last year. In comparison, the S&P 500 has only moved 7.3% and 33.51%, respectively.
Investors should also pay attention to BTU's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. BTU is currently averaging 5,800,306 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with BTU.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost BTU's consensus estimate, increasing from -$0.69 to $0.77 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that BTU is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Peabody Energy on your short list.
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The rapid spread of the highly contagious Delta variant of COVID-19 in the United States is threatening to derail the economic recovery that was witnessed in the last few months. The downbeat jobs data for August is primarily due to the Delta strain-induced spike in COVID-19 cases. According to most market watchers, this unfortunate scenario caused a subdued job growth scene.
This uncertainty-filled backdrop is more than enough to unsettle even the steadiest investors. However, irrespective of the surroundings, investors want to make handsome profits from their chosen portfolio of stocks. The task is easier said than done. With a universe of stocks flooding the market at any point of time, it is highly likely that individual investors without any proper guidance will end up with a wrong selection of stocks for his/her portfolio, thereby ruining the prospects of reaping gains.
Who Are the Experts & Why?
The “experts” in the field of investing are brokers. They are equipped with detailed knowledge of the space.
Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its potential than individual investors. To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations.
Estimate revisions by brokers serve as an important pointer regarding the price of a stock. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade.
Winning Strategy
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions of earnings estimates over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is included. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This eliminates the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
American Airlines Group AAL: This Fort Worth, TX-based airline currently carries a Zacks Rank #3 (Hold). The gradual increase in air-travel demand (particularly for leisure) is dented by the slowdown in bookings and a spurt in cancellations following the spread of the Delta variant of coronavirus. However, the company’s efforts to control costs amid this scenario of revenue-weakness is encouraging. Its bottom line outshined the Zacks Consensus Estimate in each of the last four quarters, the average being 2.44%.
ArcBest Corporation ARCB provides freight transportation services and solutions. Improving freight conditions in the United States bode well for this presently Zacks Rank #1 (Strong Buy). Solid customer demand and higher market rates are supporting growth at ArcBest. The stock has witnessed the Zacks Consensus Estimate for current-quarter earnings being revised 24.84% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Best Buy Company BBY is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, heath, security, appliances and related services. The company continuously focuses on improving its digital capabilities. Best Buy, currently carrying a Zacks Rank #2 (Buy), is constantly conducting various tests and pilots to become a more customer-centric, digitally-focused, efficient company. Its liquidity position is also sound. Backed by these tailwinds, the stock has seen the Zacks Consensus Estimate for current-year earnings move 14.92% north over the past 60 days.
Peabody Energy BTU: St Louis, MO-based Peabody Energy engages in the coal-mining business and has both thermal and metallurgical operations to manage. Revival in the domestic and international coal markets augurs well for this currently Zacks #2 Ranked stock that outperformed on earnings in three of the last four quarters (lagging the consensus mark in the remaining one).
Abercrombie & Fitch Company ANF, currently sporting a Zacks Rank of 1, operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids. Abercrombie is making significant progress in expanding its digital and omni-channel capabilities to better engage with consumers.The company’s efforts to manage costs are supporting its bottom line. The Zacks Consensus Estimate for current-year earnings has been raised 33.3% over the past 60 days on the back of these positives.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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Peabody Energy Corporation (BTU) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
ArcBest Corporation (ARCB) : Free Stock Analysis Report
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Zacks Investment Research
Here are four stocks with buy ranks and strong growth characteristics for investors to consider today, September 7th:
Dow Inc. DOW: This provider of various materials science solutions for consumer care, infrastructure, and packaging markets carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.9% over the last 60 days.
Dow Inc. Price and Consensus
Dow Inc. price-consensus-chart | Dow Inc. Quote
Dow has a PEG ratio of 0.27 compared with 0.58 for the industry. The company possesses a Growth Score of B.
Dow Inc. PEG Ratio (TTM)
Dow Inc. peg-ratio-ttm | Dow Inc. Quote
Boise Cascade Company BCC: This manufacturer of wood products and distributes building materials carries a Zacks Rank #1, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.8% over the last 60 days.
Boise Cascade Company Price and Consensus
Boise Cascade Company price-consensus-chart | Boise Cascade Company Quote
Boise Cascade has a PEG ratio of 0.37, compared with 1.05 for the industry. The company possesses a Growth Score of B.
Boise Cascade Company PEG Ratio (TTM)
Boise Cascade Company peg-ratio-ttm | Boise Cascade Company Quote
Albertsons Companies, Inc. ACI: This company that engages in the operation of food and drug stores carries a Zacks Rank #1, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.1% over the last 60 days.
Albertsons Companies, Inc. Price and Consensus
Albertsons Companies, Inc. price-consensus-chart | Albertsons Companies, Inc. Quote
Albertsons Companies has a PEG ratio of 1.23, compared with 3.50 for the industry. The company possesses a Growth Score of A.
Albertsons Companies, Inc. PEG Ratio (TTM)
Albertsons Companies, Inc. peg-ratio-ttm | Albertsons Companies, Inc. Quote
Signet Jewelers Limited SIG: This company that engages in the retail sale of diamond jewelry, watches, and other products carries a Zacks Rank #1, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.
Signet Jewelers Limited Price and Consensus
Signet Jewelers Limited price-consensus-chart | Signet Jewelers Limited Quote
Signet Jewelers has a PEG ratio of 1.38, compared with 2.21 for the industry. The company possesses a Growth Score of B.
Signet Jewelers Limited PEG Ratio (TTM)
Signet Jewelers Limited peg-ratio-ttm | Signet Jewelers Limited Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
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Iron ore prices have been on a downward spiral lately, due to China’s efforts to cut steel production and expectations of a pick-up in global iron ore supply.
Future prices for iron ore with 62% iron content, hit a nine-month low of $140.54 a ton on Sep 2. It eventually recovered to settle at $144.83 a ton on Sep 3. Iron ore prices are currently 34% below the high of $219.77 in July. Year to date, iron ore prices have declined 12%, which is in stark contrast to the rally of 70% witnessed last year. Robust demand in China stemming from the government’s measures to stimulate the economy from the COVID-19 slump amid concerns of supply shortage from Brazil had worked in favor of iron ore prices last year.
The tables seem to have turned this year, as China’s intensified focus on cutting down emissions has dealt a blow to the steel industry, which given its high energy consumption and outdated technology and equipment is one of the biggest contributors to pollution in the country. China is, thus, working toward reducing its crude steel output in 2021 from a year earlier. The China Iron and Steel Association (“CISA”) announced that in late August, the average aggregate daily crude steel output of large and medium sized steel enterprises in China was down 4% compared to mid-August, which highlights the impact of the implementation of production restrictions at steel mills.
Meanwhile, the Caixin China General Manufacturing PMI contracted for the first time since April to 49.2 in August 2021. It came below 50.3 in July and missed market estimates of 50.2. This was primarily due to measures to curb rising cases of the Delta strain, supply chain bottlenecks, and raw material cost inflation. Output shrank for the first time in 17 months and new orders declined at the steepest rate in 16 months. Exports sales contracted for the first time since February. Consequently, the lower demand in China and output recovery in Brazil have been weighing on iron ore prices.
Demand for Iron Ore to Remain Resilient
The World Steel Association projects steel demand to grow 5.8% in 2021 and reach 1,874 million. In 2022, steel demand is expected to go up 2.7% to reach 1,924.6 Mt. In China, steel demand is expected to grow 3.0% in 2021 but will decline 1% in 2022 due to the intensified environmental push. Meanwhile, steel demand will go up 8.2% and 4.2% in 2021 and 2022, respectively, in advanced economies. The ongoing recovery in automotive and construction sectors worldwide will drive demand for steel. In the United States, massive government spending to rebuild infrastructure including railroads, highways and bridges will significantly boost steel demand, thus raising the requirement of more iron ore.
3 Stocks to Keep an Eye on
We recommend these iron mining stocks that are well-poised to capitalize on the increase in demand for iron ore. These stocks have a Zacks Rank 3 (Hold) and a VGM Score of A. Our research shows that stocks with such a combination offer the best investment opportunities. They also have solid earnings growth projections.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
BHP Group BHP: In fiscal 2022, the company expects to produce between 249 Mt and 259 Mt of iron ore backed by productivity improvements at Western Australia Iron Ore operations. Efforts to make operations more efficient through smart technology adoption across the entire value chain will aid in reducing costs, thereby bolstering its margins. Its focus on lowering debt is commendable. The company’s exit of the petroleum business, investment in growth projects and decision to unify its dual-listed structure will aid growth as well. These factors have resulted in a share price appreciation of 18.8% over the past year. .
The company has a long-term estimated earnings growth rate of 4%. The Zacks Consensus Estimate for current fiscal earnings indicates year-over-year improvement of 37.8%. The consensus estimate has moved up 6% over the past 90 days.
Rio Tinto plc RIO: The company expects to produce at the low end of its range of 325 Mt to 340 Mt of iron ore in fiscal 2021. It boasts a world-class portfolio of high-quality assets and continues to strengthen it by increasing investment in high-value projects to ensure long-term growth. Rio Tinto is strengthening the portfolio further with its commitment to fund the high-quality Jadar lithium project, which signals its entry into the fast-growing battery materials market. The company remains focused on making its operations as efficient as possible through the use of technology and innovation, including automation. A strong balance sheet and a disciplined capital allocation support its ability to sustain production and increase investment in development projects (in high-return iron ore and copper), while delivering superior returns to shareholders. All of these factors have contributed to its share price gain of 24.6% in a year’s time.
The Zacks Consensus Estimate for fiscal 2021 earnings indicates year-over-year improvement of around 104%. The consensus mark has been revised upward by 5% over the past 90 days. The company has a long-term estimated growth rate of 3%.
Vale S.A VALE: The Brazilian miner expects to produce between 315 Mt and 335 Mt of iron ore in 2021. Backed by solid cash flow, Vale continues to lower debt and strengthen its balance sheet. The company also continues to invest in growth projects that will help it achieve annual iron ore production capacity of 450 Mt in the future. Vale is working toward transforming its base metals business, and believes it will attain 500 ktpy (kilo tons per year) with projects already in pipeline. Its ongoing efforts to improve productivity, introduce more high-quality ore in the market and control costs have been impressive, leading to a 72.8% surge in its share price over the past year. The company is also investing in its autonomous program in a bid to ensure safety in mining, reduce carbon footprint, improve efficiency and lower costs.
The company has a long-term estimated earnings growth rate of 30.7%. The Zacks Consensus Estimate for fiscal 2021 earnings suggests year-over-year growth of around 170%. The consensus mark has moved north by 6% over the past 60 days. The company delivered a trailing four-quarter earnings surprise of 14.3%, on average.
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VANCOUVER, British Columbia, Sept. 07, 2021 (GLOBE NEWSWIRE) — Aben Resources Ltd. (TSX-V: ABN) (OTCQB: ABNAF) (Frankfurt: E2L2) (“Aben” or “the Company”) is pleased to report that exploration in the Red Lake area has once again resumed as the fires have abated. As a result, the airborne magnetometer survey that Aben commissioned for its 100% owned Pringle North Property in Red Lake, Ontario has now been completed and detailed interpretive work is underway.
Figure 1. Regional Location Map
https://abenresources.com/site/assets/files/4218/regional_location.png
About Pringle North Gold Project
The Property consists of 5 contiguous mining claims covering approximately 1,881 hectares. The property is 60km north of the town of Red Lake and is located 15km east of the all-weather Nungesser Road. This area has been recently identified by the “Ministry of Energy, Northern Development and Mines Recommendations for Exploration 2020-2021” for its deep-seated structural similarities that are associated with the Red Lake Gold Camp and Great Bear Resource’s Dixie Gold Project. This deep-seated structure (named the “E-1 Extensional Fault”) that occurs along this trend was delineated by seismic surveys and is considered a third deep-tapping structure that may have provided fluid pathways for gold mineralization to the mines and recent discoveries in the region. Age determination (by Sanborn et al, 2004) dates this sedimentary belt and assigns it to the Balmer Assemblage which is host to the gold mines in the Red Lake Camp.
Figure 2. Pringle North Property Location Map
https://abenresources.com/site/assets/files/4218/local_claim_fabric.png
Figure 3. Metal Occurrences
https://abenresources.com/site/assets/files/4218/metal_occurrences.png
Figure 4. Preliminary Airborne Magnetic Results
https://abenresources.com/site/assets/files/4225/untitled_design_15.png
Update on Forrest Kerr Gold Project
The field crew has just returned from the Forrest Kerr Project after 3 weeks of property-wide prospecting and geological mapping. Field work was directed toward tracing out mineralized trends outboard of the high-grade precious metal mineralization present in the Boundary Valley, located near the center of the 23,397-hectare property. Field reconnaissance activities took place across the entirety of the Forrest Kerr claim group and successfully contributed a greater understanding of the controls on existing gold mineralization and the potential for discovering new precious metal mineralization. The Forrest Kerr Property hosts highly altered Mesozoic rocks that reflect a robust and widespread hydrothermal system with proven high-grade mineralization and real potential for more sizeable discoveries.
Forrest Kerr Gold Project, Golden Triangle, BC claims map:
https://abenresources.com/site/assets/files/4087/abn_forrest_kerr_project_map.pdf
About Aben Resources:
Aben Resources is a Canadian gold exploration company developing gold-focused projects in British Columbia and the Yukon Territory. Aben is a well-funded junior exploration company. Cornell McDowell, P.Geo., V.P. of Exploration for Aben Resources, has reviewed and approved the technical aspects of this news release and is the Qualified Person as defined by National Instrument 43-101.
For further information on Aben Resources Ltd. (TSX-V: ABN), visit our Company’s web site at www.abenresources.com.
ABEN RESOURCES LTD.
“Jim Pettit”
______________________
JAMES G. PETTIT
President & CEO
For further information contact:
Aben Resources Ltd.
Telephone: 604-416-2978
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@abenresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
ST. LOUIS, Sept. 7, 2021 /PRNewswire/ — Peabody (NYSE: BTU) today announced the expiration and final results of its previously announced offer to purchase (the "Offer") for cash up to $13.281 million (the "Available Repurchase Amount") in aggregate accreted value of its 8.500% Senior Secured Notes due 2024 (the "2024 Notes") at a purchase price equal to 73.840% of the accreted value of the 2024 Notes to be repurchased, plus accrued and unpaid interest as set forth in the Indenture (as defined below), to, but excluding, the settlement date, on the terms and subject to the conditions set forth in the Offer to Purchase, dated July 7, 2021 (the "Offer to Purchase"). Concurrently with the Offer, Peabody made a debt repurchase offer (the "Concurrent LC Agreement Offer") under the Credit Agreement, dated as of January 29, 2021, among Peabody, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as Administrative Agent (the "LC Agreement").
The Offer expired at 5:00 p.m., New York City time, on September 3, 2021 (the "Expiration Time"). As of the Expiration Time, $66,943.00 in aggregate accreted value of the 2024 Notes had been validly tendered and not validly withdrawn prior to the Expiration Time. As of September 3, 2021, no Priority Lien Obligations (as defined in the LC Agreement) under the LC Agreement had been validly tendered and not validly withdrawn prior to the expiration date in the Concurrent LC Agreement Offer.
Subject to the Available Repurchase Amount as further described below, for each $1,000 accreted value of 2024 Notes validly tendered (and not validly withdrawn) prior to the Expiration Time and accepted by Peabody, holders of 2024 Notes will receive $738.40 in cash (the "Offer Price"), plus accrued and unpaid interest as set forth in the Indenture, to, but excluding, the settlement date.
Because the aggregate accreted value for all 2024 Notes tendered in the Offer and Priority Lien Obligations tendered in the Concurrent LC Agreement Offer collectively did not exceed the Available Repurchase Amount of $13.281 million, Peabody will purchase $66,943.00 aggregate accreted value of 2024 Notes pursuant to the Offer and no Priority Lien Obligations under the LC Agreement pursuant to the Concurrent LC Agreement Offer. Payment for such accepted 2024 Notes will be made on September 8, 2021. After giving effect to the purchase of the tendered and accepted 2024 Notes, $156.276 million in aggregate accreted value of the 2024 Notes will remain outstanding.
The 2024 Notes are governed by an indenture, dated as of January 29, 2021, by and among Peabody, the guarantors party thereto (the "Guarantors") and Wilmington Trust, National Association, as trustee (the "Trustee") (as amended and restated by the First Supplemental Indenture, dated as of February 3, 2021, among Peabody, the Guarantors and the Trustee, and as further amended, supplemented, restated or otherwise modified to the date hereof, the "Indenture"). Under the terms of the Indenture, within 30 days of June 30, 2021, the end of Peabody's second fiscal quarter (such fiscal quarter, the "Debt Repurchase Quarterly Period"), Peabody was obligated to offer to purchase for cash an aggregate accreted value of up to the Available Repurchase Amount of its outstanding 2024 Notes at the price described above. The Offer was intended to satisfy this requirement.
The Available Repurchase Amount for the Offer is equal to 25% of $53.127 million, which is the total aggregate principal and commitment amounts of Priority Lien Debt (as defined in the Indenture) repurchased by Peabody pursuant to open-market repurchases during the Debt Repurchase Quarterly Period. In addition, the Offer Price of $738.40 represents the price per $1,000 accreted value of Notes that is the weighted-average repurchase price for all Priority Lien Debt repurchased by Peabody during the Debt Repurchase Quarterly Period.
This announcement is not an offer to purchase or sell, or a solicitation of an offer to purchase or sell any securities in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
Peabody (NYSE: BTU) is a leading coal producer, providing essential products to fuel baseload electricity for emerging and developed countries and create the steel needed to build foundational infrastructure. Our commitment to sustainability underpins our activities today and helps to shape our strategy for the future. For further information, visit PeabodyEnergy.com.
Contact:
Alice Tharenos
314.342.7890
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events, or developments that Peabody expects will occur in the future are forward-looking statements. They may also include estimates of sales targets, cost savings, capital expenditures, other expense items, actions relating to strategic initiatives, demand for the company's products, liquidity, capital structure, market share, industry volume, other financial items, descriptions of management's plans or objectives for future operations and descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect Peabody's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, Peabody disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond Peabody's control, including the ongoing impact of the COVID-19 pandemic and factors that are described in Peabody's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020, Peabody's Quarterly Report on Form 10-Q for the three months ended June 30, 2021 and other factors that Peabody may describe from time to time in other filings with the SEC. You may get such filings for free at Peabody's website at www.peabodyenergy.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
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SOURCE Peabody
The investing track of the Oracle of Omaha over the past few decades shows a gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor. The logic behind this is the effectiveness of a mixed investment strategy over pure play, value or growth approaches of investments.
A pure-play value investor misses the chance of betting on stocks that have bright long-term prospects. In the same way, growth investors often end up investing in expensive stocks. In other words, to make a long-term investment more effective, the principles of both value and growth strategies need to be combined.
The quest for a mixed investment strategy led to the introduction of the GARP (growth at a reasonable price) approach. What GARPers look for is whether the stocks are somewhat undervalued and have solid sustainable growth potential (Investopedia).
One of the fundamental metrics for finding GARP is the price/earnings growth ratio (PEG). Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
It relates a stock’s P/E ratio with future earnings growth rate.
While P/E alone only gives the idea of stocks, which are trading at a discount, PEG, while adding the GROWTH element to it, helps to find those stocks that have solid future potential.
A lower PEG ratio, preferably less than 1, is always better for GARP investors.
Say for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66that indicates both undervaluation and future growth potential.
Unfortunately, this ratio is often neglected due to investors' limitations to calculate the future earnings growth rate of a stock.
There are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates such as the forecast of the first three years at a very high growth rate followed by a sustainable but lower growth rate in the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purpose)
Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.)
Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)
Average 20 Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1, 2,or 3 (Hold) offer the best upside potential.
Here are seven of the 19 stocks that qualified the screening:
Albertsons Companies, Inc. ACI: This is a food and drug retailer that operates stores across 34 states and the District of Columbia with more than 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets,and Balducci's Food Lovers Market. The stock can be an impressive value investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, the stock also has an impressive long-term expected growth rate of 12%. You can see the complete list of today's Zacks #1 Rank stocks here.
Westlake Chemical Corporation WLK: Headquartered in Houston, this is a global manufacturer and supplier of materials and innovative products, ranging from building products and infrastructure materials to packaging and healthcare products to automotive and consumer goods.The stock can also be an impressive value investment pick with its Zacks Rank #1 and a Value Score of A. Apart from a discounted PEG and P/E, the stock also has an impressive long-term expected growth rate of 49.7% for 2022.
Olin Corporation OLN is a vertically-integrated global producer and distributor of chemical products and, aU.S. maker of ammunition. Internationally, the company operates in regions including Latin America, Asia Pacific,and Europe. The company has an impressive long-term expected growth rate of 52.2%. The stock currently has a Value Score of A and a Zacks Rank #2.
Boise Cascade, L.L.C. BCC: This is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products.Apart from a discounted PEG and P/E, the stock has a Value Score of A and holds a Zacks Rank #1.
Schneider National SNDR: This leading transportation and logistics services company offers a portfolio of premier truckload, intermodal,and logistics solutions. The stock carries a Zacks Rank #2 and has a Value Score of A. The company has an impressive long-term earnings growth expectation of 17.9%.
Flex Ltd. FLEX is a Singapore-based provider of “Sketch-to-Scale” services to original equipment manufacturers (OEMs). The company provides end-to-end services i.e. designing, engineering, manufacturing, as well as supply chain services & solutions. The company has an impressive long-term expected growth rate of 11.9%. The stock currently has a Value Score of A and a Zacks Rank #2.
Avis Budget Group, Inc. CAR: The company is a leading global provider of mobility solutions through its three most recognized brands — Avis, Budget, and Zipcar. The company has an impressive long-term expected growth rate of 57.2%. The stock currently has a Value Score of A and a Zacks Rank #1.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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Westlake Chemical Corporation (WLK) : Free Stock Analysis Report
Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Albertsons Companies, Inc. (ACI) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
Olin Corporation (OLN) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
Schneider National, Inc. (SNDR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Just because a business does not make any money, does not mean that the stock will go down. For example, although Amazon.com made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?
So, the natural question for Marmota (ASX:MEU) shareholders is whether they should be concerned by its rate of cash burn. For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.
See our latest analysis for Marmota
Does Marmota Have A Long Cash Runway?
A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. When Marmota last reported its balance sheet in December 2020, it had zero debt and cash worth AU$7.2m. Looking at the last year, the company burnt through AU$2.0m. Therefore, from December 2020 it had 3.7 years of cash runway. There's no doubt that this is a reassuringly long runway. You can see how its cash balance has changed over time in the image below.
How Is Marmota's Cash Burn Changing Over Time?
Although Marmota reported revenue of AU$37k last year, it didn't actually have any revenue from operations. That means we consider it a pre-revenue business, and we will focus our growth analysis on cash burn, for now. Over the last year its cash burn actually increased by 49%, which suggests that management are increasing investment in future growth, but not too quickly. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. Marmota makes us a little nervous due to its lack of substantial operating revenue. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth.
How Easily Can Marmota Raise Cash?
While Marmota does have a solid cash runway, its cash burn trajectory may have some shareholders thinking ahead to when the company may need to raise more cash. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.
Since it has a market capitalisation of AU$44m, Marmota's AU$2.0m in cash burn equates to about 4.5% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan.
Is Marmota's Cash Burn A Worry?
It may already be apparent to you that we're relatively comfortable with the way Marmota is burning through its cash. For example, we think its cash runway suggests that the company is on a good path. Although its increasing cash burn does give us reason for pause, the other metrics we discussed in this article form a positive picture overall. Looking at all the measures in this article, together, we're not worried about its rate of cash burn; the company seems well on top of its medium-term spending needs. On another note, we conducted an in-depth investigation of the company, and identified 3 warning signs for Marmota (2 are potentially serious!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts)
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Peabody Energy (BTU) is one of them. Here are the key reasons why this stock is a great candidate.
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 42% over the past four weeks positions the stock of this coal mining company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. BTU meets this criterion too, as the stock gained 90.4% over the past 12 weeks.
Moreover, the momentum for BTU is fast paced, as the stock currently has a beta of 1.56. This indicates that the stock moves 56% higher than the market in either direction.
Given this price performance, it is no surprise that BTU has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped BTU earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, BTU is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. BTU is currently trading at 0.72 times its sales. In other words, investors need to pay only 72 cents for each dollar of sales.
So, BTU appears to have plenty of room to run, and that too at a fast pace.
In addition to BTU, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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Peabody Energy Corporation (BTU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.
So should Encounter Resources (ASX:ENR) shareholders be worried about its cash burn? For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). Let's start with an examination of the business' cash, relative to its cash burn.
Check out our latest analysis for Encounter Resources
How Long Is Encounter Resources' Cash Runway?
A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. In December 2020, Encounter Resources had AU$7.6m in cash, and was debt-free. In the last year, its cash burn was AU$4.2m. So it had a cash runway of approximately 22 months from December 2020. That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. The image below shows how its cash balance has been changing over the last few years.
How Is Encounter Resources' Cash Burn Changing Over Time?
While Encounter Resources did record statutory revenue of AU$180k over the last year, it didn't have any revenue from operations. That means we consider it a pre-revenue business, and we will focus our growth analysis on cash burn, for now. Over the last year its cash burn actually increased by 27%, which suggests that management are increasing investment in future growth, but not too quickly. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. Admittedly, we're a bit cautious of Encounter Resources due to its lack of significant operating revenues. We prefer most of the stocks on this list of stocks that analysts expect to grow.
How Hard Would It Be For Encounter Resources To Raise More Cash For Growth?
Given its cash burn trajectory, Encounter Resources shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn.
Encounter Resources' cash burn of AU$4.2m is about 5.3% of its AU$79m market capitalisation. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan.
Is Encounter Resources' Cash Burn A Worry?
On this analysis of Encounter Resources' cash burn, we think its cash burn relative to its market cap was reassuring, while its increasing cash burn has us a bit worried. Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried. On another note, Encounter Resources has 5 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Friday, September 3, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Verizon Communications Inc. (VZ), CVS Health Corporation (CVS), and BHP Group (BHP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Verizon shares have lagged the Zacks Wireless Industry over the last 6 months (+0.9% vs. +2.6%), but the Zacks analyst believes that the company is poised to benefit from a disciplined network strategy and a customer-centric business model. Supported by a focused roadmap for technology leadership, the company witnessed a healthy demand curve across core businesses. Verizon expects to continue this momentum, driven by diligent execution of operational plans along with dedicated 5G endeavors.
However, Verizon operates in an intensely competitive U.S. wireless market that strains margins. Hefty expenses on promotions and lucrative discounts to attract customers hamper its profitability. The high auctioning expenses for the mid-band spectrum is likely to further compromise Verizon’s margins.
(You can read the full research report on Verizon here >>>)
Shares of CVS Health have modestly outperformed the Zacks Retail – Pharmacies and Drug Stores industry in the last three months (+0.6% vs. -1.5%). In fact, CVS Health's second-quarter earnings and revenues surpassed the Zacks Consensus Estimate. Revenues across all the three operating segments in the second quarter performed ahead of the company’s expectations. Increased full-year guidance is indicative of this bullish trend to continue through the rest of 2021.
The company noted that, consumer-centric digital strategy has become more relevant in the current environment as people are using technology more while staying indoors. The Zacks analyst believes that in the second quarter, the company has achieved higher levels of engagement across digital assets. However, second-quarter adjusted earnings declined year over year on escalating costs and expenses which are putting pressure on both the margins. Also, the repeal of the HIF for 2021 hampered growth.
(You can read the full research report on CVS Health here >>>)
BHP Group shares have gained +15.2% over the past year against the Zacks Mining – Miscellaneous industry’s gain of +17.1%. In fact, BHP Group’s iron ore production in fiscal 2021 rose 2% to 254 Mt (million tons) aided by record production at Western Australia Iron Ore (WAIO). In fiscal 2022, the company expects to produce between 249 Mt and 259 Mt of iron ore backed by productivity improvements at WAIO.
The Zacks analyst believes that higher input costs and the recent drop in iron ore prices due to curbs on steel production in China remains a concern. Nevertheless, BHP Group will gain on efforts to make operations more efficient through smart technology adoption across the entire value chain and focus on lowering debt.
(You can read the full research report on BHP Group here >>>)
Other noteworthy reports we are featuring today include Expeditors International of Washington, Inc. (EXPD), Autodesk, Inc. (ADSK) and DISH Network Corporation (DISH).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
DISH Network Corporation (DISH) : Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Autodesk, Inc. (ADSK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The giant mining company is making changes to its business, and it seems investors are unenthusiastic about its plans.
Miners are bringing about radical changes to mining operations with the help of technology and automation, in an effort to increase productivity and efficiency, reduce costs, and improve frontline safety. More importantly, these efforts will help the industry meet its sustainability target by cutting down on carbon emissions, which is the need of the hour considering the severity of climate change.
To this end, Brazilian miner Vale S.A VALE announced that it has started operating six autonomous haul trucks in Carajás — its largest iron ore complex in Brazil and plans to take it up to 10 vehicles by this year-end. These autonomous trucks have the capability of moving 320 metric tons at a time. These have been undergoing tests in an isolated area in Carajás since 2019. Following the final testing phase at the N4E mine last week, the plan went live on Sep 1 this year. At the Carajás Complex, Vale already has four autonomous drills in operation. The company has plans to increase it to seven drills.
This follows the success of the autonomous operation at Vale’s second largest mine, Brucutu, in Minas Gerais, Brazil, in 2016. It was the first mine in Brazil to run with 100% autonomous operations. In July this year, the 13 haul trucks in operation at the mine achieved the milestone of moving 100 million tons of material since their introduction. Impressively, no accident has been reported by the trucks over the past five years as well.
The move is not only ensuring safety in mining but also aiding the company in attaining its goal of reducing carbon emissions by 33% until 2030. Autonomous trucks offer increased machine and tire life, higher speed than traditional vehicles while consuming less fuel. This leads to lower carbon dioxide and particulate emissions. They offer higher hourly productivity and will lower maintenance costs as well.
Vale has earmarked $34 million this year for its autonomous program. By the end of the year, 23 trucks, 21 drills and four stocking yards (stackers and reclaimers) will be in operation across the company in four Brazilian states (Pará, Minas Gerais, Maranhão and Rio de Janeiro).
Mining giant, BHP Group BHP has been operating a fully-autonomous truck fleet at its Western Australian Jimblebar mine since 2017. The site is now one of the safest operations in its portfolio, with significant events involving trucks at Jimblebar having dropped by more than 90% since the introduction of autonomous haulage. Following its success, BHP is implementing the transition of an autonomous fleet of up to 86 trucks at its Goonyella Riverside coal mine in Queensland in a phased roll out over the 2021-2022 period. The company has announced that it will introduce 20 autonomous trucks at its Newman East (Eastern Ridge) mine in Western Australia.
Rio Tinto plc Plc RIO boasts of the world’s first automated heavy-haul rail network named AutoHaul, which was capable of moving about one million ton of iron ore a day in 2019. About one-third of the haul truck fleet across its Pilbara sites is autonomous as well. It continues to expand its Autonomous Drilling System (ADS), which currently has a fleet of 26 production drills across seven sites. It intends to make the Gudai-Darri iron ore mine in Western Australia’s Pilbara region one of the world’s most technologically advanced mines. Rio Tinto has joined forces with Caterpillar Inc. CAT to deploy the world’s first fully autonomous water truck at the mine. Water spraying is a vital part of mining operations, thus, this will enhance productivity by enabling digital tracking of water consumption and cutting down water wastage. Caterpillar’s three water trucks will join Gudai-Darri’s fleet of Caterpillar heavy mobile equipment including autonomous haul trucks and production drills.
Last year, Newmont Mining Corporation NEM announced investment in implementation of the Autonomous Haulage System at Boddington mine in Australia to enhance safety and productivity, while extending mine life. Once operational, Boddington will be the first open pit gold mine in the world with a fully autonomous haul truck fleet.
Given its benefits to the miners, the driverless fleet is becoming increasingly popular among miners. The number of autonomous trucks is expected to surge over the next few years, thanks to major investments by miners globally.
BHP, Vale, Rio Tinto and Newmont currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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VALE S.A. (VALE) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
Newmont Corporation (NEM) : Free Stock Analysis Report
Rio Tinto PLC (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Albertsons Companies, Inc. ACI shares rallied 9.6% in the last trading session to close at $33.08. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 32.5% gain over the past four weeks.
Shares of notable grocery chains got a boost following Costco’s COST stellar sales results for the month of August, and Albertsons Companies was no exception. With food-at-home consumption trend here to stay for a while, thanks to the remote work scenario, industry experts see major upside potential for grocery retailers owing to the demand for fresh ingredients and meals.
Well, Albertsons Companies has been focusing on enhancing in-store experience, accelerating omni-channel capabilities, driving productivity, and expanding fresh and Own Brands offerings. The company has started rolling out ready-to-eat, ready-to-heat, and ready-to-cook meals program, and expects the same to be available in approximately 500 stores by the end of fiscal 2021.
Albertsons Companies has been taking steps to make grocery shopping more convenient, and the launch of the Deals & Delivery app, "Albertsons for U" loyalty program, and FreshPass subscription service reflects the same.
This company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -30%. Revenues are expected to be $15.82 billion, up 0.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Albertsons Companies, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ACI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Albertsons Companies, Inc. (ACI) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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GCX.V | +33.33% |
| Rugby Mining Limited |
RUG.V | +33.33% |
| Casa Minerals Inc. |
CASA.V | +30.00% |
| Blue Sky Uranium Corp. |
BSK.V | +25.00% |
| Plato Gold Corp. |
PGC.V | +25.00% |
