Rate of Return – Local Collectors Post http://www.localcollectorspost.org/ Mon, 27 Sep 2021 02:45:47 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://www.localcollectorspost.org/wp-content/uploads/2021/03/locacollectorspost-icon-70x70.png Rate of Return – Local Collectors Post http://www.localcollectorspost.org/ 32 32 Could the market be wrong about Indraprastha Gas Limited (NSE: IGL) given its attractive financial outlook? https://www.localcollectorspost.org/could-the-market-be-wrong-about-indraprastha-gas-limited-nse-igl-given-its-attractive-financial-outlook/ Mon, 27 Sep 2021 00:27:34 +0000 https://www.localcollectorspost.org/could-the-market-be-wrong-about-indraprastha-gas-limited-nse-igl-given-its-attractive-financial-outlook/

Indraprastha Gas (NSE: IGL) had a tough week with its share price down 5.5%. But if you pay close attention to it, you might understand that its strong financial data could mean that the stock could potentially see its value rise in the long run, given how the markets typically reward companies with good health. financial. In this article, we have decided to focus on the ROE of Indraprastha Gas.

Return on equity or ROE is a key metric used to assess the efficiency with which the management of a business is using business capital. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the shareholders of the company.

Check out our latest review for Indraprastha Gas

How do you calculate return on equity?

The formula for ROE is:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Indraprastha Gas is:

22% = ₹ 14b ÷ ₹ 63b (Based on the last twelve months up to June 2021).

The “return” is the profit of the last twelve months. This therefore means that for every 1 of the investments of its shareholder, the company generates a profit of 0.22.

What does ROE have to do with profit growth?

So far we’ve learned that ROE is a measure of a company’s profitability. We now need to assess the profits that the business is reinvesting or “withholding” for future growth, which then gives us an idea of ​​the growth potential of the business. Assuming everything else remains the same, the higher the ROE and profit retention, the higher the growth rate of a business compared to businesses that don’t necessarily have these characteristics.

A side-by-side comparison of Indraprastha Gas profit growth and 22% ROE

At first glance, Indraprastha Gas appears to have a decent ROE. Even compared to the industry average of 27%, the company’s ROE looks pretty decent. This certainly adds context to Indraprastha Gas’ moderate 16% net profit growth seen over the past five years.

We then performed a comparison between Indraprastha Gas net income growth with industry, which found that the growth of the company is similar to the industry average growth of 19% over the same period. .

NSEI: IGL Past Profit Growth September 27, 2021

The basis for attaching value to a business is, to a large extent, related to the growth of its profits. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. In doing so, he’ll have an idea if the action is heading for clear blue waters or swampy waters ahead. Has the market taken into account IGL’s future prospects? You can find out in our latest Intrinsic Value infographic research report.

Is Indraprastha Gas Efficiently Using Its Retained Earnings?

Indraprastha Gas’ three-year median payout ratio to shareholders is 20% (implying that it keeps 80% of its revenue), which is lower, so it looks like management is heavily reinvesting profits to develop his activity.

In addition, Indraprastha Gas has paid dividends over a period of at least ten years, which means the company is very serious about sharing its profits with its shareholders. After studying the latest consensus data from analysts, we found that the company’s future payout ratio is expected to drop to 15% over the next three years. Either way, the ROE is not expected to change much for the company despite the expected lower payout ratio.

Summary

Overall, we are quite happy with the performance of Indraprastha Gas. In particular, it is great to see that the company is investing heavily in its business and with a high rate of return, which has resulted in significant growth in its profits. Looking at current analysts’ estimates, we found that analysts expect the company to continue its recent streak of growth. Are the expectations of these analysts based on general industry expectations or on company fundamentals? Click here to go to our business analyst forecasts page.

When trading Indraprastha Gas or any other investment, use the platform considered by many to be the gateway for professionals to the global market, Interactive Brokers. You get the cheapest transactions * on stocks, options, futures, forex, bonds and funds from around the world from one integrated account. Promoted

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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What data-driven football can teach us about a successful investment https://www.localcollectorspost.org/what-data-driven-football-can-teach-us-about-a-successful-investment/ Sun, 26 Sep 2021 11:00:00 +0000 https://www.localcollectorspost.org/what-data-driven-football-can-teach-us-about-a-successful-investment/

“Hell yeah! That was Lamar Jackson’s response when coach John Harbaugh asked him, “Do you want to go? In fourth in the dying seconds of their most recent clash with the Kansas City Chiefs, led by consensus best quarterback Patrick Mahomes. But despite the question, the action plan was never in doubt. The Ravens were going for fourth and one because they are one of the many teams applying a more analytical approach to the sport of football.

I know, I know … as soon as you start reading this you’re going to speculate that I’m just using this post as an excuse to extend the post-game celebration after the Ravens weathered a host of headwinds at improbably beat the anointed chiefs of Kansas City. You will think this is an opportunistic justification to boast in the underdog justification, rubbing the noses of Lamar Jackson’s enemies in a bunch of Bermuda grass at the M&T Bank stadium that LJ threw, as he realized victory with a huge fourth surge in the closing seconds of the game.

But it’s not just me, a rabid Raven fan, talking about it; and it’s not just football we’re talking about. Instead, we’re talking math and probability, and as a result, the topic is brought up in unfamiliar lanes of the Monday morning quarterback. This is the type of logic that is used to invest even more than football. So let’s take a look at the unique analysis that played such a big part in this game, and then I’ll come up with the most important analysis to tackle in pursuing a good investment.

Fourth-and-one

Conventional wisdom in the National Football League suggests that once you hit the fourth down, if you are not within shooting range you should kick the ball towards the opponent, because if you attempt it on the fourth down and if you don’t get that, it’s that much easier for the opposition to score itself.

But the Ravens are one of many teams no longer succumbing to convention or even just educated instinct. They use cold, hard probabilities to make these decisions. According to Next Generation Statistics, Ravens “had a 75% chance of converting on the 4the-and-1 accountant Lamar Jackson at QB.

If they converted, their probability of winning would be 99%. If they failed, their chances of winning dropped to 33%. But if they did a punt, return the ball to Patrick Mahomes? The odds of winning would have been only 58% (and believe me, it seemed much lower at this point in the game). Plug it all into the NGS calculator, and this is what you get for the “expected probability of winning”:

Go for it: 82.4%

Flat: 57.6%

Go ahead, they did. And win, they gloriously did.

Analytical investment

There are many analyzes we can consider regarding investing, often referred to as quantitative, premium, factor, or factor-based investing. Hordes were identified, and a much smaller number were considered persistent enough to merit our attention, such as beta, small, value, profitability, and momentum. But there is one that sits above the rest – and that is the choice to do nothing at all, to stay in the market even when times are tough, instead of trying to get in and out. exit the market at the appropriate time.

Below you’ll see a chart that shows the hypothetical growth of the market, as tracked by the S&P 500, over the past 30 years (and don’t miss the exciting warning *):

To put them in percentage terms, simply investing in the market for the past 30 years has hypothetically yielded an investor an annualized compound return of 10.23%. Not too bad. Missing the single best performing day, the yield drops to 9.84% per annum. That’s 8.60% if you missed the best five days, 6.52% if you missed the best 15 days, and your annualized rate of return drops to 4.88% if you missed (only) the 25 best trading days in the last 30 years! (One month, US Treasuries gave you 2.64%.)

What’s the lesson here? There are many ways to calibrate and improve an investment portfolio. (Here are a few.) But significant as they are, these are marginal improvements over the simple (but not easy) discipline of sticking to your strategy in tough times.

Of course, this assumes that you have an articulate and coherent strategy, and not a set of diverse and diverse investments and strategies that tend to add up over the course of a lifetime.

What’s the other lesson? Go on the fourth and one.

If you have Lamar Jackson.

And you would give it to Patrick Mahomes.

It doesn’t always work (and there’s no guarantee the market will either), but it puts the odds in your favor.

Premium:

So why did Harbaugh ask Jackson if he wanted to go, even though he knew that was the decision he and the offensive coordinator had already made, based on probability? Because, as Daniel Pink taught us in the excellent book, Drive, autonomy is a powerful motivator.

While the Ravens may rely on cold stats to make some decisions, Jackson plays with contagious glee, so by involving him in the decision he enlisted him and gave him confidence – an effervescence that Jackson then has. reach in the group and spread to 10 other players. This decision alone was to further increase the likelihood of a positive result. At the very least, it’s just fun and makes a great story.

Likewise, as financial advisers, we should never be demanding of our clients. We can educate, encourage and coach, but ultimately the decision – and ultimately the outcome – has to be theirs, as they are more likely to stick to the decisions they have made than ours.




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Parents and teachers give mixed back-to-school grades as COVID-19 rages – National https://www.localcollectorspost.org/parents-and-teachers-give-mixed-back-to-school-grades-as-covid-19-rages-national/ Sat, 25 Sep 2021 20:39:20 +0000 https://www.localcollectorspost.org/parents-and-teachers-give-mixed-back-to-school-grades-as-covid-19-rages-national/

After a year of COVID-19 epidemics that closed Canadian schools, children are back in classrooms. Or, at least, most children are. Some parents have chosen to continue learning online, creating a hybrid program for children in certain parts of the country.

Some parents are thrilled.

“They are different people,” says Naomi Braunstein, a Toronto mother, of her three children, who are in grades 5, 7 and 10. “They have missed (seeing their friends) so much that they are even ready to do the job. They are so excited to be back.

Read more:

3rd year of school changed by COVID-19 pandemic begins for some Ontario school boards

Unable to see friends, visit playgrounds, or do other typical summer activities like a camp, Braunstein says one of her sons became so depressed she had to call the hospital, while his other children got stuck in ruts at home and withdrew.

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“They were really like caged prisoners,” she said. Now Braunstein says they have routines again. They are having lunch with their friends and “are so happy to be back”.

But some teachers say the process is “overwhelming,” creating an overload of work for educators already working at an underfunded institution amid a pandemic that has left many young children socially underdeveloped and behind schedule. learning.

“Teachers face the almost impossible task of monitoring and helping students in the classroom while helping students online,” said Leslie Jones-Lissack, who teaches first grade at Silver Pines Public School in Richmond Hill. , Ontario. “It just doesn’t work. “

Read more:

‘Truly unpredictable’: Concerns mount over return to school amid 4th wave of COVID-19

Safe, but demanding

Schools reopened in many provinces in September. While many have opted for a return to in-person learning, Silver Pines has developed a hybrid back-to-school session where kids can enroll and learn at home.

Jones-Lissack teaches a “classroom” class, that is, a bit of every subject, from English to physical education. She has been teaching for 20 years, but insists this year is “definitely the most difficult year yet”.

“I wear a mask all day. I have a face shield when I need to be near my students and we are constantly disinfecting, ”she says.

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However, “there is always this low level anxiety of being in a public place with unvaccinated people.”

At Silver Pines, Jones-Lissack teaches 15 kids in person and three online. The latter, she observes from a laptop with a webcam pointed at her as she guides the class.

It sounds easier than it is, says Jones-Lissack. Children who learn online cannot participate in certain classroom activities throughout the day.


Click to play the video:







How to deal with anxiety in children returning to school


How To Deal With Anxiety In Children Returning To School – September 13, 2021

Arts and crafts days, hours that would normally be allotted to the gymnasium, recess or classes that involve field trips such as walks to the park are being replaced by interactive videos. In addition, according to Jones-Lissack, children who learn online lose “a great deal” of the social interactions necessary for their development.

“Kindergarten is meant to be play-based learning and collaborative, inquiry-based learning,” she says. “There are definitely, certainly some learning gaps.”

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Jones-Lissack said any problems she faces are magnified in classrooms where children with special needs are found.

“In these classrooms, teachers find it particularly difficult because they cannot be (in) two, three, four, five places at a time, especially if they do not have the support of the teaching aid. ‘education,’ she said.

“The educational assistants are already being pushed to extremes because we do not have enough funds to have enough in our schools for the needs that exist.

Read more:

Days after schools open, COVID-19 outbreaks force many people in Canada to close

A year of learning breaks

After more than a year of educational disruptions, Dr Claire Crooks, director of the Center for School Mental Health at Western University, said the learning gaps and mental health issues were greater than expected.

“We’ve taken kids away from these opportunities over the past 18 months to tackle these daily challenges that help them grow and thrive and test new skills and now they’re back to it, which is a big step. ,” she says.

“Some children seem to more or less pick up where they left off. For others, it will be a very big challenge.

For some children, this can take the form of anxiety or depression. Clinically, Crooks has defined anxiety as a disproportionate response to an ongoing threat.

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Crooks stressed that every child is different and that the impact of the pandemic on a child’s development could revolve around a variety of factors, including age and temperament.

Kindergarten and kindergarten children, for example, would have missed opportunities “to learn to be a friend, to share, and to give and receive,” says Crooks.

“We’re talking about these pandemic puppies that aren’t socialized well because they haven’t been around a lot of people. Well, these little ones didn’t have the same opportunities to learn to regulate themselves with the other children.

But it might be different from an eight or nine-year-old, she added, who may have easily adjusted to home life and struggles to make new friends. But children going through puberty will also have different concerns, notes Crooks.

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“In this group, depending on their stage of development, they might really feel embarrassed about body image issues if things have changed for them during the pandemic,” she says.

For parents and teachers, Crooks says the uncertainty of how or when the pandemic will end, coupled with the presence of children who are not yet eligible for vaccination or who are struggling to readjust to it. school, could also be a problem.

“I think anyone who is a parent or who works with children has concerns because we all see the impact this has been, very stressful for children and young people, and there is an increase in health issues. mental and delayed reading, ”she said.

Read more:

Our children are not doing well. Children’s advocates say children need help now

What parents can do to help children learn outside of school

According to Crooks, routine, predictability and stability can make a big difference in a child’s mental health.

She urged parents and teachers to develop routines and a “compassionate stance” for children and families who may have had very different pandemic experiences, which she said is “probably more important than getting away from it all. rush to make sure they are caught up in all of their activities and math.

The story continues under the ad

“The kids will catch up and they will develop the skills they need to develop,” she says.

Jones-Lissack says there are many simple activities parents can do to help continue their child’s development outside of the classroom.

Helping children with tasks like setting the table or sorting the recycling bin and asking them to count how many plates came out or how many pieces of plastic go in the bin are good exercises, she says.


Click to play the video:







Return of healthy routines for the start of the school year


Return of healthy routines for back to school – September 8, 2021

Reading inclusive books on other cultures, anti-bullying and anti-racism, or books that help children feel more confident in themselves and their bodies can also help alleviate any social anxieties that children may have about. the idea of ​​going back to school.

“If they don’t know how to get along with other people… then it’s a little harder for them to really focus on learning,” says Jones-Lissack.

The story continues under the ad

“Helping them come into the classroom with an open heart and mind so that they can build those kinds of relationships when they get to school – to me that’s more important than even reading and writing. “

Crooks said parents can also do breathing and self-regulation exercises with children to encourage mindfulness.

“The best part is for parents to do them with the kids and take inspiration from that and support that instead of just telling the kids what they should be doing,” she noted.

Parents can also practice teaching and modeling optimism for children, which she says has “promising impacts” on child development. Things like asking kids how they’re feeling and talking to them about topics unrelated to the pandemic could also be helpful, she says.

“Another part is just giving the kids space to be kids and being careful about how much, depending on their age and stage, of the news and bad news that we expose them to and how much. things that make them feel like they have no control over it, ”she adds.

See the link »


© 2021 Global News, a division of Corus Entertainment Inc.


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At the top of Sensex 60k, stop smoothing out, start diversifying https://www.localcollectorspost.org/at-the-top-of-sensex-60k-stop-smoothing-out-start-diversifying/ Sat, 25 Sep 2021 06:12:14 +0000 https://www.localcollectorspost.org/at-the-top-of-sensex-60k-stop-smoothing-out-start-diversifying/

Do not get attached to all the stocks that have given you a decent return, diversify according to geography and asset classes

Investors, who are taking advantage of this exhilarating push, would be well advised to diversify into fixed income securities in India and other geographies.

In a song by Rajnikant Padayappa, the hero urges you to climb to the top and, after scaling the top, climb to the sky – Freshdesk Founder and CEO Mathrubootham cited this as his inspiration, after the public issue of $ 1.03 of his business and his Nasdaq listing. This is not an option for the Sensex.

At 60,000, the Sensex represents the valuation of Indian stocks with an 80% premium over other emerging market peers. It is not sustainable, and there has to be a correction, regardless of the specific trigger. Investors, who are taking advantage of this exhilarating surge, would be well advised to diversify into fixed income securities in India and other regions.

India’s history is strong, although at the end of the current fiscal year the economy is not quite the size it was at the end of the 2019-20 fiscal year. Analysts expect profits of companies that matter to Sensex or Nifty to rise 35% in the next fiscal year.

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The pandemic is stabilizing, new infections are declining, and vaccination is progressing rapidly, although it could have prevented tens of thousands of deaths in Wave 2 if the government had ordered vaccines at least when the Serum Institute began. to invest in increased capacity to produce the AstraZeneca vaccine at the end of last year.

But the stock market has not risen only because of the strength of the Indian economy and the likely profitability of Indian companies. One of the main drivers has been liquidity, sweeping through Indian stock exchanges from where it was created through fiscal expansion and bond purchases by central banks, totaling trillions of dollars in the United States. , in Europe, Great Britain and Japan.

Read also : Sensex crosses the 60,000 mark at the opening of trade, Infosys is the best winner

Interest rates are depressed in the developed world, and vast reserves of capital are scouring the world in search of higher rates of return. In calendar year 2020, $ 14.035 billion of net portfolio investment came to India. The figure so far reaches over $ 12 billion this year. Some of these flows would reverse when extra-accommodative monetary policies in the West and Japan lose this surplus and become accommodating. And that could create a chaotic drop in stock prices in India.

The US Fed said earlier this week it could start cutting back on asset purchases – it has bought, since June 2020, $ 80 billion in Treasuries and $ 40 billion in mortgage-backed securities every month – later this year, and liquidate the asset purchases by the middle of next year. This would tighten rates, even if there is no direct action on the Fed’s key rates. The European Central Bank has already reduced its asset purchase program and the yield of some German Bunds has come out of negative territory.

As the yield on risk-free government bonds in rich countries increases, some reallocation of the portfolio occurs among global funds: to maintain the same overall rate of return, they must now be exposed to less risk in the markets. emerging, and they would make some money from risky places for the security of their own domestic markets. This would remove liquidity from emerging markets such as India and put downward pressure on stock prices.

Then there are risks such as those emerging from China’s Evergrande, a giant real estate developer that owes bondholders, creditors, sellers and home buyers $ 300 billion. Chinese authorities seek to distract people from investing in real estate, which appears to be a Chinese obsessive-compulsive disorder.

Read also : Explained: Should The Evergrande Crisis In China And India Be Worried

According to one estimate, 96% of urban households in China already own a house, and many are looking to invest in another. To destroy the idea that investing in real estate is safe and rewarding, the easiest method would be to allow another large developer to default on their home delivery and debt service obligations. However, if the scale of the default value is huge, it might cause the system to crash.

The Chinese authorities would hopefully strike a balance between systemic disruption, which would spill over into other markets, and shock therapy for compulsive real estate investing.

As of now, Evergrande has missed its coupon payment of $ 83.5 million on its dollar bonds due Thursday. However, there is a one month grace period for making the payment. Only if it turned out that the company would default at the end of the grace period, would investors abandon the dignified and frozen panic and trigger a stampede.

It’s not just foreign liquidity that is pushing markets up. Domestic liquidity creation has also been abundant.

The RBI is currently developing new reverse repo routes to absorb excess liquidity and uses dollar futures transactions, rather than outright buying the greenback which pushes the counterpart rupees into the system, to contain the rupee’s volatility triggered by excessive capital inflows. .

Low interest rates mean that bank term deposits have lost their appeal to middle-class savers, small savings plans are less liquid and have seen their yields gradually decline. So, savers turned to mutual funds and got straight into stock trading.

Read also : From Trichy to Nasdaq, the bells of success are ringing: how Freshworks scripted the story

When the markets are on a secular rise, everyone is an investment magician. Those who make money when the markets also go down are the real wizards. Separating the wheat from the straw will not leave the straw particularly wrinkled. So it is better to leave the magic to wizards and ordinary investors to diversify their investment portfolios.

A Morgan Stanley podcast, Market thoughts suggests that European stocks are relatively undervalued. Geographic diversification is an option. Diversifying into debt mutual funds or buying government bonds directly is another option. Ideally, the government should offer savers an option such as a bond that protects their principal and interests from the corrosive effects of inflation.

Remember that half-forgotten advice from the past, to run away from attachment in order to find happiness. Don’t get attached to all the stocks that have given you a decent return, diversify geographically, across different asset classes. So, book your profits, conquer the stars of Mount 60,000 from SpaceX tourists, and climb to the lowly bonds, real estate investment trusts and mutual funds that invest overseas.


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YieldBoost SHYF at 10.6% using options https://www.localcollectorspost.org/yieldboost-shyf-at-10-6-using-options/ Fri, 24 Sep 2021 15:50:56 +0000 https://www.localcollectorspost.org/yieldboost-shyf-at-10-6-using-options/

Sshareholders of Shyft Group Inc (Ticker: SHYF) looking to increase their income beyond the stock’s 0.3% annualized dividend yield may sell the March 2022 covered call at the $ 45 strike and collect the bonus based on the offer of $ 1.85, which cancels out at an additional $ 10.3. Rate of return in% of the current share price (at Stock Options Channel we call this the YieldBoost), for a total of 10.6% annualized rate in the scenario where the stock is not recalled . Any rise above $ 45 would be forfeited if the stock went up there and called, but SHYF shares would have to climb 20.1% from current levels for that to happen, which means in the scenario where the share is called, the shareholder earned a 25.1% return from that trading level, in addition to the dividends received before the share redemption.

In general, dividend amounts are not always predictable and tend to follow the ups and downs in each company’s profitability. In the case of Shyft Group Inc, examining the SHYF dividend history chart below can help determine whether the most recent dividend is likely to continue and whether it is reasonable to expect. an annualized dividend yield of 0.3%.

SHYF + Dividend + History + Graph

Below is a chart showing SHYF’s past twelve months trading history, with the strike price of $ 45 highlighted in red:

Loading + graph + - + 2021 + TickerTech.com

The chart above, and the historical volatility of the stock, can be a useful guide in combination with fundamental analysis to judge whether the sale of the March 2022 covered call option at the strike price of $ 45 offers a good reward for the risk of dropping the hike beyond $ 45. (Do most options expire worthless? This and six other common option myths debunked). We calculate the last twelve months volatility for Shyft Group Inc (taking into account the closing values ​​of the last 252 trading days as well as today’s price of $ 37.31) to be 42%. For other ideas for call option contracts with different expirations available, visit the SHYF Stock Options page of StockOptionsChannel.com.

As of mid-afternoon on Friday, the sales volume among S&P 500 components was 2.16 million contracts, with call volume of 3.63 million, for a put: call ratio of 0.59 so far for the day. Compared to the long-term median put: call ratio of 0.65, this represents a high call volume compared to puts; in other words, buyers are showing a preference for calls in options trading so far today. Find out what 15 buy and sell options traders are talking about today.

Best S&P 500 Yield Calls ”

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Is the recent stock performance of Ergomed plc (LON: ERGO) linked to its strong fundamentals? https://www.localcollectorspost.org/is-the-recent-stock-performance-of-ergomed-plc-lon-ergo-linked-to-its-strong-fundamentals/ Fri, 24 Sep 2021 05:09:32 +0000 https://www.localcollectorspost.org/is-the-recent-stock-performance-of-ergomed-plc-lon-ergo-linked-to-its-strong-fundamentals/

Most readers already know that the stock of Ergomed (LON: ERGO) has increased significantly by 20% in the last three months. Given the company’s impressive performance, we decided to take a closer look at its financial metrics, as a company’s long-term financial health usually dictates market results. Specifically, we decided to study Ergomed’s ROE in this article.

ROE or return on equity is a useful tool to assess how effectively a company can generate the returns on investment it has received from its shareholders. In other words, it reveals the company’s success in turning shareholders’ investments into profits.

See our latest review for Ergomed

How to calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Ergomed is:

18% = £ 9.7million £ 53million (based on the last twelve months to December 2020).

The “return” is the amount earned after tax over the past twelve months. Another way to think about this is that for every £ 1 worth of equity, the company was able to make £ 0.18 in profit.

Why is ROE important for profit growth?

We have already established that ROE is an effective indicator of profit generation for a company’s future profits. Based on the portion of its profits that the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Assuming everything else is equal, companies that have both a higher return on equity and higher profit retention are generally those that have a higher growth rate than companies that do not have the same characteristics.

A side-by-side comparison of Ergomed’s profit growth and 18% ROE

At first glance, Ergomed appears to have a decent ROE. Even compared to the industry average of 16%, the company’s ROE looks pretty decent. This certainly adds context to Ergomed’s exceptional net profit growth of 27% observed over the past five years. However, other drivers could also be behind this growth. For example, it is possible that the management of the company has made good strategic decisions or that the company has a low payout rate.

We then performed a comparison between Ergomed’s net income growth with industry, which found that the company’s growth is similar to the industry’s average growth of 27% over the same period.

OBJECTIVE: ERGO Growth in past profits on September 24, 2021

Profit growth is a huge factor in the valuation of stocks. What investors next need to determine is whether the expected earnings growth, or lack thereof, is already built into the share price. This then helps them determine whether the stock is set for a bright or dark future. Has the market assessed ERGO’s future prospects? You can find out in our latest Intrinsic Value infographic research report.

Does Ergomed effectively reinvest its profits?

Ergomed does not currently pay any dividends, which essentially means that it has reinvested all of its profits back into the business. This certainly contributes to the high number of profit growth we discussed above.

Summary

Overall, we are quite satisfied with Ergomed’s performance. In particular, we like the fact that the company is reinvesting heavily in its business and at a high rate of return. Unsurprisingly, this led to impressive profit growth. That said, the latest forecasts from industry analysts show that the company’s earnings growth is expected to slow. To learn more about the latest analyst forecast for the business, check out this visualization of the analyst forecast for the business.

If you decide to trade Ergomed, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account. Promoted

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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Back to school caused increase in covid-19 cases in under-vaccinated counties https://www.localcollectorspost.org/back-to-school-caused-increase-in-covid-19-cases-in-under-vaccinated-counties/ Thu, 23 Sep 2021 18:17:41 +0000 https://www.localcollectorspost.org/back-to-school-caused-increase-in-covid-19-cases-in-under-vaccinated-counties/

TIT STARTS of the school year normally brings a sense of relief to most parents. But with cases of covid-19 in America reaching levels last seen in February and the highly infectious Delta variant sweeping the country, the start of the term has been met with fear instead. While the benefits of in-person schooling are clear – children learn best at their desks, vulnerable people are less likely to be left behind, and parents are able to focus on their own work – there were concerns about mixing in playgrounds and crowded classrooms. would increase the spread of the virus.

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Across the country, back-to-school dates vary enormously. Children from some school districts in Texas returned to class in mid-July, while New York’s 1 million students only returned last week. This variation creates an opportunity to test how the start of the trimester influenced the cases of covid-19. So The Economist builds a statistical model to do just that.

First, we calculated the average case rates for each county for each week from mid-June, before school returned, until now. We compared the case rate in each county with the average within the state. This allows the model to monitor overall trends in the number of cases as well as other factors, such as mask warrants or super-spreading events, that could make the virus more or less prevalent in a state. We then looked at the effect of different return-to-school dates, to see if counties that returned earlier had higher case rates than the rest of the state.

The results are clear. In the weeks after the start of the quarter, there were more cases of covid-19 in a given county than expected. Even taking into account demographic factors such as age, race, income, education and politics, going back to school increased the case rate (see graph). On average, for each additional week in office, the increase in the number of cases was about the same as the effect of a one percentage point increase in Donald Trump’s vote share in 2020 (counties pro-Trump tend to have higher covid-19 rates).

The effect was not the same everywhere, however. According to our model, in addition to reducing the overall number of cases, the county’s vaccination rate played an important role in influencing what happened after schools returned. In counties where many people were bitten, the start of the quarter had little effect on the spread of the virus. In counties with the lowest vaccination rates, cases increased after returning from schools.

It should be noted that across America very few children have been vaccinated, so the bites themselves likely have little impact in preventing the spread in classrooms. In counties where more people are vaccinated, infections originating from inside school doors may not escape as easily into the community. In addition, schools in the most affected areas may also take more precautions. They could, for example, impose more strictly the wearing of a mask or social distancing.

States set their own rules for controlling covid-19 in schools. More than a dozen states are mandating face covering in public schools, and nine require teachers and staff to be vaccinated or undergo weekly tests, including Washington state and Oregon which have made the compulsory vaccination for teachers. On September 9, the Los Angeles School Board voted unanimously to require vaccines for students aged 12 and older. On the other end of the spectrum, several conservative states have tried to ban schools from enforcing the wearing of masks.

Our model cannot detect the effects of these state-level interventions. However, numerous other research studies conducted across Europe and America have found that wearing a mask and social distancing helps prevent the spread of covid-19 in schools. With these measures in place, schools were not the most likely sources of infections for children. And if a child caught the virus, it tended not to spread to his classmates. However, the situation looks quite different when those measures are relaxed as the virus spreads, as has been the case across much of the country.

With proper classroom precautions and high levels of community immunization, the start of the new term shouldn’t have been so scary. Our results add to the growing consensus that in-person schooling does not necessarily have to be accompanied by increasing cases of covid-19. But as some states continue to put politics ahead of public safety, it likely will.

Dig deeper

All of our pandemic and vaccine related stories can be found on our coronavirus hub. You can also find trackers showing the global vaccine rollout, excess deaths by country, and the spread of the virus across Europe.

This article appeared in the United States section of the print edition under the headline “Safety by the Numbers”


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Singapore Technologies Engineering Ltd (SGX: S63) stock posted a decent performance: does finance have a role to play? https://www.localcollectorspost.org/singapore-technologies-engineering-ltd-sgx-s63-stock-posted-a-decent-performance-does-finance-have-a-role-to-play/ Thu, 23 Sep 2021 00:44:02 +0000 https://www.localcollectorspost.org/singapore-technologies-engineering-ltd-sgx-s63-stock-posted-a-decent-performance-does-finance-have-a-role-to-play/

Shares of Singapore Technologies Engineering (SGX: S63) rose 2.7% over the past week. As most know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company’s key financial metrics today to see if they have a role to play. in the recent price movement. In this article, we have decided to focus on the ROE of Singapore Technologies Engineering.

Return on equity or ROE is a test of how effectively a company increases its value and manages investor money. Simply put, it is used to assess a company’s profitability against its equity.

Check out our latest review for Singapore Technologies Engineering

How to calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

Thus, based on the above formula, the ROE of Singapore Technologies Engineering is:

22% = S $ 564 million ÷ S $ 2.5 billion (based on the last twelve months to June 2021).

The “return” is the amount earned after tax over the past twelve months. Another way to think about this is that for every SGD 1 worth of equity, the company was able to make a profit of SGD 0.22.

What does ROE have to do with profit growth?

So far we’ve learned that ROE is a measure of a company’s profitability. Based on how much of those profits the company reinvests or “withholds” and how efficiently it does so, we are then able to assess a company’s profit growth potential. Assuming everything else remains the same, the higher the ROE and profit retention, the higher the growth rate of a business compared to businesses that don’t necessarily have these characteristics.

Singapore Technologies Engineering profit growth and 22% ROE

First of all, we love that Singapore Technologies Engineering has an impressive ROE. In addition, the company’s ROE is higher than the industry average of 8.3%, which is quite remarkable. However, for some reason the higher returns are not reflected in Singapore Technologies Engineering’s meager five-year average net profit growth of 3.5%. It’s a little unexpected from a company that has such a high rate of return. Such a scenario is likely to occur when a company pays out a large portion of its profits as dividends or is faced with competitive pressures.

Then, comparing with the growth in net income of the industry, we found that the reported growth of Singapore Technologies Engineering was lower than the industry growth by 10% during the same period, which we did not do not like to see.

SGX: S63 Past earnings growth on September 23, 2021

Profit growth is a huge factor in the valuation of stocks. It is important for an investor to know whether the market has factored in the expected growth (or decline) in company earnings. This then helps them determine whether the stock is set for a bright or dark future. Has the market taken into account the future prospects of the S63? You can find out in our latest Intrinsic Value infographic research report.

Is Singapore Technologies Engineering Efficiently Reinvesting Its Profits?

With a high three-year median payout rate of 88% (or a retention rate of 12%), most of Singapore Technologies Engineering’s profits go to shareholders. This certainly contributes to the weak profit growth observed by the company.

In addition, Singapore Technologies Engineering has paid dividends over a period of at least ten years, suggesting that sustaining dividend payments is much more important to management, even if it comes at the expense of growing the business. ‘business. Estimates from existing analysts suggest that the company’s future payout ratio is expected to drop to 65% over the next three years. Either way, the ROE is not expected to change much for the company despite the expected lower payout ratio.

Summary

Overall, we think Singapore Technologies Engineering certainly has some positive factors to consider. However, although the company has a high ROE, its earnings growth figure is quite disappointing. This can be attributed to the fact that it only reinvests a small portion of its profits and pays the rest in the form of dividends. That said, looking at current analysts’ estimates, we found that the company’s earnings are expected to accelerate. To learn more about the company’s future earnings growth forecast, take a look at this free analyst forecast report for the company to learn more.

If you are looking to trade Singapore Technologies Engineering, open an account with the cheapest * professionally approved platform, Interactive Brokers. Their clients from more than 200 countries and territories trade stocks, options, futures, currencies, bonds and funds around the world from a single integrated account. Promoted

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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Will the weakness in shares of Vista Outdoor Inc. (NYSE: VSTO) prove temporary given strong fundamentals? https://www.localcollectorspost.org/will-the-weakness-in-shares-of-vista-outdoor-inc-nyse-vsto-prove-temporary-given-strong-fundamentals/ Wed, 22 Sep 2021 12:05:11 +0000 https://www.localcollectorspost.org/will-the-weakness-in-shares-of-vista-outdoor-inc-nyse-vsto-prove-temporary-given-strong-fundamentals/

With its stock down 8.0% in the past three months, it’s easy to overlook Vista Outdoor (NYSE: VSTO). But if you pay close attention to it, you might understand that its strong financial data could mean that the stock could potentially see its value rise in the long run, given how the markets typically reward companies with good health. financial. In this article, we have decided to focus on Vista Outdoor’s ROE.

Return on equity or ROE is an important factor for a shareholder to consider because it tells them how efficiently their capital is being reinvested. In other words, it reveals the company’s success in turning shareholders’ investments into profits.

Check out our latest review for Vista Outdoor

How do you calculate return on equity?

The formula for ROE is:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Vista Outdoor is:

41% = US $ 328 million ÷ US $ 801 million (based on the last twelve months to June 2021).

The “return” is the annual profit. One way to conceptualize this is that for every $ 1 of shareholder capital it has, the company has made $ 0.41 in profit.

What does ROE have to do with profit growth?

We have already established that ROE is an effective indicator of profit generation for a company’s future profits. We now need to assess the profits that the business is reinvesting or “withholding” for future growth, which then gives us an idea of ​​the growth potential of the business. Generally speaking, all other things being equal, companies with high return on equity and high profit retention have a higher growth rate than companies that do not share these attributes.

Vista Outdoor profit growth and 41% ROE

First of all, we love that Vista Outdoor has an impressive ROE. Second, even compared to the industry average of 31%, the company’s ROE is quite impressive. This likely laid the groundwork for Vista Outdoor’s moderate 13% net income growth over the past five years.

Then, comparing with the industry net income growth, we found that Vista Outdoor’s growth is quite high compared to the industry average growth of 7.5% over the same period, this which is great to see.

NYSE: VSTO Past Profit Growth September 22, 2021

Profit growth is an important metric to consider when valuing a stock. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. This then helps him determine if the stock is set for a bright or dark future. If you’re wondering about Vista Outdoor’s valuation, check out this gauge of its price / earnings ratio, relative to its industry.

Is Vista Outdoor Efficiently Reinvesting Its Profits?

Vista Outdoor does not currently pay any dividends, which essentially means that it has reinvested all of its profits back into the business. It certainly contributes to the decent profit growth figure we discussed above.

Summary

All in all, we are quite satisfied with the performance of Vista Outdoor. Specifically, we like the fact that the company reinvests a large portion of its profits at a high rate of return. This of course allowed the company to experience substantial growth in profits. That said, looking at current analysts’ estimates, we were concerned that while the company has increased profits in the past, analysts expect its profits to decline in the future. Are the expectations of these analysts based on general industry expectations or on company fundamentals? Click here to go to our business analyst forecasts page.

If you are looking to trade Vista Outdoor, open an account with the cheapest * professional approved platform, Interactive Brokers. Their clients from more than 200 countries and territories trade stocks, options, futures, currencies, bonds and funds around the world from a single integrated account. Promoted

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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Chicago travel advisory in 48 states, 3 territories as some spots removed, others back – NBC Chicago https://www.localcollectorspost.org/chicago-travel-advisory-in-48-states-3-territories-as-some-spots-removed-others-back-nbc-chicago/ Tue, 21 Sep 2021 18:22:15 +0000 https://www.localcollectorspost.org/chicago-travel-advisory-in-48-states-3-territories-as-some-spots-removed-others-back-nbc-chicago/

Chicago’s travel advisory has been updated again, and while there are still 48 states and three territories on the city’s advisory list, the locations included have changed again.

That’s because Connecticut and the District of Columbia, which were both removed from the advisory last week, are now back in the “amber box,” which recommends unvaccinated travelers to those places test negative. for COVID-19 and quarantine.

At the same time, however, California and Puerto Rico collapsed.

States are added to the notice’s “amber list” when COVID metrics exceed the threshold of 15 cases per day per 100,000 people. Anyone below that mark is on the “yellow” list, with public health officials still warning against non-essential travel.

“Because California and Puerto Rico have kept their daily COVID case rates below 15.0 per 100,000 population for two consecutive weeks, they have been taken off the travel advisory list,” the Department of Chicago Public Health in a statement. “Daily case rates for Connecticut and DC have fallen by more than 15 per 100,000 residents over the past week, and they have reversed the travel advisory.”

Previously, the advisory was updated to include all US states and territories.

“The states on the travel advisory may change from week to week, but one thing that doesn’t change is the fact that if you want to travel freely without needing to be tested or quarantined for a week, get vaccinated, ”the CDPH said. Commissioner Dr Allison Arwady. “Being fully immunized when traveling is like having an ASD pre-check – it’s not a free pass, and you should always be careful and follow all safety guidelines to protect yourself and others. , but it certainly makes everything easier. and you will have less to worry about.

States and territories currently subject to the notice include: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, District of Columbia, Guam and the Virgin Islands.

Just before Labor Day, the city updated its guidelines on what unvaccinated travelers visiting or returning from such places should do, adding new testing and quarantine recommendations before and after travel.

Depending on the city, before traveling, unvaccinated people should:

  • Get tested 3 to 5 days before departure.

While traveling:

  • ALL individuals, regardless of immunization status, should wear a mask on planes, buses, trains, and other public transportation to, within or outside the United States and within the United States. American transportation hubs such as airports and train stations.
  • In Chicago, wear a mask in all indoor public places, regardless of immunization status.
  • Avoid crowds, try to stay at least 6 feet / 2 meters (about 2 arm’s lengths) from anyone who is not traveling with you, and wash your hands often or use hand sanitizer (with at least 60 % alcohol).

After travel, unvaccinated people should:

  • Get tested with a viral test 3-5 days after travel AND stay home and quarantine yourself for a full 7 days.
  • Even if your test is negative, stay home and quarantine yourself for 7 days.
  • If your test is positive, self-isolate to protect others from infection.
  • If you don’t get tested, stay home and quarantine yourself for 10 days after travel.
  • Avoid being around people at increased risk for serious illness for 14 days, whether or not you are tested.

The city has advised all travelers to monitor themselves for symptoms of COVID-19 and to self-isolate and get tested if they develop any after travel.

“We have seen and know that travel is a significant risk factor for acquiring COVID,” said Arwady. “If you decide not to get tested, the recommendation is actually to stay home and quarantine yourself for 10 days after travel, and you should avoid being around anyone who is at increased risk of serious consequences. COVID for 14 days after travel whether or not you are. get tested or not. Obviously, we want anyone traveling to monitor themselves for symptoms of COVID and get tested if you develop symptoms. “

This week’s travel advisory update comes at a time when the average daily number of new cases in Chicago fell to 414 per day – an 8% drop from the previous week, according to data from the city Tuesday.

That figure is still more than 12 times the low of 34 the city saw at the end of June, but remains lower than the more than 700 cases per day the city saw in the most recent increase earlier this year.

Hospitalizations in Chicago are down 50% from the previous week and deaths are down 3% from the previous week, according to city data. The test positivity rate fell to 3% this week, from 3.7% last week.

Arwady noted last month that about 99% of new COVID cases, hospitalizations and deaths are in unvaccinated people.

The travel advisory is updated every Tuesday, with any changes taking effect the following Friday.


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