Have your purchase checklist prepared for ‘hideous moments’

CNBC’s Jim Cramer on Friday previewed next week’s major corporate earnings reports after Wall Street capped off a wild week filled with major intraday moves for the major US stock indexes.

“Next week is the last truly hard week of earnings season,” the “Mad Money” host said. However, he added, “I say each day will be controlled not by earnings, but by the wild action in the S&P futures … so have your buys ready for those hideous, nauseous moments because … I bet there will be more ahead.”

All earnings and revenue projections are from FactSet.

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Jim Cramer’s game plan for the trading week that begins Jan 31.

Mad Money with Jim Cramer

Monday: Otis Worldwide and NXP Semiconductors

Otis Worldwide

  • Q4 2021 earnings before the bell; conference call at 8:30 am ET Monday
  • Projected EPS: 69 cents
  • Projected revenue: $3.59 billion

Cramer said he’ll be listening to see whether the elevator company’s business in China is finally slowing down and how the US is “holding up.” He noted that Otis has a solid pulse on the state of large-scale construction globally.

NXP Semiconductors

  • Q4 2021 earnings after the close; conference call at 8 am ET Tuesday
  • Projected EPS: $3.01
  • Project revenue: $3 billion

The semiconductor firm should offer insights into the chip crunch that’s weighed on the automotive industry, Cramer said, asking rhetorically whether NXP will be able to meet demand. “I sure hope so,” he said.

Tuesday: Exxon Mobil, Alphabet, AMD, PayPal, General Motors and Starbucks

Exxon Mobile

  • Q4 2021 earnings release before the open; conference call at 9:30 am ET Tuesday
  • Projected EPS: $1.94
  • Projected revenue: $85.01 billion

Cramer said that if Exxon Mobil reports a “so-so number” that causes the shares of other oil and gas companies to decline, investors should use that weakness as an opportunity to buy chevrons.

alphabet

  • Q4 2021 earnings after the close; conference call at 5 pm ET Tuesday
  • Projected EPS: $27.80
  • Projected revenue: $72.23 billion

Cramer said the Google parent company’s earnings tend to be controversial, suggesting that even a very strong quarter may not translate to strong gains for the stock. “My suggestion? If it’s really good, put it on your shopping list [and] wait for the next market-wide swoon” to do some buying, he said.

AMD

  • Q4 2021 earnings after the bell; conference call at 5 pm ET Tuesday
  • Projected EPS: 75 cents
  • Projected revenue: $4.47 billion

Cramer said he thinks the sell-off in AMD shares so far in 2022 is considerably overdone, with the chipmaker’s stock down nearly 27% year to date. While owning AMD, as his charitable trust does, can be “a tough chore” at times, Cramer said he believes the stock has gotten too cheap at these levels and recommended buying shares to take advantage.

PayPal

  • Q4 2021 earnings after the close; conference call at 5 pm ET Tuesday
  • Projected EPS: $1.12
  • Projected revenue: $6.9 billion

Cramer noted PayPal has been a terrible performer for his charitable trust. The stock has been nearly cut in half since its highs in July and is still being punished by Wall Street, Cramer said, a sign that growth is out of style at the moment. He said he’ll be listening to see if CEO Dan Schulman can offer commentary that turns the tide of sentiment around for PayPal shares.

General Motors

  • Q4 2021 earnings after the bell; conference call at 5 pm ET
  • Projected EPS: $1.16
  • Projected revenue: $35.75 billion

GM shares are cheap, Cramer said, and if the Street truly is favoring value over growth stocks at this moment, the “Mad Money” host believes that’s positive news for the Detroit automaker’s stock.

Starbucks

  • Q1 2022 earnings release after the close; conference call at 5 pm ET
  • Projected EPS: 80 cents
  • Project sales: $7.98 billion

Cramer said he’ll be monitoring to see if management addresses some of the reasons why the coffee chain’s shares are down about 17% year to date, including unionization efforts at some US stores, the Covid omicron variant and China’s pre-Olympic lockdown.

Wednesday: Meta Platforms and AbbVie

MetaPlatforms

  • Q4 2021 earnings after the bell; conference call at 5 pm ET Wednesday
  • Projected EPS: $3.85
  • Projected revenue: $33.36 billion

Cramer said shares of Facebook’s parent company appear cheap based on 2022 earnings estimates, noting that criticism of the social media giant has quieted recently. He said he thinks the stock is worth owning here.

AbbVie

  • Q4 2021 earnings before the open; conference call at 9 am ET Wednesday
  • Projected EPS: $3.28
  • Project sales: $14.96 billion

Shares of AbbVie have performed well recently, up nearly 26% over the past three months. For that reason, Cramer said investors should wait for the quarterly report before making any decisions on the stock.

Thursday: Eli Lilly, Honeywell, Ford and Amazon

Eli Lilly

  • Q4 2021 earnings before the bell; conference call at 9 am ET Thursday
  • Projected EPS: $2.45
  • Projected revenue: $7.69 billion

Honeywell

  • Q4 2021 earnings before the bell; conference call at 8:30 am ET Thursday
  • Projected EPS: $2.08
  • Project sales: $8.73 billion

Cramer noted both Eli Lilly and Honeywell are stocks that he’s been recommending lately for members of the CNBC Investing Club.

ford

  • Q4 2021 earnings after the bell; conference call at 5 pm ET Thursday
  • Projected EPS: 45 cents
  • Project sales: $41.23 billion

Cramer said he’s looking forward to hearing updates on Ford’s F-150 Lightning, calling the electric pickup truck arguably the company’s most exciting new offering in decades.

Amazon

  • Q4 2021 earnings after the close; conference call at 5:30 pm ET Thursday
  • Projected EPS: $3.72
  • Projected revenue: $137.73 billion

Shares of Amazon are not loved right now, Cramer said, as the stock is down 13.64% year to date and 11% over the past year. However, he said he remains a believer in the e-commerce and cloud computing giant. He recommended investors wait for the quarterly report before doing anything with the stock, though.

Friday: Regeneron and Bristol-Myers Squibb

Regeneron

  • Q4 2021 earnings before the bell; conference call at 8:30 am ET Friday
  • Projected EPS: $20.10
  • Project sales: $4.51 billion

Cramer said he’s looking for the pharmaceutical company to tell a good story — not about its Covid antibody therapy, but rather new drugs for asthma and other ailments.

Bristol Myers Squibb

  • Q4 2021 earnings before the open; conference call at 8 am ET Friday
  • Projected EPS: $1.80
  • Projected revenue: $12.08 billion

Cramer said he thinks shareholders will like what Bristol-Myers Squibb has to say about the drugs it gained through acquisitions of Celgene and Myocardia.

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Disclosure: Cramer’s charitable trust owns shares of Ford, Amazon, AbbVie, Meta Platforms, Alphabet, AMD, Eli Lilly, Honeywell and PayPal.

Jim Cramer says he’d purchase Disney after shares slid on Netflix information

CNBC’s Jim Cramer said on Friday he sees the sell-off in Disney as a buying opportunity for investors.

Shares of the media and entertainment giant fell 6.94% to hit a fresh 52-week low during the session. However, the “Bad Money” Host said he won’t shy away from the stock because its sharp decline seemed linked to it Netflix‘s prognosis of Subscriber growth slowdown.

Netflix’s outlook — offered Thursday night when the company reported its earnings — spooked investors, and the company’s shares plunged 21.8% on Friday.

“I want to own the stocks of longtime, great Americans who have fallen into a guilt fiasco, and that’s exactly what happened to Disney stock today,” Cramer said, while noting that he was prevented from adding to his shares Charitable Trust on Friday changed Disney’s position after mentioning the stock on morning TV. Cramer’s ethics policy is that he waits 72 hours before executing a trade in any stock that he discusses on CNBC’s television programs.

Cramer’s trust Bought back from Disney in September, about three months after leaving his position entirely for the first time in 16 years. Confidence was added to the stock end of November and then back in December.

Cramer admitted on Friday that he was “too early” at Disney, alluding to the fact that the stock is trading lower than when the trust made its purchases.

“But it’s time to mix speculative stories with investment-grade stories. A lot of the stocks wiped out here belong to companies that don’t have much in the way of earnings, companies that trade mostly on hype or hope,” Cramer said.

He said he sees a number of speculative assets — including cryptocurrencies and stocks that went public through a reverse merger with a special purpose vehicle — that deserve to fight now as Wall Street braces for likely Federal Reserve rate hikes .

“But you can’t just extrapolate the weakness of a company that’s done very well, Netflix, with a whole bunch of other big brand name companies that make amazing products and make good revenue, like Disney,” Cramer said.

“I’m not saying Netflix isn’t worth owning. At a certain price, it sure will,” he added. “What I’m saying is that there are a lot of quality companies that are in distress because of Netflix today, and these were the best ones to buy.”

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CVS Well being is an efficient long-term purchase

WSFS Finance: “I like that. It’s a good bank in a good area. Let’s try to get it. I’ve admired it for about 30 years.”

CVS health: “I will say yes [for a long-term investment], supported by the fabulous Lisa Gill [of JPMorgan] who told me to buy it for $ 15 and says I don’t mind that it is at $ 100. Buy it again. ”

Roblox: “Roblox is the kind of stock I want to plow through this time because it’s such an original, great way to play the Metaverse.”

Paymentus stocks: “I know it’s payment technology. These stocks are under so much pressure, but they make money. Let me dig deeper and get back to you.”

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You should purchase a little bit Delta Air Strains now

DigitalOcean: “Look, it’s in the right place. There are tools for developers. I’ve always liked this type of company. I think you’re in good shape. It’s a very high multiple stock, and that’s why it does Decline.”

Vaxart: “You can speculate about it … but it wasn’t a winner and I don’t think that’s going to change.”

Gores Guggenheim: “No. I looked at that. We talked to the people at the investment club about it. We met and said, OK, just one more, one more, one more. I’m not there. I don’t support this group. I just can’t. “

ThredUp: “Commodities. Too many other companies are doing the exact same thing right now. If anything, you’re hoping with ThredUp that Macy’s will spin off its ecommerce and then buy these guys. Otherwise I’ll say … no way out.”

Nokia: “I actually got warm with Nokia. I’ll tell you why I warmed up for it: Because we’ve tried to shut down the Chinese on a lot of different telecom infrastructures and it’s starting to matter because people all over the world are getting a little tired of their repression. The repression tactics don’t go well with the democracies Nokia sells to. I like her.”

Delta Airlines: “Delta is very interesting because I think you should buy some tomorrow and then buy more when things get worse at omicron because Delta is a very good company and, apart from United, has become my preferred airline.”

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Why retailers are embracing purchase now, pay later financing companies

Supply chains are jumbled and production is limited. For weeks, headlines have been telegraphing a clear message to buyers: This Christmas season shop early.

In recent years, early risers may have made holiday gift plans to reserve Christmas gifts and pay for their purchases over time. But many retailers – including the largest in the country, Walmart – have abolished or reduced these programs. One reason for this is that there are new tools available to buyers to distribute payments.

A popular option for consumers is to buy now, pay later. Dealers are big fans too. The point of sale loans are easy for retailers to manage, and research shows that these options translate into bigger shopping carts and greater customer loyalty. RBC Capital Markets estimates that a BNPL option increases retail conversion rates by 20% to 30% and increases the average ticket size between 30% and 50%.

Add incremental sales

“It’s about incrementality,” said Russell Isaacson, director of retail and automotive lending at Ally Lending, “to reach that incremental sale or incremental consumer.”

Installment payments offer consumers options and convenience when it comes to managing budgets and shopping, according to Hemal Nagarsheth, associate partner in Kearney’s Financial Services Practice. He said the option also builds trust between retailers and consumers, resulting in “incremental sales, higher average purchase sizes and higher frequency of purchases.”

Buy Now, Pay Later Payment plans offered by companies like Confirm, based in Australia additional payment and Klarna from Sweden, are particularly attractive to younger buyers, such as the coveted Generation Z and millennial consumers. While every plan has differences – from the number of payments to the specific terms and conditions – the most important thing they have in common is the promise of a handful of equal payments over a relatively short period of time with no hidden fees. Often the plans are interest-free.

Installment payments are more popular with consumers who either do not have access to credit or who do not want to shop with credit cards for various reasons. According to Hans Zandhuis, President of Ally Lending, the option also makes a lot of sense for buyers who don’t have the money to cover the entire purchase but who can survive the next paychecks.

The average transaction value is around $ 200 for a purchase that is paid for later, Zandhuis said. Often times, if the option to pay later had not been available, the checkout value for the retailer would have been around $ 100, he said. This allows the same consumer to spend $ 175 to $ 200, with 4 monthly payments of $ 50. Payments should match the paycheck cycles.

Take the clothing retailer Rue21, for example. The most important target group is an 18 to 25 year old shopper who often does not use credit cards. With lots of cheap items on the website and decreasing traffic in the malls, increasing the average order volume is a top priority.

When the pandemic closed stores, Rue21 had to figure out how to sell to its buyers online with no credit. Since Rue21 added Klarna as a payment option in-store and online, the average order volume is 73% higher than other payment methods published a case study by Klarna. Rue21 shoppers doing business with Klarna have the highest sales per customer with a 6% higher purchase frequency. In May, Klarna purchases made up more than a quarter of rue21’s e-commerce sales.

A logo sign outside of a retail store on rue21 in Chambersburg, Pennsylvania on January 25, 2019.

Kristoffer Tripplaar | Sipa over AP pictures

Affirm boasts that its merchant customers report an 85% increase in average order value when consumers choose to use its BNPL plan over other payment methods. Affirm approves installment payments for purchases up to $ 17,500, which has been proven to be very important to Pelotons expensive exercise equipment and services. FT Partners, an investment bank focused on the fintech space, estimated that 30% of Affirm’s revenue in the first quarter of 2021 came from sales on the Peloton website.

Klarna’s merchant base reports a 45% increase in average order value when a buyer pays more than four payments. Buyers can also choose to pay interest-free within 30 days or, for larger purchases, get financing with monthly payments of 6 to 36 months with an APR between 0% and 29.9%.

New customers

Attracting a customer whom a retailer might otherwise not have influenced is another benefit of offering a buy-it-now option.

Earlier this year Macys CEO Jeff Gennette told investors that his partnership with Klarna will help attract new customers.

“We launched Klarna on the Macy’s website in October [2020] and since then we have scaled it to Macy’s, Bloomingdale’s and Bluemercury both online and in stores, “he said.” With Klarna we continue to see higher spend per visit and increased acquisition of new younger customers, 45% are under 40 years old. Our goal is to turn all of these new customers into loyal Macy’s customers who will come back for future purchases. “

Around 93% of Afterpay’s gross goods value in the last financial year came from repeat users of the installment payment service, with the longest-serving consumer making 30 additional transactions per year.

Higher conversion

Installment payments allow the retailer to “a [consumer’s] Desire into a sale, “said Chris Ventry, vice president of global advisory group SS&A.” It removes the payment block, “said Ventry through BNPL is enticing, ultimately enticing enough to drive conversion, which is the primary goal of all digital commerce websites . “

An analysis by Similarweb of the top 100 US fashion and retail websites compared 50 retailers who offer a buy-it-now option at checkout and 50 who don’t. On average, sites with a BNPL option had a conversion rate of 6% compared to 4% for those who didn’t.

Afterpay said it increases a retailer’s conversion rate and additional sales by 20 to 30% more than other payment options.

The incremental sales and increased conversion also make the additional transaction costs that the retailer pays to the fintech companies worthwhile. Zandhuis said that while the retailer pays the BNPL company an additional 2% higher transaction fees compared to the transaction fees charged by a traditional credit card company, “the math speaks for itself. The additional revenue is greater than the cost.”

Afterpay and Klarna charge merchants a 3% to 5% transaction fee, Affirm declined to disclose its transaction fees.

The programs also have advantages over the traditional layaway, which requires retailers to store items purchased locally while customers make installment payments over time. More and more retailers are using stores as mini-fulfillment centers to service online orders. With this model, the storage space is scarce.

Growth opportunity

Buy now, pay later, according to FIS Worldpay, is the fastest growing e-commerce payment method in the world, followed by the growth of digital wallets. In 2019, the $ 60 billion BNPL market accounted for 2.6% of global e-commerce, excluding China.

Worldpay estimates that use of the option could grow to $ 166 billion by 2023, with an average annual growth rate of 28%. At this rate, it would account for around 5% of global e-commerce outside of China.

According to FIS WorldPay, BNPL currently accounts for less than 2% of North American sales.

Coresight Senior Analyst John Harmon recognizes the opportunity for retailers but does not see it as a panacea.

“I don’t see BNPL as a magical solution, despite its booming adoption, as it’s just a different kind of loan,” Harmon said.

In a single day On The Cash — Introduced by Wells Fargo — GOP senator: It is ‘silly’ to purchase Treasury bonds

Have a nice Monday and welcome to On The Money, Your nightly guide to everything related to your bills, bank account, and bottom line. Subscribe here: thehill.com/newsletter-signup.

Today’s big deal: Republicans dig deeper into raising the debt ceiling, regardless of the ramifications. We’ll also look at a difficult path in the house for Biden’s massive expense account and the latest inflation information.

But first find out why Angelina Jolie and I was in the same building today.

For The Hill, I’m Sylvan Lane. Write to me slane@thehill.com or @SylvanLane. You can reach my colleagues in the finance team Naomi Jagoda at njagoda@thehill.com or @NJagoda and Aris Folley afolley@thehill.com or @ArisFolley.

McConnell Says GOP “United Against Raising Debt Ceiling”

Senate Democrats are generally expected to pass laws to raise the country’s debt ceiling with a government funding measure to put maximum pressure on Republicans to support raising the credit limit or risking the blame for a government shutdown.

But Senate minority leader Mitch McConnell (R-Ky.) Said Tuesday that Republicans Vote unanimously thwart any government funding bill that would also raise the country’s debt ceiling.

“Republicans agree against raising the debt ceiling,” McConnell said when asked after a GOP conference whether Republicans would vote for a funding gap that extends the federal government’s ability to borrow, which is expected to be exhausted by October.

McConnell stated that Republicans oppose raising the debt ceiling “not because it doesn’t have to be done,” but because it would pave the way for Democrats to pass a $ 3.5 trillion human infrastructure bill that does much of it previous would undo President TrumpDonald TrumpBiden stumbles for Newsom on the eve of the recall: “The nation’s eyes are on California” On The Money: House Democrats cut Biden’s tax hikes Abortion providers warn of “chaos” if the Supreme Court Roe versus Wade. overrides MORETax cut in 2017.

Fact check:

  • Raising or suspending the debt ceiling alone does not permit or prohibit new spending, nor does it increase or decrease the level of national debt.
  • Raising the debt ceiling will only allow the US to issue new government bonds, which it currently cannot, and generate cash to pay for expenditures already approved by Congress.
  • The US has never defaulted on its debt, and experts say any loss of confidence and creditworthiness in the federal government could cause the financial system to collapse.
  • Countries, financial institutions and investors hold trillions of dollars in government bonds, the value of which could fall if the US fails to remain solvent.

“I want every single Republican senator to answer the question, ‘Are you ready to bankrupt the government?'” Asked the Senate majority leader Charles SchumerChuck SchumerSchumer points to debts incurred under Trump to highlight the need for bipartisan action Warner Says “Under” 0.5 Trillion Housing Aid Package Some say he cannot support Biden’s $ 0.5 trillion spending plan MORE (DN.Y.) on Tuesday.

“Leader McConnell, as I said, is playing dangerous political games by not stepping on the stage as he asked us to and we did when Trump was president,” he added.

Even so, other Republicans, including the moderate Sens. Mitt RomneyWillard (Mitt) Mitt RomneyCan Biden make a comeback? What history teaches us (and not) Republican leaders misjudged the January 6 committee New Hampshire Democrat wins GOP seat MORE (Utah) and Rob PortmanRobert (Rob) Jones PortmanTrump administration sales representative supports JD Vance in Ohio Senate race Crypto debate should come back into force GOP hopefuls fight for Trump’s favor in the Ohio Senate race MORE (Ohio), also ruled out a vote on Tuesday for a government funding resolution that also extends the country’s borrowing authority.

And that’s why Senator Rick Scott (R-Fla.) Told reporters today that it did would be “foolish”“To buy government bonds – an asset believed to be almost as safe as cash – amid the stalemate.

“If you buy government bonds today, [you] don’t understand that American taxpayers are unwilling to levy taxes on it, ”said Scott, although surveys have shown solid support for aspects of Biden’s tax plan

“If you are stupid enough to buy this stuff now, you are stupid”

I have more on that Showdown here.

PRESENTED BY WELLS FARGO

DC Diner is being remodeled with help from nonprofit & Wells Fargo

Sandra Foote, owner of Flip-It LJ Diner, didn’t think her restaurant in Columbia Heights could survive COVID-19.

Wells Fargos Open for Business Fund made a grant to the District Bridges charitable organization, which then helped Sandra meet bills.

LEAD THE DAY

The house isn’t an easy walk for Biden, Democrats with a 3.5 ton package

Democrats say getting the $ 3.5 trillion welfare spending plan through the house will be a tough road Nancy PelosiNancy PelosiWashington is increasing security ahead of the September 18 rally How social media is fueling political polarization in the US – what can be done about it The 12:30 report from The Hill – Presented by Facebook – Man with machete, swastika in front of DNC headquarters before the rally on January 6th MORE (D-Calif.) Can only afford three defectors to enforce the measure.

While Senate debate Having received more attention, centrists are also vocally suspicious of the plan in the lower chamber, while progressives are not at all interested in bending.

Some are already pushing privately President BidenJoe BidenBiden stumbles for Newsom on the eve of the recall: “The nation’s eyes are on California” Biden is looking to the climate to sell the economic agenda The family of an American who has been taken hostage by the Taliban is calling on the government to release the peace negotiator for Afghanistan MORE In order to be even more involved in the negotiations on the package with Pelosi, it will be crucial for the signing of the bill to argue that he supports his own agenda. Hanna Trudo from the hill explained here.

A MESSAGE FROM WELLS FARGO

How a DC Florist Remodels with PPP Credit

Le Printemps DC flower shop was able to stay open during the pandemic with two Paycheck Protection Program (PPP) loans booked through Wells Fargo.

85% of the PPP loans booked through the bank went to companies with fewer than 10 employees.

MAYBE YOU CAN BUY MY CAR?

Consumer prices rose 0.3 percent in August and 5.3 percent in the past 12 months, according to data released Tuesday by the Labor Department.

Monthly growth in the consumer price index (CPI), a closely watched indicator of inflation, declined for the second straight month after rising 0.5 percent in July. (Economists expected the CPI to grow 0.4 percent last month.)

Annual CPI growth – one of several ways to measure annual inflation – also declined from 5.4 percent in July, the highest since August 2008.

What happened?

  • Airline tickets, used cars and trucks, and auto insurance prices all fell in August after soaring for much of spring and summer.
  • The used car CPI, which accounted for much of the summer’s inflation spike, fell 1.5 percent in August but is still 31.9 percent above the same point in 2020.

I break everything off here.

AOC’S MET GALA DRESS, BUT IN THE LEGISLATION

The House of Representatives Democrats’ plan would impose the biggest tax hikes on high earners: analysis

The House Democrats’ tax proposals would impose the largest tax hikes on households with an income of $ 1 million or more, according to an analysis by the Joint Tax Committee (JCT) released Monday.

The analysis takes into account the Democrats’ proposals to increase taxes for high-income individuals and businesses and to extend the expansion of tax credits for low- and middle-income households.

  • In 2023, households with incomes greater than $ 1 million would see federal taxes increase by 10.6 percent and their average tax rate from 30.2 percent under current law to 37.3 percent.
  • Households with incomes less than $ 200,000 would lower their taxes, the JCT said.

Much of the child tax credit expansion proposed by the Democrats would expire after 2025 – at the same time, the individual tax provisions in the Republican Tax Act of 2017 would expire. Naomi has the details here.

Good to know

Chairman of the Securities and Exchange Commission Gary GenslerGary GenslerOn The Money – The Democratic Tax Divide According to Coinbase, the SEC is investigating its crypto loan product Climate hawks are pushing Biden to replace the Fed chairmanship MORE said Tuesday that the rapid proliferation of cryptocurrencies and related investment products is similar the wild West.”

We still have an eye on:

  • There was a record-breaking number of players on the opening weekend of the 2021 NFL season Place bets online As more and more states legalize sports betting.
  • Job searches are expected to increase in the fall as more schools Resumption of personal learning Amid the ongoing pandemic, Indeed’s Hiring Lab forecast in its latest survey.

That’s it for today. Thanks for reading and check out The Hill’s Finance side for the latest news and coverage. We will see you tomorrow.

Is Worldwide Cash Categorical (IMXI) A Good Lengthy-Time period Purchase?

Voss capital, an investment company, has published its “Voss Value Offshore Fund” investor letter for the second quarter of 2021 – a copy of which can be downloaded here. The fund returned + 11.2% quarterly net return for the second quarter of 2021, ahead of the Russell 2000, Russell 2000 Value and S&P 500 benchmarks, which returned + 4.3%, + 4.2% and +8, respectively. 5% delivered for the same period. You can check out the fund’s top 5 holdings to see their top bets for 2021.

In Voss Capital’s letter to investors for the second quarter of 2021, the fund mentioned International Money Express, Inc. (NASDAQ: WALK) and discussed his stance on the company. International Money Express, Inc. is a Miami, Florida based money transfer company with a market capitalization of $ 715.7 million. IMXI posted a year-to-date return of 18.40% while 12 month returns are up 13.29%. The stock closed at $ 18.40 per share on September 1, 2021.

Here’s what Voss Capital had to say about International Money Express, Inc. in its Q2 2021 investor letter:

“We believe Intermex (International Money Express, IMXI) is a convincing long. IMXI is an international money transfer company primarily focused on transactions originating from the United States and going to Mexico and Guatemala. They make their money by charging a fixed fee for each transfer (85% of sales) and, to a lesser extent, through currency arbitrage on transactions (14%). Her client base consists primarily of low-income, low-bank immigrants from Mexico and Guatemala whose family / friends are staying in their home country and in need of financial assistance. We believe IMXI is an easy to understand story, with a clean capital structure, very low capital intensity (outside of some fluctuations in working capital), a strong brand, adept management, and excellent ongoing execution (z incremental margins). We believe the negative narrative surrounding the company has flaws that we can exploit, namely skepticism about the sustainability of its growth, the stickiness of the customer base, and a misunderstanding about the economics of a digital transfer versus a personal transfer.

The consensus on Wall Street is that IMXI is making a strategic mistake by not going “all-in” with digital transactions like MoneyGram (MGI), Western Union (WU) and well-supported private competitors like Remitly and Wise . You will hear the wave of VC money showing you what the future holds and transfers initiated through brick and mortar stores are dying out. In the digital transition, Intermex will lose its customer base and, given the operational leverage of the model, profitability will be hit hard. Bears also argue that digital is cheaper, easier, and should create a more solid customer base in the long run. In addition, Intermex’s focus on a few markets makes it difficult to scale the business and will quickly hit a wall of growth.

Voss has a different opinion. After in-depth survey of the customer base and research into cultural factors, we believe that the transition to IMXI’s digital customer base will be very slow as digitization requires a bank account and it can take longer for the money to be available to the recipient in cash. As WU and MGI focus on the digital, IMXI continues to gain market share locally and an increasing share of the associated superior profitability of the units. Digital has a much lower Lifetime Value (LTV) / Customer Acquisition Costs (CAC) ratio due to intense competition that requires high marketing costs and increases “churn”. Digital isn’t necessarily a cheaper way for customers to send money either, as digital gamers try to grow their revenue with higher currency arbitrage to offset the low advertised transaction fees, something our smart customer base is very much aware of. We’d also argue that IMXI’s personal customer base is probably stickier than the overly digitally minded Wall Street imagines. A worker dropping by the IMXI counter in the same store where they cash their check or buy groceries is routine, and that convenience and familiarity are sticky. Management noted that many of the customers who switched to IMXI’s digital product during the lockdown returned in person after the stores reopened.

Intermex’s disciplined focus on a few markets, instead of striving for growth in every country, enables the company to dominate these high-volume corridors and participate consistently and profitably. In direct contradiction to the bearish mood and narrative, IMXI is constantly growing around 20% faster than its competitors WU and MGI.

At its current valuation of ~ 8x NTM FCF and 7x EBITDA, the market’s expectations for this 20% organic grower are exceptionally low. We believe they can sustain 10-20% growth and pave the way for the stock to double in the next 2-3 years through a combination of continued organic growth and multiple expansion as the market realizes that their runway is a lot is longer than currently forecast. Our price target is $ 29 (90% up) based on 10x our EBITDA estimates for 2023. If the stock’s price doesn’t improve by then, we believe it’s both private equity and There are strategic buyers interested in buying the entire company. “

The story goes on

Photo by Karolina Grabowska from Pexels

According to our calculations, International Money Express, Inc. (NASDAQ: IMXI) couldn’t find a place on our list of The 30 most popular stocks among hedge funds. IMXI was there fifteen Hedge fund portfolios at the end of the first half of 2021 compared to 18th Average in the previous quarter. International Money Express, Inc. (NASDAQ: IMXI) returned 18.43% over the past 3 months.

The reputation of hedge funds as shrewd investors has been tarnished over the past decade as their hedged returns have not kept up with the unsecured returns of market indices. Our research has shown that hedge fund small-cap stock selection beat the market by double digits annually between 1999 and 2016, but the outperformance margin has been decreasing in recent years. Nevertheless, we were able to identify a selected group of hedge fund holdings in advance that exceeded the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to pre-identify a select group of hedge fund holdings that lagged the market by 10 percentage points annually between 2006 and 2017. Interestingly, the underperformance margin of these stocks has increased in recent years. Investors who take long positions in the market and short these stocks would have earned more than 27% annual return between 2015 and 2017. We’ve been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

At Insider Monkey, we search multiple sources to discover the next great investment idea. For example, the Federal Reserve created trillions of dollars electronically to keep interest rates close to zero. We believe this will lead to inflation and drive house prices higher. So we recommended that Real estate stocks to our monthly premium newsletter subscribers. We go lists like 10. by best EV stocks to pick the next Tesla that delivers a 10x return. While we recommend positions in just a tiny fraction of the companies we analyze, we review as many stocks as possible. We read letters from hedge fund investors and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

Disclosure: None. This article was originally published at Insider monkey.

Column: Cash would not purchase happiness

“Money doesn’t buy happiness.”

The age-old saying always seems like a controversial saying and you may or may not agree with it depending on your financial situation.

It is undeniable that when you are rich you can participate in more opportunities and buy more things. At the same time, while we all strive for material prosperity, we must remember that money is not everything.

College students can resonate with this message, especially since we are constantly looking for new internships or jobs with good earning potential. It can be easy to get lost in the search for good careers or high salaries – but it shouldn’t be one or the other.

For some it may be material wealth, and there is nothing wrong with that. For many of us, however, I would bet that we would say that our family, friends, romantic relationships, helping others, or admiration are the things that make us happy.

Money can’t buy your partner’s real love or your friends’ friendship. Nor can it buy the good feelings associated with physically helping and serving those in need and seeing the smiles your actions bring to the less fortunate.

Here are some reminders that money is not correlated with happiness.

Happiness comes from doing the things we love, not what we buy.

Happiness is a state of mind, not a physical object. You might have material need but still be content with your life through the relationships you have or the things you do. While it is true that wealth can make life easier and give you access to more objects and activities than you otherwise would have, money cannot buy you happy relationships with friends or family.

In AMC’s Breaking Bad, for example, the main character Walter White wins everything – money, power and respect – but he also loses everything. His family hated and denied him, his partner betrayed him, and all the money in the world couldn’t cure his cancer. As college students, with money we can get dinner with friends on Franklin Street or tickets to games, but it cannot ensure happy relationships with the people we love most.

At the end of the day, the relationships we have with others and with ourselves become more important.

Another common saying is, “It doesn’t matter where you are, but who you are with”.

Although this is more likely to be associated with romantic relationships, in this case it is still true because even if you can’t afford to go on expensive vacations or buy fancy things, you can still be happy by being with Hang out with your friends in your hometown or nearby to spend quality time with your family. Likewise, money cannot guarantee that you will be satisfied with your life.

Stephen Goldbart, co-founder of the Money, Meaning & Choices Institute, explains that suddenly getting rich can be a painful psychological experience for some people, and that it is easy to find yourself in and out of an identity crisis at the same time Dealing with loneliness and frustration.

Just as money is temporary, the happiness it brings is also temporary.

While it may be nice to be able to buy whatever you want at any time, even the best cars and clothes wear out over time. Our material wealth will be useless if we all die at some point, but the memories and experiences you have with your family and friends will last a lifetime.

For example, if you look back on your early teen years, you will likely remember your first date, the times you had trouble with your friends at school, or other things you did with your friends and family , and not your first paycheck.

It will never be “enough”.

Even if people become more wealthy, many will always want more. A study by Michael Norton, a professor at Harvard Business School, suggests that even when we acquire an obscene amount of wealth, the instinct to compare ourselves with others doesn’t stop and the rhetorical question, “Am I?” better? “than before?” only drives people’s desire – including the rich – to want more. Therefore, it can turn into a vicious cycle in which you are always obsessed with getting wealthier, which means that you will never be really satisfied or happy with what you have.

Although a lot of money can solve many of your problems and offers many opportunities and experiences, I want to remind people – especially students – that their pursuit of happiness is not the same as their pursuit of wealth.

@ raymondpang17

meinung@dailytarheel.com

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What cash should buy | Residence

We all know the local housing market is on fire. Some properties are sold before they even hit the market. According to a local market report by the National Association of Realtors in July, prices continue to rise compared to last year with a current average price of $ 203,700.

In July, the Greater Tulsa Association of Realtors reported that Tulsa homes have been on the market for an average of 18.35 days, down from 31.59 in 2020. In the same month, 25% of homes in the price range of US $ 175,001 to US $ 250,000 were sold. Dollar closed, with an average of nine days in the market. The vast majority of these were three-room apartments.

We spoke to the professionals at Chinowth and Cohen Realtors about four recently sold properties and what the market has to offer.



14309-E-88.-Terrasse-Nord, -Owasso.jpg

Sales price: $ 250,000

Cultivation area: .20

Square footage: 2,308



This three bedroom, two and a half bath home was designed by Jack Arnold and has vaulted ceilings, colored concrete floors and a spacious kitchen / dining room / living room. The master bedroom is on the first floor of this landscaped home in Owasso.



1714-E-35th-St, -Tulsa.jpg

Sales price: $ 750,000

Cultivation area: .21

Square footage: 4,643



Five bedrooms and bathrooms, two toilets, a games / bonus room, an inner courtyard and a garage for two cars make for a fantastic location in the middle of the city on a corner lot. The open concept house has two suites on the first floor.



13672-S-23rd-Street-E, -Jenks.jpg

Retail price: $ 499,900

Cultivation area: .36

Square footage: 3,568



Located on a dead end street in Jenks, this four bedroom home has an open plan living area with an entertainer kitchen with plenty of storage space. Other highlights include three and a half baths, a spa-like master suite, office, and game room.



19696-E-Clear-Brook-Road, -Owasso.jpg

Sales price: $ 1,015,000

Cultivation area: .99

Square footage: 5,470



A Mediterranean style house with four bedrooms, three and a half bathrooms sits on a wooded lot in Owasso. The professional kitchen is equipped with an outdoor kitchen and living room as well as a plunge pool and a mosquito-free system. A safe room and a home generator are included

2 Well-liked Robinhood Shares I Would not Purchase With Free Cash

Robinhood Markets is the company behind the Robinhood investment platform. Robinhood is particularly popular with the younger generation and has received praise for its efforts to “democratize finance”. Thanks to his app, many who had never invested in stocks before are now actively doing so. When you consider that the stock market is still one of the best wealth generators for the common man, that’s not a bad thing.

That said, Robinhood investors aren’t perfect, and while the list of the company’s 100 most popular stocks on the platform has some excellent selections, others aren’t that great. Here are two popular Robinhood stocks that I wouldn’t buy with free money: Okcugen (NASDAQ: OCGN) and Inovio Pharmaceuticals (NASDAQ: INO).

1. Ocugen

Ocugen – a clinical stage biotech company that currently has no commercialized products – is playing in the coronavirus vaccine market. It’s not necessarily a losing strategy, especially for a company this size; The current market capitalization is only $ 1.45 billion. There is still some blank space in the COVID-19 vaccine market, particularly in developing countries and with the advent of newer varieties of the disease.

Image source: Getty Images.

If Ocugen receives the Emergency Use Authorization (EUA) from the US Food and Drug Administration for his candidate and even generates $ 1 billion in sales, it would be a big win for the company. However, there are a few important points to keep in mind. First, the company signed an agreement to jointly develop and commercialize its candidate Covaxin with India-based Bharat Biotech. While Ocugen will hold the commercial rights to the vaccine in the US and Canada (pending approval), it will retain only 45% of Covaxin’s profits in those countries.

Second, the prospects of an early EUA in the US for Covaxin are as good as gone. As recommended by the FDA, Ocugen is now likely to file a biologics application that will take several months longer to review than an EUA. Third, Covaxin’s ability to gain market share in this competitive environment is dubious. In a Phase 3 clinical study conducted in India with 25,798 participants, the vaccine candidate was found to be 77.8% effective against COVID-19. Its effectiveness against the rapidly spreading delta variant was 65.2%.

In the meantime they are from. developed vaccines Pfizer, Modern, and Novavax have all shown an overall effectiveness of 90% or greater. Could Covaxin’s overall effectiveness be at least partially less because the late-stage study was conducted in India, where the Delta variant originated? Maybe, but other vaccines including that of. displaced Johnson & Johnson, have also shown potency against this variant. Put all of this together and add the usual risks Biotech companies (including potential unforeseen clinical and regulatory setbacks), Ocugen seems far too risky to invest in right now.

2. Inovio Pharmaceuticals

Inovio Pharmaceuticals also hopes to enter the COVID-19 market with its candidate INO-4800. However, the biotech’s prospects are even worse than Ocugen’s. Inovio faces at least two major challenges. First, the company is unable to conduct a Phase 3 clinical trial in the US because regulators have raised concerns about the proprietary device it uses to deliver its Cellectra 2000 vaccine.

Second, the US government withdrew funding for the Phase 3 portion of its Phase 2/3 study for INO-4800. As a clinical-stage biotech, Inovio is not generating product sales, and while it received grants last year to support its coronavirus-related efforts, the company will have a hard time getting additional ones with several vaccines that are now widely available Gaining third-party funding. Party grants.

So is the INO-4800 destined to stay in Inovio’s late-stage pipeline forever? Not necessarily. The company plans to conduct a phase 3 clinical trial in Asia and South America in collaboration with Advaccine Biopharmaceuticals Suzhou. The trial, due to start before the end of summer, will test the safety and effectiveness of two doses of the vaccine candidate given one month apart. In theory, Inovio could also make decent sales on INO-4800 given the advent of newer variants of the virus. However, until the phase 3 study is completed, it is impossible to predict how much the coronavirus vaccine market will still be able to gain.

Time isn’t on Inovio’s side, and betting that the company’s master plan comes true seems speculative. In short, it would be best to stay away from this company – at least for now.

This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.