Business capital – Angil http://angil.org/ Fri, 14 Jan 2022 06:13:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://angil.org/wp-content/uploads/2021/06/icon-2021-06-29T195041.460-150x150.png Business capital – Angil http://angil.org/ 32 32 Venture capital deals in the United States hit an all-time high of $330 billion in 2021 https://angil.org/venture-capital-deals-in-the-united-states-hit-an-all-time-high-of-330-billion-in-2021/ Fri, 14 Jan 2022 05:06:00 +0000 https://angil.org/venture-capital-deals-in-the-united-states-hit-an-all-time-high-of-330-billion-in-2021/ Four thousand U.S. dollars are counted by a banker counting change at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo Join now for FREE unlimited access to Reuters.com Register Jan 14 (Reuters) – U.S. venture capital deals hit a record high in 2021 at nearly $330 billion, buoyed by excess liquidity and […]]]>

Four thousand U.S. dollars are counted by a banker counting change at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo

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Jan 14 (Reuters) – U.S. venture capital deals hit a record high in 2021 at nearly $330 billion, buoyed by excess liquidity and accommodative monetary policy, according to a report by PitchBook and the National Venture Capital Association.

Venture capital firms stepped up betting on the technology, biotech, healthcare and fintech sectors, announcing a record 17,054 deals during the year.

It was also the best year on record for venture capital fundraising, which reached $128.3 billion from 730 funds. The figure, which broke the $100 billion mark for the first time, was $40 billion higher than the previous 2020 record.

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For an interactive graphic, click on this link: https://tmsnrt.rs/3Gp0ybS

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Among the biggest fundraisers last year were crypto firm FTX Trading, which was valued at $25 billion in October, and artificial intelligence platform Databricks, which hit a valuation of $38. billion in August, each raising $1 billion.

The frenetic pace of fundraising is expected to continue this year as venture capitalists’ liquidity remains at an all-time high and returns outpace all other asset classes, the report adds.

Venture capital-backed companies going public or acquired led to outflows worth $774.1 billion in 2021, nearly 88% of which were through public listings. As the U.S. initial public offering (IPO) market continued on a tear, special purpose acquisition companies offered a viable alternative to IPOs despite tightening regulatory scrutiny.

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Reporting by Niket Nishant and Sohini Podder in Bengaluru; Editing by Vinay Dwivedi

Our standards: The Thomson Reuters Trust Principles.

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Germany asks banks to build buffers as housing market heats up https://angil.org/germany-asks-banks-to-build-buffers-as-housing-market-heats-up/ Wed, 12 Jan 2022 09:50:00 +0000 https://angil.org/germany-asks-banks-to-build-buffers-as-housing-market-heats-up/ The logo of the German Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside the former Ministry of Finance building in Bonn, Germany on April 5, 2016. REUTERS / Wolfgang Rattay Register now for FREE and unlimited access to Reuters.com Register FRANKFURT, Jan. 12 (Reuters) – Germany on Wednesday asked its banks to […]]]>

The logo of the German Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside the former Ministry of Finance building in Bonn, Germany on April 5, 2016. REUTERS / Wolfgang Rattay

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FRANKFURT, Jan. 12 (Reuters) – Germany on Wednesday asked its banks to set aside around 22 billion euros ($ 25 billion) in additional capital by next year as the economy shrinks. is largely recovering from the pandemic and that a growing real estate bubble threatens the stability of the financial sector.

Regulators reduced additional cushion requirements to zero at the onset of the crisis, but house prices have skyrocketed on the backs of record rates and the market is now 10-30% overvalued, leaving lenders particularly vulnerable to a price correction, the Bundesbank said earlier.

In response to these warnings, the Federal Financial Supervisory Authority, or BaFin, raised the countercyclical cushion to 0.75% on February 1, 2023 from 0%, while an additional 2% cushion will be introduced for mortgages. residential.

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“Banks will be able to meet this requirement almost entirely from existing excess capital,” BaFin said in a statement. “Only a few institutions have a small requirement for additional capital.”

The decision will require banks to build around 17 billion euros in the countercyclical cushion and an additional 5 billion in the sector cushion for systemic risk, BaFin added.

In addition to the new measures, BaFin called on banks to be more cautious in granting new loans, especially in light of the development of house prices.

The supervisor calls for careful property valuations, prudence in making large loans relative to the property’s value, and a solid analysis of the ability of borrowers to make payments even when interest rates rise.

Supervisors have long warned that banks could overestimate the value of their loan guarantees and are not sufficiently prepared for possible interest rate hikes, as much of their long-term loans are at fixed rates. .

($ 1 = 0.8798 euros)

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Reporting by Balazs Koranyi and Frank Siebelt; Editing by Toby Chopra

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Kismet Capital Group Expands Tower Asset Portfolio with Purchase of Russian Towers https://angil.org/kismet-capital-group-expands-tower-asset-portfolio-with-purchase-of-russian-towers/ Mon, 10 Jan 2022 10:00:00 +0000 https://angil.org/kismet-capital-group-expands-tower-asset-portfolio-with-purchase-of-russian-towers/ MOSCOW, Jan. 10 (Reuters) – Investment firm Kismet Capital Group on Monday announced that it has acquired 100% of Russian Towers, a deal that would give its joint venture with telecommunications company Megafon (MFON.MM) the largest portfolio in ‘tour assets in Russia. Kismet, which financed the deal with its own funds and a loan from […]]]>

MOSCOW, Jan. 10 (Reuters) – Investment firm Kismet Capital Group on Monday announced that it has acquired 100% of Russian Towers, a deal that would give its joint venture with telecommunications company Megafon (MFON.MM) the largest portfolio in ‘tour assets in Russia.

Kismet, which financed the deal with its own funds and a loan from the main Russian lender Sberbank (SBER.MM), said Russian Towers will now be part of New Towers, which already owns assets of the tower company Vertical and of the First Tower Company of Megafon.

After incorporating Russian Towers, Kismet Capital Group will own a 65% stake in New Towers, with Megafon taking a 25% stake and Vertical the rest, Kismet said.

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Faced with difficult revenue growth and stubbornly high debt accumulated from the latest network upgrade, telecom companies across Europe are looking to raise funds by selling their tower portfolios or creating future flows. of income by disposing of these assets. Read more

Russia’s largest mobile operator MTS announced in November that it could sell its tower assets and Rostelecom (RTKM.MM) intends to do the same.

Telecommunications company Veon, whose main market is Russia, finalized a $ 970 million deal to sell its portfolio last month.

Russian Towers’ portfolio includes around 7,200 antenna mast structures across Russia, Kismet said. The merger of the assets of three towers brings the structures of New Towers to more than 30,000.

Kismet founder Ivan Tavrin, former CEO of Megafon, said the acquisition was part of a long-term strategy to grow his tower business.

“We plan to go public with the merged company and will be open to entry into new geographies,” he said in a statement.

Under the company merger deal, Megafon’s First Tower Company was valued at 94.2 billion rubles ($ 1.26 billion), the parties announced in October.

($ 1 = 75,0 160 rubles)

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Reporting by Gleb Stolyarov; written by Alexander Marrow; edited by Jason Neely

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The crowd that lifted the CEO of Eventbrite https://angil.org/the-crowd-that-lifted-the-ceo-of-eventbrite/ Sat, 08 Jan 2022 14:15:00 +0000 https://angil.org/the-crowd-that-lifted-the-ceo-of-eventbrite/ Attending a Star Trek convention while working on a documentary series showed Julia Hartz the power of live events. The experience became the inspiration for the Eventbrite ticketing company, that she started with her fiance and another founder. Their goal was to facilitate gatherings for event planners and participants. Now that model is being tested […]]]>

Attending a Star Trek convention while working on a documentary series showed Julia Hartz the power of live events. The experience became the inspiration for the Eventbrite ticketing company,

that she started with her fiance and another founder. Their goal was to facilitate gatherings for event planners and participants.

Now that model is being tested by a pandemic that continues to block live events around the world as new variants of Covid-19 surface. Eventbrite, which laid off nearly half of its staff in April 2020, survived the early days of Covid-19 by helping organizers transition to virtual gatherings and manage everything from selling tickets to marketing their events . Eventbrite’s revenue increased 144% to $ 53.4 million in the third quarter, compared to the prior year period. The volume of paid tickets increased 107% to 19.1 million paid tickets. Its stock is up about 200% from its April 2020 low.

Organic pieces

  • Age: 42
  • Education: Pepperdine University, Bachelor of Telecommunications
  • Family: Husband Kevin and two daughters
  • First job: Barista coffee at Ugly Mug in Santa Cruz at 14
  • Favourite book: Katharine Graham’s “Personal Story”
  • The hourly alarm goes off on weekdays: 6:15 a.m.
  • Where did you grow up Santa Cruz, California
  • Management mantra: Consider the whole person, not just the employee, when giving feedback and advice.
  • Fun fact: Life’s Unrealized Dream Is To Be A Relief Dancer For Janet Jackson
  • Leisure activities of the WFH since the pandemic: Backgammon, piano and hyper-organization

Ms Hartz, who took over as chief executive in 2016, said the pandemic had turned her into a “wartime CEO” as she handled the crisis while working from home and taking care of two girls. She and her husband had one major rule: if their daughters interrupted a virtual meeting, they had to show up. This spread to Eventbrite, where Ms Hartz stressed that employees should not apologize or be embarrassed for their children or other disturbances at home.

It wasn’t the first test for Ms Hartz, who became CEO a decade after she, tech entrepreneur Kevin Hartz, and software engineer Renaud Visage co-founded Eventbrite. The first CEO was Mr. Hartz, whom she married shortly after Eventbrite launched; he is still president. She went public in 2018, one of the few women to have done so as both the founder and CEO of a tech company. She also sits on the board of directors of the hotel company Four Seasons Hotels and Resorts.

Before Eventbrite, she worked in entertainment. She interned for “Friends” and developed and managed on-air series for MTV and FX, including the show “Nip / Tuck”. A documentary series around fandoms took her to a convention of Klingons, the name given to a fictional species in the long series “Star Trek”. The passion she saw in people meeting in person sparked the idea of ​​using technology to improve events. It became Eventbrite.

“How to take technological technology and use it to democratize something that really improves people’s lives, that connects in real life, because it’s very, very topical today,” she said. declared. “And how do you do it in a way that’s just super easy, self-serve, with a low barrier to entry? “

Here are four of his most trusted advisors:

ORGANIC PIECES

Age: 42

Education: Pepperdine University, license in telecommunications

Family: Husband Kevin and two daughters

First job: cafe barista at Ugly Mug in Santa Cruz at age 14

Favorite Book: “Personal Story” by Katherine Graham

The hourly alarm goes off on weekdays: 6.15 a.m.

Where did you grow up Santa Cruz, California

Management mantra: Consider the whole person, not just the employee, when giving feedback and advice.

Fun fact: Life’s unrealized dream is to be a backup dancer for Janet Jackson

Leisure activities of the WFH since the pandemic: Backgammon, piano and hyper-organization

Roelof Botha, Partner, Sequoia Capital

Ms Hartz said Mr Botha is his “most effective critic” because he is ready to give her his honest comments. Much of that came over time: he was Eventbrite’s original venture capitalist, its longest-serving independent board member, and has a long history with the Hartzes.

Ms Hartz said Mr Botha helps her think beyond the short term. “Every time I talk to him he inspires me and pushes me to think well beyond the time limit that I envision,” she said.

For example, as Covid impacted Eventbrite’s business, Ms Hartz said Mr Botha focused on helping raise capital to help the company weather the crisis while preserving the company’s vision.

“He looks at everything through the prism of ‘What impact would this have on the business in 10 to 20 years?’ And he has principles, even when it’s unpopular, ”she said.

Kevin Hartz, Co-Founder and President, Eventbrite

Ms Hartz said she and Mr Hartz often take different approaches, and that’s what strengthens their relationship and business partnership. “He thinks in black and white, he can ingest an incredible amount of data and spit out a response very quickly,” she said. “I’m more of a data point collector that I put together and see as an amalgamation of the situation, and I often look at the technicolor undertone of people.”

This combination helped as Covid led to unpredictable stay-at-home orders in March 2020. When Ms Hartz returned from her last day at the office in mid-March, she discovered that Mr Hartz had set up an office at home as a war room, with monitors and whiteboards.

“We had to make the ultimate decision as to whether we were going to act quickly and reshape the business and seize the opportunity of this great disruption or were we going to see how it played out? ” she said. “We built the business over 14 years, and in 14 days in March, the business had negative revenue.”

It also taught her more about when to identify situations that are critical. “It doesn’t all have to be hair on fire,” she said. “It has a great way to identify critical times when you need to act and you need to act fast.”

This led Eventbrite to quickly raise funds and make changes in the business.

Lorrie Norrington, Operating Partner, Lead Edge Capital

Ms Hartz said she and Ms Norrington hit it off after an introduction from recruiter and advisor Jana Rich in 2014, sharing a Japanese whiskey when they first met. Several months later, Ms Norrington joined Eventbrite’s board of directors, focusing on business strategy and serving as a CEO coach for Ms Hartz.

Ms Hartz said Ms Norrington is “the connector” and often shares useful information about who to hire, which employees have high potential and how employees can learn from an outside voice.

“She put a lot of people on my radar and taught me to see beyond the immediate team that I work with on a daily basis,” she said.

Ms Norrington, who is now a company adviser and sits on several other boards, also encouraged Ms Hartz to think regularly about how to empower women. She taught her to “open up the openness and look for ways to apply micro actions to be an ally of women,” Ms. Hartz said. “And don’t leave that at the end of your career.”

Roger martin

Roger Martin, business author and strategist

Several years ago, Ms. Hartz read one of Mr. Martin’s books, “Playing to Win,” on the recommendation of Dropbox Inc. CEO and friend Drew Houston.

After reading it, Ms Hartz said she wanted the strategy to be as simple as the book described it. As Covid turned the business of Eventbrite upside down, she reached out to Mr. Martin in mid-2020 to refine the company’s strategy so that Eventbrite could seek opportunities during the pandemic and ensure long-term growth.

Mr. Martin taught her that strategy doesn’t have to be an intoxicating, complicated and esoteric thing, Ms. Hartz said. Eventbrite rolled out a new three-year strategic vision for the company in September 2020 using the framework co-created by Mr. Martin.

“It’s actually a series of strategic choices that are logically linked in a sequence that lead to the desired result,” she said. “So I think he has this great way of breaking down big topics into simple, manageable, executable projects.”

Eventbrite then launched new products for creators and boosted its virtual events business. Mr. Martin and Ms. Hartz now meet on a quarterly basis.

Write to Emily Glazer at emily.glazer@wsj.com

Corrections and amplifications
Eventbrite’s paid ticket volume increased 107% to 19.1 million paid tickets. An earlier version of this article incorrectly stated that the volume of paid tickets increased to $ 19.1 million. (Corrected January 8)

Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8


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Medicaid provider drops state lawsuit https://angil.org/medicaid-provider-drops-state-lawsuit/ Wed, 05 Jan 2022 05:57:02 +0000 https://angil.org/medicaid-provider-drops-state-lawsuit/ An Ohio-based Medicaid managed care company is set to end its lawsuit against the state. Last year, he accused the Ohio Department of Medicaid of bias and conflict in a $ 22 billion bidding process. Toledo-based Paramount Advantage now says if the department approves a deal for Anthem to take over patients from Paramount, it […]]]>

An Ohio-based Medicaid managed care company is set to end its lawsuit against the state.

Last year, he accused the Ohio Department of Medicaid of bias and conflict in a $ 22 billion bidding process. Toledo-based Paramount Advantage now says if the department approves a deal for Anthem to take over patients from Paramount, it will drop plans to appeal a lower court ruling that rejected his attempt to arrest the huge supply.

“Ensuring quality member care and minimizing local job losses have been top priorities for Paramount since learning that we had not been awarded a contract for the new Ohio Department of Managed Care program. Medicaid (ODM), which begins July 1, 2022, “Paramount said in an emailed statement.” Closing this deal with Anthem will help address concerns related to these priorities. And, if the transaction ends as scheduled, Paramount will not take further legal action against ODM. ”

The plans were first reported by Hannah News.

If the deal is approved, it will end a bitter challenge by Paramount to a procurement undertaken by Medicaid last year.

Seeking to reshape the state’s Medicaid system, the department released a call for nominations by managed care providers to show how they would prioritize the health of individual Medicaid beneficiaries, who make up 25% of the population of the l ‘Ohio. With 22 billion dollars, it was the biggest public markets in Ohio history.

After years of claims that pharmaceutical intermediaries working for managed care providers are wrestling the state, the Medicaid department is removing this activity from those companies and hiring a single pharmaceutical intermediary who will work directly with the Medicaid department.

Also as part of the overhaul, the department is hiring a single company that will create a continuum of services for 60,000 Ohio children with complex behavioral health needs. The billion-dollar program will work closely with health care providers managed under the revamped system, Medicaid officials said.

Plans call for the new system to be implemented in July.

When the Medicaid department selected six companies to run managed care and one to run OhioRISEThe children’s program he switched to Paramount, a longtime managed care provider in the Ohio system. The department said the company’s request did not adequately explain how it would meet the new goals the state was setting for its Medicaid program.

Primordial continued on the decision, and in court in October and November, he presented evidence that he was penalized for being relatively small and operating only in Ohio.

He also said the procurement ignored the fact that some of the large companies selected had been accused of massive wrongdoing against Ohio taxpayers.

For example, the Medicaid department resumed talks with Centene-owned Buckeye Health Plan in August – just six months after the company announced it was paying $ 88 million to settle claims it had diverted tens of millions from the Ohio Medicaid program. The company also announced that it is setting aside an additional $ 1 billion to settle similar claims in other states.

Additionally, UnitedHealth Group’s United Healthcare Community Plan of Ohio was one of six companies selected for a multibillion-dollar managed care contract. He got the case even though the state is actively pursuing its pharmacy middleman, OptumRx, over allegations that it snatched $ 16 million from the Ohio Workers’ Compensation Board.

In addition, Optum and CVS pharmacy intermediary, CVS Caremark, were the companies accused of having badly inflated Medicaid drug prices – charges they deny. Despite the claims, CVS’s Aetna was awarded the billion dollar OhioRISE contract.

In court, Paramount also highlighted potential conflicts of interest.

Medicaid Director Maureen Corcoran revealed that in the past she owned at least $ 1,000 of shares in CVS and UnitedHealth Group, but She refused say how much she owned as she negotiated and signed huge contracts with their affiliates.

And Mercer, the $ 9 million consultant who facilitated the procurement, refuse to say if any of the selected clients also have consulting contracts with Mercer.

Franklin County Common Plea Judge Julie M. Lynch November 10 dismissed the Paramount case after rejecting the evidence of possible conflicts. Immediately after the dismissal, attorneys for Paramount announced that they would appeal.

But Paramount and its parent company, Toledo-based ProMedica, have given more thought to the strategy. He says he turns his business over to Anthem because he believes it is the best of the six companies newly selected to provide care to Paramount’s Medicaid clients.

The two companies are also researching landing points for hundreds of Paramount employees.

“Anthem and ProMedica are working to identify open roles within both organizations that may be of interest to affected Paramount employees,” Paramount said in a statement. “It would create opportunities for Paramount employees to join Anthem or continue with ProMedica in another capacity. “

For his part, Anthem has said he’s up to the task.

“Anthem has served the global health needs of Ohio residents for over 81 years, and we look forward to expanding access to comprehensive, high-quality health services for more of those eligible for Medicaid.” , Greg LaManna, President of Anthem Blue Cross and Blue Shield Medicaid. in Ohio, said in an emailed statement. “This transaction expands our commitment to advancing the next generation of Medicaid managed care in Ohio ahead of the new Medicaid contract. “

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With a return on equity of 1.4%, is Tera Light Ltd (TLV: TRLT) a quality stock? https://angil.org/with-a-return-on-equity-of-1-4-is-tera-light-ltd-tlv-trlt-a-quality-stock/ Mon, 03 Jan 2022 04:49:34 +0000 https://angil.org/with-a-return-on-equity-of-1-4-is-tera-light-ltd-tlv-trlt-a-quality-stock/ While some investors are already familiar with financial metrics (hat tip), this article is for those who want to learn more about return on equity (ROE) and why it is important. We will use ROE to examine Tera Light Ltd (TLV: TRLT), through a worked example. Return on equity or ROE is an important factor […]]]>

While some investors are already familiar with financial metrics (hat tip), this article is for those who want to learn more about return on equity (ROE) and why it is important. We will use ROE to examine Tera Light Ltd (TLV: TRLT), through a worked example.

Return on equity or ROE is an important factor for a shareholder to consider, as it tells them how effectively their capital is being reinvested. 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 analysis for Tera Light

How is the ROE calculated?

the formula for ROE is:

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

So, based on the above formula, Tera Light’s ROE is:

1.4% = ₪ 3.5m ÷ ₪ 250m (Based on the last twelve months up to June 2021).

The “return” is the annual profit. This therefore means that for each 1 of its shareholder’s investments, the company generates a profit of ₪ 0.01.

Does Tera Light have a good ROE?

Perhaps the easiest way to assess a company’s ROE is to compare it to the industry average. It is important to note that this measure is far from perfect, as companies differ considerably within a single industry classification. As shown in the graph below, Tera Light has a lower than average ROE (9.0%) for the electrical industry classification.

TASE: TRLT Return on equity January 3, 2022

It is certainly not ideal. However, a low ROE is not always bad. If the company’s debt levels are moderate to low, there is still a chance that returns can be improved through the use of financial leverage. When a company has a low ROE but high levels of debt, we would be careful because the risk involved is too high. Our risk dashboard should contain the 3 risks that we have identified for Tera Light.

Why You Should Consider Debt When Looking At ROE

Most businesses need money – from somewhere – to increase their profits. This liquidity can come from the issuance of shares, retained earnings or debt. In the first and second cases, the ROE will reflect this use of cash for investing in the business. In the latter case, the use of debt will improve returns, but will not affect equity. This will make the ROE better than if no debt was used.

Combine Tera Light’s debt and its 1.4% return on equity

Although Tera Light uses quite a bit of debt, its debt-to-equity ratio of just 0.00005 is very low. His ROE is certainly low, and since he’s already using up debt, we’re not too excited about the business. Using debt wisely to improve returns can certainly be a good thing, even if it slightly increases risk and lowers future option.

Conclusion

Return on equity is a useful indicator of a company’s ability to generate profits and return them to shareholders. A business that can earn a high return on equity without going into debt can be considered a high quality business. If two companies have the same ROE, I would generally prefer the one with the least amount of debt.

But when a company is of high quality, the market often offers it up to a price that reflects that. It is important to take into account other factors, such as future profit growth and the amount of investment required for the future. You can see how the business has grown in the past by checking out this FREE detailed graphic past earnings, income and cash flow.

But beware : Tera Light might not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

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 any stock 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 any of the stocks mentioned.


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Returns on Capital Signal Hard times ahead for Baidu (NASDAQ: BIDU) https://angil.org/returns-on-capital-signal-hard-times-ahead-for-baidu-nasdaq-bidu/ Sat, 01 Jan 2022 12:52:45 +0000 https://angil.org/returns-on-capital-signal-hard-times-ahead-for-baidu-nasdaq-bidu/ Finding a business that has the potential to grow significantly isn’t easy, but it is possible if we take a look at a few key financial metrics. Generally, we will want to notice a growing trend to return to on capital employed (ROCE) and at the same time, a based capital employed. Basically, it means […]]]>

Finding a business that has the potential to grow significantly isn’t easy, but it is possible if we take a look at a few key financial metrics. Generally, we will want to notice a growing trend to return to on capital employed (ROCE) and at the same time, a based capital employed. Basically, it means that a business has profitable initiatives that it can keep reinvesting in, which is a hallmark of a dialing machine. However, after briefly reviewing the numbers, we don’t think Baidu (NASDAQ: BIDU) has the makings of a multi-bagger going forward, but let’s see why it may be.

Understanding Return on Capital Employed (ROCE)

If you’ve never worked with ROCE before, it measures the “return” (profit before tax) that a business generates on capital employed in its business. The formula for this calculation on Baidu is:

Return on capital employed = Profit before interest and taxes (EBIT) ÷ (Total assets – Current liabilities)

0.047 = CN ¥ 15b ÷ (CN ¥ 384b – CN ¥ 74b) (Based on the last twelve months up to September 2021).

So, Baidu has a ROCE of 4.7%. In absolute terms, that’s a low return, and it’s also below the interactive media and services industry average of 11%.

See our latest review for Baidu

NasdaqGS: BIDU Return on capital employed January 1, 2022

In the graph above, we measured Baidu’s past ROCE against its past performance, but arguably the future is more important. If you’d like to see what analysts are forecasting for the future, you should check out our free report for Baidu.

What the ROCE trend can tell us

In terms of Baidu’s historic ROCE movements, the trend is not great. To be more precise, ROCE has increased by 8.6% over the past five years. Although, as both income and the amount of assets used in the business have increased, this could suggest that the business is investing in growth and that the additional capital has resulted in a short-term reduction in ROCE. If these investments prove to be successful, it can bode very well for stock performance in the long run.

In conclusion…

In summary, despite lower returns in the short term, we are encouraged to see that Baidu is reinvesting for growth and therefore has higher sales. And there might be an opportunity here if other metrics look good as well, as the stock has fallen 16% in the past five years. Accordingly, we recommend that you dig deeper into this stock to find out what other business fundamentals can show us.

On a separate note, we have found 3 warning signs for Baidu you will probably want to know more.

While Baidu does not currently generate the highest returns, we have compiled a list of companies that currently generate over 25% return on equity. Check it out free list here.

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 any stock 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 any of the stocks mentioned.


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CMA admits the 12th company to its innovation hub https://angil.org/cma-admits-the-12th-company-to-its-innovation-hub/ Thu, 30 Dec 2021 21:03:19 +0000 https://angil.org/cma-admits-the-12th-company-to-its-innovation-hub/ Capital markets CMA admits the 12th company to its innovation hub Friday, December 31, 2021 Wycliffe Shamiah, CEO of the Capital Markets Authority (CMA). PHOTO | DIANA NGILA | NMG By CHARLES MWANIKIMore from this author Summary The market regulator set up the incubation platform, designed to encourage innovation in capital markets in May 2019, […]]]>

Capital markets

CMA admits the 12th company to its innovation hub


Wycliffe Shamiah, CEO of the Capital Markets Authority (CMA). PHOTO | DIANA NGILA | NMG

charlesmwaniki_img

Summary

  • The market regulator set up the incubation platform, designed to encourage innovation in capital markets in May 2019, targeting companies in the fintech sector.
  • A robo-adviser is a digital platform that provides automated, algorithm-based financial planning and investment services with little or no human interaction.

The Capital Markets Authority (CMA) has admitted investment adviser Waanzilishi Capital Limited to its regulatory sandbox program, making it the 12th inductee to the innovation hub.

The market regulator set up the incubation platform, designed to encourage innovation in capital markets in May 2019, targeting companies in the fintech sector.

A regulatory sandbox is a safe space in which innovators can test new products and services in a normal environment without the risk of consequences from regulators like the CMA.

“Waanzilishi Capital Limited proposes to test a robo-advisory solution (named Ndovu) with an element of discretionary portfolio management,” the CMA said in a statement.

“The robo-adviser will provide automated financial planning services by tapping its customers’ data on their financial position and future goals through the Ndovu app as the basis for offering investment advice and automatically investing customer assets.”

A robo-adviser is a digital platform that provides automated, algorithm-based financial planning and investment services with little or no human interaction.

Waanzilishi Capital’s advisor is intended to assist clients with account setup and services, customer service, portfolio management and investor education.

The CMA sandbox rules mean that Waanzilishi will be required to provide periodic reports on the implementation of its test plans, achievement of test goals, risks and challenges observed during the testing period, and a final report prior to the test. expiration of his test period.

CMA regulations limit the testing period to 12 months, unless the product, service or solution has been tested positively and has shown that extension of testing is necessary to address specific risks.

Robo advisors are increasingly popular among financial institutions looking to reduce the costs associated with operating expensive call centers and advisory offices.

In 2020, FourFront Management, owned by Standard Investment Bank, also tested a robotics advisory solution on the sandbox program, testing new products for possible deployment in local capital markets.

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Elektroimportøren (OB: ELIMP) is very good at capital allocation https://angil.org/elektroimportoren-ob-elimp-is-very-good-at-capital-allocation/ Wed, 29 Dec 2021 04:42:27 +0000 https://angil.org/elektroimportoren-ob-elimp-is-very-good-at-capital-allocation/ What trends should we look for if we are to identify stocks that can multiply in value over the long term? A common approach is to try to find a business with Return on capital employed (ROCE) which increases, in connection with growth quantity capital employed. Put simply, these types of businesses are dialing machines, […]]]>

What trends should we look for if we are to identify stocks that can multiply in value over the long term? A common approach is to try to find a business with Return on capital employed (ROCE) which increases, in connection with growth quantity capital employed. Put simply, these types of businesses are dialing machines, which means they continually reinvest their profits at ever higher rates of return. With this in mind, the ROCE of Elektroimportøren (OB: ELIMP) looks great, so let’s see what the trend can tell us.

What is Return on Employee Capital (ROCE)?

If you’ve never worked with ROCE before, it measures the “return” (profit before tax) that a business generates on capital employed in its business. Analysts use this formula to calculate it for Elektroimportøren:

Return on capital employed = Profit before interest and taxes (EBIT) ÷ (Total assets – Current liabilities)

0.37 = kr136m ÷ (kr644m – kr277m) (Based on the last twelve months up to June 2021).

Therefore, Elektroimportøren has a ROCE of 37%. In absolute terms, this is a great return and is even better than the specialty retail industry average of 13%.

See our latest review for Elektroimportøren

OB: ELIMP Feedback on Employee Capital December 29, 2021

In the graph above, we measured Elektroimportøren’s past ROCE against its past performance, but the future is arguably more important. If you wish, here you can view analyst forecasts covering Elektroimportøren for free.

The ROCE trend

The trends that we have noticed at Elektroimportøren are quite reassuring. Over the past three years, returns on capital employed have increased substantially to 37%. The amount of capital employed also increased by 27%. Increasing returns on an increasing amount of capital are common among multi-baggers and that is why we are impressed.

Another thing to note, Elektroimportøren has a high ratio of current liabilities to total assets of 43%. This can lead to some risks as the business is basically operating with quite a lot of dependence on its suppliers or other types of short term creditors. While this isn’t necessarily a bad thing, it can be beneficial if this ratio is lower.

The key to take away

Overall, it’s great to see Elektroimportøren reaping the rewards of past investments and increasing its capital base. And with a respectable 41% attributed to those who held the shares over the past year, you could argue that these developments are starting to get the attention they deserve. That being said, we still believe that promising fundamentals mean the company deserves additional due diligence.

Elektroimportøren does present some risks, however, and we have spotted 2 warning signs for Elektroimportøren that might interest you.

Elektroimportøren is not the only stock that generates high returns. If you want to see more, check out our free List of companies delivering high returns on equity with strong fundamentals.

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 any stock 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 any of the stocks mentioned.


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CABO CAPITAL announces $ 8 million Web 3 fund https://angil.org/cabo-capital-announces-8-million-web-3-fund/ Mon, 27 Dec 2021 08:07:42 +0000 https://angil.org/cabo-capital-announces-8-million-web-3-fund/ Hanoi, Vietnam, December 27, 2021 (GLOBE NEWSWIRE) – Launched in 2008, digital assets and tokens have become an important part of the global financial market. In the development of digital technology and decentralized systems, many blockchain related projects have been formed with a series of financial companies and investment funds, creating an increasingly strong and […]]]>

Hanoi, Vietnam, December 27, 2021 (GLOBE NEWSWIRE) – Launched in 2008, digital assets and tokens have become an important part of the global financial market. In the development of digital technology and decentralized systems, many blockchain related projects have been formed with a series of financial companies and investment funds, creating an increasingly strong and sustainable ecosystem.

Among the investment funds present in the digital financial market, CABO CAPITAL is an emerging force. Founded by an expert with a great knowledge of the stock market and crypto, CABO CAPITAL demonstrates the ability to assess and support potential projects in many areas. CABO CAPITAL is pleased to announce that it will launch an investment fund of up to $ 8 million to invest in equity and digital assets (tokens) for blockchain technology startups. at an early stage to ensure they can add value to the company.

CABO CAPITAL’s portfolio is always oriented with the aim of creating defined value: a precise and targeted investment with positive cash flows over a specific holding period to obtain real returns. In a rapidly changing world, CABO CAPITAL’s investment plan is flexible to ensure that they can focus on the utility and applications that a project can bring to its users.

“By becoming a CABO CAPITAL partner, in addition to being invested financially, the projects also receive significant support, including professional advice and other resources. For projects in the gaming and blockchain industry, CABO partners will receive consulting support in terms of technical infrastructure technology, game design as well as the experience to successfully run a business or project. blockchain-based. Mr. Nguyen Ha Minh Thong, Founder of CABO, said

With an investment fund of up to $ 8 million for cryptocurrencies, NFT games, Metaverse and Web 3.0, CABO CAPITAL has currently invested in projects that have received the praise and trust of industry experts from community such as 9D NFT, ASPO World, Defihorse, Mytheria, and more.

Possessing the advantages that create distinct value, CABO CAPITAL is here to create value and confidence for investors as well as for the projects in which they invest.

Media contact: Nguyen Ha Minh Thong, CaBoCapitalVentures@gmail.com


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