Debt ratio – ATRX http://atrx.net/ Thu, 21 Oct 2021 21:57:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://atrx.net/wp-content/uploads/2021/10/icon-3-120x120.png Debt ratio – ATRX http://atrx.net/ 32 32 Main Ro purchases in Q3 https://atrx.net/main-ro-purchases-in-q3/ Thu, 21 Oct 2021 20:36:24 +0000 https://atrx.net/main-ro-purchases-in-q3/ The Royce International Premier Fund (Trades, Portfolio) recently released its 13F portfolio updates for the third quarter of 2021, which ended on September 30. The fund operates under the aegis of Royce Investment Partners, the company founded by Chuck royce (Trades, Portfolio) in 1972. It aims to build a portfolio of high-quality, world-class, non-US small-cap […]]]>

The

Royce International Premier Fund (Trades, Portfolio) recently released its 13F portfolio updates for the third quarter of 2021, which ended on September 30.

The fund operates under the aegis of Royce Investment Partners, the company founded by

Chuck royce (Trades, Portfolio) in 1972. It aims to build a portfolio of high-quality, world-class, non-US small-cap companies that are acyclical producers, can generate lots of free cash and have a “genuine and defensible” moat. The portfolio is managed by Mark Rayner and Mark Fischer.

Based on the company’s last 13F, its main purchases for the quarter were BML Inc. (EST: 4694, Financial), OBIC Business Consultants Co. Ltd. (IS: 4733, Financial), Douzone Bizon Co. Ltd. (XKRX: 012510, Financial), NICE Information Service Co. Ltd. (XKRX: 030190, financial) and GVS SpA (MIL: GVS, Financial).

BML

The fund established a position of 413,100 shares in BML (EST: 4694, Financial), giving the company a weight of 1.30% in the equity portfolio. During the quarter, the shares traded at an average price of 4,214.92 Japanese yen ($ 37.01).

BML, or Bio Medical Laboratories, is a Japanese company that operates medical laboratories and develops software for clinical tests. It operates Japan’s largest nationwide laboratory services network, leveraging its scale to collect data and improve processes.

On October 21, BML shares were trading around 4,100.00 yen for a market cap of 165.03 billion yen. According to the GuruFocus Value chart, the stock is valued at its fair value.

The company has a financial strength rating of 8 out of 10 and a profitability rating of 8 out of 10. No long-term debt allows the company to achieve a Piotroski F-Score of 8 out of 9, which represents a very healthy financial situation. The return on invested capital is consistently higher than the weighted average cost of capital, which means that the company creates value as it grows.

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OBIC Business Consultants

The fund increased its investment in OBIC Business Consultants (IS: 4733, Financial) by 248,300 shares, or 79.08%, for a total of 562,300 shares. The transaction had an impact of 1.05% on the equity portfolio. The shares traded at an average price of 5,855.08 yen during the quarter.

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OBIC Business Consultants is a Japanese developer of business solutions software. Its products include accounting software, the “Bugyo series” of business PC software packages, computer supplies and peripheral equipment such as PCs and communications devices.

On October 21, OBIC shares were trading at around 5,830.00 yen for a market cap of 411.52 billion yen. According to the GF Value chart, the stock is valued at its fair value.

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The company has a financial strength rating of 9 out of 10 and a profitability rating of 9 out of 10. The Piotroski F-Score of 7 out of 9 and Altman Z-Score of 10.83 show a fortress-type track record. Operating margin of 44.24% and net margin of 33.06% surpass 95% of competitors in the industry.

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Douzone Bizon

The fund recovered 136,800 Douzone Bizon shares (XKRX: 012510, Financial), giving the company a weight of 0.92% in the equity portfolio. During the quarter, the shares traded at an average price of 90,243.10 South Korean won ($ 76.55).

Douzone Bizon, based in South Korea, is a leading information, communication and technology (ICT) company that develops software for e-commerce solutions, strategic business management and custom software solutions for small and medium businesses.

On October 21, Douzone Bizon shares were trading at around 94,800.00 won with a market cap of 2.88 billion won. According to the GF Value chart, the stock is valued at its fair value.

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The company has a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10. The cash-to-debt ratio of 0.25 is lower than 88% of its industry peers, but the Altman Z-Score of 5 , 58 indicates that the company is not in danger of bankruptcy. ROIC is typically higher than WACC, which means the company creates shareholder value.

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NICE Information Service

The fund increased its stake in NICE Information Service (XKRX: 030190, Financial) by 553,400 shares, or 67.6%, for a total of 1,372,000 shares. The transaction had an impact of 0.79% on the equity portfolio. The shares traded at an average price of 22,846.90 won during the quarter.

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NICE Information Service is a South Korean provider of credit information services. It is primarily engaged in the business of credit scoring, debt collection, personal credit, corporate information, asset management, data analysis and other financial services.

On October 21, NICE shares were trading at around 19,950.00 won with a market cap of 1.20 trillion won. According to the GF Value chart, the stock is valued at its fair value.

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The company has a financial strength rating of 8 out of 10 and a profitability rating of 8 out of 10. The interest coverage ratio of 144.49 and the Altman Z-Score of 10.05 show that the company should have zero. problem paying off debt. The company has a three-year revenue per share growth rate of 7.4% and a three-year EBITDA per share growth rate of 16.5%.

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GVS

The fund added 416,677 shares, or 41.73%, to its stake in GVS (MIL: GVS, Financial) for a total of 1,415,112 shares. The transaction had an impact of 0.49% on the equity portfolio. During the quarter, the shares traded at an average price of 13.87 euros ($ 16.12).

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GVS is an Italian manufacturer and distributor of filters and components for various industries including healthcare, life sciences, automotive, household appliances, safety and industrial filtration. In addition to its customizable prefabricated solutions, it also offers bespoke product development services.

On October 21, GVS shares were trading around 11.39 euros for a market capitalization of 1.99 billion euros. According to the Peter Lynch chart, the stock is trading above its intrinsic value but below its historic median valuation.

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The company has a financial strength rating of 7 out of 10 and a profitability rating of 5 out of 10. The cash-to-debt ratio of 1.32 and the Piotroski F-Score of 8 out of 9 indicate a very healthy financial position. Operating margin of 32.72% and net margin of 21.42% surpass 96% of their industry peers.

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Portfolio overview

At the end of the quarter, the fund’s stock portfolio consisted of 61 stocks valued at a total of $ 1.21 billion. The main holdings were IPH Ltd. (ASX: IPH, Financial) with 3.86% of the equity portfolio, TKC Corp. (IS: 9746, Financial) with 2.92% and Meitec Corp. (EST: 9744, financial) with 2.64%.

In terms of sector weighting, the firm was the most invested in industry, technology and basic materials.

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Jerome Dodson’s Parnassus Fund – GuruFocus.com https://atrx.net/jerome-dodsons-parnassus-fund-gurufocus-com/ Wed, 20 Oct 2021 21:17:35 +0000 https://atrx.net/jerome-dodsons-parnassus-fund-gurufocus-com/ Jerome Dodson (Trades, Portfolio) ‘s Parnassus fund recently unveiled its portfolio updates for the third quarter of 2021, which ended on September 30. The strategy of the Parnassus Fund is to seek long-term capital appreciation through securities that have wide gaps, long-term relevance, quality management teams, positive performance on environmental, social and financial criteria. governance […]]]>

Jerome Dodson (Trades, Portfolio) ‘s Parnassus fund recently unveiled its portfolio updates for the third quarter of 2021, which ended on September 30.

The strategy of the Parnassus Fund is to seek long-term capital appreciation through securities that have wide gaps, long-term relevance, quality management teams, positive performance on environmental, social and financial criteria. governance (ESG) and a market price below intrinsic value.

Dodson, the founder of Parnassus Investments, resigned from the board effective January 1 and will no longer manage the funds, although he will remain chairman of the board. In July, Affiliated Managers Group announced that it was paying $ 600 million to acquire a controlling stake in Parnassus Investments, so more changes may be underway for the company and its funds.

According to the latest 13F file, the fund made three new purchases during the quarter: Match Group Inc. (MTCH, Financial), Okta Inc. (OKTA, Financial) and StoneCo Ltd. (STNE, Financial). Notable sales included Fair Isaac Corp. (FICO, Financial) and Grocery Outlet Holding Corp. (GO, Financial).

Match group

The fund has formed a participation worth 168,730 shares in Match Group (MTCH, Financial), giving the stock a weighting of 2.45% in the equity portfolio. During the quarter, the shares traded at an average price of $ 152.33.

Match Group is a Dallas-based online dating services company. It has a near-total monopoly on the world’s leading online dating services with 45 brands in total, including Tinder, Match.com, Meetic, OkCupid, Hinge, PlentyOfFish, Ship, and OurTime.

On October 20, Match Group shares were trading around $ 159.01 for a market cap of $ 44.83 billion. According to the GuruFocus Value chart, the stock is significantly overvalued.

The company has a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10. The cash-to-debt ratio of 0.07 is lower than 97% of its industry peers, but the Piotroski F-Score of 6 out of 9 indicates the financial situation is stable. Return on invested capital is typically greater than the weighted average cost of capital, which means the company creates shareholder value.

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Okta

The fund bought 88,581 Okta shares (OKTA, Financial), giving the stock a weighting of 1.95% in the equity portfolio. The shares traded at an average price of $ 248.53 during the quarter.

Okta is a San Francisco-based identity and access management software company. It provides cloud-based software that helps businesses manage and secure user authentication and create identity checks across apps, websites, web services, and devices.

On October 20, Okta shares were trading around $ 256.41 for a market cap of $ 39.66 billion. According to the GF Value chart, the stock is valued at its fair value.

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The company has a financial strength rating of 5 out of 10 and a profitability rating of 2 out of 10. The Piotroski F-Score of 4 out of 9 and Altman Z-Score of 8.27 show that the company is not at risk of coping. to liquidity problems. . Both operating margin and net margin are in the negative range, so the business is probably far from profitable.

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StoneCo

The Fund also invested in 545,524 shares of StoneCo Ltd. (STNE, Financial), giving the stock a weighting of 1.75% in the equity portfolio. During the quarter, the shares traded at an average price of $ 52.07.

StoneCo is a Brazilian financial technology company that provides an end-to-end, cloud-based technology platform for merchants and integrated partners to perform e-commerce across in-store, online and mobile channels.

Warren Buffett (Trades, Portfolio) is also known to hold a stake in this company.

On October 20, StoneCo shares were trading around $ 39.32 for a market cap of $ 12.17 billion. According to the Peter Lynch chart, the stock is trading above its intrinsic value but below its historic median valuation.

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The company has a financial strength rating of 4 out of 10 and a profitability rating of 5 out of 10. At 2.95, the interest coverage ratio is lower than 89% of its industry peers, although the Piotroski F- Score of 4 out of 9 indicates the balance sheet is stable. The company has a three-year revenue per share growth rate of 37.4% and a three-year EBITDA per share growth rate of 73.6%.

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Just Isaac

The fund sold its stake of 43,769 shares in Fair Isaac (FICO, Financial), impacting the equity portfolio by -1.95%. The shares traded at an average price of $ 475.97 during the quarter.

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Fair Isaac, better known to most Americans as FICO, is a credit rating company based in San Jose, California. It provides one of the three main credit scores used to measure consumer credit risk, determining how much each person can borrow and at what rates.

On October 20, shares of Fair Isaac were trading around $ 409.84 for a market cap of $ 11.66 billion. According to the GF Value chart, the stock is valued at its fair value.

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The company has a financial strength rating of 5 out of 10 and a profitability rating of 9 out of 10. The cash-to-debt ratio of 0.21 is on the low end of the spectrum, but the Altman Z-Score of 8.09 shows that the company is not in danger of bankruptcy. ROIC is typically higher than WACC, which means the business creates value as it grows.

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Running a food store

The Fund also liquidated its investment of 480,372 shares in Grocery Outlet Holding (GO, Financial), which had an impact of -1.48% on the equity portfolio. During the quarter, the shares traded at an average price of $ 28.81.

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Grocery Outlet operates a chain of discount supermarkets that offer overstock and clearance products from a wide variety of suppliers. The California-based company has stores in California, Oregon, Washington, Idaho, Nevada and Pennsylvania.

On October 20, shares of Grocery Outlet were trading around $ 23.05 for a market cap of $ 2.22 billion. According to the Peter Lynch chart, the stock is trading above its intrinsic value but below its historic median valuation.

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The company has a financial strength rating of 4 out of 10 and a profitability rating of 4 out of 10. The Piotroski F-Score of 6 out of 9 and Altman Z-Score of 2.37 show that the company is not. likely to go bankrupt within the next two years. The company has a three-year revenue per share growth rate of 4.4% and a three-year EBITDA growth rate of 2.5%.

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Portfolio overview

At the end of the quarter, the fund held shares of 42 common stocks valued at a total of $ 1.08 billion. The turnover rate for the quarter was 7%.

The main titles were Cadence Design Systems Inc. (CDNS, financial) with 4.22% of the equity portfolio, Agilent Technologies Inc. (A, Financial) with 4.03% and Old Dominion Freight Line Inc. (ODFL, financial) with 3.85%.

In terms of sector weighting, the fund was primarily invested in technology, healthcare and consumer discretionary.

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Investment loans fully guarantee the agency’s eligible PMT loan trust pool https://atrx.net/investment-loans-fully-guarantee-the-agencys-eligible-pmt-loan-trust-pool/ Tue, 19 Oct 2021 21:02:00 +0000 https://atrx.net/investment-loans-fully-guarantee-the-agencys-eligible-pmt-loan-trust-pool/ Sponsors of PMT Loan Trust 2021-INV1 plan to issue residential mortgage-backed securities (MBS) worth $ 414 million. good ratings throughout most of the deal, according to the Kroll Bond rating agency. The inclusion of investment real estate loans in Residential Mortgage Backed Securities (MBS) transactions generally raises rating alerts, possibly because these properties are more […]]]>

Sponsors of PMT Loan Trust 2021-INV1 plan to issue residential mortgage-backed securities (MBS) worth $ 414 million. good ratings throughout most of the deal, according to the Kroll Bond rating agency.

The inclusion of investment real estate loans in Residential Mortgage Backed Securities (MBS) transactions generally raises rating alerts, possibly because these properties are more susceptible to speculation, more likely to have homeowners with less stable incomes and less likely to receive adequate maintenance.

PMT Loan Trust home loans, which represent the entire collateral pool, are eligible for agencies. The borrowers of the underlying loans of the PMT Loan Trust 2021-INV1 have an original weighted average (WA) credit score of 778, plus a WA debt-to-income ratio of 34.6%.

In addition, borrowers have significant equity in properties securing mortgages, as evidenced by WA’s original loan-to-value ratio of 59.2%, KBRA said.

The KBRA said it assigns higher probabilities of default to unoccupied properties compared to primary residences. In addition, the rating agency said, it applied an additional penalty to the pool’s projected default, compared to typical RMBS prime pools.

Approximately 1,416 loans are in PMT Loan Trust’s collateral pool as of the October 1 agreement deadline. The loans have an average balance of $ 292,855.

The business is geographically diverse along two lines, the state and metropolitan areas.

Mortgages in California represent 38.1% of the pool’s loan balance, followed by Washington, with 7.4% and Texas, with 5.4%. The collateral pool exhibits an even higher level of diversification by Basic Statistical Area (CBSA) – even though most of the major CBSAs are located on the West Coast. Los Angeles accounts for about 13.2% of the pool’s balance, followed by Washington, DC at 7.0% and San Francisco at 6.7%.

The six super senior tranches, rated AAA, benefited from a 15% credit enhancement. The senior support tranche has an enhancement level of 5.5%, and the subordinated sequential tranches have an enhancement ranging from 0.85% to 5.15%.

Bank of America and Morgan Stanley & Co. are the main buyers of the notes.


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Gannett Announces Closing of Debt Refinancing – Form 8-K https://atrx.net/gannett-announces-closing-of-debt-refinancing-form-8-k/ Mon, 18 Oct 2021 21:02:09 +0000 https://atrx.net/gannett-announces-closing-of-debt-refinancing-form-8-k/ Gannett announces closing of debt refinancing MCLEAN, VA – October 18, 2021 – Gannett Co., Inc. (“Gannett”, “we”, “our”, “our” or the “Company”) (NYSE: GCI) today announced that Gannett Holdings LLC (the “Borrower”), a wholly owned subsidiary of the Company, has entered into a five-year senior secured term loan facility in the aggregate principal amount […]]]>

Gannett announces closing of debt refinancing

MCLEAN, VA – October 18, 2021 – Gannett Co., Inc. (“Gannett”, “we”, “our”, “our” or the “Company”) (NYSE: GCI) today announced that Gannett Holdings LLC (the “Borrower”), a wholly owned subsidiary of the Company, has entered into a five-year senior secured term loan facility in the aggregate principal amount of $ 516 million (the “Credit Facility ”) On October 15, 2021. The proceeds of the Credit Facility, together with the net proceeds of the private placement of an aggregate principal amount of $ 400 million of 6.00% Senior Notes due 2026 (the“ Notes senior “), were used to repay the existing term loan in full. The sale of the Senior Bonds was also closed on October 15, 2021.

Loans under the credit facility bear interest at an annual rate equal to LIBOR plus a margin of 5.00% with a floor of 50 basis points. the ability to incur debt, grant liens, sell assets, make investments, and pay dividends, in each case with the usual exceptions, including an exception that allows dividends and junior debt buybacks or equity in (i) for a maximum amount of $ 25 million per fiscal quarter if the ratio of secured debt on an equal basis with the credit facility to EBITDA of the Company and its restricted subsidiaries (the “ratio senior net leverage ”) for that fiscal quarter is equal to or less than 2.00 to 1.00, (ii) an amount of up to $ 50 million per fiscal quarter if the senior net leverage ratio for that fiscal quarter is fiscal quarter is equal to or less than 1.50 to 1.00 and (iii) an unlimited amount if the senior net leverage ratio for that fiscal quarter is equal to or less than 1.00 to 1.00. All obligations under the Credit Facility are secured by all or substantially all of the assets of the Company and the Company’s wholly owned domestic subsidiaries (the “Guarantors”). The obligations of the Borrower under the Credit Facility are secured on a senior basis by the Company and the Guarantors.

“This refinancing reduces our cost of capital by almost 200 basis points, saving significant interest charges, while improving the terms of our previous credit facility entered into in February 2021,” said Michael Reed, President and CEO General of Gannett. “Since the acquisition of the former Gannett company in November 2019, we have paid off $ 379 million in debt and reduced our cost of capital by 570 basis points. to reduce our annual interest costs and overall leverage. ”

About Gannett

Gannett Co., Inc. (NYSE: GCI) is a subscription-focused, digital media and marketing solutions company committed to empowering communities to thrive. With unparalleled reach nationally and locally, Gannett touches the lives of millions of people with our Pulitzer Prize-winning content, our experiences and benefits for consumers, and our products and services for advertisers. Our current portfolio of media assets includes USA TODAY, local media organizations in 46 US states, and Newsquest, a wholly owned subsidiary operating in the UK with over 120 local news media brands. Gannett also owns the digital marketing services companies ReachLocal, Inc., UpCurve, Inc. and WordStream, Inc., which are marketed under the LOCALiQ brand, and operates the largest media-owned events business in the United States, USA TODAY NETWORK Ventures. To join us, visit www.gannett.com.

Caution Regarding Forward-Looking Statements

Certain elements of this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our ability to repay our debts and reduce our interest expenses. Words such as “expect”, “will” and similar expressions are intended to identify such forward-looking statements. These statements are based on the current expectations and beliefs of management and are subject to a number of risks and uncertainties. These and other risks and uncertainties could cause actual results to differ materially from those described in forward-looking statements, many of which are beyond our control. The Company cannot guarantee that its expectations will be met. Therefore, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from these forward-looking statements, see the risks and other factors detailed from time to time in the Company’s 2020 Annual Report on Form 10-K , and other filings with the Securities and Exchange Commission. In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in the statements. prospective. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to publish any update or revision of any forward-looking statement contained herein to reflect any change in the Company’s expectations in this regard or any change in the events, conditions or circumstances on which a statement is made. is based.

For investor inquiries, contact:

For media inquiries, contact:

Trisha gosser

Alouette-Marie Anton

Investor Relations

Senior Vice-President, Communications

703-854-3000

646-906-4087

investors@gannett.com

alouette@gannett.com


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Investing in stocks: when should you rebalance your portfolio https://atrx.net/investing-in-stocks-when-should-you-rebalance-your-portfolio/ Sun, 17 Oct 2021 20:00:00 +0000 https://atrx.net/investing-in-stocks-when-should-you-rebalance-your-portfolio/ When you rebalance your portfolio and return to your initially decided allocation ratio, you are making purchases in a bear market and making profits in a bull market. By Joydeep Sen The equity market has been in a secular bull run since March 2020. Some investors fear a potential correction and wonder what the right […]]]>
When you rebalance your portfolio and return to your initially decided allocation ratio, you are making purchases in a bear market and making profits in a bull market.

By Joydeep Sen

The equity market has been in a secular bull run since March 2020. Some investors fear a potential correction and wonder what the right approach would be, from a partial profit recognition standpoint or a slightly defensive approach. AMCs’ balanced advantage funds receive sustained inflows from investors, who are reluctant to take higher exposure to equities at this point.

The context
Your portfolio includes different asset classes like stocks, debt, gold, etc. The allocation ratio to the different investment assets is decided according to your risk profile, your time horizon, your investment objectives, the risk profile of the asset class, etc. Apart from these aspects, the allocation ratio is a powerful tool from a different point of view.

When you rebalance your portfolio and return to your initially decided allocation ratio, you are making purchases in a bear market and making profits in a bull market. This is a discipline that prompts you to take partial profits at higher valuations and buy at cheaper valuations.

Illustration and point of action
By way of illustration, an investor follows an allocation ratio of 60:40, 60% in equities and 40% in fixed income. In the equity market correction phase from January to March 2020, the allocation to equity would have fallen significantly below 60% (post correction) and debt would have increased beyond 40% (due to the equity correction). equity and debt accruals). If the rebalancing had been done in March 2020, he would have bought that much equity to restore balance. This would have resulted in purchases at lower prices.

Cut in the current context. Following the rally of the past year and a half, if the allocation decided is 60/40, the equity component would be above 60%. Whether or not the correction occurs, if you restore the balance, you will recognize partial profit. You cannot control the market, but by controlling the asset allocation of your portfolio, you would have some control over the potential volatility of your portfolio.

Rebalancing faces a psychological hurdle: partially shifting from a high yield avenue (e.g., this gives me a 15% yield over a long horizon) to a low yield avenue (e.g., waiting for the debt is only 6% now). On the other hand, when the market is at its lowest, we tend to hold on (it will become even cheaper after a few days, so I’ll buy). This is where you need to separate your emotions from your financial investments.

Conclusion
The reason this is done is not to chase after the avenue of investment with the highest return, as the returns of the different categories vary each year, with each market cycle. The reason is that your portfolio should give you the optimal result, adjusted for volatility. In other words, your journey should be relatively smooth. Trying to predict the level of the markets is futile; what is in your control is the portfolio you build, depending on your goals.
The 60:40 ratio mentioned above is for illustration only; the longer your horizon, the higher the allocation to equities can be, as long as you don’t worry about potholes in the road, i.e. volatility. When you need to rebalance cannot be set; When there is a sustained bearish or bullish rally and the ratio has deviated significantly from your intentions, it is time to do so.

The writer is a business trainer and author

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A call to prevent the governor of Gombe from mortgaging the state with debt https://atrx.net/a-call-to-prevent-the-governor-of-gombe-from-mortgaging-the-state-with-debt/ Sat, 16 Oct 2021 18:27:59 +0000 https://atrx.net/a-call-to-prevent-the-governor-of-gombe-from-mortgaging-the-state-with-debt/ We have followed the wave of borrowing by the government led by Muhammadu Inuwa Yahaya in Gombe State and noticed that it has borrowed well over 44 billion naira in just over two years and yet it is about to get another 35 billion naira loan from the capital market. Already on October 6, 2021, […]]]>

We have followed the wave of borrowing by the government led by Muhammadu Inuwa Yahaya in Gombe State and noticed that it has borrowed well over 44 billion naira in just over two years and yet it is about to get another 35 billion naira loan from the capital market. Already on October 6, 2021, the Executive Council of Gombe State approved the loan and ordered the Commissioner of Finance and Economic Planning “to write to the Honorable Minister of Finance to issue an ISPO of N 665,605,647.90 per month to allow deductions. the FAAC allocation from the State in settlement of principal and interest accrued on the Suku through a sinking fund to be created for the purpose and payment of financial advice. Service charge of 0.005% of the sum of N 175,000,000.00 to Finmal Finance Services Ltd ”(a company reportedly owned by Umaru Kwarianga, chairman of Gombe Investments and Property Development Company and campaign manager for the election of Governor Muhammadu Inuwa Yahaya in 2019).

Of particular concern to us is that these excessive borrowing which comes with an overwhelming socio-economic burden and impact on the state are not being spurred or pushed by the urgent and realistic needs of the state. . This irresponsible borrowing enthusiasm, if left unchecked or curbed, will eventually cripple the state and subject its people to a long term of heinous and hellish economic slavery. The primary condition for the justification of a state government to borrow is the ability of the proposed project to be self-sufficient, capable of repaying the loan and, above all, is an integral and vital part of the state’s fiscal and development framework. State debts should not be acquired at the whim and pleasure of the rulers of the state, but for the sole purpose of accelerating development at a relatively reasonable cost.

We ask the Governor of the State of Gombe to publish, within seven days of this publication, in at least one national daily and one circulating within the State the details of all debts that it has contracted, the details of which must include the amounts, the object of such debts and their link with the government’s development program, cost-benefit analysis showing the economic and social benefits of these loans, cash flow projection to verify the viability and sustainability of the purpose of the loan, audited financial statements for the last three consecutive years, appropriation laws authorizing the purposes for which the loans were used, the amount that was repaid or the repayment plan, the ratio the profile of the state’s debt in relation to its total revenue, the revenue generated internally of the state, the state’s investments (if applicable), proof of obtaining and maintaining the rating Debt Sustainability Analyzes by the DMO, evidence of an updated submitted quarterly data on domestic debt to the DMO and evidence of compliance with all investment and securities law requirements movables (ISA) 2007.

By this posting we also put all banks that have made loans to Gombe State government or are in the process of processing loans for Gombe State government or are involved in government loans of Gombe Gombe State in any way, on NOTICE that we will put in place legal proceedings to ensure that they face the full wrath of the law for any failure to meet all regulatory requirements regarding such involvement.

We also call on the following institutions and offices to pay attention to the borrowing appetite of the Gombe State government with a view to complying with the DMO’s national guidelines for state governments:

Debt Management Office / Debt Management Office;
the Vice-President of the Federal Republic of Nigeria
the Minister of Finance;
the Attorney General of the Federation;
the Minister responsible for national planning;
the chief economic adviser to the president;
the Governor of the Central Bank of Nigeria; and
the general accountant of the Federation;

In the case of the DMO and the Minister of Finance, we state that it has the continuing duty of the people of Gombe State to ensure that the Gombe State government does not acquire any debt without complying. to the letter and spirit of the Guidelines for such loans. .

We fear that despite the borrowing of colossal sums and of course the State’s revenues from the FAAC and the IGR, the State is getting poorer every day, its infrastructure, its public institutions and its services are deteriorating. an accelerated pace. The growing profiles of the education and health sectors of the state under previous governments are fading, and no aspect of the state can be said to have been positively affected by this borrowing government. Indeed, the state is collapsing and the current borrowing frenzy is indicative of the ignorance of Governor Yahaya and his team. The government has awarded contracts on paper, but we boldly assert that the reality on the ground does not reflect such contracts.

Sign ___________________________

MOHAMMED SALISU ABDULLAHI

Curator

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Nigeria’s debt-to-GDP ratio to reach 42% by 2026 – IMF https://atrx.net/nigerias-debt-to-gdp-ratio-to-reach-42-by-2026-imf/ Fri, 15 Oct 2021 23:36:04 +0000 https://atrx.net/nigerias-debt-to-gdp-ratio-to-reach-42-by-2026-imf/ Posted October 16, 2021 The International Monetary Fund has forecast that the ratio of the Nigerian government’s gross debt to gross domestic product will rise to 42% by 2026, from 35.7% in 2021. The IMF said so in the October 2021 fiscal surveillance report posted on its website. He said the country’s gross debt-to-GDP ratio […]]]>

The International Monetary Fund has forecast that the ratio of the Nigerian government’s gross debt to gross domestic product will rise to 42% by 2026, from 35.7% in 2021.

The IMF said so in the October 2021 fiscal surveillance report posted on its website.

He said the country’s gross debt-to-GDP ratio would drop from 35.7% in 2021 to 36.9% in 2022, 37.7% in 2023, 39.1% in 2024 and 40.6% in 2025.

According to the report, gross debt includes overdrafts of the Central Bank of Nigeria and debts of the Asset Management Corporation of Nigeria.

He said the ratio of government revenue to GDP would rise from 7.2% in 2021 to 6.5% in 2026, while the ratio of government expenditure to GDP would rise from 13.3% in 2021 to 12.6% in 2026..

The IMF said the ratio of general government net debt to GDP will rise from 35.3% in 2021 to 41.8% in 2026.

According to the report, net debt includes overdrafts of CBN and debts of AMCON.

“Government overdrafts and deposits at the Central Bank of Nigeria are almost canceled out, and the debt of the Asset Management Corporation of Nigeria is roughly halved,” he added.

The report says that for low-income developing countries like Nigeria, average gross debt in 2021 would likely remain stable at nearly 50% in 2020, while debt vulnerabilities “are expected to be high with a borrowing margin. smaller and smaller “.

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ACCENTRO Real Estate (ETR: A4Y) appears to be using a lot of debt https://atrx.net/accentro-real-estate-etr-a4y-appears-to-be-using-a-lot-of-debt/ Thu, 14 Oct 2021 04:04:57 +0000 https://atrx.net/accentro-real-estate-etr-a4y-appears-to-be-using-a-lot-of-debt/ Legendary fund manager Li Lu (who Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but the possibility that you will suffer a permanent loss of capital. When we think about how risky a business is, we always like to look at its use of debt because debt overload can […]]]>

Legendary fund manager Li Lu (who Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but the possibility that you will suffer a permanent loss of capital. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. Above all, ACCENTRO Immobilier SA (ETR: A4Y) carries the debt. But the most important question is: what risk does this debt create?

Why Does Debt Bring Risk?

Debt helps a business until the business struggles to repay it, either with new capital or with free cash flow. If things really go wrong, lenders can take over the business. However, a more common (but still painful) scenario is that he must raise new equity at low cost, thereby diluting shareholders over the long term. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. When we look at debt levels, we first look at cash and debt levels together.

Check out our latest review for ACCENTRO Real Estate

What is ACCENTRO Real Estate’s debt?

The image below, which you can click for more details, shows that in June 2021 ACCENTRO Real Estate had a debt of 653.8 million euros, compared to 452.4 million euros in one year. . However, because it has a cash reserve of 113.0 million euros, its net debt is lower, at around 540.9 million euros.

XTRA debt history: A4Y on equity October 14, 2021

How strong is ACCENTRO Real Estate’s balance sheet?

Zooming in on the latest balance sheet data, we can see that ACCENTRO Real Estate had a liability of 227.6 million euros due within 12 months and a liability of 498.0 million euros due beyond. . On the other hand, it had cash of € 113.0 million and € 91.8 million in receivables within one year. It therefore has total liabilities of € 520.8 million more than its combined cash and short-term receivables.

This deficit casts a shadow on the company of 220.6 M €, like a colossus dominating mere mortals. We would therefore be watching its record closely, without a doubt. After all, ACCENTRO Real Estate would likely need a major recapitalization if it were to pay its creditors today.

We measure a company’s debt load relative to its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation, and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT) covers its interest costs (interest coverage). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt versus EBITDA) and the actual interest charges associated with this debt (with its coverage rate). interests).

The low interest coverage of 0.71 times and an unusually high Net Debt / EBITDA ratio of 58.4 affected our confidence in ACCENTRO Real Estate like a punch in the stomach. This means that we would consider him to be in heavy debt. Worse yet, ACCENTRO Real Estate has seen its EBIT reach 61% over the past 12 months. If profits continue to follow this path, it will be more difficult to pay off this debt than to convince us to run a marathon in the rain. There is no doubt that we learn the most about debt from the balance sheet. But it is future profits, more than anything, that will determine ACCENTRO Real Estate’s ability to maintain a healthy balance sheet going forward. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

But our last consideration is also important, because a business cannot pay its debts with paper profits; he needs hard cash. We must therefore clearly check whether this EBIT generates a corresponding free cash flow. Over the past three years, ACCENTRO Real Estate has recorded a significant negative free cash flow in total. While investors no doubt expect this situation to reverse in due course, this clearly means its use of debt is riskier.

Our point of view

To be frank, ACCENTRO Real Estate’s EBIT growth rate and its history of staying above its total liabilities make us rather uncomfortable with its debt levels. And even its interest coverage doesn’t inspire much confidence. Considering everything we have mentioned above, it is fair to say that ACCENTRO Real Estate is heavily in debt. If you play with fire you might get burned, so we would probably give this stock a lot of space. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks lie on the balance sheet – far from it. For example ACCENTRO Real Estate has 2 warning signs (and 1 which is of concern) we think you should be aware of.

At the end of the day, sometimes it’s easier to focus on businesses that don’t even need to go into debt. Readers can access a list of growth stocks with zero net debt 100% free, at present.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St does not have any position in the mentioned stocks.

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


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Is Saratovenergo (MCX: SARE) using too much debt? https://atrx.net/is-saratovenergo-mcx-sare-using-too-much-debt/ Thu, 14 Oct 2021 03:37:19 +0000 https://atrx.net/is-saratovenergo-mcx-sare-using-too-much-debt/ Warren Buffett said: “Volatility is far from synonymous with risk”. So it seems like smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess the level of risk of a business. Above all, Public limited company Saratovenergo (MCX: SARE) carries a debt. But the […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk”. So it seems like smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess the level of risk of a business. Above all, Public limited company Saratovenergo (MCX: SARE) carries a debt. But the real question is whether this debt makes the business risky.

Why Does Debt Bring Risk?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, then it exists at their mercy. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that he must raise new equity at low cost, thereby diluting shareholders over the long term. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we think of a business’s use of debt, we first look at cash flow and debt together.

Discover our latest analysis for Saratovenergo

How much debt does Saratovenergo have?

The image below, which you can click for more details, shows that Saratovenergo had a debt of 1.08 billion yen at the end of June 2021, down from 1.24 billion yen year on year. And he doesn’t have a lot of cash, so his net debt is about the same.

MISX: SARE History of debt to equity October 14, 2021

How strong is Saratovenergo’s balance sheet?

The latest balance sheet data shows Saratovenergo had liabilities of 2.88 billion yen due within one year, and liabilities of 162.9 million yen due thereafter. In compensation for these obligations, he had cash of 1.13 million as well as receivables valued at 2.38 million due within 12 months. It therefore has liabilities totaling 664.6 million yen more than its combined cash and short-term receivables.

This is a mountain of leverage compared to its market capitalization of 802.7 million euros. This suggests that shareholders would be heavily diluted if the company needed to consolidate its balance sheet quickly.

In order to measure a company’s debt relative to its profits, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its profit before interest and taxes (EBIT) divided by its interest. debtors (its interest coverage). Thus, we look at debt over earnings with and without amortization charges.

Low interest coverage of 0.20 times and an unusually high net debt to EBITDA ratio of 14.6 hit our confidence in Saratovenergo like a punch in the gut. The debt burden here is considerable. A buyout factor for Saratovenergo is that it turned last year’s EBIT loss into a gain of € 8.0 million, in the past twelve months. There is no doubt that we learn the most about debt from the balance sheet. But you can’t look at debt in isolation; since Saratovenergo will need income to repay this debt. So, when considering debt, it is really worth looking at the profit trend. Click here for an interactive snapshot.

Finally, a business needs free cash flow to repay its debts; accounting profits are not enough. It is therefore important to check to what extent its earnings before interest and taxes (EBIT) are converted into actual free cash flow. Considering the past year, Saratovenergo has actually experienced a cash outflow overall. Debt is typically more expensive and almost always riskier in the hands of a business with negative free cash flow. Shareholders should hope for improvement.

Our point of view

To be frank, Saratovenergo’s net debt to EBITDA and history of hedging its interest charges with its EBIT makes us rather uncomfortable with its debt levels. But at least its EBIT growth rate isn’t that bad. It should also be noted that Saratovenergo belongs to the electric utility sector, which is often seen as quite defensive. We’re pretty clear that we consider Saratovenergo to be really quite risky, due to the health of its balance sheet. We are therefore almost as wary of this stock as a hungry kitten falls into its owner’s fish pond: once bitten, twice shy, as they say. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks lie on the balance sheet – far from it. Be aware that Saratovenergo shows 4 warning signs in our investment analysis , and 2 of them are not very good with us …

If, after all of this, you’re more interested in a fast-growing company with a strong balance sheet, take a quick look at our list of cash-flow net-growth stocks.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St does not have any position in the mentioned stocks.

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


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Focus on green investments after pandemic important for India: IMF https://atrx.net/focus-on-green-investments-after-pandemic-important-for-india-imf/ Thu, 14 Oct 2021 01:29:22 +0000 https://atrx.net/focus-on-green-investments-after-pandemic-important-for-india-imf/ India’s debt is around 90 percent, said the IMF’s Paolo Mauro. Washington: As the Indian economy recovers from the Covid-19 pandemic that has hit it hard, it is important for the country to focus on public investment, especially in green sectors, the International Monetary Fund said on Wednesday. “As we move towards the recovery, it […]]]>

India’s debt is around 90 percent, said the IMF’s Paolo Mauro.

Washington: As the Indian economy recovers from the Covid-19 pandemic that has hit it hard, it is important for the country to focus on public investment, especially in green sectors, the International Monetary Fund said on Wednesday.

“As we move towards the recovery, it is also important to focus on public investment, especially green investment, so that the recovery can be inclusive and green,” said the deputy director of the Department of IMF public finances, Paolo Mauro, at a press conference. conference in Washington.

He said India’s debt is around 90% and it is important to point out that there is a medium term fiscal framework that assures investors that the debt ratio will decrease over the medium term.

Responding to a question, Mauro said the situation is improving regarding the outbreak.

It’s very different from a few months ago, he said, adding, thankfully, that the number of cases is declining and vaccination is becoming more widespread.

“From an economic point of view, therefore, even if the situation is improving, the priority remains to deal with the health emergency. Sufficient support remains to be provided, in particular to the poorest segments of the population through social protection, employment benefits, etc. Said Mauro.

“In terms of more recent reforms, one I would like to highlight is the National Asset Reconstruction Company, the so-called bad bank. This is potentially very promising because it is important to tackle non-performing loans, ”he said.

This has held back credit for a long time, and it’s potentially very promising, he added.

“It is very important that the governance and independence of these so-called bad banks are in place so that the costs to public finances can be contained and that we can return to the promotion of inclusive growth”, Mauro said.

(This story was not edited by NDTV staff and is auto-generated from a syndicated feed.)


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