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Seuna

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- SeunaSeuna
  ·2021-10-06
  Lol
  非常抱歉，此主贴已删除
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- SeunaSeuna
  ·2021-10-05
  Nice
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- SeunaSeuna
  ·2021-10-04
  Can
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- SeunaSeuna
  ·2021-10-03
  Nice
  非常抱歉，此主贴已删除
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- SeunaSeuna
  ·2021-10-02
  Lole
  非常抱歉，此主贴已删除
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- SeunaSeuna
  ·2021-10-01
  Ok
  Professor who called Dow 20,000 says he’s nervous about trends in inflation that could spark a stock-market correction
  Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School of Business,
  Professor who called Dow 20,000 says he’s nervous about trends in inflation that could spark a stock-market correction
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- SeunaSeuna
  ·2021-09-30
  Nive
  Eyewear maker Warby Parker spikes 34% on its first day of trading
  Eyewear maker Warby Parker spikes 34% on its first day of trading. NYSE assigns reference price of
  Eyewear maker Warby Parker spikes 34% on its first day of trading
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- SeunaSeuna
  ·2021-09-29
  Ok
  Tech stocks were just stomped. Here's what to watch next, according to Goldman Sachs.
  Tech stocks just got pounded as bad as the New York Times restaurant review of Eleven Madison Park.
  Tech stocks were just stomped. Here's what to watch next, according to Goldman Sachs.
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- SeunaSeuna
  ·2021-09-29
  Oike
  Walmart: Limited Long-Term Returns Under Current Valuations
  Summary This article analyzes Walmart from the perspective of its profit sustainability by the most
  Walmart: Limited Long-Term Returns Under Current Valuations
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- SeunaSeuna
  ·2021-09-28
  Ok
  非常抱歉，此主贴已删除
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08:27","market":"us","language":"en","title":"Professor who called Dow 20,000 says he’s nervous about trends in inflation that could spark a stock-market correction","url":"https://stock-news.laohu8.com/highlight/detail?id=1124647688","media":"MarketWatch","summary":"Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School of Business, ","content":"<p>Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School of Business, on Wednesday said that a fresh surge in inflation is making him nervous and warned that accelerating pricing pressures could compel the Federal Reserve to raise interest rates at a faster clip than currently anticipated, which could deliver a correction to equity benchmarks.</p>\n<p>The Wharton professorcredited with calling Dow 20,000&nbsp;in 2015 told CNBC during a Wednesday interview that he is “nervous about the trends I see in inflation currently.”</p>\n<p>The academic’s comments came as Federal Reserve Chairman Jerome Powell on Wednesday said a bout of high U.S. inflation could be prolonged into early next year because parts and material shortages might be getting worse.</p>\n<p>Parts of the financial market are undergoing big price surges, including natural-gas futuresNG00,+1.81%,whichsurged 11% on Monday,reaching levels not seen since 2014 amid tight U.S. supplies and strengthening demand across the globe.</p>\n<p><b>Read:</b>Inflation in the U.S. is running at the highest level in 30 years</p>\n<p><b>Also:</b>Fed’s Williams predicts the high rate of inflation will cool to 2% in 2022</p>\n<p>“It’s frustrating to see the supply-chain problems not getting better, in fact they are probably getting worse,” Powell said during a virtual forum with other central bank leaders, including those from the European Central Bank. “It’s very difficult to say how big the effects will be in the meantime and how long they will last.”</p>\n<p>The rate of inflation in the U.S., using the Fed’s preferred personal-consumption expenditures price index, rose at a 4.2% pace in the 12 months ended in July. That is the fastest increase in 30 years. Inflation is running even hotter based on the better-known consumer-price index, a measure of the average prices paid by consumers for a common basket of goods and services that serves as a barometer of economic health.</p>\n<p>Powell and others at the Fed have contended for months that the surge in inflation was “transitory.”</p>\n<p>However, that view is starting to shift and investors are starting to factor in more persistent inflation than previously thought,analysts say.</p>\n<p>Siegel said the anticipated timeline that the Fed will start tapering in November and end it the middle of 2022, with an eye toward starting to raise interest rates sometime next year, is a fair timetable, but he but fears that the surge in inflation could hasten moves, which would drive yields higher and stocks lower.</p>\n<p>On Wednesday, the S&amp;P 500 indexSPX,-1.19%ended higher but was still down 3.9% from its Sept. 2 record close, and the Dow Jones Industrial AverageDJIA,-1.59%was off 3.5% from its Aug. 16 record high, following marginal gains on the session. The technology-laden Nasdaq Composite IndexCOMP,-0.44%is down 5.6% from its Sept. 7 closing peak after finishing lower on Wednesday.</p>\n<p>A correction in an asset is usually defined by market technicians as a fall of at least 10%, but no more than 20%, from a recent peak.</p>\n<p>Meanwhile, the benchmark 10-year Treasury noteTMUBMUSD10Y,1.504%,used to price everything from car loans to mortgages, yielded 1.54%, up from 1.534% on Tuesday. The note is up nearly 10 basis points so far this quarter and up 23.7 basis points in September alone, according data compiled by Dow Jones Market Data.</p>","source":"market_watch","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Professor who called Dow 20,000 says he’s nervous about trends in inflation that could spark a stock-market correction</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nProfessor who called Dow 20,000 says he’s nervous about trends in inflation that could spark a stock-market correction\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-10-01 08:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/professor-who-called-dow-20-000-says-hes-nervous-about-trends-in-inflation-that-could-spark-a-stock-market-correction-11632949212?siteid=yhoof2><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School of Business, on Wednesday said that a fresh surge in inflation is making him nervous and warned that accelerating...</p>\n\n<a href=\"https://www.marketwatch.com/story/professor-who-called-dow-20-000-says-hes-nervous-about-trends-in-inflation-that-could-spark-a-stock-market-correction-11632949212?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.marketwatch.com/story/professor-who-called-dow-20-000-says-hes-nervous-about-trends-in-inflation-that-could-spark-a-stock-market-correction-11632949212?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/599a65733b8245fcf7868668ef9ad712","article_id":"1124647688","content_text":"Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School of Business, on Wednesday said that a fresh surge in inflation is making him nervous and warned that accelerating pricing pressures could compel the Federal Reserve to raise interest rates at a faster clip than currently anticipated, which could deliver a correction to equity benchmarks.\nThe Wharton professorcredited with calling Dow 20,000 in 2015 told CNBC during a Wednesday interview that he is “nervous about the trends I see in inflation currently.”\nThe academic’s comments came as Federal Reserve Chairman Jerome Powell on Wednesday said a bout of high U.S. inflation could be prolonged into early next year because parts and material shortages might be getting worse.\nParts of the financial market are undergoing big price surges, including natural-gas futuresNG00,+1.81%,whichsurged 11% on Monday,reaching levels not seen since 2014 amid tight U.S. supplies and strengthening demand across the globe.\nRead:Inflation in the U.S. is running at the highest level in 30 years\nAlso:Fed’s Williams predicts the high rate of inflation will cool to 2% in 2022\n“It’s frustrating to see the supply-chain problems not getting better, in fact they are probably getting worse,” Powell said during a virtual forum with other central bank leaders, including those from the European Central Bank. “It’s very difficult to say how big the effects will be in the meantime and how long they will last.”\nThe rate of inflation in the U.S., using the Fed’s preferred personal-consumption expenditures price index, rose at a 4.2% pace in the 12 months ended in July. That is the fastest increase in 30 years. Inflation is running even hotter based on the better-known consumer-price index, a measure of the average prices paid by consumers for a common basket of goods and services that serves as a barometer of economic health.\nPowell and others at the Fed have contended for months that the surge in inflation was “transitory.”\nHowever, that view is starting to shift and investors are starting to factor in more persistent inflation than previously thought,analysts say.\nSiegel said the anticipated timeline that the Fed will start tapering in November and end it the middle of 2022, with an eye toward starting to raise interest rates sometime next year, is a fair timetable, but he but fears that the surge in inflation could hasten moves, which would drive yields higher and stocks lower.\nOn Wednesday, the S&P 500 indexSPX,-1.19%ended higher but was still down 3.9% from its Sept. 2 record close, and the Dow Jones Industrial AverageDJIA,-1.59%was off 3.5% from its Aug. 16 record high, following marginal gains on the session. The technology-laden Nasdaq Composite IndexCOMP,-0.44%is down 5.6% from its Sept. 7 closing peak after finishing lower on Wednesday.\nA correction in an asset is usually defined by market technicians as a fall of at least 10%, but no more than 20%, from a recent peak.\nMeanwhile, the benchmark 10-year Treasury noteTMUBMUSD10Y,1.504%,used to price everything from car loans to mortgages, yielded 1.54%, up from 1.534% on Tuesday. The note is up nearly 10 basis points so far this quarter and up 23.7 basis points in September alone, according data compiled by Dow Jones Market Data.","news_type":1},"isVote":1,"tweetType":1,"viewCount":1967,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":865395511,"gmtCreate":1632949408576,"gmtModify":1632949416537,"author":{"id":"3569227954325701","authorId":"3569227954325701","name":"Seuna","avatar":"https://static.tigerbbs.com/0bfb6c0f011a65d66aae3afb6132a82d","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3569227954325701","idStr":"3569227954325701"},"themes":[],"htmlText":"Nive","listText":"Nive","text":"Nive","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":3,"repostSize":0,"link":"https://laohu8.com/post/865395511","repostId":"2171115602","repostType":4,"repost":{"id":"2171115602","kind":"highlight","pubTimestamp":1632935460,"share":"https://www.laohu8.com/m/news/2171115602?lang=&edition=full","pubTime":"2021-09-30 01:11","market":"us","language":"en","title":"Eyewear maker Warby Parker spikes 34% on its first day of trading","url":"https://stock-news.laohu8.com/highlight/detail?id=2171115602","media":"MarketWatch","summary":"Eyewear maker Warby Parker spikes 34% on its first day of trading.\n\nNYSE assigns reference price of ","content":"<p>Eyewear maker Warby Parker spikes 34% on its first day of trading.</p>\n<p><img src=\"https://static.tigerbbs.com/f145f99950734ec9b0e3b675836a53fb\" tg-width=\"1836\" tg-height=\"901\" referrerpolicy=\"no-referrer\"></p>\n<p>NYSE assigns reference price of $40, trading&nbsp;to begin Wednesday</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5917e3b384716a3bbcfdd5860b35711f\" tg-width=\"700\" tg-height=\"628\" referrerpolicy=\"no-referrer\"><span>Warby Parker is focused on both business and giving back, the prospectus says.</span></p>\n<p><a href=\"https://laohu8.com/S/WRBY\">Warby Parker Inc.</a>, the company known for its affordable eyeglasses sold online, through its app and in stores, is begining trading Wednesday in a direct listing.</p>\n<p>On Tuesday, the New York Stock Exchange assigned a $40 reference price to the New York City-based company's listing, which is expected to begin trading Wednesday under the ticker symbol \"WRBY\" . The company has about 111.5 million shares outstanding, giving it a valuation around $4.6 billion at that reference price.</p>\n<p>Reference prices for direct listings are based on trading prices in private markets ahead of companies filing with the Securities and Exchange Commission for a public listing. Direct listings differ from IPOs because there is no capital raised, which is what places a dollar figure on shares in an IPO. Direct listings are largely expected to trade higher than the reference price.</p>\n<p>Warby Parker will offer class A stock, eligible for one vote per share; class B stock, which entitles shareholders to 10 votes per share and can be converted to class A shares; and class C shares, which carry no voting rights.</p>\n<p>Warby Parker will be an emerging growth company, which means it does not have to make the same disclosures required of bigger public companies. A business remains an emerging growth company until it reaches a number of milestones, including annual revenue of more than $1.07 billion.</p>\n<p>Neil Blumenthal and Dave Gilboa, ages 41 and 40 respectively, are co-founders, co-chairs and co-chief executives of the company.</p>\n<p>Prior to Warby Parker, Blumenthal was a director at VisionSpring, a nonprofit that trains men and women in developing countries to sell affordable eyewear. Blumenthal is also a director at Allbirds, which filed to go public this week, at salad chain Sweetgreen and a number of nonprofit organizations including Warby Parker Impact Foundation and RxArt.</p>\n<p>Gilboa worked at consulting firm Bain &amp; Company and merchant bank Allen &amp; Co. prior to Warby Parker. He also serves on the board of the Warby Parker Impact Foundation.</p>\n<p>Andrew Hunt and Jeffrey Raider, both age 40, are the other two co-founders of Warby Parker and both serve as directors. Also on the board is Ronald Williams, age 71, and former CEO of Aetna from 2006 to 2010.</p>\n<p>Warby Parker was founded in 2010 and inspired by the founders' concerns that glasses were expensive and the process of buying them inconvenient.</p>\n<p>In its prospectus, Warby Parker says it is driven to do good and make customers happy. In addition to making glasses more affordable, Warby Parker has distributed more than 8 million pairs of glasses through the Buy a Pair, Give a Pair program. The company is also carbon neutral, which it has achieved through purchasing offsets.</p>\n<p>\"[This motivation] pushes us to defy convention -- and, at times, to forego short-term profits -- but we believe delivering remarkable customer experiences and making a positive impact on all stakeholders will lead to continued long-term sustainable growth and profitability,\" says a letter from the co-CEOs included in the prospectus.</p>\n<p>A pair of Warby Parker spectacles starts at a price of $95 including prescription lenses, and can be purchased digitally, using a free home try-on system or virtual trial system, as well as at145 Warby Parker shops. The company keeps prices low by selling direct-to-consumer and bypassing middlemen.</p>\n<p>The company had a net loss of $55.9 million in 2020, after breakeven in 2019 and a loss of $22.9 million in 2018. It chalked up $393.7 million of revenue in 2020, up from $370.5 million in 2019.</p>\n<p>Some 95% of net revenue in 2020 came from the sale of glasses, 2% of revenue was generated by the sale of contact lenses, 1% by eye exams and 2% by eyewear accessories. The company is expecting to expand its customer base for eye exams.</p>\n<p>For the six months ending June 30, 2021, net losses were $7.3 million and revenue totaled $270.5 million. The company has more than two million active customers and nearly 3,000 workers.</p>\n<p><img src=\"https://static.tigerbbs.com/3510dd6c717e636f33784d4f89bd9ce3\" tg-width=\"506\" tg-height=\"706\" referrerpolicy=\"no-referrer\"></p>\n<p>About 76% of Americans were using some kind of vision correction in 2020, according to data provided by the prospectus. The number of Americans ages 65 and over will more than double over the next 40 years and at least 84% of people in this older age group wear corrective lenses. Increasing use of screens like mobile devices and computers has contributed to the need for vision correction. Glasses are replaced every two-to-two-and-a-half years.</p>\n<p>Warby Parker says that between 2015 and 2019, it had a 50% sales retention rate within two years of the first purchase among customers it acquired. The retention rate was nearly 100% after four years during that same period.</p>\n<p>The vision care industry is expected to grow at a 9.2% compound annual growth rate (CAGR) between 2020 and 2025, according to Statista data provided in the prospectus.</p>\n<p>Here are five other things to know about Warby Parker before it goes public:</p>\n<p><b>Most decision-making power will be in the hands of Warby Parker's co-founders and co-CEOs</b></p>\n<p>The company's stock structure post-IPO will give the company's founders and top executives considerable control that could last until Oct. 1, 2031.</p>\n<p>\"Because of the ten-to-one voting ratio between our class B and class A common stock, our co-founders and co-CEOs collectively could continue to control a significant percentage of the combined voting power of our common stock and therefore would be able to control all matters submitted to our stockholders for approval until the date of automatic conversion, when all shares outstanding of Class B common stock will convert automatically into shares of Class A common stock,\" the prospectus says.</p>\n<p>That means other shareholders will have little say in the running of the company and will not influence such decisions as the election of directors, amendments of organizational documents, and any merger, consolidation, or sale of some or all of its assets.</p>\n<p>As a loss-making company, it will not pay a dividend for the foreseeable future.</p>\n<p><b>Warby Parker does most things in-house -- and that could limit its ability to grow</b></p>\n<p>Warby Parker says its business model, which has it do most things in-house, could cause problems.</p>\n<p>\"[T]he vertically integrated nature of our business, where we design all of our own glasses in our New York headquarters, contract manufacture all of our glass frames, fulfill the glasses we sell at our own optical and fulfillment laboratories as well as at third-party contract laboratories, sell our products exclusively through our own retail stores, e-commerce site and mobile application, and service our products, exposes us to risk and disruption at many points that are critical to successfully operating our business, and may make it more difficult for us to scale our business,\" the prospectus says.</p>\n<p><b>Supply chain troubles outside of those caused by COVID-19 could arise</b></p>\n<p>Supply chain problems have plagued companies across the consumer space this year. But the company warns that its operations are vulnerable to other challenges as well.</p>\n<p>Warby Parker gets more than half of the cellulose acetate used in its frames from a single supplier. Other components are sourced from the U.S., China, Italy, Vietnam, and Japan. The company also uses third-party contractors on certain items, but doesn't have long-term contracts with these suppliers.</p>\n<p>\"We are therefore subject to the risk of shortages and long lead times in the supply of these components and the risk that our suppliers discontinue or modify components used in our products,\" the prospectus says.</p>\n<p>\"We may in the future experience component shortages, and the predictability of the availability of these components may be limited, which may be heightened in light of the ongoing COVID-19 pandemic.\"</p>\n<p><b>Warby Parker says customers are slow to adopt e-commerce for eyeglasses</b></p>\n<p>Warby Parker offers online shopping for eyeglasses, one of the most significant ways the company differentiates itself from a crowded competitive field. But the company says many customers are more comfortable shopping for eyeglasses in person.</p>\n<p>\"Improving upon the consumer in-store experience through an online platform is difficult due to broad consumer demands on selection, quality, convenience, and affordability,\" the prospectus says.</p>\n<p>When the company first started, less than 2.5% of glasses were purchased online. Even now, the company says it has \"historically generated a significant portion of our revenue from our retail stores, and our growth strategy will depend, in large part, on acquiring customers through the growth of our retail store base and expansion of our existing retail store operations.\"</p>\n<p><b>Warby Parker's business is actually seasonal</b></p>\n<p>Customers eager to use health benefits before the end of a calendar year tend to boost demand in December.</p>\n<p>\"Consistent with our policy to recognize revenue upon order delivery, any orders placed at the end of December are recognized as revenue upon delivery which may occur in the following year,\" Warby Parker said.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Eyewear maker Warby Parker spikes 34% on its first day of trading</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEyewear maker Warby Parker spikes 34% on its first day of trading\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-30 01:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/warby-parker-ipo-5-things-to-know-about-the-affordable-eyeglass-maker-before-its-direct-listing-11630520146?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Eyewear maker Warby Parker spikes 34% on its first day of trading.\n\nNYSE assigns reference price of $40, trading to begin Wednesday\nWarby Parker is focused on both business and giving back, the ...</p>\n\n<a href=\"https://www.marketwatch.com/story/warby-parker-ipo-5-things-to-know-about-the-affordable-eyeglass-maker-before-its-direct-listing-11630520146?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.marketwatch.com/story/warby-parker-ipo-5-things-to-know-about-the-affordable-eyeglass-maker-before-its-direct-listing-11630520146?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2171115602","content_text":"Eyewear maker Warby Parker spikes 34% on its first day of trading.\n\nNYSE assigns reference price of $40, trading to begin Wednesday\nWarby Parker is focused on both business and giving back, the prospectus says.\nWarby Parker Inc., the company known for its affordable eyeglasses sold online, through its app and in stores, is begining trading Wednesday in a direct listing.\nOn Tuesday, the New York Stock Exchange assigned a $40 reference price to the New York City-based company's listing, which is expected to begin trading Wednesday under the ticker symbol \"WRBY\" . The company has about 111.5 million shares outstanding, giving it a valuation around $4.6 billion at that reference price.\nReference prices for direct listings are based on trading prices in private markets ahead of companies filing with the Securities and Exchange Commission for a public listing. Direct listings differ from IPOs because there is no capital raised, which is what places a dollar figure on shares in an IPO. Direct listings are largely expected to trade higher than the reference price.\nWarby Parker will offer class A stock, eligible for one vote per share; class B stock, which entitles shareholders to 10 votes per share and can be converted to class A shares; and class C shares, which carry no voting rights.\nWarby Parker will be an emerging growth company, which means it does not have to make the same disclosures required of bigger public companies. A business remains an emerging growth company until it reaches a number of milestones, including annual revenue of more than $1.07 billion.\nNeil Blumenthal and Dave Gilboa, ages 41 and 40 respectively, are co-founders, co-chairs and co-chief executives of the company.\nPrior to Warby Parker, Blumenthal was a director at VisionSpring, a nonprofit that trains men and women in developing countries to sell affordable eyewear. Blumenthal is also a director at Allbirds, which filed to go public this week, at salad chain Sweetgreen and a number of nonprofit organizations including Warby Parker Impact Foundation and RxArt.\nGilboa worked at consulting firm Bain & Company and merchant bank Allen & Co. prior to Warby Parker. He also serves on the board of the Warby Parker Impact Foundation.\nAndrew Hunt and Jeffrey Raider, both age 40, are the other two co-founders of Warby Parker and both serve as directors. Also on the board is Ronald Williams, age 71, and former CEO of Aetna from 2006 to 2010.\nWarby Parker was founded in 2010 and inspired by the founders' concerns that glasses were expensive and the process of buying them inconvenient.\nIn its prospectus, Warby Parker says it is driven to do good and make customers happy. In addition to making glasses more affordable, Warby Parker has distributed more than 8 million pairs of glasses through the Buy a Pair, Give a Pair program. The company is also carbon neutral, which it has achieved through purchasing offsets.\n\"[This motivation] pushes us to defy convention -- and, at times, to forego short-term profits -- but we believe delivering remarkable customer experiences and making a positive impact on all stakeholders will lead to continued long-term sustainable growth and profitability,\" says a letter from the co-CEOs included in the prospectus.\nA pair of Warby Parker spectacles starts at a price of $95 including prescription lenses, and can be purchased digitally, using a free home try-on system or virtual trial system, as well as at145 Warby Parker shops. The company keeps prices low by selling direct-to-consumer and bypassing middlemen.\nThe company had a net loss of $55.9 million in 2020, after breakeven in 2019 and a loss of $22.9 million in 2018. It chalked up $393.7 million of revenue in 2020, up from $370.5 million in 2019.\nSome 95% of net revenue in 2020 came from the sale of glasses, 2% of revenue was generated by the sale of contact lenses, 1% by eye exams and 2% by eyewear accessories. The company is expecting to expand its customer base for eye exams.\nFor the six months ending June 30, 2021, net losses were $7.3 million and revenue totaled $270.5 million. The company has more than two million active customers and nearly 3,000 workers.\n\nAbout 76% of Americans were using some kind of vision correction in 2020, according to data provided by the prospectus. The number of Americans ages 65 and over will more than double over the next 40 years and at least 84% of people in this older age group wear corrective lenses. Increasing use of screens like mobile devices and computers has contributed to the need for vision correction. Glasses are replaced every two-to-two-and-a-half years.\nWarby Parker says that between 2015 and 2019, it had a 50% sales retention rate within two years of the first purchase among customers it acquired. The retention rate was nearly 100% after four years during that same period.\nThe vision care industry is expected to grow at a 9.2% compound annual growth rate (CAGR) between 2020 and 2025, according to Statista data provided in the prospectus.\nHere are five other things to know about Warby Parker before it goes public:\nMost decision-making power will be in the hands of Warby Parker's co-founders and co-CEOs\nThe company's stock structure post-IPO will give the company's founders and top executives considerable control that could last until Oct. 1, 2031.\n\"Because of the ten-to-one voting ratio between our class B and class A common stock, our co-founders and co-CEOs collectively could continue to control a significant percentage of the combined voting power of our common stock and therefore would be able to control all matters submitted to our stockholders for approval until the date of automatic conversion, when all shares outstanding of Class B common stock will convert automatically into shares of Class A common stock,\" the prospectus says.\nThat means other shareholders will have little say in the running of the company and will not influence such decisions as the election of directors, amendments of organizational documents, and any merger, consolidation, or sale of some or all of its assets.\nAs a loss-making company, it will not pay a dividend for the foreseeable future.\nWarby Parker does most things in-house -- and that could limit its ability to grow\nWarby Parker says its business model, which has it do most things in-house, could cause problems.\n\"[T]he vertically integrated nature of our business, where we design all of our own glasses in our New York headquarters, contract manufacture all of our glass frames, fulfill the glasses we sell at our own optical and fulfillment laboratories as well as at third-party contract laboratories, sell our products exclusively through our own retail stores, e-commerce site and mobile application, and service our products, exposes us to risk and disruption at many points that are critical to successfully operating our business, and may make it more difficult for us to scale our business,\" the prospectus says.\nSupply chain troubles outside of those caused by COVID-19 could arise\nSupply chain problems have plagued companies across the consumer space this year. But the company warns that its operations are vulnerable to other challenges as well.\nWarby Parker gets more than half of the cellulose acetate used in its frames from a single supplier. Other components are sourced from the U.S., China, Italy, Vietnam, and Japan. The company also uses third-party contractors on certain items, but doesn't have long-term contracts with these suppliers.\n\"We are therefore subject to the risk of shortages and long lead times in the supply of these components and the risk that our suppliers discontinue or modify components used in our products,\" the prospectus says.\n\"We may in the future experience component shortages, and the predictability of the availability of these components may be limited, which may be heightened in light of the ongoing COVID-19 pandemic.\"\nWarby Parker says customers are slow to adopt e-commerce for eyeglasses\nWarby Parker offers online shopping for eyeglasses, one of the most significant ways the company differentiates itself from a crowded competitive field. But the company says many customers are more comfortable shopping for eyeglasses in person.\n\"Improving upon the consumer in-store experience through an online platform is difficult due to broad consumer demands on selection, quality, convenience, and affordability,\" the prospectus says.\nWhen the company first started, less than 2.5% of glasses were purchased online. Even now, the company says it has \"historically generated a significant portion of our revenue from our retail stores, and our growth strategy will depend, in large part, on acquiring customers through the growth of our retail store base and expansion of our existing retail store operations.\"\nWarby Parker's business is actually seasonal\nCustomers eager to use health benefits before the end of a calendar year tend to boost demand in December.\n\"Consistent with our policy to recognize revenue upon order delivery, any orders placed at the end of December are recognized as revenue upon delivery which may occur in the following year,\" Warby Parker said.","news_type":1},"isVote":1,"tweetType":1,"viewCount":1100,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":862747451,"gmtCreate":1632919914034,"gmtModify":1632919976573,"author":{"id":"3569227954325701","authorId":"3569227954325701","name":"Seuna","avatar":"https://static.tigerbbs.com/0bfb6c0f011a65d66aae3afb6132a82d","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3569227954325701","idStr":"3569227954325701"},"themes":[],"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/862747451","repostId":"2171989792","repostType":4,"repost":{"id":"2171989792","kind":"highlight","pubTimestamp":1632918933,"share":"https://www.laohu8.com/m/news/2171989792?lang=&edition=full","pubTime":"2021-09-29 20:35","market":"us","language":"en","title":"Tech stocks were just stomped. Here's what to watch next, according to Goldman Sachs.","url":"https://stock-news.laohu8.com/highlight/detail?id=2171989792","media":"MarketWatch","summary":"Tech stocks just got pounded as bad as the New York Times restaurant review of Eleven Madison Park. ","content":"<p>Tech stocks just got pounded as bad as the New York Times restaurant review of Eleven Madison Park. (Sample: the beet dish \"tastes like Lemon Pledge and smells like a burning joint.\") The 2.8% downturn for the Nasdaq Composite was the largest <a href=\"https://laohu8.com/S/AONE.U\">one</a>-day percentage drop in six months.</p>\n<p>The sharp rise in interest rates over the last two weeks appears to be the main culprit. According to Goldman Sachs, the 26 basis points rise in the 10-year Treasury yield since Sept. 14 represented a 1.4 standard deviation event, and the 20 basis point rise in the 10-year TIPS yield represents a 1.7 standard deviation event.</p>\n<p><img src=\"https://static.tigerbbs.com/3e4ea8be326537971e62e8118dec0b81\" tg-width=\"700\" tg-height=\"656\" width=\"100%\" height=\"auto\"></p>\n<p>Since 1965, they note, stocks struggle when rates rise by two or more standard deviations. With the long-duration information technology and communication services sector now accounting for 40% of the S&amp;P 500 market cap, the index is even more sensitive to rate shocks.</p>\n<p>Another issue, say strategists led by Ryan Hammond, is that the backdrop for stocks isn't as favorable as when interest rates initially jumped at the beginning of the year. \"That move largely reflected the ongoing improvement in the economic growth outlook following the vaccine announcements in early November. Today, economic growth is decelerating, the FOMC [Federal Open Market Committee] is expected to announce the start of tapering at its November meeting, and our economists have downgraded China's economic growth forecasts,\" say the economists.</p>\n<p>So what to look at now? Focus on the speed of the rate moves more than the level. The 10-year yield would have to rise above 2.3% for relative valuations -- the difference between the earnings yield and the bond yield -- to rank above the long-term average.</p>\n<p><img src=\"https://static.tigerbbs.com/a7e0148a36c4317619a03b61b44f9175\" tg-width=\"700\" tg-height=\"655\" width=\"100%\" height=\"auto\"></p>\n<p>The Goldman strategists also aren't as bullish toward short-duration value stocks as they were earlier in the year. \"We expect the magnitude of outperformance for short-duration value stocks will be more muted in today's environment than in the early 2021 experience, given the less favorable current economic backdrop of decelerating growth,\" they say. Maintain longer-term positions in high-quality secular growth stocks, they add.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tech stocks were just stomped. Here's what to watch next, according to Goldman Sachs.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTech stocks were just stomped. Here's what to watch next, according to Goldman Sachs.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-29 20:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/tech-stocks-were-just-stomped-heres-what-to-watch-next-according-to-goldman-sachs-11632912648?mod=hp_LATEST&adobe_mc=MCMID%3D03250748340802259633376614514522268876%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1632918812><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tech stocks just got pounded as bad as the New York Times restaurant review of Eleven Madison Park. (Sample: the beet dish \"tastes like Lemon Pledge and smells like a burning joint.\") The 2.8% ...</p>\n\n<a href=\"https://www.marketwatch.com/story/tech-stocks-were-just-stomped-heres-what-to-watch-next-according-to-goldman-sachs-11632912648?mod=hp_LATEST&adobe_mc=MCMID%3D03250748340802259633376614514522268876%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1632918812\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite"},"source_url":"https://www.marketwatch.com/story/tech-stocks-were-just-stomped-heres-what-to-watch-next-according-to-goldman-sachs-11632912648?mod=hp_LATEST&adobe_mc=MCMID%3D03250748340802259633376614514522268876%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1632918812","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2171989792","content_text":"Tech stocks just got pounded as bad as the New York Times restaurant review of Eleven Madison Park. (Sample: the beet dish \"tastes like Lemon Pledge and smells like a burning joint.\") The 2.8% downturn for the Nasdaq Composite was the largest one-day percentage drop in six months.\nThe sharp rise in interest rates over the last two weeks appears to be the main culprit. According to Goldman Sachs, the 26 basis points rise in the 10-year Treasury yield since Sept. 14 represented a 1.4 standard deviation event, and the 20 basis point rise in the 10-year TIPS yield represents a 1.7 standard deviation event.\n\nSince 1965, they note, stocks struggle when rates rise by two or more standard deviations. With the long-duration information technology and communication services sector now accounting for 40% of the S&P 500 market cap, the index is even more sensitive to rate shocks.\nAnother issue, say strategists led by Ryan Hammond, is that the backdrop for stocks isn't as favorable as when interest rates initially jumped at the beginning of the year. \"That move largely reflected the ongoing improvement in the economic growth outlook following the vaccine announcements in early November. Today, economic growth is decelerating, the FOMC [Federal Open Market Committee] is expected to announce the start of tapering at its November meeting, and our economists have downgraded China's economic growth forecasts,\" say the economists.\nSo what to look at now? Focus on the speed of the rate moves more than the level. The 10-year yield would have to rise above 2.3% for relative valuations -- the difference between the earnings yield and the bond yield -- to rank above the long-term average.\n\nThe Goldman strategists also aren't as bullish toward short-duration value stocks as they were earlier in the year. \"We expect the magnitude of outperformance for short-duration value stocks will be more muted in today's environment than in the early 2021 experience, given the less favorable current economic backdrop of decelerating growth,\" they say. Maintain longer-term positions in high-quality secular growth stocks, they add.","news_type":1},"isVote":1,"tweetType":1,"viewCount":877,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":862747816,"gmtCreate":1632919886161,"gmtModify":1632919967503,"author":{"id":"3569227954325701","authorId":"3569227954325701","name":"Seuna","avatar":"https://static.tigerbbs.com/0bfb6c0f011a65d66aae3afb6132a82d","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3569227954325701","idStr":"3569227954325701"},"themes":[],"htmlText":"Oike","listText":"Oike","text":"Oike","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":3,"repostSize":0,"link":"https://laohu8.com/post/862747816","repostId":"1123110487","repostType":4,"repost":{"id":"1123110487","kind":"news","pubTimestamp":1632919215,"share":"https://www.laohu8.com/m/news/1123110487?lang=&edition=full","pubTime":"2021-09-29 20:40","market":"us","language":"en","title":"Walmart: Limited Long-Term Returns Under Current Valuations","url":"https://stock-news.laohu8.com/highlight/detail?id=1123110487","media":"Seeking Alpha","summary":"Summary\n\nThis article analyzes Walmart from the perspective of its profit sustainability by the most","content":"<p><b>Summary</b></p>\n<ul>\n <li>This article analyzes Walmart from the perspective of its profit sustainability by the most important profit metric: return on capital employed (“ROCE”).</li>\n <li>The results show that WMT has been maintaining a respectable level of profitability with remarkable consistency.</li>\n <li>However, at its current prices, it has reached its full valuation and offers limited long-term returns under these current valuations.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/70e8f2215d5d0d48a96d96b4323231e0\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"><span>sanfel/iStock Editorial via Getty Images</span></p>\n<p><b>Thesis and Background</b></p>\n<p>This article analyzes Walmart (WMT) from the perspective of its profit sustainability by the most important profit metric: return on capital employed (“ROCE”). Note that ROCE is different from the return on equity (“ROE”) and is more fundamental and important than ROE. Because ROCE considers the return of capital actually employed, and therefore provides critical insight into how effectively the business uses its capital to earn a profit. A consistent and high ROCE is the hallmark of a business with a sustainable moat.</p>\n<p>The results show that WMT has been maintaining a respectable level of profitability with remarkable consistency. However, at its current prices, it has reached its full valuation and offers limited long-term returns. A long-term return can be expected in the mid single-digit range under these current valuations. Given the consistency of the business, its financial strength, and the current low-yield macroeconomic environment, it is really a good substitute for treasury bonds as argued in my&nbsp;last article.</p>\n<p><b>Moat and Profitability</b></p>\n<p>WMT owns the world’s largest retail chain, operating a chain consisting of thousands of stores both in the US and globally. Its US operation consists mainly of 3,570 supercenters, 374 discount stores, 599 Sam’s Clubs, and 799 Neighborhood Markets. And its global operation consists of more than 6,100 stores.</p>\n<p>Its sheer scale forms its most valuable moat. As an example, 70% of the U.S. population live within five miles of a WMT store, and 90% live within 15 minutes drive of one. Such extent of reach and scale provides a level of efficiency, cost-saving, and logistic superiority difficult to match by competitors.</p>\n<p>Protected by such a wide and durable moat, the business has been boasting a remarkable level of consistent profitability as to be elaborated later. And in the short term, the management is very confident and optimistic about the business. As seen from the chart below, management just raised their outlook guidance for the near year in the most recent earnings release. In terms of the topline, they expect WMT U.S. sales to go up 5% to 6% excluding fuel, and Sam’s Club sales go up 7.5% to 8.5% excluding fuel and tobacco.</p>\n<p>In terms of the bottom line, they expect the consolidated operating income to go up by 9% to 11.5% in constant currency and raised the EPS guidance to $6.20 to $6.35. Finally, the business has been investing and growing its eCommerce aggressively in recent years. Sales from eCommerce have more than doubled, up 103%, over the past two years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/de9ee9f1cfc2727c374231b29725fc27\" tg-width=\"640\" tg-height=\"340\" width=\"100%\" height=\"auto\"><span>Source: WMT 2022 Q2 earnings releases.</span></p>\n<p>Long-term return and ROCE</p>\n<p>After addressing the debt concern, let’s move on to analyze potential returns. If you, like this author, are a long-term investor who subscribes to the concepts of owner’s earnings, perpetual growth rate, and equity bond, then the long-term return is simpler. It is “simply” the summation of the owner’s earnings yield (“OEY”) and the perpetual growth rate (“PGR”), i.e.,</p>\n<p>Long-Term ROI = OEY + PGR</p>\n<p>Because in the long term, all fluctuations in valuation are averaged out (all luck at the end even out). And it doesn’t really matter how the business uses the earnings (payout as dividends, retained in the bank account, or repurchase stocks). As long as used sensibly (as WMT has done in the past), it will be reflected as a return to the business owner.</p>\n<p>OEY is the owner’s earnings divided by the entry price. All the complications are in the estimation of the owner’s earnings - the real economic earnings of the business, not the nominal accounting earnings. Here as a crude and conservative estimate, I will just use the free cash flow (“FCF”) as the owner’s earning. It is conservative in the sense that rigorously speaking, the owner’s earnings should be free cash flow plus the portion of CAPEx that is used to fuel the growth (i.e., the growth CAPEx). At its current price levels, the OEY is ~4.1% for WMT (~24.4x price to FCF).</p>\n<p>The next and more important item is the PGR. To understand and estimate it, we will need to first estimate the return on capital employed (“ROCE”). Note that ROCE is different from the return on equity (and more fundamental and important in my view). ROCE considers the return of capital actually employed, and therefore provides insight into how much additional capital a business needs to invest in order to earn a given extra amount of income – a key to estimating the PGR. For businesses like WMT, I consider the following items capital actually employed:</p>\n<p>1. Working capital, including payables, receivables, inventory. These are the capitals required for the daily operation of their businesses.</p>\n<p>2. Gross Property, Plant, and Equipment. These are the capitals required to actually conduct business and manufacture their products.</p>\n<p>Based on the above considerations, the ROCE of WMT over the past decade is shown below. As seen, WMT was able to maintain a quite respectable ROCE at the beginning of the decade: on average 23%. To put things in perspective, as detailed in my&nbsp;previous articles&nbsp;for Lockheed Martin (LMT) and General Dynamics (GD), ROCEs for these defense business leaders, who almost enjoy a monopoly moat, are also “only” in the range of 20% to 30%. And also note that the ROCE has been remarkably consistent, only fluctuating within a narrow range between 20% and 27.5% most of the time – a hallmark of a business with a stable and durable moat.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0da638b0331bd2193208f6b80cfdf957\" tg-width=\"640\" tg-height=\"358\" width=\"100%\" height=\"auto\"><span>Source: author and Seeking Alpha.</span></p>\n<p><b>Reinvestment rate and long-term return</b></p>\n<p>In the long term, the growth rate is given by: PGR = ROCE * Reinvestment Rate. We’ve examined OEY and ROCE in the above section already. So the last piece of the puzzle to the long-term return is the reinvestment rate, i.e., the fraction of income that business reinvests in itself to fuel future growth. For WMT, the fraction has been about 5-10% in recent years.</p>\n<p>The following chart shows more details of the capital allocation decisions of the business in recent years. The business is in a very strong financial position, as shown in the chart. It is essentially debt-free thanks to its strong cash generation capability. Its interest coverage (EBIT divided by interest expense) is current than 14.7x. In other words, it only takes less than 6.8% of its EBIT income to cover its interest expenses.</p>\n<p>In contrast, the interest coverage for the overall market represented by SP500 is about 6x. Also as shown by the orange line in the chart, thanks to its strong profitability (and stable return on capital as aforementioned), it only takes about 57% of the operating income to cover its dividend after covering maintenance CAPEx. As a result, WMT enjoys quite a bit of flexibility in terms of capital allocation. It has plenty of organic cash to fuel future growth and it’s a matter of identifying such growth areas (such as its e-commerce in recent years).</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ea4856aebfbdb3fb6b38299628cb5fce\" tg-width=\"640\" tg-height=\"364\" width=\"100%\" height=\"auto\"><span>Source: author and Seeking Alpha.</span></p>\n<p>With a 23% ROCE, it means that even if WMT reinvests 10% (the upper range in recent years) of its earnings to expand the capital employed, it could maintain a 2.3% PGR (PGR = ROCE * fraction of earnings reinvested = 10% * 23% = 2.3%).</p>\n<p>Now we have both pieces of the puzzle in place to estimate the long-term return. At its current price levels, the OEY is estimated to be ~4.1% for WMT, and the PGR is about 2.3%. So the total return in the long term at the current valuation would be a mid-single-digit around 6.4% as shown in the chart below. Also as seen, even when ROCE fluctuates somewhat, the fluctuations wouldn’t change the long-term return dramatically.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/532927c81a0982204f5b8f63bd2694a2\" tg-width=\"640\" tg-height=\"423\" width=\"100%\" height=\"auto\"><span>Source: Author and Seeking Alpha.</span></p>\n<p><b>Conclusion and final thoughts</b></p>\n<p>This article examines WMT’s profit sustainability by the most important profit metric: return on capital employed (“ROCE”). ROCE considers the return of capital actually employed, and therefore provides critical insight into how effectively the business uses its capital to earn a profit. A consistent and high ROCE is the hallmark of a business with a sustainable moat.</p>\n<p>The results show that WMT has been maintaining a respectable level of profitability with remarkable consistency. Its ROCE has been remarkably consistent, only fluctuating within a narrow range between 20% and 27.5% most of the time over the years – a hallmark of a business with a stable and durable moat.</p>\n<p>However, at its current prices, it has reached its full valuation and offers limited long-term returns. A long-term return can be expected in the mid-single-digit range of about 6.4% under these current valuations, consisting of about 4.1% from the owner’s earnings yield and 2.3% from long-term organic growth.</p>\n<p>As such, it is certainly not a stock I would recommend to investors mainly seeking capital appreciation. But given the consistency of the business, its financial strength, and the current low-yield macroeconomic environment, it is a solid choice for conservative investors seeking reliable dividend income. In other words, it is a good substitute for treasury bonds as argued in my&nbsp;last article.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Walmart: Limited Long-Term Returns Under Current Valuations</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWalmart: Limited Long-Term Returns Under Current Valuations\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-29 20:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4457596-walmart-stock-limited-long-term-returns-under-current-valuations><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nThis article analyzes Walmart from the perspective of its profit sustainability by the most important profit metric: return on capital employed (“ROCE”).\nThe results show that WMT has been ...</p>\n\n<a href=\"https://seekingalpha.com/article/4457596-walmart-stock-limited-long-term-returns-under-current-valuations\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"WMT":"沃尔玛"},"source_url":"https://seekingalpha.com/article/4457596-walmart-stock-limited-long-term-returns-under-current-valuations","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1123110487","content_text":"Summary\n\nThis article analyzes Walmart from the perspective of its profit sustainability by the most important profit metric: return on capital employed (“ROCE”).\nThe results show that WMT has been maintaining a respectable level of profitability with remarkable consistency.\nHowever, at its current prices, it has reached its full valuation and offers limited long-term returns under these current valuations.\n\nsanfel/iStock Editorial via Getty Images\nThesis and Background\nThis article analyzes Walmart (WMT) from the perspective of its profit sustainability by the most important profit metric: return on capital employed (“ROCE”). Note that ROCE is different from the return on equity (“ROE”) and is more fundamental and important than ROE. Because ROCE considers the return of capital actually employed, and therefore provides critical insight into how effectively the business uses its capital to earn a profit. A consistent and high ROCE is the hallmark of a business with a sustainable moat.\nThe results show that WMT has been maintaining a respectable level of profitability with remarkable consistency. However, at its current prices, it has reached its full valuation and offers limited long-term returns. A long-term return can be expected in the mid single-digit range under these current valuations. Given the consistency of the business, its financial strength, and the current low-yield macroeconomic environment, it is really a good substitute for treasury bonds as argued in my last article.\nMoat and Profitability\nWMT owns the world’s largest retail chain, operating a chain consisting of thousands of stores both in the US and globally. Its US operation consists mainly of 3,570 supercenters, 374 discount stores, 599 Sam’s Clubs, and 799 Neighborhood Markets. And its global operation consists of more than 6,100 stores.\nIts sheer scale forms its most valuable moat. As an example, 70% of the U.S. population live within five miles of a WMT store, and 90% live within 15 minutes drive of one. Such extent of reach and scale provides a level of efficiency, cost-saving, and logistic superiority difficult to match by competitors.\nProtected by such a wide and durable moat, the business has been boasting a remarkable level of consistent profitability as to be elaborated later. And in the short term, the management is very confident and optimistic about the business. As seen from the chart below, management just raised their outlook guidance for the near year in the most recent earnings release. In terms of the topline, they expect WMT U.S. sales to go up 5% to 6% excluding fuel, and Sam’s Club sales go up 7.5% to 8.5% excluding fuel and tobacco.\nIn terms of the bottom line, they expect the consolidated operating income to go up by 9% to 11.5% in constant currency and raised the EPS guidance to $6.20 to $6.35. Finally, the business has been investing and growing its eCommerce aggressively in recent years. Sales from eCommerce have more than doubled, up 103%, over the past two years.\nSource: WMT 2022 Q2 earnings releases.\nLong-term return and ROCE\nAfter addressing the debt concern, let’s move on to analyze potential returns. If you, like this author, are a long-term investor who subscribes to the concepts of owner’s earnings, perpetual growth rate, and equity bond, then the long-term return is simpler. It is “simply” the summation of the owner’s earnings yield (“OEY”) and the perpetual growth rate (“PGR”), i.e.,\nLong-Term ROI = OEY + PGR\nBecause in the long term, all fluctuations in valuation are averaged out (all luck at the end even out). And it doesn’t really matter how the business uses the earnings (payout as dividends, retained in the bank account, or repurchase stocks). As long as used sensibly (as WMT has done in the past), it will be reflected as a return to the business owner.\nOEY is the owner’s earnings divided by the entry price. All the complications are in the estimation of the owner’s earnings - the real economic earnings of the business, not the nominal accounting earnings. Here as a crude and conservative estimate, I will just use the free cash flow (“FCF”) as the owner’s earning. It is conservative in the sense that rigorously speaking, the owner’s earnings should be free cash flow plus the portion of CAPEx that is used to fuel the growth (i.e., the growth CAPEx). At its current price levels, the OEY is ~4.1% for WMT (~24.4x price to FCF).\nThe next and more important item is the PGR. To understand and estimate it, we will need to first estimate the return on capital employed (“ROCE”). Note that ROCE is different from the return on equity (and more fundamental and important in my view). ROCE considers the return of capital actually employed, and therefore provides insight into how much additional capital a business needs to invest in order to earn a given extra amount of income – a key to estimating the PGR. For businesses like WMT, I consider the following items capital actually employed:\n1. Working capital, including payables, receivables, inventory. These are the capitals required for the daily operation of their businesses.\n2. Gross Property, Plant, and Equipment. These are the capitals required to actually conduct business and manufacture their products.\nBased on the above considerations, the ROCE of WMT over the past decade is shown below. As seen, WMT was able to maintain a quite respectable ROCE at the beginning of the decade: on average 23%. To put things in perspective, as detailed in my previous articles for Lockheed Martin (LMT) and General Dynamics (GD), ROCEs for these defense business leaders, who almost enjoy a monopoly moat, are also “only” in the range of 20% to 30%. And also note that the ROCE has been remarkably consistent, only fluctuating within a narrow range between 20% and 27.5% most of the time – a hallmark of a business with a stable and durable moat.\nSource: author and Seeking Alpha.\nReinvestment rate and long-term return\nIn the long term, the growth rate is given by: PGR = ROCE * Reinvestment Rate. We’ve examined OEY and ROCE in the above section already. So the last piece of the puzzle to the long-term return is the reinvestment rate, i.e., the fraction of income that business reinvests in itself to fuel future growth. For WMT, the fraction has been about 5-10% in recent years.\nThe following chart shows more details of the capital allocation decisions of the business in recent years. The business is in a very strong financial position, as shown in the chart. It is essentially debt-free thanks to its strong cash generation capability. Its interest coverage (EBIT divided by interest expense) is current than 14.7x. In other words, it only takes less than 6.8% of its EBIT income to cover its interest expenses.\nIn contrast, the interest coverage for the overall market represented by SP500 is about 6x. Also as shown by the orange line in the chart, thanks to its strong profitability (and stable return on capital as aforementioned), it only takes about 57% of the operating income to cover its dividend after covering maintenance CAPEx. As a result, WMT enjoys quite a bit of flexibility in terms of capital allocation. It has plenty of organic cash to fuel future growth and it’s a matter of identifying such growth areas (such as its e-commerce in recent years).\nSource: author and Seeking Alpha.\nWith a 23% ROCE, it means that even if WMT reinvests 10% (the upper range in recent years) of its earnings to expand the capital employed, it could maintain a 2.3% PGR (PGR = ROCE * fraction of earnings reinvested = 10% * 23% = 2.3%).\nNow we have both pieces of the puzzle in place to estimate the long-term return. At its current price levels, the OEY is estimated to be ~4.1% for WMT, and the PGR is about 2.3%. So the total return in the long term at the current valuation would be a mid-single-digit around 6.4% as shown in the chart below. Also as seen, even when ROCE fluctuates somewhat, the fluctuations wouldn’t change the long-term return dramatically.\nSource: Author and Seeking Alpha.\nConclusion and final thoughts\nThis article examines WMT’s profit sustainability by the most important profit metric: return on capital employed (“ROCE”). ROCE considers the return of capital actually employed, and therefore provides critical insight into how effectively the business uses its capital to earn a profit. A consistent and high ROCE is the hallmark of a business with a sustainable moat.\nThe results show that WMT has been maintaining a respectable level of profitability with remarkable consistency. Its ROCE has been remarkably consistent, only fluctuating within a narrow range between 20% and 27.5% most of the time over the years – a hallmark of a business with a stable and durable moat.\nHowever, at its current prices, it has reached its full valuation and offers limited long-term returns. A long-term return can be expected in the mid-single-digit range of about 6.4% under these current valuations, consisting of about 4.1% from the owner’s earnings yield and 2.3% from long-term organic growth.\nAs such, it is certainly not a stock I would recommend to investors mainly seeking capital appreciation. But given the consistency of the business, its financial strength, and the current low-yield macroeconomic environment, it is a solid choice for conservative investors seeking reliable dividend income. In other words, it is a good substitute for treasury bonds as argued in my last article.","news_type":1},"isVote":1,"tweetType":1,"viewCount":1068,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":862933105,"gmtCreate":1632826832450,"gmtModify":1632826834506,"author":{"id":"3569227954325701","authorId":"3569227954325701","name":"Seuna","avatar":"https://static.tigerbbs.com/0bfb6c0f011a65d66aae3afb6132a82d","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3569227954325701","idStr":"3569227954325701"},"themes":[],"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/862933105","repostId":"1165142624","repostType":4,"isVote":1,"tweetType":1,"viewCount":1071,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0}],"defaultTab":"following","isTTM":false}