Investing Port RSS Feed All the latest news from Investing Port https://www.investingport.com Ollie’s Ceo Mark Butler Cause Of Death Released Ever since the shocking announcement of the death of Mark Butler, the cofounder of Ollie (OLLI), there has been an ongoing investigation on the cause of his death. the Los Angeles County Medical Examiners recently released that the CEO died of a natural cause.On Sunday, December 1, 2019, Mark Butler died unexpectedly during thanksgiving with his family. His death was announced by the Ollie's Bargain Outlet board of directors without any indication of what might have lead to the sudden demise. Mark died at age 61.Part of the requirement of California state law is that every unusual death should be investigated upon in order to decipher the precise cause of death, especially if there is no record of any visit to a doctor in the space of 20days before the death of the deceased. In accordance with this, the body of Mark Butler has been under investigation by the Medical Examiners and it was discovered that his death was caused by atherosclerotic cardiovascular disease. In one of the medical website WebMD, atherosclerosis is explained as a disease that often results in the narrowing and hardening of the arteries. The disease could result in the blockage of the arteries and impede the flow of blood. This is usually the cause of stroke and heart attack. The Medical Examiners also revealed that asthma is another plausible cause of sudden death. ]]> Sat, 15 Feb 2020 07:04:51 EST https://www.investingport.com/ollies-ceo-mark-butler-cause-of-death-released/ https://www.investingport.com/ollies-ceo-mark-butler-cause-of-death-released/ Roku Inc stock soars after Earnings Report On 13th February 2020, Roku Inc (ROKU) submitted its fourth-quarter yearly report which exceeds the estimated value predicted by analysts. The report rise above the expected revenue estimated by analysts but was a little below the amount per share predicted by the analyst. In terms of the revenue generated, analysts expected $1.58 billion but the company reported $1.6 billion. This positive change caused an immediate increase in the sales of shares. The increase was about 9% but later reduced to around 5%.Roku stock was among the 2019 top-performing companies with an increase of almost 337%. However, this wonderful outcome did not continue until the new year. As a result, investors have been anxiously waiting for the release of the fourth-quarter record. Here are some key numbers recorded in the new report Actual loss-share 13% as against the expected 14 percentThe total amount of revenue recorded $411million as against the expected $392 million.The full-year revenue recorded is $1.13 billion as against the expected 1.11 billion.In the company's letter to current and potential shareholders, it revealed that monetized video ad impressions doubled tremendously in the year. Also in the letter, Roku pointed out that all top 10 telecom and technology advertisers and top 10 consumers packaged good engaged in a business transaction with the company.The average revenue per user(ARPU) recorded in the report is $23.14 on a 12-months trailing, an increase of 29% or $5.19 year over year. Also, streaming hours increased by 16.3 billion hours year-over-year to 40.3 billion. 2020 Revenue GuidanceThe revenue guidance provided for the new year is $1.6 billion, while the analyst expects the venue to be about $1.58 billion. In a survey carried out by Refinitiv, Roku said in a letter to its shareholders that it hopes to become "roughly break-even on a full-year adjusted EBITDA basis" in 2020. Also with the increase in the due paid every month per head in 2019, Roku expects to get about $905 million in GAAP operating expenses, and also obtain a better and greater facilities costs in its recent headquarters. The company also expects to get operating expenses from its acquisition of Dataxu.Also in the letter, Roku executives write that "We predict that by 2024 roughly half of all U.S. TV households will have cut the cord or never had a traditipay-TVay TV. While 2019 was a tipping point in commitments to streaming, the full force of change is still to come."]]> Sat, 15 Feb 2020 00:41:24 EST https://www.investingport.com/roku-inc-earning-report/ https://www.investingport.com/roku-inc-earning-report/ What you need to know about T-mobile and Sprint Merger The long-awaited merger of TMobile (TMUS) and Sprint (S) that has been ongoing for more than two years is closed to happening this year. This latest development was as a result of the court order ruled in favor of the merge on 11th February 2020. Significantly, the merger is going to be the fourth-largest carrier in the united state. Also in the court, there were deliberations on making Dish Network, the fourth national wireless carrier, although this was not finalized. Despite the fact that big technology platforms like Facebook and Google are doing extremely well, this decision is not a surprising one.In relation to the court decision, Judge Victor Marrero of the United States District Court for the Southern District of New York City said most of the data and experts gathered and presented by the 10 states attorneys fighting against the merge does not have any quality effect and cannot be taken seriously. He also said the decision whether or not T-Mobile and Dish the merge would take place would be taken by him.The outcome of the court session shows that Judge Marrero sees John Legere and the rest of the T-Mobile executives as very capable. Marrero thinks the record of the two companies is a very good one. Dish Network can be trusted and the merge would turn out great.However, the judge sees Sprint as a company too flippant and which in his opinion is controlled and run by dummies.The Move For RenegotiationT-Mobile looks forward to renegotiating the former price agreed upon two years ago. This came immediately after the merger was approved on Tuesday. One of the major reasons for this is because the share price and performance of Sprint have continued to deteriorate for the past two years.At the early stage of the quest to merge the two companies, shares in Sprint was trading around 45% discount. But in the current report, even after the company's stock increased by 77%, the discount still remains at 12%. Presently, Sprint stock is below $9 per share. This is one of the major reasons T-Mobile wants to renegotiate. Notwithstanding, renegotiating the term would not only complicate the deal's timeline but also lead to misunderstanding between the two companies. While many people believe T-Mobile has the option to walk away from the deal, for it to emerge successful in the looming 5G network, it would need the Sprint’s large stockpile of the spectrum—radio frequencies that wireless signals travel over.Aside from this, there are more significant reasons why the two companies would want to continue with the merge. Part of this is, finalizing the merge would help T-Mobile reduce its reliance on Europe. In the same vein, for SoftBank’s Masayoshi Son, finalizing the merge would help him concentrate on improving the dwindling performance of his $100 billion Vision Fund.]]> Sat, 15 Feb 2020 00:39:14 EST https://www.investingport.com/tmobile-and-sprint-merger/ https://www.investingport.com/tmobile-and-sprint-merger/ Nvidia Q4 Earnings Report - Nvidia reported net income of $950 million in the fourth quarter Nvidia (NVDA), one of the major artificial intelligence and graphics chip makers in the United States, submitted its long-awaited fourth-quarter financial report on 13th February 2020. In the report, both the company's revenue and earning per share were beyond the expected analysis. This shows that even with the effect of coronavirus on the production of electronics around the world, Nvidia can still keep profitability up. The company revenue increased by 41%, just a little above the third-quarter report, while the revenue generated is $3.11 billion. However, significant in the report is the company's gross margin which increased from 54.7% to 64.9%. Added to this, the net income reported in the fourth quarter is $950 million. This tremendous improvement created a ripple effect such that in the space of some hours, investment in stock increased by 6.3%.Unfortunately, the positive impact does not help the company fiscal number. The fiscal revenue generated and recorded in the new report was below that of 2019. Added to this, operating income, operating expenses, diluted earnings, and net incomes did not turn out well. In fact, in some cases, most of them reduced by almost 30%.The Major Cause Of The Challenge.The company's challenges are not just a product of the difficulties in the chipmaker section of the business as last year was generally difficult for the chip makers industry. Most of the challenges are caused by a number of factors such as less demand in some parts of the business and oversupply in another part of the business. More importantly, the current trade tension between the United States, China, Japan, and South Korea contributed to this.Also, the company itself has been facing a lot of ups and downs in the past years. This started with a share price of about $150 and today the price has risen to almost $271. The gain achieved is more than 80%. The major reason for this is simply because most of the business including automotive and high-performance computing that Nvidia got Mellanox for $6.9 billion at the beginning of the year has moved to silicon.What To Look Out ForIrrespective of the major volatility in the company's stock, the demand for the product in the company has risen significantly than it was in the past years. It is therefore okay to assume that what investors would focus more on is the FY2020 Q4 report. The aspect of the report investors would be concerned with is Nvidia's gross margin and the ability of the company to withstand the current turmoil in businesses.Although, as regards this, analysts already estimate that both earning and gross margin will increase in Q4. The predicted gain in the rise is 34.3% on revenue of $3 billion.For the company to achieve this, it means it would have to retain more money from every sale it makes. This aspect is measured by investors through keeping track of the company's gross margin and the sales it retains after the cost of production and cost of service.]]> Sat, 15 Feb 2020 00:37:39 EST https://www.investingport.com/nvidia-earning-q4-report/ https://www.investingport.com/nvidia-earning-q4-report/ The Effect Of Coronavirus On The Stock Market The stock market is the largest economic market in the world. It is often seen as the stand-in-for economy in most countries, especially the US. It is therefore expected that with the recent breakout of coronavirus in China and its deadly force in the country, the stock market would be most affected. However, before the increasing fear of the outbreak, the US stock market has continued to thrive despite the turmoil. Just early this year, the US stock market recorded the highest stock gain since August 2019.Major ConcernAs coronavirus increases, the rate of fear for the market also increases. Currently, coronavirus has killed more than 550 persons and infected more than 28,000. In Wuhan, the place where the virus is believed to have emanated from, businesses and markets have been shut down. Also, across the country of China, markets have continued to suffer. For instance, the supply of the world chain has been terminated, airlines have canceled flights to and from China, provinces like Hubei have been sealed off completely, entries areas to the country have been quarantined, and as these restrictions continue to increase, more and more customers are locked up in their houses.Added to this, casino gambling in places like Mecca was affected for two weeks. After the closedown of more than half stalls in China, Nike Inc, NKE +0.8% was the first to warn against the dwindling impact of the virus on businessEconomic ImpactOn the economic impact of the virus, economist analysts already predicted that the virus would reduce China's first-quarter real gross domestic product growth from its current 6% to 4.5%. In relation to this, the importance of the country of China to consumer goods cannot be underrated. Their important role in global manufacturing and trade had also left some worries.Significantly, S&P Global predicted that the virus would affect companies that deal with the manufacturing of goods due to the current disruption of China factories. Also, growth in the UK and the Eurozone would also be affected. This could be 0.2% lower than expected this year. As a result, the spillover effect of the virus on the United States is likely to cause a reduction in the country's first-quarter GDP from 0.4 to 0.5 percent.It was also predicted by Reuters that exports and imports business would reduce drastically in the country of China. Analysts also reveal that the virus outbreak could have a long term negative effect on China's global trade. Safe HavenLooking at the current state of the US stock market, it would be very difficult to believe that the virus poses any threat to the country's economy. This is why US asset is often believed to behave less like risk asset and more like a safe haven. At the recent stage of the virus, many believed the best way to stay safe is to sell their stocks while some persons believe the way out is to buy more stocks. Whichever way, containing the disease is the plausible way forward.]]> Sat, 15 Feb 2020 00:36:04 EST https://www.investingport.com/the-effect-of-coronavirus-on-the-stock-market/ https://www.investingport.com/the-effect-of-coronavirus-on-the-stock-market/ Bank What is a Bank? “…an establishment for custody of money, which it pays out on customer’s order.”Oxford DictionaryDefinitionA bank is the major financial institution licensed to make deposits, withdrawals, giving out loans, and carrying out other financial transactions. It can be characterized by its direct dealing with money both from individuals and organizations, its acceptance of deposits that are repayable on demand, its ability to give out loans on request, its easy withdrawal and payments, and its customer data protection.Understanding a BankThe term ‘bank’ originates from the French word ‘Banque’ which means bench or money exchange table. Before the term became widely recognized, the early European money lenders or changers would display currency coins of different countries on a money exchange table for the purpose of lending or exchanging.Over time, the idea surrounding banks has developed, and this development has led to the categorization of banks to fit different kinds of financial demands. These different banks serve different purposes, notwithstanding, they have an overall purpose; they can be categorized into commercial banks, investment banks, retail banks, and corporate banks. All these banks are regulated by the central bank of each country, in some countries banks are regulated by the national government.One major feature of banks is that they are available to both individuals and businesses and deals with them preferentially. Through different account types such as certificates of deposit (CDs) and checking and savings accounts, customers can save their cash in the bank with easy access at any time. Banks provide customers with other services such as check writing, deposits, withdrawals, and bill payments. Customers who would like to invest can also participate in investment opportunities provided by their banks and earn interest on every investment made. Fri, 14 Feb 2020 20:04:26 EST https://www.investingport.com/bank/ https://www.investingport.com/bank/ Bank Credit What is a Bank Credit?Definition‘Bank Credit’ is a financial term used to refer to the amount of money a business or individual can borrow from a bank. It is also referred to as the money that has already been lent to a borrower by a bank. Bank credit can take up various forms such as mortgages, credit card accounts, and overdraft lines (in some cases). How Bank Credit WorksThe cost and terms of bank credit are dependent on the offers of competing banks, collateral being offered, and the creditworthiness of the borrower. Just like requesting a loan from a lending institution, bank credit greatly considers a borrower’s creditworthiness before making any further considerations such as current income, use of funds, collateral, previous debts, and assets (if any). Individuals mostly require bank credits through credit cards; here, it is required of the borrower to begin with a zero-balance account, a specific credit limit, and an agreed Annual Percentage Rate (APR). For businesses, a bank credit may be required to fund startups, expand businesses, or purchase of goods and services as short-term financing.Bank credit is classified into two: secured and unsecured, each having its own cost and terms. A fixed monthly payment plan is created for the borrowers within a stipulated period of time to be paid back with interest. Fri, 14 Feb 2020 20:01:56 EST https://www.investingport.com/bank-credit/ https://www.investingport.com/bank-credit/ Bank Confirmation Letter (BCL) What is a Bank Confirmation Letter (BCL)?DefinitionA bank confirmation letter is a letter that confirms an established loan or line of credit with a financial institution. It is a letter gotten from a Buyer’s bank to confirm his credibility to match up an expected payment level to a third party. The bank confirmation letter is also known as a bank capability letter or comfort letter by some institutions.Understanding the bank confirmation letterThe overall purpose of a bank confirmation letter is to serve as proof to a third party that a customer of an institution has sufficient resources required to execute a business deal. It only states that the buyer has access to sufficient funds to cover all costs on an order made, however, it does not serve as a guarantee of payment. A BCL is always issued in relation to a specified project the borrower initially indicated. Peradventure, if the bank customer of borrower changes their mind on the project they want to use the BCL for, a new BCL would have to be requested. Some countries require that the bank credit confirmation letter clearly indicates the line of credit is made available to the borrower.Sample of a BCL:Bank Name: Bank Address: Bank Confirmation Letter (BCL) Dated:Dear Sirs, This is a confirmation of our mutual client (name of company) who currently maintains a bank account with us. On request from them (client), we, (name of bank) with all authority and mandate declare that the said client (name of company) is financially capable to initiate the process of goods worth 000.000 metric tons (quantity of goods). We, hereby, confirm the client’s (name of company) financial eligibility.We understand payment is to be made to (third party) by (name of company) …NB: The above is only a sample of what a BCL is expected to look like there are several other formats that can be used. Fri, 14 Feb 2020 19:59:00 EST https://www.investingport.com/bank-confirmation-letter-bcl/ https://www.investingport.com/bank-confirmation-letter-bcl/ Bandwagon Effect What is Bandwagon Effect?DefinitionThe Bandwagon effect is a term used when a person or group of people act in a certain way or do something majorly because other people are doing it not necessarily because they want to do it. This happens regardless of the individual’s beliefs or ideologies which the individual willingly let go of in exchange for a different ideology. It may be likened to ‘peer pressure’ considering that a person’s actions are strongly influenced by other people.Understanding the Bandwagon EffectThe bandwagon is an unconscious occurrence where individuals find themselves reacting in a certain way as a result of the society they dwell in or the circles they find themselves in. For example, during an election, many people unconsciously vote for a particular candidate because that’s where the majority is, not necessarily because they really understand the candidate or his/her motives.This phenomenon is stirred up by psychological, sociological, and sometimes economic factors as it covers all aspects of life from financial markets to sports and entertainment. In economics, however, the bandwagon effect is used to understand consumer behavior as customers are more likely to purchase a particular product based on the reviews and recommendations of other customers. If more consumers give similar reviews on a particular product or service whether good or bad, then it is very likely to be true. Tips:The bandwagon effect is doing something simply because everyone else is doing it.It is a psychological phenomenon that is stirred up by the society the individual finds themselves. Fri, 14 Feb 2020 19:55:55 EST https://www.investingport.com/bandwagon-effect/ https://www.investingport.com/bandwagon-effect/ Bank Bill Swap Rate (BBSW) What is Bank Bill Swap Rate (BBSW)?DefinitionThe bank swap rate, also known as Bank Reference Rate, is the rate banks charge to lend money to each other in Australia. In the happening of an unexpected overnight cash shortfall, a bank may be required to borrow money from another bank at a given interest rate.Understanding the Bank Bill Swap RateThe bank bill swap rate is mostly referenced in a derivative market considering that it is used to benchmark the pricing of Australian dollar derivatives and securities. It functions as an independent reference rate used in securities pricing. It also functions as a hedge for interest rate risk. Bondholders use the bank bill swap rate to benchmark price floating rates for bonds and other securities.Calculating the BBSWThe Australian Securities Exchange (ASX) is the official body responsible for calculating and publishing the BBSW. Australia makes use of the BBSW as an equivalent of the LIBOR – London Interbank Offered Rate (the average value of interest-rates that is calculated from the submitted estimates of large global banks daily). The BBSW and the LIBOR may be similar, but they have quite a few dissimilarities such as a direct link to retail lending indexes. The BBSW is not so directly linked to retail lending indexes as much as the LIBOR. The BBSW also comes with a risk premium which serves as compensation for securities risk compared to the risk-free rates attached to government bonds. Fri, 14 Feb 2020 19:52:29 EST https://www.investingport.com/bank-bill-swap-rate-bbsw/ https://www.investingport.com/bank-bill-swap-rate-bbsw/