These 4 REITs May Be At Risk Of A Dividend Cut

guardianpub on December 30, 2022

Though the majority of publicly-traded real estate investment trusts (REITs) have been recovering over the past two months, the Federal Reserve’s hawkish stance combined with the macroeconomic uncertainties raise questions regarding their latest upswing.

Following the slightly hotter-than-expected inflation data released earlier this month, the Federal Reserve will likely keep up its aggressive rate hikes in 2023, which might wipe out recent gains. This comes as Fed Chair Jerome Powell stated in the last Federal Open Market Committee meeting, “It will take substantially more evidence to have confidence that inflation is on a sustained downward path.”

Given the increasing borrowing costs, the profit margins of many REITs are expected to shrink further, resulting in potential dividend cuts.

SL Green Realty

SL Green Realty Corp. (NYSE: SLG) is New York City’s largest office landlord, owning and operating 33.6 million square feet across 62 commercial buildings. The office REIT currently pays $3.25 in dividends annually — divided into equal monthly installments — yielding 9.6% on the current price.

But don’t be tempted by the impressive dividend yield. SL Green Realty has been pummeled by the declining demand and occupancy of office properties amid the rising popularity of remote work culture. The REIT reduced its dividend per share by 12.9% to $0.3108 for December, as it expects its operating cash flows and funds available for distribution to decline next year.

SL Green Realty stock was also recently downgraded by BMO Capital Markets analyst John Kim as well as Scotiabank analyst Nicholas Yulico. After the office REIT slashed its monthly dividend on Dec. 5, Kim downgraded the stock to Market Perform from Outperform, while Yulico downgraded it to Sector Underperform.

Many analysts expect the company’s loss margins to widen next year as the rising interest rates tighten spreads. SL Green Realty might incorporate further dividend cuts next year.

Douglas Emmett

Douglas Emmett Inc. (NYSE: DEI) is a residential REIT that owns and operates more than 4,600 apartment units in Los Angeles and Honolulu. It also has ownership interests in office spaces in the submarket regions of the two cities.

The REIT pays $0.76 in dividends annually, translating to a 4.75% yield. It slashed its dividend payouts by over 32% quarter over quarter from $0.28 to $0.19 per share for the fiscal fourth quarter.

With Douglas Emmett’s growth prospects over the next year being bleak at best as the Fed maintains its hawkish stance, several dividend cuts could be on the horizon. Shares of Douglas Emmett hit 52-week lows on Dec. 7.

AGNC Investment

AGNC Investment Corp. (NASDAQ: AGNC) is one of the most prominent agency-backed mortgage REITs (mREITs) in the U.S. Unsurprisingly, the REIT has been hard hit by the rate hikes, as its shares fell by nearly 30% year to date.

AGNC Investment’s latest financials reflect a substantial downturn, as the market headwinds linger.

“Broad-based weakness in the financial markets, and fixed income markets in particular, continued in the third quarter of 2022 as global macroeconomic and monetary policy uncertainty intensified,” AGNC Investment President and CEO Peter Federico said. “This dynamic contributed to the underperformance of agency MBS [mortgage-backed securities] in the third quarter.”

In the fiscal third quarter that ended Sept. 30, the REIT’s tangible book value per share stood at $9.08, a 20.6% decline from the prior quarter. Its comprehensive net loss amounted to $2.01 per share, while economic return came in at negative 17.4%.

Though AGNC’s bottom line is expected to improve in this quarter, the number is expected to be significantly lower compared to the fiscal fourth quarter of 2021. The REIT might slash its dividend payouts in the upcoming months as its profit margins dwindle. It currently pays $1.44 in dividends annually, yielding 13.47%. AGNC Investment has a poor payout history, as its dividend payouts have declined at a 10.7% compound annual growth rate (CAGR) over the past three years.

Office Income Properties

Office Properties Income Trust (NASDAQ: OPI) owns and leases commercial office properties primarily to investment-grade rated single tenants. The commercial REIT pays $2.20 in dividends annually, yielding an impressive 15.9% on the current stock price.

But the high dividend yield percentage might be a yield trap, given its unfavorable financials. Over the past five years, the REIT’s dividend payouts have declined at a 20.4% CAGR. Shares of Office Income Properties have plunged by over 44% over the past year. Office Income Properties Trust’s total shareholder returns over the past five years stood at negative 69%.

The consensus revenue estimate of $139.17 million for the fiscal fourth quarter ending Dec.

31 indicates a 5.5% year-over-year decline. Analysts expect the REIT’s adjusted funds from operations to be negative, which might result in dividend cuts down the line.

Source: finance.yahoo.com

Amazon stock ‘at a good price point’ if investors can wait out rocky 2023

guardianpub on December 30, 2022

If can you look past what is likely to be a challenging start to 2023 for Amazon (AMZN), the bruised stock is a buy, says EvercoreISI’s Mark Mahaney.

“I think the core thesis on Amazon is well intact,” Mahaney said. “It’s just that it’s fully exposed to all the consumer softening trends, especially in discretionary items, and inflationary pressure. It’s going to take time for the Amazon ship to right itself, but it will right itself. I think depending on how long-term your horizon is, if you are willing to look out more than a year, I think Amazon’s at a good price point here.”

Right now, that is a tall order to ask most investors given how tough Amazon’s year has been financially and from a stock price perspective.

Shares of the tech giant are now hovering at a fresh 52-week low and are down about 50% year to date. The stock is off by 13% in December alone.

That performance rivals the dreadful performances from Amazon’s counterparts in the closely followed FAANG (Facebook/Meta, Apple, Amazon, Netflix, Google) complex, with Meta enduring a 64% drop and Netflix plunging 51% year to date.

As for its fundamentals, Amazon announced on Oct. 27 it missed third-quarter analyst estimates as top-line growth continued to cool and costs remained elevated. For the fourth quarter, Amazon guided that revenue would come in between $140 billion and $144 billion instead of the $155 billion then projected by analysts.

Amazon shares were hammered by nearly 10% the following day.

A few weeks after the lackluster quarter and outlook, Amazon reportedly began laying off around 10,000 workers in an effort to get its cost structure under control.

EvercoreISI’s Mahaney conceded that Amazon must go further on cost cuts if the stock is to work higher in 2023.

“Amazon is going to have some issues,” he said. “They need to get a little bit more aggressive on costs.”

Source: finance.yahoo.com

Apple Stock at 52-Week Lows: Here’s the Trade

guardianpub on December 29, 2022

Apple stock is making 52-week lows for a second session. Here are the levels to know right now.

This is not too surprising, as the tech giant broke below a key support level earlier this month. And on Wednesday Apple shares fell 2.6%, touching 52-week lows for a second session.

If the stock closes lower today, it will mark Apple’s ninth decline in the past 10 sessions.

Despite its robust financials, investors earlier this month may have had a problem paying roughly 25 times earnings for flat earnings and revenue growth this year.

IPhone reports also raise a bit of concern amid Apple’s busiest quarter, while unrelenting selling pressure in tech is bound to weigh on the largest company in the U.S.

While Apple has held up the best among FAANG stocks when measured from the one-year highs, Apple stock has performed the worst in the group over the past month, down over 14%.

Trading Apple Stock

Over the past 12 years, Apple stock has suffered several notable corrections. From peak to trough, the losses have weighed in at 35%, 39%, 33.5% and 45.4%.

Just going by the figures above, we could say a 35% to 40% correction is not unheard of for Apple. Its current peak-to-trough decline in this rout is 30.9%.

While Apple could bottom today and rally throughout 2023, history says that it wouldn’t be unusual to see a further decline. When we pair it with the charts, a few levels jump out.

First, the $118 to $120 zone stands out, with the latter being a key pivot in 2020 and in early 2021. With the 50% retracement from the all-time high down to the covid low coming into play at $118, this would be a logical area for some long-term investors to consider adding some exposure.

In that range, the shares would be down 35% from the high.

Other investors may consider waiting for a test of the 200-week moving average, which is currently rising, but near $114.

Now, this measure is notable since it’s been major support in every one of the corrections listed above, except for the covid correction (as Apple stock did not dip far enough to test this measure).

If Apple tests this level, long-term investors may truly want to consider adding some exposure, given the dependability of this moving average.

Keep in mind that Apple stock may truly not fall this far — and that’s a scenario buyers must watch out for. They also must be prepared for the possibility that the $114 to $120 area doesn’t act as support, either.

If the selling becomes an avalanche, the 61.8% retracement and $100 to $105 area is a possibility. For what it’s worth, Apple would be down about 44% from its highs at that point.

Keep these levels in mind if you’re stalking a long position in Apple stock.

Source: finance.yahoo.com

5 Companies With Huge Free Cash Flow

guardianpub on December 29, 2022

Many investors try to identify companies that they believe will be around for the long haul before making significant investments. They hope that, if the stock of any of these companies takes a nosedive, it will only be a matter of time before it rebounds.

One way to identify a company with these characteristics is to look for companies with major free cash flow (FCF). FCF is the cash flow that is available to a company; it can be used to repay creditors or pay dividends and interest to investors. Some investors prefer to pay attention to this aspect of a company’s financials, rather than earnings or earnings per share, as a measure of its profitability.

KEY TAKEAWAYS

  • One way to identify a company that is likely to rebound in the long-run–even if its stock takes a nosedive–is to look for companies with major free cash flow (FCF).
  • Free cash flow (FCF) is the cash flow that is available to a company; free cash flow can be used to repay creditors or pay dividends and interest to investors.
  • Some investors prefer to pay attention to this aspect of a company’s financials, rather than earnings or earnings per share, as a measure of its profitability because unlike revenue or earnings, cash flow figures cannot be manipulated.

Apple (APPL), Verizon (VZ), Microsoft (MFST), Walmart (WMT), and Pfizer (PFE) are five companies that could be considered free cash flow (FCF) “monsters” as a result of their history of having a huge amount of free cash flow (FCF).

Why Is Free Cash Flow Important?

Revenue and earnings are both imperative metrics, but both can be manipulated. For example, retailers can manipulate revenue by opening more stores. Earnings numbers can be skewed by corporate buybacks, which reduces the share count and, ultimately, improves earnings per share (EPS).

Investors should never overlook the figures that indicate a company’s FCF because, unlike revenue and earnings, cash flow can never be manipulated. In addition, a company with a good amount of free cash flow may also be more likely to make dividend payments, and engage in buybacks, acquisitions for inorganic growth, and innovation for organic growth. Not to mention that free cash flow also provides opportunities for debt reduction.

The bigger the FCF figure is, the more maneuverability the corporation is going to have. This can allow for positive growth during economic booms and flexibility during an economic downturn, regardless of if those bad times are related to the broader market, the industry, or the company itself.

All five of these companies with major FCF are also household names. This factor can play a big role in a company’s staying power because of the level of consumer trust these brands have garnered.

While FCF is an important metric, it’s still only one of many metrics. It’s also important to consider if a company has been growing its top line and is consistently profitable, as well as the company’s debt-to-equity ratio, one-year stock performance, and dividend yield.

5 Companies With Major Free Cash Flow

Here are five examples of companies that have historically shown large free cash flow figures. These statistics represent data as of Dec. 27, 2022:

All five of these companies have been consistently profitable, although not all of them have delivered consistent revenue growth in the same time frame. A high debt-to-equity ratio is usually a negative sign, but when a company has a strong cash flow generation, it can minimize the debt risk.

The Bottom Line

The five free cash flow monsters above should be considered for further research, but only if you’re a long-term investor. There are many questions in markets about the global economy right now and no stock is invincible. However, if history continues to repeat itself, then the five stocks above should be safer than most.

Source: investopedia.com

Active investing poised to be on the rise in 2023

guardianpub on December 28, 2022

As 2022 nears a wrap, a trend is emerging that’s expected to gain traction next year — actively managed investment strategies — along with a custom strategy for people who like the idea of investing in a basket of companies, but want more control of what they invest in.

Assets in direct indexing are expected to climb to $825 billion by 2026, from roughly $462 billion now, according to Cerulli Associates, a global research and consulting firm, based in Boston, Mass. That tops growth forecasts for exchange-traded funds, mutual funds and separately managed accounts.

Here’s what’s behind the developing shift: Many analysts foresee loads of volatility for stocks in 2023, particularly early in the year, and an overall flat return scenario for the entire year, given the combo of still-high inflation, Fed rate hikes, and a potential recession. And some folks want more control.

“It’s part of a much broader trend towards personalized portfolios,” told Tom O’Shea, director at Cerulli.

Direct-indexing enters the mainstream

Direct indexing lets investors cherry-pick which stocks to buy in a benchmark index instead of owning a fund that tracks a specific gauge like the S&P 500.

A hands-on approach allows for you to adjust for changing market conditions in a turn-on-the-dime manner, something that is not in the cards for investors in passively managed retirement portfolios that mimic the ups and downs of whichever index is being tracked.

“Direct indexing allows investors to buy the individual stocks in an index directly as opposed to owning a predetermined selection of stocks through a fund,” told Marguerita Cheng, a Certified Financial Planner and CEO at Blue Ocean Global Wealth, in Gaithersburg, Md. “Investors can customize their holdings to align with their risk tolerance and investment preferences.”

“But there are some cons,” Cheng added. “Direct indexing, for example, can be more expensive than passive investing and may cause clients to lose focus of their long-term financial goals and encourage more frequent trading.”

Plain vanilla index funds vs DIY

Investing in Steady Eddie index funds — balanced across stocks, such as the S&P 500 index, and fixed-income bond funds put on auto-pilot for months on end — has been standard advice for many individuals, particularly those socking away retirement funds.

The overarching idea is that it’s simpler and less expensive to buy an entire index that is computer-generated than it is to try to select individual stocks to buy and sell. And, generally speaking, you have a better chance of shaking off the slumps in the stock market if you simply stay the course. Moreover, trying to find the perfect time to invest is tricky and almost always a huge mistake.

For scores of retirement savers, however, that passive strategy has been hard to stomach this year as markets have been pummelled. With inflation not yet under control and the overall stock market still teetering–the S&P 500 index has fallen around 19% so far this year, it’s hard to fight back the urge to step in and tweak your accounts, especially if you’re nearing retirement.

“Firms that cater to do-it-yourself investors like Schwab, Vanguard, and Fidelity are rolling out these personalized products and what we’re seeing is there’s a lot of investors who like to own individual securities for a variety of reasons,” O’Shea said.

“The tax benefits are one reason these have appeal,” he said. “They’re not necessarily buying into a mutual fund that has embedded capital gains, for example. They’ll be able to customize their portfolio according to their taxes. And then other characteristics that they might find important. It could be risk, maybe a low volatility portfolio. It could also be ESG, which is increasingly becoming important, particularly to young people.”

A custom solution

This year, Fidelity, for example, launched customized index funds for do-it-yourself brokerage customers. To create a custom index, you pick a group of stocks that you want to invest in based on whatever theme you choose — say, clean energy stocks — then determine the percentage weighting of each investment and invest all those stocks in a single basket.

After a free trial, the service costs $4.99 per month. The custom baskets can be used in non-retirement brokerage accounts, including Health Savings Accounts (HSAs) as well as Traditional IRAs, Roth IRAs, and rollover IRAs. You can invest in up to 50 stocks and create as many baskets as you want.

“We knew investors wanted more than just basket trading; they want a simplified way to monitor and trade their customized portfolios with just one click, and trade securities using Fidelity’s real-time fractional shares engine,” Josh Krugman, senior vice president of brokerage at Fidelity, told Yahoo Money. “This new ability to invest in and customize portfolios built from Fidelity’s thematic models puts direct indexing capabilities into the hands of DIY retail investors.”

Yet, recent Cerulli surveys show that only 14% of financial advisors are aware of, and recommend, direct indexing solutions to clients. For now, these hands-on offerings are still a small slice of the overall mutual fund sandbox.

“For tax-deferred or tax-free retirement accounts, more control over taxes may not be as compelling as rebalancing can occur without incurring tax consequences,” Cheng said. “For taxable accounts, flexibility and control with regards to taxes and security selection can be beneficial depending on the client’s personal and financial circumstances.”

The case for a blended strategy

Passive investing, however, isn’t fading away, by any measure.

In 2021, passively managed index funds for the first time accounted for a greater share of the U.S. stock market than actively managed funds’ ownership, according to the Investment Company Institute’s 2022 Factbook. Passive funds accounted for 16% of the U.S. stock market at the end of 2021, compared with 14% held by active funds. A decade ago, active funds held 20% and passive ones, 8%.

“I don’t buy this idea of the end of passive investing for a minute,” told Daniel Wiener, chairman of Adviser Investments, in Newton, Mass. “I have not heard or read of a single person of any substance saying that the end of passive investing is nigh.”

Importantly, fees are low for pre-set index baskets of stocks and bonds.

In 2021, the average expense ratio of actively managed equity mutual funds was 0.68%, compared with average index equity mutual fund expense ratio of 0.06%, according to a report by the Investment Company Institute. Active management ETFs have an average expense ratio of 0.69%.

The passive approach of set and forget makes perfect sense, particularly if you’re investing for the long haul and aren’t hardwired to be a stock jockey. The batting averages also support passive investing.

Over the past 15 years, more than 70% of actively managed funds failed to outperform their comparison index in 38 of 39 categories, according to the S&P Dow Jones Indices (SPIVA) mid-year 2022 survey on the performance of active mutual fund managers.

Moreover, the S&P 500 has increased on average by 29% in the three years following a 20% plus decline dating back to 1950, according to data analysis by Truist chief market strategist Keith Lerner.

“It doesn’t hold water – if expectations are that returns will be lower in the years ahead then both passive and active funds with low expense ratios should be the preferred investment vehicles,” Wiener said. “So, T. Rowe Price, Vanguard, and Fidelity funds with low operating expenses, as well as low expense ratio ETFs, will remain the preferred investments.”

Source: finance.yahoo.com

10 Biggest Car Companies

guardianpub on December 28, 2022

TM, VWAGY, and STLA lead the 10 biggest car companies list…

The automotive industry is a crucial part of the global economy, producing vehicles that efficiently transport people and goods within nations and across entire regions. These companies manufacture cars, trucks, vans, and sport utility vehicles (SUVs). Some even produce motorcycles, all-terrain vehicles, and commercial vehicles like transport trucks and buses.

The biggest auto manufacturers have a large global footprint, selling vehicles to consumers and businesses worldwide. These big companies are mainly headquartered in just a few countries that lead the industry; however, the list of the 10 biggest also includes car companies from other countries.

We look in detail below at the 10 biggest car companies by trailing 12 months (TTM) revenue as of December 21, 2022. Some companies outside the U.S. report profits semi-annually instead of quarterly, so the TTM data may be older than it is for companies that report quarterly. This list is limited to publicly traded companies in the U.S. or Canada, either directly or through ADRs.

Important: Some of the stocks below are only traded over-the-counter (OTC) in the U.S., not on exchanges. This may be because they are foreign companies that do not have sponsored ADRs on traditional exchanges. As a result, trading OTC stocks often carry higher trading costs than trading stocks on exchanges. Additionally these stocks may be subject to foreign exchange fluctuations. This can lower or even outweigh potential returns.

#1 Volkswagen AG (VWAGY)

  • Revenue (TTM): $284.34 billion
  • Net Income (TTM): $19.76 billion
  • Market Cap: $81.0 billion
  • 1 Year Return (TTM): -36.5%
  • Exchange: OTC

Volkswagen is a Germany-based multinational automotive manufacturing company. It develops and produces passenger cars, trucks, and light commercial vehicles such as buses. Vehicle models include the Tiguan, Golf, Jetta, Passat, and more. The company stopped making its once-popular Volkswagen Beetle compact car last year due to falling demand for smaller cars. Volkswagen’s best-known luxury brands are Porsche and Audi. The company also manufactures parts and offers customer financing and fleet management services.

#2 Toyota Motor Corp. (TM)

  • Revenue (TTM): $270.58 billion
  • Net Income (TTM): $20.39 billion
  • Market Cap: $189.4 billion
  • 1 Year Return (TTM): -21.8%
  • Exchange: New York Stock Exchange (NYSE)

Toyota is a Japan-based multinational. It was the first foreign manufacturer to build a dominant market share in the U.S. automobile market by setting the industry standard for efficiency and quality. Toyota designs and manufactures cars, trucks, minivans, and commercial vehicles. Vehicle models include the Corolla, Camry, 4Runner, Tacoma, and the Prius, the hybrid electric sedan. Lexus is the company’s luxury car division. Toyota also produces parts and accessories and provides dealers and customers with financing.

#3 Stellantis (STLA)

  • Revenue (TTM): $181.58 billion
  • Net Income (TTM): $16.97 billion
  • Market Cap: $45.2 billion
  • 1 Year Return (TTM): -15.8%
  • Exchange: NASDAQ

Stellantis is a multinational automaker that was created in 2021 through the merger of French automaker Groupe PSA and Italian-American automaker FCA (Fiat Chrysler Automobiles). The company is one of the largest automakers in the world, with a strong presence in Europe, North America, and South America. Stellantis offers a wide range of vehicles, including passenger cars, trucks, vans, and SUVs, under various brands including Peugeot, Citroën, DS, Opel, Vauxhall, Jeep, Ram, Dodge, and Chrysler. The company is headquartered in Amsterdam, Netherlands.

#4 Mercedes Benz AG (MBGYY)

  • Revenue (TTM): $156.23 billion
  • Net Income (TTM): $25.64 billion
  • Market Cap: $70.2 billion
  • 1 Year Return (TTM): -6.0%
  • Exchange: OTC

Mercedes Benz is a Germany-based multinational automobile manufacturer. The company manufactures passenger cars, vans, off-road vehicles, and commercial vehicles like transport trucks and buses. It produces vehicles under several brands, including Daimler, Mercedes-Benz, FUSO, Western Star, and more. Mercedez Benz also offers financing and leasing packages for customers and dealers.

#5 Ford Motor Co. (F)

  • Revenue (TTM): $151.74 billion
  • Net Income (TTM): $9.01 billion
  • Market Cap: $46.1 billion
  • 1 Year Return (TTM): -39.0%
  • Exchange: NYSE

Ford is a multinational automotive manufacturer based in Michigan. The company develops, manufactures, and services cars, SUVs, vans, and trucks. Vehicle models include the Fusion, Mustang, Edge, Escape, F-150, Ranger, and more. The company also provides vehicle-related financing and leasing.

#6 General Motors (GM)

  • Revenue (TTM): $147.21 billion
  • Net Income (TTM): $9.68 billion
  • Market Cap: $50.0 billion
  • 1 Year Return (TTM): -34.6%
  • Exchange: NYSE

General Motors (GM) is a multinational automobile manufacturer. The company designs and manufactures cars, trucks, and automobile parts. It has been a leader in the development of electric cars, first with the Chevy Volt and its successor, the Chevy Bolt. It operates under four major vehicle brands: GMC, Chevrolet, Cadillac, and Buick. The company also offers automotive financing.

#7 Honda Motor Co. Ltd. (HMC)

  • Revenue (TTM): $126.17 billion
  • Net Income (TTM): $5.29 billion
  • Market Cap: $39.8 billion
  • 1 Year Return (TTM): -11.1%
  • Exchange: NYSE

Honda is a Japan-based multinational automobile company. It manufactures passenger cars, trucks, vans, all-terrain vehicles, motorcycles, and related parts. Vehicle models include the Civic, Accord, Insight Hybrid, Passport, Odyssey, Fit and more. Acura is the company’s luxury car division. The company also provides financial and insurance services.

#8 Tesla Motors (TSLA)

  • Revenue (TTM): $74.86 billion
  • Net Income (TTM): $11.19 billion
  • Market Cap: $435.0 billion
  • 1 Year Return (TTM): -54.1%
  • Exchange: NASDAQ

Tesla is a manufacturer of electric vehicles and clean energy solutions. Tesla manufactures four electric models, the Model 3, Model Y, Model S, and Model X. Each model is capable of speeds of more than 135 miles per hour and can accelerate from 0-60 in less than 4.8 seconds. They all have a range of more than 320 miles and generate more than 346 horsepower. Tesla provides financing for retail customers.

#9 Nissan Motors (NSANY)

  • Revenue (TTM): $73.73 billion
  • Net Income (TTM): $0.9 billion
  • Market Cap: $12.7 billion
  • 1 Year Return (TTM): -33.4%
  • Exchange: OTC

Nissan is a Japan-based multinational automotive company. It designs and manufactures passenger vehicles, forklifts, marine equipment, and related parts. Vehicle models include the Altima, Maxima, Sentra, Versa, Pathfinder, Rogue, Titan, and its LEAF electric car. The company’s luxury division is Infiniti. The company also offers financing and leasing services.

#10 BYD Co. Ltd. (BYDDY)

  • Revenue (TTM): $51.37 billion
  • Net Income (TTM): $1.48 billion
  • Market Cap: $74.7 billion
  • 1 Year Return (TTM): -18.0%
  • Exchange: OTC

BYD Co. Ltd. is a Chinese multinational corporation that specializes in the design, development, and manufacture of a wide range of products, including electric vehicles, batteries, solar panels, and other renewable energy products. The company is headquartered in Shenzhen, China and has operations in more than 50 countries around the world. BYD is known for its leadership in the electric vehicle industry and has a strong presence in both the passenger car and commercial vehicle markets. In addition to its core businesses, BYD also has a significant presence in the renewable energy sector and is a leading supplier of solar panels and energy storage systems.

Source: investopedia.com

Exclusive-Tesla to run reduced production schedule in Shanghai in January, plan shows

guardianpub on December 27, 2022

Tesla plans to run a reduced production schedule at its Shanghai plant in January, extending the reduced output it began this month into next year, according to an internal schedule.

Tesla will run production for 17 days in January between Jan. 3 to Jan. 19 and will stop electric vehicle output from Jan. 20 to Jan. 31 for an extended break for Chinese New Year, according to the plan seen by Reuters.

Tesla did not specify a reason for the production slowdown in its output plan. It was also not clear whether work would continue outside the assembly lines for the Model 3 and Model Y at the plant during the scheduled downtime. It has not been established practice for Tesla to shut down operations for an extended period for Chinese New Year.

Tesla suspended production at its Shanghai plant on Saturday, pulling forward an established plan to pause most work at the plant in the last week of December, Reuters has reported.

Tesla’s latest production cuts at Shanghai come amid a rising wave of infections after China stepped back from its zero-COVID policy earlier this month. That move has been welcomed by businesses although it has disrupted manufacturing operations outside Tesla.

Like other automakers, Tesla has also faced a downturn in demand in China, the world’s largest auto market. Earlier this month, Tesla offered an additional incentive for buyers taking possession of vehicles in December. The company has cut prices for Model 3 and Model Y cars by up to 9% in China, in addition to a subsidy for insurance costs.

The Shanghai factory, the most important manufacturing hub for Elon Musk’s electric vehicle company, kept normal operations during the last week of December last year and took a three-day break for Chinese New Year.

The Jan. 21 to Jan. 27 period in 2023 is a public holiday in China for Chinese New Year.

Tesla’s Shanghai plant, a complex that employs some 20,000 workers. accounted for more than half of Tesla’s output in the first three quarters of 2022.

Tesla has set a target for growth of 50% in output and electric vehicle deliveries in 2022. Analysts expect output to fall short of that goal at closer to about 45%, based on forecasts for the soon-to-end fourth quarter.

Source: reuters.com

Samsung Elec to expand chip production at largest plant next year – media

guardianpub on December 26, 2022

Samsung Electronics plans to increase chip production capacity at its largest semiconductor plant next year, despite forecasts of an economic slowdown, a South Korean newspaper reported late on Sunday.

The move contrasts with the scaling back of investment by rival chipmakers amid falling demand and a glut of chips.

Analysts have said that Samsung’s persistence with investment plans will likely help it take market share in memory chips and support its share price when demand recovers.

Samsung plans to expand its P3 factory in Pyeongtaek, South Korea, by adding 12-inch wafers capacity for DRAM memory chips, the Seoul Economic Daily reported, citing unnamed industry sources.

It will also expand the plant with additional 4-nanometre chip capacity, which will be made under foundry contracts – that is, according to clients’ designs – the paper said.

P3, which started production of cutting-edge NAND flash memory chips this year, is the company’s largest chip manufacturing facility.

Samsung is planning to add at least 10 extreme ultraviolet machines next year, the newspaper said.

Samsung declined to comment on the report.

In October it said it was not considering intentionally cutting chip production, defying the broader industry’s tendency to scale back output to meet mid- to long-term demand.

“We plan to stand behind our original infrastructure investment plans,” Han Jin-man, executive vice president of memory business at Samsung, said then.

In contrast, memory chip rival Micron Technology Inc said last week it would adjust down its investments in fiscal 2023 to between $7 billion and $7.5 billion, compared with $12 billion in fiscal 2022. It would also be “significantly reducing capex” plans in fiscal 2024, it said.

Taiwanese chipmaker TSMC in October cut its 2022 annual investment budget by at least 10% and struck a more cautious note than usual on upcoming demand.

“The chip industry downturn will add to the difficulties of No. 2 and below chip companies, and have a positive impact on the market control of top companies such as Samsung,” Greg Roh, head of research at Hyundai Motor Securities, said on Monday.

Source: reuters.com

4 Stocks You Can Buy on Sale Right Now

guardianpub on December 26, 2022

Some of the biggest names in the world had a lousy year which makes them perfect additions to your portfolio.

Stock price often does not reflect the actual performance of a company. Sometimes bad companies see their share price climb for dumb reasons (like people touting the stock of social media for reasons that have nothing to do with its actual business). In other cases, share prices fall for macroeconomic or speculative reasons that also don’t actually tie to the brand’s results.

As a long-term, buy-and-hold investor (someone who intends to hold the stock at least three years, but likely longer) these market disconnects create buying opportunities. Essentially, you want to find companies that are performing well or are set up to perform well, where the share price has been lagging.

The past year created a number of incredible value purchases where good companies have seen their share price fall in 2022, but it’s hard to imagine that staying the trend over the next few years.

1. Starbucks

In tough economic times, Starbucks (SBUX) – may see some customers cut back, but others will see a fancy coffee drink as an affordable luxury. Shares in the coffee chains are trading nearly 16% down year-over-year, but that price reflects labor issues, executive turmoil, and general concern over the economy, not the demand for the chain’s products.

Starbucks leads its category and has a well-defined business model. After years spent focusing on execution, the chain has a major plan to make its process more efficient while also cutting costs, and continuing to innovate.

2. Target

Target (TGT) – shares have lost nearly 40% of their value in 2022. That drop happened because the chain saw its margins fall and got caught with excess high-priced inventory it had to sell off at a discount (something that likely gave it a stronger bond with its customers).

Yes, Target’s margins dipped but sales and foot traffic increased. There has been a battle for retail customers and “Tar-Jay,” as some of its fans jokingly refer to the chain has clearly won that battle.

3. Walt Disney

In a year when a Walt Disney (DIS) resort vacation became even more expensive (and profitable for the company) and Disney+ became the number two streaming service, the company’s stock has struggled. Disney’s share price dipped about 43% over the past year due to concerns over its movie business, questions about now-former CEO Bob Chapek, and political battles with Florida Governor Ron DeSantis.

Investors were also worried about losses in the streaming business, but those losses were in line with what the company had told investors to expect. And, yes, the movie business may never come back, but Disney has better intellectual property than any three, and maybe all of its rivals put together.

Consumers will pay for Marvel, Star Wars, Pixar, and Disney content. It may take the company a while to figure out the best platforms, but ultimately, the company with the best content will dominate and that’s Disney by a large margin.

4. Microsoft

Microsoft (MSFT) – might be the most surprising name on this list. The company does face some regulatory concerns over its acquisition of Activision Blizzard (ATVI) – but it’s not like the software/cloud giant’s fortunes rest on that. It’s also possible that broad economic concerns have weighed on the company, but businesses won’t be dropping the Office suite because of tough economic times.

The reality is that Microsoft sells/licenses products that are deeply rooted into companies’ ecosystems. Cutting back or getting rid of them is basically impossible in the short-term which makes Microsoft essentially recession proof.

Source: finance.yahoo.com

Tesla doubles rare discounts on mainstay vehicles amid demand concerns

guardianpub on December 23, 2022

Tesla Inc is offering $7,500 discounts on Model 3 and Model Y electric vehicles (EV) delivered in the United States this month, its website showed on Wednesday, amid concerns the automaker is facing softening demand as economies slow and EV tax incentives loom.

That is up from the $3,750 credit it has offered on Model 3 and Model Y vehicles delivered before the end of the year. It has also recently started offering free supercharging for 10,000 miles (16,093 kms) for the December vehicles.

The latest discount came just days after the U.S. Treasury Department delayed restrictions on EV incentives until March, meaning Teslas and other U.S-made electric vehicles are likely to qualify for the full $7,500 credits temporarily.

Customers have canceled their orders and held off their purchases until the new credits take effect in January, weighing on Tesla demand.

Analysts also worry that rising interest rates and CEO Elon Musk’s controversial Twitter management could hurt the Tesla brand and sales.

“The fact they seem to be cutting price to increase deliveries volumes doesn’t raise confidence, particularly at a time where we see increasing competition,” Craig Irwin, a senior analyst at ROTH Capital Partners, said.

The rare discounts follow a series of price hikes over the past couple of years by the automaker, which blamed supply chain disruption and inflation.

Tesla is also offering $5,000 credit in Canada on Model 3 and Model Y vehicles delivered before the end of the year. The U.S. automaker has also given a discount of 6,000 yuan ($860) on some models in China to the end of 2022.

Tesla in October said it would miss its vehicle delivery target this year, but downplayed concerns about demand after its revenue missed Wall Street estimates.

Source: finance.yahoo.com