Stock profit – Jamiron http://jamiron.net/ Fri, 13 May 2022 22:18:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://jamiron.net/wp-content/uploads/2021/10/icon-20-120x120.png Stock profit – Jamiron http://jamiron.net/ 32 32 How This Fintech Plans To Take Advantage Of Higher Interest Rates https://jamiron.net/how-this-fintech-plans-to-take-advantage-of-higher-interest-rates/ Fri, 13 May 2022 11:30:00 +0000 https://jamiron.net/how-this-fintech-plans-to-take-advantage-of-higher-interest-rates/ It’s no secret that the market is off to a slow start this year. Investors are worried as inflationary pressures persist, interest rates are rising and geopolitical uncertainty is high. As a result, the entire stock market was beaten, with the S&P500 down 17% and the Nasdaq down 27% since the start of the year. […]]]>

It’s no secret that the market is off to a slow start this year. Investors are worried as inflationary pressures persist, interest rates are rising and geopolitical uncertainty is high. As a result, the entire stock market was beaten, with the S&P500 down 17% and the Nasdaq down 27% since the start of the year.

One action taken in all these sales is loan club (CL 7.75%). The personal lender has changed its business model over the past two years and rapidly increased its revenue.

Despite raising its earnings forecast on its recent earnings call, the stock was beaten alongside the rest of the market. Since peaking in early November 2021, LendingClub stock has lost 74%. However, the company should benefit from rising interest rates and appears to be excellent value for investors.

Image source: Getty Images.

A business coming out of a screening

LendingClub is a fintech founded in 2006 and specialized in personal loans. The company first started as a peer-to-peer lending platform. However, the company came under scrutiny in 2016 for its lending practices, leading its chief executive to resign. Since then, the company has undergone a facelift.

Last year, LendingClub completed its purchase of Radius Bank, allowing the company to take deposits and issue loans without going through a partner bank. Having a banking charter also allows LendingClub to hold the loans it makes on its books, which could be an important source of recurring revenue.

Current CEO Scott Sanborn has pointed out that holding loans on the books rather than selling them would sacrifice profits today, but triple the amount of company profit in the long run. LendingClub could also benefit from rising interest rates by holding more loans. Here’s how.

A commercial shift towards recurring revenue

LendingClub completed its acquisition of Radius Bank in February 2021. Since then, the company has significantly increased the number of loans held and the net interest income earned on those loans.

A chart shows LendingClub's loans held for investments over the past five quarters.

Data source: LendingClub.

In the first quarter, the lender collected nearly $100 million in net interest income (NII), a big jump from the first quarter of last year, when it collected $18.5 million in NII and in the fourth quarter when it made $83.1 million in NII.

It also saw its net interest margin (NIM) grow over the same period. NIM is a key metric that banks use to measure profitability. It takes the interest a bank earns on loans and securities, less interest paid on deposits and debt, divided by its earning assets, primarily loans and securities.

A graph shows LendingClub's net interest income and net interest margin over the past five quarters.

Data source: LendingClub. Table by author.

The NIM of most banks has been under pressure due to low interest rates in recent years. However, the Federal Reserve wants to raise interest rates several times this year, which could bode well for banks and their NIMs. Rising interest rates could be an additional tailwind to LendingClub’s business as it has more loans on its books.

LendingClub executives expect stellar growth to continue

LendingClub expects to originate $13.5 billion in loans in 2022, up from its previous estimate of $13 billion in the prior quarter. Of these loans, LendingClub seeks to retain approximately 20% to 25% of the highest quality loans it makes. Known as preferential loans, they are given to borrowers with a FICO score of 670 or higher. LendingClub’s loan portfolio currently has an average FICO score of 727.

LendingClub’s revenue increased 10% from the fourth quarter and doubled from the first quarter of last year. The company sees continued meteoric growth, with second-quarter revenue of $295 million to $305 million, up 44% to 49% from a year ago. It also forecast net profit of $40 million to $45 million, an increase of 327% to 380% over last year.

It looks like LendingClub pivoted at the right time. By holding more loans on its books, the business can increase its interest earned, thereby increasing its long-term profits. Although there is some uncertainty about the economic outlook, rising interest rates could also benefit it in the form of higher interest-bearing loans.

The stock currently trades at a price-to-earnings (P/E) ratio of 13.1 and a forward P/E of just 8.6. Given LendingClub’s strong growth and forward-thinking business strategy, this could be great value at these prices.

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Toyota slashes current-year earnings forecast by 20%, stock slumps https://jamiron.net/toyota-slashes-current-year-earnings-forecast-by-20-stock-slumps/ Wed, 11 May 2022 14:45:33 +0000 https://jamiron.net/toyota-slashes-current-year-earnings-forecast-by-20-stock-slumps/ Toyota saw profits fall 33% for its fourth fiscal quarter The actions of Toyota Motor Corp (NYSE:TM) are down 2.8% at $161.77 this morning, following warnings from the car and truck maker that its profits for the current fiscal year could fall by more than 20%, thanks to the rise raw material costs. To cushion […]]]>

Toyota saw profits fall 33% for its fourth fiscal quarter

The actions of Toyota Motor Corp (NYSE:TM) are down 2.8% at $161.77 this morning, following warnings from the car and truck maker that its profits for the current fiscal year could fall by more than 20%, thanks to the rise raw material costs. To cushion the impact, Toyota said it would consider alternative materials and other expense-cutting tactics. Additionally, the company reported a 33% decline in earnings for its fourth fiscal quarter, which was impacted by the chip shortage and the recent Covid-19 lockdowns in China.

TM is down more than 10% year-to-date, although it still held on to a 9.3% year-over-year lead heading into today. However, it just broke a recent low at the $165 level at the open, with air pressure guiding the stock lower since mid-February.

The security’s options pits are still quiet, but volume is six times the intraday average, with 361 calls and 110 puts traded so far. By far the most popular is the June 190 call, followed by the May 135 put, where positions are sold to be opened.

This penchant for long calls is nothing new. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), TM has a 50-day call-to-sell volume ratio of 3.23, which exceeds 79 % of readings last year. . In other words, there has been a healthier than usual appetite for these bullish bets lately.

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Selling the family home to make a profit and then renting it out? better not https://jamiron.net/selling-the-family-home-to-make-a-profit-and-then-renting-it-out-better-not/ Mon, 09 May 2022 20:46:53 +0000 https://jamiron.net/selling-the-family-home-to-make-a-profit-and-then-renting-it-out-better-not/ If homes are investments, buying is only half the battle. You also need to think about selling, a topic that will spark a lot of conversation this year among baby boomers who have been accumulating equity over the past few decades and are wondering just how low house prices are. Here’s a plan for adventurous […]]]>

If homes are investments, buying is only half the battle.

You also need to think about selling, a topic that will spark a lot of conversation this year among baby boomers who have been accumulating equity over the past few decades and are wondering just how low house prices are.

Here’s a plan for adventurous boomers to think about: You sell near the top of the market, find a place to rent, and then watch the market. Later, at your leisure, you assess whether to buy back at an attractive price or to continue living the life of a tenant.

There is an obvious appeal here in the fact that selling now would result in a huge profit if you had bought decades ago. But there are also financial and lifestyle risks to consider and, at present, these outweigh the benefits of the sell-and-let strategy. Avoid it unless you have significant financial resources and are okay with uncertainty about where you live.

The math of housing makes a great argument for selling and renting. The national average resale price for homes has nearly quadrupled over the past 20 years, according to figures from the Canadian Real Estate Association. The average prices in 2001 and 2021 were $172,122 and $687,990 respectively.

Sell ​​now, deduct a real estate commission and closing costs from that 2021 national average resale price and let’s say you end up with $645,000. Invest your net proceeds in dividend-paying stocks with an average yield of 4% and you end up with $25,800, or $2,150 per month. It’s money you can use to subsidize your rent until house prices come down.

Remember the taxes, though. Even with the dividend tax credit, someone with an income of $150,000 would pay a marginal tax rate of about 20-30% on eligible or corporate dividends. In a non-registered account, you might get $20,000 in after-tax dividends, or $1,666 a month.

Rentals.ca’s April Rent Report shows an average monthly cost of $1,889 for two-bedroom rentals across the country. Vancouver and Toronto took the top two spots for cost at $3,122 and $2,776 on average, respectively.

Will an average rent be enough for the kind of person selling a home to survey the market for a possible re-entry at a lower price? Probably not. So figure out a rough average of $3,000 to $4,000+ for something decent. Subtract your after-tax dividends and you’re looking at roughly $1,300 to $2,300 in monthly rental costs.

The housing market at the beginning of May is certainly losing momentum, and prices in Toronto have slightly declined from March to April. But we won’t really know if house prices will fall significantly until the effects of rising rates begin to compound later this year.

Bidding your time if you sell your home puts the proceeds invested from the sale of your home at risk, which is likely money you would use to buy back into the market after prices drop.

If the stock market continues its recent weakness, the value of your dividend stocks could fall sharply. A loss of 20% or more could occur in a few bad weeks. Your dividends shouldn’t be affected, but you’ll temporarily lose purchasing power on a future home.

Guaranteed investment certificates offer a 4% return, with no risk of losing money if you work within deposit insurance limits. But you need to lock in for at least three years to get that rate, and your after-tax return will be lower than dividends in non-registered accounts.

The greatness of renting is that you have a fixed cost per month, without exposure to the unpredictable and unavoidable costs of maintaining a house in good working order. But tenants have their own risks.

Maybe your landlord decides to follow suit and sell to secure a profit at what could be a peak in the market. Now you are looking for a new place after getting comfortable where you are. Or maybe your landlord needs to raise the rent to cover rising mortgage costs.

Of course, there is also the risk that house prices may not fall enough to make much of a difference, or that they will eventually rise again in a few months. If it turns out renting isn’t for you, then you’re now looking for ways to buy back into the housing market without hurting your finances.

Selling the family home now, renting it out and buying it back later has the potential to make you a financial legend at your own pace if all goes well. But there are so many uncertainties to deal with while you wait. Why impose this on you?

Are you a young Canadian with money on your mind? To set you up for success and avoid costly mistakes, listen to our award-winning Stress Test podcast.

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The statutory profit does not reflect the quality of the income of Bijou Brigitte modische Accessoires (ETR: BIJ) https://jamiron.net/the-statutory-profit-does-not-reflect-the-quality-of-the-income-of-bijou-brigitte-modische-accessoires-etr-bij/ Sun, 08 May 2022 06:36:07 +0000 https://jamiron.net/the-statutory-profit-does-not-reflect-the-quality-of-the-income-of-bijou-brigitte-modische-accessoires-etr-bij/ Brigitte Modische Jewel Accessories Aktiengesellschaft’s (ETR: BIJ) The strong earnings report was rewarded with a positive share price move. We dug in and found other encouraging factors that investors will appreciate. See our latest analysis for Bijou Brigitte modische Accessories XTRA: BIJ Earnings & Earnings History May 8, 2022 Focus on Bijou Brigitte Modische Accessories’ […]]]>

Brigitte Modische Jewel Accessories Aktiengesellschaft’s (ETR: BIJ) The strong earnings report was rewarded with a positive share price move. We dug in and found other encouraging factors that investors will appreciate.

See our latest analysis for Bijou Brigitte modische Accessories

XTRA: BIJ Earnings & Earnings History May 8, 2022

Focus on Bijou Brigitte Modische Accessories’ winnings

Many investors have not heard of the cash flow equalization ratio, but it’s actually a useful measure of how well a company’s earnings are supported by free cash flow (FCF) over a given period. To get the strike ratio, we first subtract FCF from earnings for a period and then divide that number by the average operating assets for the period. The ratio shows us how much a company’s profit exceeds its FCF.

This means that a negative accrual ratio is a good thing because it shows that the company is generating more free cash flow than its earnings suggest. That’s not to say we should worry about a positive accumulation ratio, but it’s worth noting where the accumulation ratio is rather high. Notably, there is academic evidence that suggests a high exercise ratio is a bad sign for short-term profits, generally speaking.

Over the twelve months to December 2021, Bijou Brigitte modische Accessoires recorded an increase ratio of -0.70. This implies that it has very good cash conversion and that its earnings last year significantly underestimate its free cash flow. In fact, he had a free cash flow of 73 million euros last year, which was well above his statutory profit of 17.0 million euros. Bijou Brigitte modische Accessoires’ free cash flow has improved over the past year, which is generally good to see.

To note: we always recommend that investors check the strength of the balance sheet. Click here to be redirected to our analysis of the balance sheet of Bijou Brigitte modische Accessoires.

Our view on the earnings performance of Bijou Brigitte modische Accessoires

As mentioned above, Bijou Brigitte modische Accessories’ accrual rate indicates a strong conversion of earnings to free cash flow, which is positive for the business. Based on this observation, we consider it possible that the statutory profit of Bijou Brigitte modische Accessories actually underestimates its earning potential! And it’s also positive that the company has shown enough improvement to post a profit this year, after losing money last year. The aim of this article has been to assess how much we can rely on statutory income to reflect business potential, but there is much more to consider. If you want to dive deeper into Bijou Brigitte modische Accessoires, you should also look at the risks it currently faces. Every business has risks, and we’ve spotted 1 warning sign for Bijou Brigitte modische Accessoires you should know.

Today, we zoomed in on a single data point to better understand the nature of Bijou Brigitte modische Accessoires’ earnings. But there’s always more to discover if you’re able to focus on the details. Some people consider a high return on equity to be a good sign of a quality company. Although it might take a bit of research on your behalf, you might find this free collection of companies offering a high return on equity, or this list of stocks that insiders buy to be useful.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Prospa Group Limited (ASX:PGL) is about to turn from loss to profit https://jamiron.net/prospa-group-limited-asxpgl-is-about-to-turn-from-loss-to-profit/ Fri, 06 May 2022 05:26:49 +0000 https://jamiron.net/prospa-group-limited-asxpgl-is-about-to-turn-from-loss-to-profit/ Prospa Group Limited (ASX:PGL) may be approaching a major achievement in his company, so we’d like to shed some light on the company. Prospa Group Limited, a fintech company, operates as an online lender in Australia. The A$139 million market capitalization company recorded a loss of A$9.5 million in its last financial year and a […]]]>

Prospa Group Limited (ASX:PGL) may be approaching a major achievement in his company, so we’d like to shed some light on the company. Prospa Group Limited, a fintech company, operates as an online lender in Australia. The A$139 million market capitalization company recorded a loss of A$9.5 million in its last financial year and a final loss of A$856,000 in the last twelve months, narrowing the gap between the loss and the break-even point. Many investors are wondering about the rate at which Prospa Group will make a profit, with the big question being “when will the business break even?” We’ve put together a brief overview of industry analysts’ expectations for the company, its year of profitability and its implied growth rate.

Check out our latest analysis for Prospa Group

The consensus of 2 of Australia’s Consumer Finance analysts is that Prospa Group is close to breaking even. They forecast the business to incur a terminal loss in 2021, before generating positive profits of A$6.1 million in 2022. Therefore, the business is expected to break even in about a year or less! How fast will the business need to grow to achieve the consensus estimates predicting breakeven in less than 12 months? Using a line of best fit, we calculated an average annual growth rate of 66%, which is extremely dynamic. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.

earnings per share growth

The developments underlying the growth of the Prospa Group are not the focus of this general overview, however, bear in mind that in general a high rate of growth is not unusual, particularly when a company is in a period of investment.

One thing we would like to highlight with Prospa Group is its debt to equity ratio of over 2x. Generally, the rule of thumb is that debt should not exceed 40% of your equity, and the company has far exceeded that figure. Note that higher debt increases the risk of investing in the loss-making business.

Next steps:

This article is not intended to be a full analysis on Prospa Group, so if you are interested in understanding the business on a deeper level, take a look at Prospa Group’s company page on Simply Wall St. We’ve also compiled a list of factors you should consider in more detail:

  1. Historical review: How has the Prospa Group performed in the past? Go deeper into the analysis of past history and take a look at the free visual representations of our analysis for clarity.

  2. Management team: An experienced management team at the helm boosts our confidence in the business – take a look at who sits on the Prospa Group board and the CEO’s background.

  3. Other High Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Mixed profit targets for rubber companies despite price hikes https://jamiron.net/mixed-profit-targets-for-rubber-companies-despite-price-hikes/ Wed, 04 May 2022 07:53:00 +0000 https://jamiron.net/mixed-profit-targets-for-rubber-companies-despite-price-hikes/ VIETNAM, May 4 – Southern Rubber Industry Joint Stock Company (CSM) reports pre-tax profit at VND 101 billion, up 83% from 2021. — Photo courtesy of the company HÀ NỘI — Global synthetic and natural rubber prices are on an upward trend, but not all companies in the sector are confident enough to set higher […]]]>

VIETNAM, May 4 –

Southern Rubber Industry Joint Stock Company (CSM) reports pre-tax profit at VND 101 billion, up 83% from 2021. — Photo courtesy of the company

HÀ NỘI — Global synthetic and natural rubber prices are on an upward trend, but not all companies in the sector are confident enough to set higher profit targets for this year.

Compared to the beginning of April, the price of this item has increased by 9%. Trading Economics also predicts that the rise in rubber prices will not stop until the end of the first quarter of 2023 and could reach 310.84 yen per kilo.

The price of crude oil in the world market has been rising lately, driving up the price of synthetic rubber – a petroleum product.

Rubber supplies have also been affected after the Organization of the Petroleum Exporting Countries (OPEC) said the world would not be able to replace around seven million barrels of oil and other liquids lost per day in Russia.

On April 18, 2022, benchmark US crude oil for June delivery was $113.2 per barrel and New York main contract, light sweet crude oil for May delivery, was $107.93 per barrel .

The price of natural rubber is also supported by global demand in 2022, which is expected to increase by 1.2% compared to 2021, to reach 14.2 million tonnes.

According to the General Directorate of Customs, in the first three months of 2022, rubber exports reached 406,800 tons, worth $715.39 million, up 0.3% in volume and 6 .2% in value compared to the same period of 2021.

The price trend is expected to increase in the coming months due to the seasonal shortage of supply, according to forecasts from the Việt Nam Rubber Association,

In addition to favorable market factors, the natural rubber industry is also experiencing certain pressures. Shortage of containers, high transportation costs and slow customs clearance will affect the demand for rubber.

After a year of failure to complete the annual plan, the Southern Rubber Industry Joint Stock Company (CSM) has established a business plan for 2022 with strong growth. CSM expects revenue to reach VNĐ4.95 trillion, a slight increase of 2% from the same period last year, but pre-tax profit is expected to reach VNĐ101 billion, up by 83% compared to 2021.

To achieve the goal, CSM officials said the company will maintain production to meet market demand, including both domestic and export, while increasing labor productivity for existing product groups, especially investing in small equipment to complete a number of stages in the production line of motorcycle tires, motorcycle inner tubes, bias tires and auto inner tubes.

Phước Hòa Rubber Joint Stock Company (PHR) is also setting a positive growth target this year with a revenue target of over VNĐ2.25 trillion and after-tax profit of VNĐ744 billion, up 16 % and 56% respectively compared to 2021.

Meanwhile, DakLak Rubber Investment JSC (DRI) is targeting total revenue of VNĐ599.6 billion in 2022, a slight increase from 2021, but profit after tax is expected to decline by 5.7% to 79.2 billion VND.

DRI Board Chairman Nguyễn Viết Tượng said that DRI manages an area of ​​more than 8,800 hectares of rubber plantations in Laos with loans mostly in Lao kip. At the end of 2021, DRI’s total debt was over VNĐ256 billion, so the company would be at risk when it comes to exchange rates. If the kip depreciates, DRI’s revenue will also be affected. In addition, logistics costs will become high due to the sharp increase in raw material prices, which is also a disadvantage for DRI.

Đà Nẵng Rubber Joint Stock Company (DRC) also expects revenue in 2022 to decline slightly to VN4.4 trillion and profit after tax to decline by 12% to VN256 billion from a year earlier.

DRC said it still faces labor shortages at certain stages of production due to the COVID-19 pandemic; empty containers and high rental prices; and high transport costs which greatly increase the purchase price of raw materials. In particular, the conflict between Russia and Ukraine has led to higher oil prices, pushing up the prices of raw materials and goods, and the DRC’s import and export activities to these two markets have also been disrupted.

This year, DRC will focus on products that are the company’s strengths in the domestic market to improve production and business efficiency, such as off-road tires (OTR) and construction tires. The DRC’s objective is to cover all segments of the domestic market as well as to increase sales opportunities in export markets.


Positive first quarter

Many rubber companies recorded positive results in the first quarter compared to the previous year.

In the first quarter, thanks to a sharp increase in the selling price of finished products compared to 2021, DakLak Rubber Investment JSC (DRI) recorded net sales of VN 134 billion, up 8%, during of which revenue from finished rubber products reached VN 130 0.6 billion, the rest came from bananas and cashew nuts.

The company’s after-tax profit was VNĐ20.8 billion, up 27% year-on-year. Thanks to the results obtained, DRI achieved 22.3% of the revenue objective for the year and 26% of the profit objective.

Phước Hòa Rubber Joint Stock Company (PHR) said that in the first quarter of this year, the parent company recorded net sales of VNĐ302.6 billion, up 25% from the same period. in 2021, but profit after tax reached VNĐ240 billion. , 11.3 times higher than the same period last year and achieved 33% of the annual plan.

Đà Nẵng Rubber Joint Stock Company (DRC) achieved net sales of 1.28 trillion VN in the first quarter, pre-tax profit of 81.7 billion VN, up 40.6% and more by 3%, respectively. At the beginning of the second quarter, the company established a business plan similar to that of the first quarter, with net sales of 1,250 billion dollars, pre-tax profit reaching 80 billion VNĐ. —VNS

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Why the social stock exchange is bad for for-profit social enterprises https://jamiron.net/why-the-social-stock-exchange-is-bad-for-for-profit-social-enterprises/ Sat, 30 Apr 2022 16:41:56 +0000 https://jamiron.net/why-the-social-stock-exchange-is-bad-for-for-profit-social-enterprises/ In the FY 2019-20 budget, CFO Nirmala Sitharaman highlighted the need for a Social Stock Exchange (SSE) and on September 28, 2021, SEBI approved the establishment of SSE. Entities will include non-profit organizations (NPOs) and for-profit organizations (FPOs) targeting the less privileged and underserved in any of the 15 broad categories of social protection activities […]]]>

In the FY 2019-20 budget, CFO Nirmala Sitharaman highlighted the need for a Social Stock Exchange (SSE) and on September 28, 2021, SEBI approved the establishment of SSE.

Entities will include non-profit organizations (NPOs) and for-profit organizations (FPOs) targeting the less privileged and underserved in any of the 15 broad categories of social protection activities specified in the SEBI Technical Committee report .

Activities such as the eradication of poverty, inequality, malnutrition, promotion of health care, education for gender equality, nature conservation, etc. have been listed in accordance with Schedule VII of the Companies Act 2013. social welfare activities should be considered eligible activities.

NPOs and FPOs currently receive funding through crowdfunding, CSR activities, philanthropic donations, and more. development impact bonds.

Having a stock exchange like this would be useful not only for social enterprises looking for funds, but also for investors looking for companies doing business in the social sector. The SSE will help build investor confidence to invest funds in SEs, as it promotes transparency. Listed SEs will be subject to enhanced continuous disclosure encompassing financial, governance and social impact. They will also be subject to mandatory social audits.

Around the world, SSEs have been created in Brazil, Portugal, South Africa, Jamaica, Canada and Singapore. Its narratives have not expanded in developing countries due to a lack of meaningful literature and a lack of analysis on the SSE. Currently, Jamaican, Singaporean, UK and Canadian social scholarships are operating.

Social scholarship aspirants face many challenges. First, the difficulty of quantifying and standardizing social impact measures within and across sectors (such as poverty, health, education, environment). Even with the development of standardized tools such as GIIRS and IRIS, measuring and evaluating impact remains problematic.

Various jurisdictions around the world have determined that registration on SSE is limited to medium and large businesses. The growing list of social enterprises listed on the Canadian and UK SSE recorded a median turnover of $4.7 million and $8.2 million, respectively. He presented a varied scenario where only mid-sized market players get the maximum share of listing on the exchange. The scope is therefore restricted for smaller players despite the fact that India’s SSE is a government-led push.

While the idea of ​​a social exchange is noble and can help SEs raise funds and reach the general public, the question is, should both FPO and NPO be part of this exchange? Will it be beneficial for both?

SSE considered NPO and FPO as social entities; however, this will be detrimental to the growth of the FPO sector. Investors will not be able to tell the difference between FPO and NPO. NPO creates social impact and does not generate return on investment, while FPO works to create impact and generate profit. Considering them on the same platforms will cause FPO to lose potential investors who focus on social impact and ROI.

Once the SE is listed on the SSE, its valuation will depend on how the shares move on the secondary market. However, investors will not invest with the expectation of a dividend or return on investment. They will invest to support the social cause. This will affect the valuation of the SE, in particular. FPO and further impacting them in the next funding cycle.

Retail investors are not well educated financially, and dealing with FPO and NPO on the same platform will confuse them. Retail investors may prefer to invest only in an FPO because they will be able to earn a return while helping a cause. They won’t be able to tell the difference between the two, which will further disengage them from investing in SSE. This will undermine the goal of the ESS to motivate retail investors to invest in NPOs and FPOs.

Providing financial education will motivate and educate investors, such as DFIs and retailers, to invest in NPOs through SSE.

To facilitate the process, the FPO should be more aligned with the regular stock exchange and the rules of the game should be changed. Business-oriented enterprises should be compelled to adapt and evolve as commercial and social enterprises. A new index – ESG, can be created on the regular exchange to facilitate FPO and encourage companies to work for social impact. Moving FPOs and commercially oriented businesses on the same platform will benefit the country. This will add pressure on companies, and they will feel compelled to start working on environment, social and governance (ESG).

By dealing with NPO and FPO on different platforms, investors get clarity on the type of organization they are backing. They get the right to choose to invest in a business working solely for a social cause.

There is ambiguity regarding the activities covered for recruiting an SE. For example, NPOs working for the welfare of veterans, war widows and dependents of the armed forces will be able to enroll on SSE; however, there is no clarity that the FPO only hires veterans. FPO will struggle to qualify among the 15 activities listed to enroll them in the ESS, even if their business model supports the cause.

To conclude, before deploying SSE, the government must work on the clarity of the different rules and regulations, check how each social impact organization can benefit from the platform and, above all, make a clear distinction between FPO and NPO. . SSE should focus entirely on non-profit organizations. It is advisable to bring business entities and the FPO closer because nowadays business entities are also focused on creating social impact.

Although SSE is a separate segment from the existing Indian stock exchanges, their governance, design and operations should reflect the deeper purpose they serve.

(Arvind Agarwal, Co-Founder and CEO, C4D Partners)

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Posted: Saturday, April 30, 2022, 10:11 p.m. IST

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Danske Bank sticks to guidance despite shortfall and higher costs By Reuters https://jamiron.net/danske-bank-sticks-to-guidance-despite-shortfall-and-higher-costs-by-reuters/ Fri, 29 Apr 2022 09:21:00 +0000 https://jamiron.net/danske-bank-sticks-to-guidance-despite-shortfall-and-higher-costs-by-reuters/ © Reuters. FILE PHOTO: A Danske bank sign is seen at a bank’s headquarters in Copenhagen, Denmark October 22, 2019. REUTERS/Jacob Gronholt-Pedersen COPENHAGEN (Reuters) – Danske Bank reported lower-than-expected first-quarter profits, citing higher costs and turbulent financial markets, sending its shares tumbling on Friday even as it maintained its full-year profit outlook. Danske shares were […]]]>

© Reuters. FILE PHOTO: A Danske bank sign is seen at a bank’s headquarters in Copenhagen, Denmark October 22, 2019. REUTERS/Jacob Gronholt-Pedersen

COPENHAGEN (Reuters) – Danske Bank reported lower-than-expected first-quarter profits, citing higher costs and turbulent financial markets, sending its shares tumbling on Friday even as it maintained its full-year profit outlook.

Danske shares were down 3.65% at 0940 GMT after reporting net profit of 2.8 billion Danish kroner ($396.28 million) in the first quarter, below an average of 3.2 billion predicted by analysts in a survey compiled by the company.

“Our core banking revenue continues to grow and hold up in a very challenging environment, which of course also affects our other revenue lines,” chief executive Carsten Egeriis said in a statement.

Net interest income and net commission income for the first quarter were both slightly above analysts’ estimates, while trading income fell to 565 million crowns, below the 855 average expected by the analysts.

“They need to stick to costs as there is already some skepticism about their ability to meet their targets,” said Sydbank analyst Mikkel Jensen, adding that first-quarter earnings were “broadly positive” but costs underperformed.

Compliance and anti-money laundering costs are expected to peak this year and decline in 2023, Egeriis told Reuters. “But the underlying costs are going in the right direction,” he said.

“We are on track. We are seeing an increase in lending and activity () So we are maintaining our financial targets,” he added.

Denmark’s largest bank has been grappling with a money laundering scandal at its now-closed Estonian branch since 2018, which has sent compliance costs skyrocketing and confidence in the lender plummeting.

On Thursday, he said he faced a potentially “material” fine for his involvement in the Estonia case and would therefore not pay a first-quarter dividend.

Danske maintained its full-year net profit forecast of 13-15 billion crowns and costs around 25 billion, but in a poll it compiled earlier this month, analysts expected what Danske misses both goals.

The bank also said the outlook did not include any effect of a possible settlement of the Estonian case this year.

This means that it would probably have to be changed in the event of a potential fine. Analysts have estimated that fines from the authorities could amount to 20 billion crowns.

($1 = 7.0658 Danish kroner)

(The story refiles to delete the superfluous word in the 1st paragraph.)

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How Musk will profit from buying Twitter https://jamiron.net/how-musk-will-profit-from-buying-twitter/ Tue, 26 Apr 2022 01:29:41 +0000 https://jamiron.net/how-musk-will-profit-from-buying-twitter/ by Elon Musk Twitter’s impending acquisition has the potential to yield “tremendous profits”, a fund manager has claimed. This morning, Twitter confirmed that its board had unanimously accepted Mr Musk’s US$44 billion ($61 billion) bid to acquire the platform after securing funding. The deal means Twitter will become a private company, meaning investors will receive […]]]>
by Elon Musk Twitter’s impending acquisition has the potential to yield “tremendous profits”, a fund manager has claimed.

This morning, Twitter confirmed that its board had unanimously accepted Mr Musk’s US$44 billion ($61 billion) bid to acquire the platform after securing funding.

The deal means Twitter will become a private company, meaning investors will receive $54.20 ($75.60) per share they hold.

SpaceX owner and Tesla CEO Elon Musk is set to earn “billions” on Twitter, a stakeholder has claimed. (AP)

Gareth Brown is co-portfolio manager for Forage Funds’ international equity fund, which holds a stake in Twitter on behalf of Australian retail investors.

He describes Twitter as “the one that got away”, saying that despite the offer offering investors a “decent bounty”, Twitter never realized its true value as a public company.

“Musk bought Twitter as a platform that gives free speech to the world. With a little bit of us, he’s going to make huge profits too,” Brown said.

“Probably hundreds of billions of dollars. Unfortunately, our own investors will hardly see any of it.”

Mr Brown said Twitter had a “gaping chasm” between its current value and the value it could have under ideal management and execution.

“Executing Twitter’s difficult turnaround after years of lack of potential while pouring out immense undeserved wealth to staff via stock-based compensation? That’s someone else’s problem now,” Ms. Brown.

“But more strongly, I feel disappointment. I’m disappointed that over the years Twitter’s Board of Directors hasn’t been able to do more to exploit this colossal gap between what Twitter is and what Twitter is. could be.

“And now, by choosing to hand over to Musk, that same council has done little to draw the blood out of the new owner to pay the previous owners for all that unrealized potential.”

Musk breaks the ‘stratospheric’ US$300 billion barrier

Since news of the deal became public, Twitter’s stock has risen nearly 6%, closing trade at US$51.70.

Ben Laidler, global markets strategist at social investment network eToro, said the surprising speed at which Twitter’s board accepted the offer likely means many felt Twitter’s stock was on the brink. of a downward spiral.

“Such a quick capitulation by Twitter’s board of directors to an offer of $54 per share, 30% below the share’s highest price last year, likely reflects the difficult outlook for the media industry. and the only gradual turnaround effect of CEO Parag Agrawal,” says Laidler.

“A successful Twitter bid may also raise concerns for Tesla (TSLA) shareholders, as its CEO becomes involved in another time-consuming venture and could potentially sell some of his 9.1% stake, which is valued at over $90 billion.”

LogoTwitter
Elon Musk has pledged to return “free speech” to Twitter, which has come under increasing criticism for allowing hateful views. (AP)

Time-consuming ventures seem to be Mr. Musk’s forte.

Currently, the South African-born entrepreneur is a co-founder and leader of several companies, including Tesla, SpaceX, Neuralink and The Boring Company.

His personal net worth, as estimated by Bloomberg, currently stands at US$257 billion ($357.71 billion), making him the richest man in the world with a gap of over 120. billion dollars – the equivalent of the GDP of the European country, Hungary.

It’s also important to note that Mr. Musk’s net worth is not liquid – although he can buy anything to sell in the world, he does not have a single bank account with nine zeros after the figure.

His wealth is strongly tied to the stock options he holds in his own businesses.

He is famously paid a $0 salary by Tesla.

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icici bank: ICICI Bank beats estimates; Fourth quarter profit up nearly 60% https://jamiron.net/icici-bank-icici-bank-beats-estimates-fourth-quarter-profit-up-nearly-60/ Sun, 24 Apr 2022 03:14:00 +0000 https://jamiron.net/icici-bank-icici-bank-beats-estimates-fourth-quarter-profit-up-nearly-60/ Mumbai: Private sector lender ICICI Bank beat profit estimates by reporting a nearly 60% rise in March quarter net profit on the back of loan growth and lower provisions. Net profit rose to Rs 7,019 crore from Rs 4,403 crore a year ago. Analysts polled by Bloomberg had estimated a profit of Rs 6,402.5 crores. […]]]>
Mumbai: Private sector lender ICICI Bank beat profit estimates by reporting a nearly 60% rise in March quarter net profit on the back of loan growth and lower provisions. Net profit rose to Rs 7,019 crore from Rs 4,403 crore a year ago. Analysts polled by Bloomberg had estimated a profit of Rs 6,402.5 crores. “We have focused on a risk-calibrated approach,” said Sandeep Batra, chief executive of ICICI Bank. “Wherever we see risks, we exercise restraint and if we see opportunities we are happy to fund as long as they respect our safeguards. ”

Net interest income increased by 21% from last year to Rs 12,605 crore from Rs 10,431 crore. The net interest margin increased by 4%. The gross non-performing assets (NPA) ratio was 3.60%, down 136 basis points from the same period last year. The net NPA ratio fell from 1.14% to 0.76%. Additions to gross NPAs amounted to Rs 4,204 crore while recoveries, upgrades and sale of bad debts reached Rs 4,693 crore. The bank also wrote off bad debts worth Rs 2,644 crore.

Provisions decreased by 63% to Rs 1,069 crore at the end of the quarter from Rs 2,883 crore a year ago. They included a contingency reserve of Rs 1,025 crore made on a prudent basis. “There’s a bit of uncertainty right now,” Batra said. “We will do an assessment (to hold any provisions) every quarter as we move forward.”

The bank also recorded strong credit growth, with domestic advances increasing by 17% year-on-year to Rs 8.59 lakh crore. The retail loan portfolio, excluding rural loans, increased by 20% and represented 52.8% of the total loan portfolio.

The corporate banking portfolio grew by 43% and that of small and medium enterprises (SMEs), comprising borrowers with turnover of less than Rs 250 crore, grew by 34% year-on-year. ‘other. The growth of the wholesale banking portfolio in Canada was 10%. “ICICI Bank again delivered a strong performance, aided by a high-yielding portfolio and well supported by a low-cost liability franchise, resulting in healthy 21% year-over-year growth in the NII,” Binod said. Modi, Portfolio Manager, PMS, Sharekhan of BNP Paribas. .

“NIM at 4% and ROA at 2.11% were quite encouraging. Additionally, continued improvement in asset quality with sustained improvement in recoveries and upgrades bodes well for the stock.

The bank has informed the exchanges that chief executive Vishakha Mulye has resigned to pursue career opportunities outside the bank. With his departure, Chief Financial Officer Rakesh Jha has been appointed Executive Director and will handle the retail book, while Anup Bagchi will handle the wholesale business. Anindya Banerjee has been appointed Group Chief Financial Officer.

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