CVS Well being is an efficient long-term purchase

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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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RSS says federal cash will not be long-term answer for workers pay – Salisbury Put up

SALISBURY – Rowan-Salisbury Schools received an unprecedented amount of federal funding over the past year, but funding will only go so far as to keep the district’s staff competitive.

In total, the district raised $ 96.9 million in federal funds. The amount is spread across approximately $ 70.6 million in COVID-19 aid and a federal grant of $ 26.3 million granted in 2020 to advance renewal plans.

The district has some of the least competitive salaries for its employees when compared to comparable school districts. In June, Superintendent Tony Watlington collapsed where the district landed. Teachers, teaching assistants, caretakers and bus drivers are at the bottom of the lists in eight or nine districts.

The employees are roughly divided into certified and classified categories. Certified employees include faculties such as teachers and school principals. The classified employees include bus drivers, nutrition workers, maintenance and teacher assistants.

During the school committee meeting last week, Watlington briefly touched on the subject, noting that the district lags not only behind the more affluent surrounding districts in terms of pay for classified staff, but also behind comparable districts.

A bus driver for RSS starts at $ 12.07 per hour while a starting bus driver for Davidson County starts at $ 16.07 per hour. A salary study for classified employees is ongoing.

RSS chief finance officer Carol Herndon said it is rare for a salary study to return whose results show pay should stay the same. It is likely that the district will need to implement the study in a phased manner rather than implementing its recommendations in a single year, Herndon said.

Chief Operational Officer Anthony Vann said the district is struggling to recruit and hold classified positions under its umbrella. He said there were several reasons. Pay is one. Another is the high level of competition from private companies and other school districts for people with the skills RSS is looking for. The COVID-19 pandemic also contributes to this.

While demand fluctuates, Vann cited the example of around 50 vacancies in a workforce of 200 nutritionists. Central Office nutritionists and other RSS staff work in cafeteria lines in schools, much like staff who stand in as substitute teachers to make up for lengthy teacher absences.

Vann said he has lost several very skilled employees to the surrounding counties and sees companies in the city offering signing rewards.

“It makes it difficult to keep qualified staff unless you can compete with them,” said Vann.

Where the county will find the funding for the raise is still open, but there are a few options.

Why not the federal money?

Some of the federal aid money will go into the pockets of the faculty and staff, but it will not provide the county with a solution to long-term funding goals for the people who work there for two reasons: used to pay staff, and it will run out of money too .

The aid money is divided into three parts based on the primary and secondary school emergency fund. The district received $ 4.7 million from the CARES bill in the early days of the pandemic, which has already been issued. The remaining federal aid came in two installments, a package of $ 20.3 million in the final months of President Trump’s administration and $ 45.6 million under the US bailout plan passed earlier this year.

All three aid packages came with slightly different rules. The last two packages, which make up the bulk of the funding, were not issued. The use of the latter packages must pass a three-step test to either prevent, reduce or respond to COVID-19.

Currently, the district is trying to shift some of its funds to pay grants to employees taking on additional duties due to COVID-19, but the state has consistently declined districts to use the money to largely pay the salaries or bonuses. In the meantime, the $ 20.3 million must be spent by the end of September 2023 and the $ 45.6 million the following year.

Herndon said it was dangerous to try to fund permanent bonuses with volatile cash because the district could not sustain increases after the grants expired.

“Our goal is to find sustainable funding,” said Herndon, adding that the district is in the process of setting a price for the implementation of the wage study.

The district will spend more than $ 30 million in aid on repairing and upgrading HVAC systems in its schools. This will achieve a long-term capital goal by removing this funding from the capital requirement list of more than $ 200 million in the district’s facilities.

These expenses are acceptable as they improve the air quality in the buildings. When all work is complete, every school in the district will have HVAC systems with fresh air exchangers.

The $ 26.3 million grant is different. Its express purpose is to give teachers incentives to advance the work of the district on its special renewal status.

Earlier this year, the district announced its first grant incentive program, which will provide $ 585,000 in signing and retention bonuses at 13 schools. The district management has discussed creating an incentive payment with the subsidy at their schools in need, in order to also attract teachers.

Where does the district find money?

North Carolina is one of the few states that has left the funding of its public schools to the total grace of the state and local governments.

School systems in NC have no authority to collect taxes or generate income of their own accord, except through grants and private donations. The overwhelming majority of the district’s $ 207.6 million budget for this fiscal year comes from a combination of federal, state and local funds awarded directly by these institutions.

Most of the money comes from the state. One possibility is for the state to pass one of the proposed budgets currently circulating in the legislature. The budget could include either a $ 13 or $ 15 minimum wage for civil servants, with the state government assuming the state-funded portion of the increase. But a budget passed by the legislature that could come at the end of this month would also apply nationwide.

The second place to find funding is through the Rowan County Board of Commissioners. That year, the commissioners cut nearly $ 500,000 from current expenses for the district, while the local portion of salary and welfare expenses increased by $ 416,000. Local funding is $ 38.8 million.

“One of the things our county needs to sell to businesses and potential citizens is quality schools,” Herndon said, adding that it requires quality staff and competitive wages.

Herndon said RSS should meet with the commissioners in person to have a conversation so that district officials can understand the district’s needs. Letters sent to district officials each year may lack the emotion and passion behind the district’s work.

The district has introduced itself to commissioners in the past, but the COVID-19 pandemic has made this meeting difficult.

The county also provides almost all of the capital funding for the county. Small purchases of equipment such as furniture could be made, but local money is used to build schools.

The final way to find money is to exercise some financial discretion. Renewal gives the district more government funding flexibility than the average district, making it easier to keep track of the district’s spending.

Herndon cited as an example of buying curriculum materials and analyzing whether that product gives the district what it wants. If not, RSS could test competing products or free up that money for other initiatives.

“If we are serious about offering competitive wages to our employees, we need to look very carefully at what we are currently funding,” said Herndon.

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.

New Covid research hints at long-term lack of mind tissue, Dr. Scott Gottlieb warns

Dr. Scott Gottlieb warned on Thursday of the potential for long-term brain loss related to Covid, citing new study from the UK.

“In short, the study suggests that there could be long-term loss of brain tissue from Covid, and that would have some long-term consequences,” said the former FDA chief and CNBC employee.

“You could compensate for that over time, so the symptoms of it may go away, but you will never regain the tissue if it is actually destroyed by the virus,” said Gottlieb, who is the board member of the Covid vaccine manufacturer Pfizer.

The UK study looked at brain imaging before and after coronavirus infection, specifically looking at the potential effects on the nervous system.

Gottlieb explained it to CNBC’s “The News with Shepard Smith” that the destruction of brain tissue could explain why Covid patients have lost their sense of smell.

“The decrease in the amount of cortical tissue happened by chance in regions of the brain that are near the places responsible for the odor,” he said. “What it suggests is that the odor, the loss of smell, is just an effect of a more primary process that is going on, and that process is actually the shrinking of the cortical tissue.”

Disclosure: Scott Gottlieb is a CNBC employee and a member of the board of directors of Pfizer, genetic testing startup Tempus, health technology company Aetion Inc., and biotechnology company Illumina.

AMC, Gamestop share choices are longterm positives

CNBC’s Jim Cramer applauded Tuesday GameStop and AMC Entertainment For issuing new shares, he said it angered many in the Reddit investor crowd.

The “Bad moneyTargeting the ‘hold the line’ cohort of investors receiving stock tips from the Wall Street Bets forum, Host said their plans to offer new stocks and raise funds to improve their business should not be frowned upon .

“If you’re interested in the future of a company or the long-term performance of its stocks, issuing stocks up here is the way to go,” said Cramer. “But the crowd that holds the line hates these offerings … and they despise anyone who defends them.”

“It can only go so far,” he added.

AMC expected Shareholders to vote in May on a measure authorizing the sale of an additional 500 million shares in the secondary market. GameStop has filed a prospectus for the sale of up to 3.5 million common shares under its own stock offering program.

AMC hopes the funds will improve its balance sheet while executives at beleaguered GameStop attempt to reverse the trend.

“AMC and GameStop need money,” said Cramer. “Raising capital is good for both companies, and in the long run what is good for the company should be good for the stock.”

Regarding the “hold the line” strategy, Cramer fears that too many investors have unrealistic expectations that they could pile into a stock and let its share price rise.

“I think this whole story is crazy,” he said. “When the Wall Street Bets cohort takes over the flow of certain stocks, they want to be in charge and expect management and all shareholders to obey. Well, frankly, that’s a recipe for disappointment.”