19 Sep 2021

Blue-chip companies like Tesla rely on artificial intelligence

Artificial intelligence is becoming a key technological offering in the years to come

Author of the article:

StackCommerce

Release date :

Sep 19, 2021 • 5 hours ago • 2 minutes to read

Photo from Possessed Photography /Unsplash

This article was created by StackCommerce. Postmedia may earn an affiliate commission on purchases made through our links on this page.

A series of the largest and most advanced companies are banking on artificial intelligence and making it a key part of their research and development, if not the main focus of their products and services. Telsa is a prime example, where Elon Musk has made artificial intelligence a key part of the product development business.

As reported in Investor Place, “Musk and company could have a prototype AI ready by 2022… Ten years ago you could have counted the number of these advanced actions on one or two hands. Now, however, it appears that many companies of different sizes are working with this type of technology. “

And where tech companies take a concept and incorporate it into their commodity offerings, professionals working in those arenas come too, with a huge increase in the opportunities to work in these new arenas, and the potential to accelerate your business. own way. Making artificial intelligence a key part of your learning and career can boost your professional life, and you will be working on the cutting edge of technology. Obviously, independent learning to master the concepts of artificial intelligence can help you build a new career or accelerate your existing work in IT and development.


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By: Category: Blue chip

18 Sep 2021

Is Masterworks worth it? The platform allows you to buy shares of blue-chip pai

In the fall of 2018, a Banksy work, “Love is in the Bin,” sold for $ 1.4 million.

Now the original buyer has put the artwork up for sale and it is expected to make over $ 5 million which would represent a return on investment of over 250%.

What if, instead of the art market being the exclusive preserve of the rich, ordinary people could buy shares of an expensive work of art and sell the shares as they pleased?

This is exactly what a new platform, Masterworks, seeks to do.

Art investment funds have been around for over a century. Masterworks, however, has given a new twist to an old practice, in that the platform allows individuals to purchase shares of specific artwork in $ 20 increments. Investors can then sell those shares in an easy-to-use secondary market or wait for Masterworks to sell the coin and receive pro-rata proceeds.

For almost 10 years, I taught a course in economics and the arts with art historian Nancy Scott. In this course, we spend time discussing the history and profitability of investing in art, both in theory and in practice.

For those who plan to buy art purely for investment purposes, it is important to understand how art investment funds have traditionally worked and whether experts think it is. a good investment.

The French pool their resources

A first art investment fund was called La Peau de l’Ours (La Peau de l’Ours), which was based in France at the start of the 20th century.

The name comes from a French fable which contains the aphorism “never sell the skin of the bear before you have killed it” – the French equivalent of “do not count your chickens before they hatch” – and he alludes to the fact that investing in art can be a risky business.

Designed in part as a way to support emerging post-impressionist artists, such as Picasso, Matisse and Gauguin, the fund was run as a syndicate in which a small number of partners each contributed identical amounts to purchase a collection of paintings. .

Businessman, art critic and collector Andre Level managed the fund and organized the sale of the paintings. After the paintings were sold, he received 20% of the selling price of his work. The artists received 20% of the fund’s profits in addition to the money they received from the initial sale. Investors would then receive the rest in equal proportions.

This concept – returning part of the selling price to the artist – is known as the artist’s resale right. Versions of this are now the law in most parts of the Western world other than the United States.

This first art fund was a success. It created a demand for new works of art and supported innovative impressionist and modern artists, while providing significant return to its original investors.

Nonetheless, there are art funds that are still in operation, such as Anthea and The Fine Art Group, and, of course, banks and auction houses have long described investing in art as a strategy. appropriate diversification for the rich.

But what do economists say about art as an investment?

Is this really a “floating shit game”?

Economic theory suggests that by definition investing in art could offer lower returns than investing in stocks. This is because it is considered a passionate investment. Like investing in sports memorabilia, jewelry, or coins, part of the return on investment in art should be the intrinsic enjoyment of the objects themselves. The total return consists of the monetary return and the enjoyment of the property.

Since stocks do not, for most people, offer this enjoyment value, the monetary returns from investing in these financial instruments should, in theory, be greater than the monetary returns from investing in art.

But it is important to really analyze the numbers.

One of the very first papers on the monetary return on investment in art was published in 1986 and written by the late eminent economist William Baumol. The title? “Unnatural investment: or art as a floating shit game”.

Baumol estimated that the long-term inflation-adjusted returns for investing in art, over a 300-year period, were only 0.6%. Some researchers have since estimated higher yields. For example, the work of Yale finance professor Will Goetzmann and economists Jiangping Mei and Mike Moses found inflation-adjusted returns of 2% over 250 years and 4.9% over 125 years, respectively. Estimated returns vary depending on time period, sample and methodology.

In addition, these studies do not include transaction costs, which, when it comes to art, can be substantial, thanks to the large commissions collected by auction houses or private dealers to act as intermediaries. They also do not take into account the selection of samples; paintings that often fall in value cannot be auctioned.

However, both Goetzmann’s and Mei and Moses’ studies find that stock market performance does not appear to correlate with returns on investments in art. It may therefore be beneficial to invest in art as a way to diversify your portfolio.

Art for all?

Masterworks, however, is a bit different from the traditional art funds discussed above. Investors buy shares of a single work of art, rather than investing in a fund that includes multiple works. The entry price is much lower, and as long as there are willing buyers for the artwork, investors are not stuck in the fund for a period of time. Investors can earn a return simply by selling stocks that increase in value, without waiting for the artwork itself to be sold.

But like traditional art funds, investors in art stocks sold by Masterworks will earn money if the price of their artwork goes up, and lose their money if it goes down.

In the end, Masterworks seems innovative and fun. The format will likely appeal to a younger generation of investors, many of whom may have started investing small amounts through apps like Robinhood. The site is easy to navigate and could provide some enjoyment – even I have been tempted to attempt to buy stocks.

But should we hope to become rich by investing in art? Probably not.

Plus, unlike Skin of the Bear, it doesn’t necessarily benefit emerging artists. Masterworks focuses on works established with professional experience, by artists such as Banksy, Andy Warhol and Claude Monet, to name a few.

That being said, Masterworks could get a mass audience to invest in art. But, emptor caution: art is a risky investment.


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By: Category: Blue chip

17 Sep 2021

The art of investing in first-rate paintings

Catherine Graddy, Brandeis University

In the fall of 2018, a Banksy work, “Love is in the Bin,” sold for $ 1.4 million.

Now the original buyer has put the artwork up for sale and it is expected to make over $ 5 million which would represent a return on investment of over 250%.

What if, instead of the art market being the exclusive preserve of the rich, ordinary people could buy shares of an expensive work of art and sell the shares as they pleased?

This is exactly what a new platform, Masterworks, seeks to do.

Art investment funds have been around for over a century. Masterworks, however, has given a new twist to an old practice, in that the platform allows individuals to purchase shares of specific artwork in $ 20 increments. Investors can then sell those shares in an easy to use secondary market or wait for Masterworks to sell the coin and receive pro rata proceeds.

For almost 10 years, I taught economics and the arts with art historian Nancy Scott. In this course, we spend time discussing the history and profitability of investing in art, both in theory and in practice.

For those who are considering buying art purely for investment purposes, it is important to understand how art investment funds have traditionally worked and whether experts think it is. a good investment.

The French pool their resources

One of the first art investment funds was called La Peau de l’Ours (La Peau de l’Ours), which was based in France at the start of the 20th century.

The name comes from a French fable which contains the aphorism “never sell the skin of the bear before you have killed it” – the French equivalent of “do not count your chickens before they hatch” – and he alludes to the fact that investing in art can be a risky business.

Designed in part as a way to support emerging post-impressionist artists, such as Picasso, Matisse and Gauguin, the fund was run as a syndicate in which a small number of partners each contributed identical amounts to purchase a collection of paintings. .

Businessman, art critic and collector Andre Level managed the fund and organized the sale of the paintings. After the paintings were sold, he received 20% of the selling price of his work. The artists received 20% of the fund’s profits in addition to the money they received from the original sale. Investors would then receive the rest in equal proportions.

This concept – returning part of the selling price to the artist – is known as the artist’s resale right. Versions of this are now the law in most parts of the Western world other than the United States.

This first art fund was a success. It created a demand for new works of art and supported innovative impressionist and modern artists, while providing significant return to its original investors.

All funds are not created equal

Another famous investment in art has been made by the British Rail Pension Fund.

This fund was created in 1974 to manage a small part of the pensions of the company’s employees, and the objective was to buy works of art for 25 years before selling them. The fund generated 11.3% compound returns annually, but due to high inflation for most of that time, actual gains were much lower.

Other notable artistic collections ended in failure. The Banque Nationale de Paris art fund sold its investment at a loss in 1999 and a fund managed by British art dealer Taylor Jardine Ltd. did the same in 2003. The UK Department of Commerce closed the Barrington Fleming Art Fund in 2001 after determining that it was set up under fraudulent circumstances. And Fernwood Art Investments, founded by former Merrill Lynch director Bruce Taub, failed to even get started after Taub was convicted of embezzling his investors’ funds in 2006.

Nonetheless, there are art funds that are still in operation, such as Anthea and The Fine Art Group, and, of course, banks and auction houses have long described investing in art as a strategy. appropriate diversification for the rich.

But what do economists say about art as an investment?

Is this really a “floating shit game”?

Economic theory suggests that by definition investing in art could offer lower returns than investing in stocks. This is because it is considered a passionate investment. Like investing in sports memorabilia, jewelry, or coins, part of the return on investment in art should be the intrinsic enjoyment of the objects themselves. The total return consists of the monetary return and the enjoyment of the property.

Since stocks do not offer this enjoyment value for most people, the monetary returns from investing in these financial instruments should, in theory, be greater than the monetary returns from investing in art.

But it is important to really analyze the numbers.

One of the very first papers on the monetary return on investment in art was published in 1986 and written by the late eminent economist William Baumol.

The title? “Unnatural investment: or art as a floating shit game”.

Baumol estimated that the long-term inflation-adjusted returns for investing in art, over a 300-year period, were only 0.6%. Some researchers have since estimated higher yields. For example, the work of Yale finance professor Will Goetzmann and economists Jiangping Mei and Mike Moses found inflation-adjusted returns of 2% over 250 years and 4.9% over 125 years, respectively. Estimated returns vary depending on time period, sample and methodology.

In addition, these studies do not include transaction costs, which, when it comes to art, can be substantial, thanks to the large commissions collected by auction houses or private dealers to act as intermediaries. They also do not take into account the selection of samples; paintings that often fall in value cannot be auctioned.

However, both Goetzmann’s and Mei and Moses’ studies find that stock market performance does not appear to correlate with returns on investments in art. It may therefore be beneficial to invest in art as a way to diversify your portfolio.

Art for all?

Masterworks, however, is a little different from the traditional art funds discussed above. Investors buy shares of a single work of art, rather than investing in a fund that includes multiple works. The entry price is much lower, and as long as there are willing buyers for the artwork, investors are not stuck in the fund for a period of time. Investors can earn a return simply by selling stocks that increase in value, without waiting for the artwork itself to be sold.

But like traditional art funds, investors in art stocks sold by Masterworks will earn money if the price of their artwork goes up, and lose their money if it goes down.

Ultimately, Masterworks seems innovative and fun. The format will likely appeal to a younger generation of investors, many of whom may have started investing small amounts through apps like Robinhood.

The site is easy to navigate and could be fun – even I was tempted to try and buy stocks.

But should we hope to become rich by investing in art? Probably not.

Plus, unlike Skin of the Bear, it doesn’t necessarily benefit emerging artists. Masterworks focuses on works established with professional experience, by artists such as Banksy, Andy Warhol and Claude Monet, to name a few.

That being said, Masterworks could get a mass audience to invest in art. But, emptor caution: art is a risky investment.

Kathryn Graddy, Dean, Brandeis International Business School and Fred and Rita Richman Emeritus Professor of Economics, Brandeis University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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By: Category: Blue chip

17 Sep 2021

10 best blue-chip Canadian stocks to hold for the long term

Top 10 Blue-Chip Canadian Equities

Algonquin Energy and Utilities Stock – Dividend yield: 3.89%; Market Capitalization: $ 11.65 Billion: Algonquin, a 32-year-old utility distribution company, is a leader in the green energy industry. It produces, transmits and distributes water, gas and electricity to communities across the United States and owns a renewable energy business. It has a strong portfolio of wind, solar and hydroelectric assets under long-term contracts. He has been increasing his dividends for nine years. It is also one of the few companies that is well positioned for the future and a stronger push towards green energy would make it a national leader in utilities and power generation. It has a large consumer base and $ 11 billion in assets. Its strong 21% CAGR makes it one of the best blue-chip Canadian stocks for long-term investing.

BCE shares – Dividend yield: 5.98%; Market capitalization: $ 52.97 billion: This 37-year-old telecoms giant is the leader in its industry, and together with Telus and Rogers, it dominates 90% of the market. As it evolves towards 5G, it could continue to grow for decades. It has a powerful track record, many strengths and several well-known brands. It has been providing good dividends for over a decade and its current 10-year CAGR is 10.6%.

Canadian National Railways (CN) Stock – Dividend yield: 1.84%; Market Capitalization: $ 94.66 Billion: Centennial CN is a transportation and logistics giant and the largest railroad in Canada. It owns the only transcontinental railway line in North America and provides intermodal, trucking, freight forwarding, warehousing and distribution services as well as 2,000 miles of railroad, so it dominates both freight and passenger transport. It has also offered excellent dividends for 24 years. While its performance is not excellent, its potential for capital growth is. Its 10-year CAGR is 17.39%.

Constellation Software Inc. – Dividend yield: 0.271%; Market Capitalization: $ 39.56 Billion: Constellation is a diversified, Canadian-based software company that acquires a wide range of profitable assets and holds them for the long term. It is a 25-year leader in the technology industry and the second-largest software company by market capitalization. It currently has 125,000 clients in more than 100 companies. Constellation’s balance sheet is strong and its future growth looks promising, although it is generally overpriced, which is understandable given its 10-year CAGR of 44.7%.

Enbridge Inventory – Dividend yield: 6.82%; Market Capitalization: $ 86.81 Billion: This oil and gas company is the largest distributor of energy in North America. It has an extensive pipeline network in North America and the Gulf of Mexico. It is the largest distributor of natural gas in Canada, collecting, transporting, processing and storing oil and gas. It serves 3.7 million customers in Ontario, Quebec, New Brunswick and New York. Enbridge has had a very generous return, two consecutive years of dividend growth and a 10-year CAGR of 8.96%, but it also faces some uncertainty surrounding the energy sector. The company has the most extensive pipeline systems in North America, but the industry could be very different two decades from now. So this is one of the riskiest long term bets here.


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By: Category: Blue chip

16 Sep 2021

Romanian stock indices lose ground, Sphera leads blue chip declines

BUCHAREST (Romania), Sept. 16 (SeeNews) – Romanian stock indices closed lower on Thursday, as restaurateur Sphera Franchise Group [BSE:SFG] led to blue-chip declines, data from the Bucharest Stock Exchange, BVB said.

Total turnover of BVB shares was some 40.5 million lei ($ 9.6 million / € 8.2 million) on Thursday, compared with 33 million lei on Wednesday, the site said. BVB Internet.

Sphera Franchise Group, which is the manager of the KFC, Pizza Hut and Taco Bell brands in Romania, topped the blue chip winners on Wednesday as its share price fell 4.27 to 16.8 lei. The stock exchange announced that from September 16, the price correction factor FCi, T for the Sphera 2020 dividends, which will be taken into account in the calculation of the BET-TR and BET-XT-TR indices, is 1 , 054187.

The premier oil and gas group OMV Petrom [BSE:SNP] increased by 0.32% to 0.47 lei in the largest commercial turnover during the session, from 16.4 million lei.

Prime lender Banca Transilvania [BSE:TLV] lost 1.28% to 2.6950 lei in the second highest turnover of the day of 5.8 million lei.

Leading manufacturer of PVC pipes and fittings TeraPlast [BSE:TRP] fell 0.92% to 1.2920 lei in the third highest turnover of the day of 4.8 million lei.

Details follow:

BET 12,265.25 -0.19%
BET-TR 21 577.93 -0.16%
PARI-BK 2395.88 -0.04%
BETPlus 1,832.05 -0.20%
BET-FI 51,794.59 -0.01%
PARI-NG 798.42 0.44%
PARI-XT 1,084.73 -0.16%
PARI-XT-TR 1,910.43 -0.14%
ROTX 26,490.25 0.24%

BET is the first index developed by BVB and represents the benchmark index for the local capital market. The BET reflects the performance of the most traded companies on the BVB regulated market, excluding financial investment companies (SIF). It now includes 17 companies.

BET-TR is the first total return index launched by BVB. It is based on the structure of the benchmark BET market index. BET-TR tracks changes in the price of its component shares and is adjusted to also reflect dividends paid by the constituent companies.

BET Plus follows the price changes of Romanian companies listed on the BVB regulated market that meet the minimum liquidity and free float selection criteria. Financial investment companies are excluded from the index.

BET-FI is the first sector index launched by the BVB and reflects the price variations of RIS and other similar entities.

BET-BK has been designed to be used as a benchmark by asset managers and other institutional investors.

BET-NG is a sector index which reflects the evolution of all companies listed on BVB’s regulated market included in the energy and related utilities sector. The maximum index weight that a company can hold is 30%.

BET-XT tracks the price movements of the 25 most listed companies on the BVB regulated market, including RIS.

BET-XT-TR is the total return version of the BET-XT index, which includes the 25 most traded Romanian companies listed on the BVB.

ROTX is an index developed by BVB in collaboration with the Vienna Stock Exchange. It follows, in real time, the price changes of blue chip shares traded on the Bucharest Stock Exchange.

(1 euro = 4.9270 lei)


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By: Category: Blue chip

16 Sep 2021

Two Fed chairmen have sold millions of dollars in shares in blue-chip companies

Federal Reserve Chairman Jerome Powell ordered a thorough review of ethics rules governing assets and financial transactions by senior U.S. central bank officials after two presidents sold millions of call options actions last year.

Powell ordered the review late last week, the spokesperson said in an emailed statement, following recent reports that two of the 12 presidents of the regional reserve banks in the system of the Fed had been active investors in 2020, a particularly volatile year for asset prices as the country battled COVID. -19 pandemic.

Last year, Robert Kaplan, chairman of the Dallas Federal Reserve, traded millions of dollars in stocks in companies such as Apple, Amazon and Google.

Eric Rosengren, chairman of the Boston Fed, has traded stocks and real estate investment trusts, according to financial disclosure forms.

Its holdings at the end of last year were much smaller than Kaplan’s, but included shares of Chevron, Pfizer, Phillips 66 and several real estate investment trusts.

The two pledged last week to divest the holdings after they were reported by The Wall Street Journal.

Boston Fed Chairman Eric Rosengren has traded stocks and real estate investment trusts, according to financial disclosure forms

Last year, Robert Kaplan (pictured left in 2018), chairman of the Dallas Federal Reserve, traded millions of dollars in shares in companies including Apple, Amazon and Google. Eric Rosengren (seen right in 2019), chairman of the Boston Fed, has traded stocks and real estate investment trusts, according to financial disclosure forms

Federal Reserve Chairman Jerome Powell ordered a thorough review of ethics rules governing holdings and financial transactions by senior U.S. central bank officials

Federal Reserve Chairman Jerome Powell ordered a thorough review of ethics rules governing holdings and financial transactions by senior U.S. central bank officials

Comments made by regional Fed chairmen can shake up the markets and they have a role to play in the Fed’s interest rate policies.

These senior officials often have exclusive access to discussions on upcoming policy changes that could benefit or harm certain economic sectors, although they are prohibited from negotiating on this knowledge and cannot negotiate in the lead-up to meetings. from the Fed.

Kaplan and Rosengren said last week that their transactions were permitted under the ethics rules of the Fed, and there is no indication that either broke the law.

But they also said they would sell their holdings at the end of this month and put the money into index funds, which track a wide range of stocks, or cash.

Yet the transactions took place last year when the Fed took extraordinary steps to support the U.S. economy and stabilize financial markets during the pandemic.

The revelations, originally reported by The Wall Street Journal, prompted senior U.S. lawmakers – including Senator Elizabeth Warren of Massachusetts – to demand tighter restrictions on such activity.

“Because the confidence of the American people is essential for the Federal Reserve to effectively carry out our important mission, President Powell asked board staff late last week to take a fresh and comprehensive look on the rules of ethics concerning the participations and the financial activities authorized by the senior executives of the Fed. officials, ”the statement read.

“The controversy over asset trading by senior Fed staff shows why there is a need to ban the ownership and trading of individual stocks by senior officials who are supposed to serve the public interest,” the letter reads. by Warren.

Warren introduced legislation that would prohibit the holding of shares by members of Congress, Cabinet secretaries and other senior officials.

Massachusetts Senator Elizabeth Warren (seen above on Capitol Hill on Tuesday) was one of many high-ranking lawmakers who demanded tighter restrictions on public officials holding stock options.

Massachusetts Senator Elizabeth Warren (seen above on Capitol Hill on Tuesday) was one of many high-ranking lawmakers who demanded tighter restrictions on public officials holding stock options.

The central bank reduced its benchmark short-term interest rate to zero in March 2020 and has since bought trillions of dollars in treasury securities and mortgage-backed bonds to keep interest rates down long-term.

One of the effects of these policies has been to make stocks a more attractive investment compared to bonds, which offer very little return when interest rates are low.

The Fed has been criticized for worsening wealth inequality by increasing the value of equity portfolios.

The Fed’s purchase of mortgage-backed bonds, issued by mortgage buyers such as Fannie Mae and Freddie Mac, has been criticized by other regional bank presidents for contributing to the rise in mortgage prices. dwellings in the past year.

One investment Rosengren made was in Annaly Capital Management real estate investment trust, which also bought these same securities.

As part of the complex structure of the Fed, the 12 regional banks are licensed as private organizations but are overseen by the board of directors of the Federal Reserve in Washington, known as the Board of Governors.

Regional banks have their own codes of conduct, although they are largely identical to the rules that govern the Fed’s board of directors.

The Board of Governors follows the same investment and trading rules as other government agencies, but also follows additional rules “which are stricter than those which apply to Congress and other agencies,” said Thursday the Fed.

Fed officials, for example, cannot invest in banks, many of which are overseen by the Fed.

They are also prohibited from trading for a period of approximately 10 days prior to each Fed meeting and are not expected to hold a security for less than 30 days.

Kaplan worked for 23 years at Goldman Sachs before joining Harvard Business School in 2006.

He then became chairman of the Dallas Fed in September 2015.

Government disclosure forms allow officials to provide their holdings in ranges, so precise values ​​are not available.

But by the end of 2020, Kaplan owned at least $ 1 million from 24 different stocks and funds, including Apple, Chinese e-commerce company Alibaba, Boeing, Chevron, Facebook, and Johnson & Johnson.

He also owned a stake in the Kansas City Royals baseball team worth at least $ 1 million.

Rosengren began working at the Boston Fed as an economist in the research department in 1985 and has served as its chairman since 2007.


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By: Category: Blue chip

16 Sep 2021

Blue-Chip Tech stock may soon approach record levels

Salesforce.com stock has returned to a historically bullish trendline

Name of advanced technology Salesforce.com, inc. (NYSE: CRM) is up 1.1% to trade at $ 259.10 this afternoon. The title has fallen back on the charts since its August 26th. annual maximum of $ 275.22, although the $ 252 level contained negative price action. The drop also placed CRM near a trendline with historically bullish implications, giving investors plenty of reason to believe that the stock may soon be approaching all-time highs.

Specifically, equity has moved closer to one standard deviation of the 40-day moving average, after spending about a month above that trendline. According to data from Rocky White, senior quantitative analyst at Schaeffer, eight similar signals have occurred in the past three years. The Salesforce.com stock returned positive a month later in 88% of those cases, with an average gain of 5.7%. From its current location, a similar move would put CRM above the $ 272.50 mark, which is just short of the share’s all-time high.

40 day CRM

An unwinding of pessimism in the options pits could also help equities rise. This is the open interest ratio (EVEN) of the Schaeffer stock to the Salesforce.com stock of 1.08, which is above 95% of the reads in the past 12 months. This suggests that short-term options traders have rarely been more put oriented.

Now looks like a good opportunity to weigh in on the next step in CRM with options. The Schaeffer Stock Volatility Index (SVI) of 25% is in the relatively low 14th percentile of its annual range. This means options players are currently evaluating low volatility expectations for Salesforce.com stocks.


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By: Category: Blue chip

12 Sep 2021

Why Wesfarmers (ASX: WES) is a great leading share of ASX

Wesfarmers Ltd (ASX: WES) is in my opinion one of the best blue-chip ASX stocks.

It’s one of the oldest companies in ASX and I think it still has a lot of potential for long-term growth.

Here are the reasons why I really like it:

Business strength

The portfolio of companies that Wesfarmers currently owns is really good in my opinion.

When you look at Bunnings, it’s the biggest hardware chain in Australia. It makes an excellent Return on Capital (ROC) for Wesfarmers and generates the most operating profit for the company. Bunnings is also diversifying with acquisitions such as Beaumont Tiles. It is also aiming for a greater market share of professional customers.

Officeworks is the market leader for office products in Australia. He benefited from people’s need to learn from home and work from home. Technology will continue to be important to students and businesses for a long time to come.

Kmart is probably the best department store company in Australia.

Catch is a growing online retail business with a lot of potential in the years to come.

The industrial and security activities of Wesfarmers and WesCEF are also very efficient.

With respect to the return on capital for fiscal year 21, Bunnings’s ROC was 82.4%, the ROC of Kmart Group (including Target and Catch) was 52.1% and the ROC of Officeworks was by 22.3%. These are impressive numbers.

Diversification possibilities

I’m really drawn to the fact that Wesfarmers can decide to invest in any industry they want.

For example, it has invested in lithium with its involvement in the Mt Holland project. This could be a good source of income for the Wesfsrmers in the years to come. This gives it exposure to a new age industry.

The company also monitors the activity of Priceline Pharmacy Australian Pharmaceutical Industries Ltd (ASX: API).

Over time, the blue-chip ASX stock may invest and sell different companies and industries within its portfolio. This should ensure the sustainability of the business.

Commitment to shareholder returns

Wesfarmers has a healthy dividend payout ratio for shareholders. It brings in a solid income while retaining some capital for more profit. In fiscal 21, it paid a dividend of $ 1.78 per share (up 17.1%), while underlying earnings / earnings per share (EPS) was $ 2.14 .

But, due to the fact that Wesfarmers now has so much capital on its balance sheet, the board of directors also recommended a return of capital of $ 2 per share.

Capital growth and dividends are a good combination.

Final thoughts on Wesfarmers and the stock price

Wesfarmers is a big, top-notch ASX share. I would be happy to own it and keep it in my wallet. It looks better after a 14% drop from August 20, 2021.

But I still wouldn’t count it as Great value given that sales are down from the amazing FY21. CommSec sets it to 29x the estimated earnings of FY22. There may be other ASX dividend stocks that are better choices.


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By: Category: Blue chip

2 Sep 2021

Budvanska tops Montenegro’s top winners in August

PODGORICA (Montenegro), September 2 (SeeNews) – PODGORICA (Montenegro), September 2 (SeeNews) – Hotel operator Budvanska Rivijera [MNG:BUDR] dominated the blue chip winners on the Montenegrin stock exchange in August, as stock indexes ended, according to stock exchange data.

The Montenegrin Stock Exchange’s premier index, MNSE10, closed up 3.78% in August at 773.09 points.

The MONEX benchmark, which tracks the 20 most representative stocks on the Montenegro Stock Exchange, rose 1.54% in August and closed at 11,042.22 points.

A total of 537 Budvanska shares changed hands for a turnover of 2,825 euros in August. Budvanska gained 19.52% to 5.2609 euros.

Port operator Luka Bar [MNG:LUBA] punctuated the first-rate declines in August, with its share price falling 8.33% over the month to 0.3576 euros. In total, 20,274 shares of the company changed hands, generating a turnover of 7,250 euros.

Total stock market turnover fell in August to 340,541 euros ($ 402,900) from 2.347 million euros a month earlier.

A total of 92 deals were completed on the Podgorica Stock Exchange in August, up from 117 in July. Market capitalization stood at 3.20 billion euros at the end of August, against 3.169 billion euros a month earlier.

($ = 0.82248 euros)


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By: Category: Blue chip

28 Aug 2021

T. Rowe Price Exchange Traded Funds – T. Rowe Price Blue Chip Growth ETF (TCHP) gains 1.12% to close at $ 33.52 on August 27

T. Rowe Price Exchange Traded Funds Inc – The T. Rowe Price Blue Chip Growth ETF (NYSE: TCHP) gained to close at $ 33.52 on Friday after gaining $ 0.37 (1.12%) on volume 53 394 shares. The stock ranged from a high of $ 33.55 to a low of $ 33.17, while the market cap of T. Rowe Price ExchangeTraded Funds – T. Rowe Price Blue Chip Growth ETF now stands at 214,863 $ 200.

See the profile of T. Rowe Price Exchange Traded Funds Inc – T. Rowe Price Blue Chip Growth ETF for more information.

About the New York Stock Exchange

The New York Stock Exchange is the world’s largest stock exchange in terms of market value with over $ 26 trillion. It’s also the leader in initial public offerings, with $ 82 billion raised in 2020, including six of the seven biggest tech deals. 63% of PSPC proceeds in 2020 were raised on the NYSE, including the six biggest deals.

To get more information on T. Rowe Price Exchange Traded Funds Inc – T. Rowe Price Blue Chip Growth ETF and to keep up with the latest company updates, you can visit the Company Profile page here: T. Rowe Price ExchangeTraded Funds Inc – T. Rowe Price Profile of Blue Chip Growth ETF. For more information on the financial markets, be sure to visit Equities News. Also, don’t forget to sign up for the Daily Fix to get the best stories delivered to your inbox 5 days a week.

Sources: The chart is provided by TradingView on the basis of prices delayed by 15 minutes. All other data is provided by IEX Cloud as of 8:05 p.m. ET on the day of publication.

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