Author Archives: Ketil

Home Depot is a quality stock and beats earnings time after time

Home Depot is expected to report earnings on Tuesday 20, before market open, and the report will be for the fiscal Quarter ending in July this year. The consensus EPS for the quarter is $3,08 and that`s a little bit higher than last year at the same at $3,05. The consensus revenue estimate is $31,01 Billion and that`s up 1,8 percent YoY.

This is a high quality stock and the rise from the financial crisis has been massiv. Home Depot has beaten EPS estimates 100 percent of the time over the last two years. Revenue estimates is beaten 75 percent of the time.

This is the holiday quarter for Home Depot. A different retailer than others that are struggling with e-commerce and malls. Do we see any recession here? Not at all. The consumers spend money at Home Depot and they can afford to do it because they have jobs and money. That puts the company in the same folder as Walmart.

Home Depot scheduled a conference call at 9 a.m Eastern time on Tuesday 20, 2019.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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Walmart`s online business is growing but it has come at a cost to profitability

Walmart is the world`s third largest employer by numer of employees. 2,2 million worldwide last year with 1,5 million in the U.S and 700,000 international. Walmart Inc is an American mutinational retail corporation that operates a chain of hypermarkets, discount department stores and grocery stores.

The company is expedted to report earnings on Thursday 15 before market open. The report wil be for the fiscal Quarter ending July 2019. The consensus EPS forecast for the quarter is $1,22, and the report for the same quarter last year was $1,29.

As of April 30, 2019, Walmart has 11,368 stores and clubs in 27 countries, operating under 55 different names. The company is the world`s largest company by revenue, with US$514,405 billion. It is a publicly traded family-owned business, as the company is controlled by the Walton family.

So far in 2019, Walmart is the largest U.S grocery retailer, and 65 percent of Walmart`s US$510,329 billion sales came from U.S operations. Their investments outside America have seen mixed results. Its operations and subsidiaries in the U.K, Central and South America, and China are highly successful, whereas its venture failed in Germany and South Korea.

Their approach to Amazon`s busines model and international expansion will continue to lift the company further. The street is looking for a top-line growth of 1,7 percent but there is concerns over the impact of trade war.

Many investors will watch out for the margins on the report as the cost of some of the goods are changing. JPMorgan has estimated in a report that the company could see up to 40 percent reduction in operating profit because of the tariffs on Chinese imports. But that will have an impact on the next quarter.

The online sales is a success and its going straight up. The e-commerce activity are up 37 percent YoY. They compete with Amazon and they are both speeding up their delivery times. In my recent article the headline was retail acopalypse, but what about Walmart?

They have also closed a lot of stores but Walmart has the best developed web grocery business with 2,450 stores offering curbside order pickup.

Walmart`s online growth has come at a cost to profitability, though. Gross margins of 24,3 percent were in line with analysts estimates but did mark a slight YoY contraction. That can be attributed to higher labor costs, plus online sales that typically deliver lower margins that in-store sales.

The company also said in a report that transportation expenses have eased somewhat this year. CFO Brett Biggs recently said; “Our first quarter results put us in a good position to achieve full-year goals.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The retail apocalypse will continue

Walgreens announced yesterday that they will close 200 US stores. A company that was founded 118 years ago. But Walgreens is not alone. About 12,000 stores are expected to close in the U.S this year.

According to CoStar Group, retailers closed a record 102 million square feet of store space in 2017, but that number was smached in 2018 by closing another 155 million square feet. To sum up; that`s thousands of stores.

So far this year, 29% more stores closings announced than last year, according to Coresight Research. They tracked the 5,864 closings in 2018, which included all Toys R Us stores and hundreds of Kmart and Sears locations.

This year, Sears are planning to close another 21 stores while Kmart will close «only» 5 stores in October. Kmart closed 48 stores earlier this year. That`s nothing compared to Walgreens’ 200 stores. Or Fred`s 442 with another 129 stores.

We have to keep in mind that some of the retailers also are opening new stores while closing locations at the same time. But……

The pain will continue for years to come. According to UBS, if the e-commerce penetration continue to rise up from its 16% level to 25%, about 75,000 stores need to be shuttered within a few years.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Amazon India is in early stage talks to acquire Uber Eats India

Investors lifted Lyft yesterday. Will they do the same with Uber Technologies which is expected to report earnings on Thursday after market close. The report will be for the fiscal Quarter ending June 2019. The consensus EPS forecast for the quarter is $-3,30.

The New York City Taxi and Limousine Commission votes to extend the cap on the number of permitted Uber drivers in the city for an additional 12 months. Earlier this year, NYC enacted minimum wage rules for ride-hail drivers.

Uber thinks it`s unlikely to receive a five-year license to operate in London, but the ride-hail company expects Transport for London to award a another fifteen-month, short-term license.

Amazon India is interested in entering the food delivery business so that it can add it to the list of services it provides and Amazon is in early stage talks to acquire Uber Eats India, according to Business Standard.

Deliveroo which is backed by Uber and Amazon are planning to acquire the Spanish food delivery startup Glovo. The company was last valued at $950 million and they are planning to go public in 2020.

GrubHub and Just Eat are planning to compete with Uber Eats and Amazon-backed Deliveroo, and they`re in the early stages of a $10 billion merger.

Street consensus calls for revenue of $3,3 billion which is up from Uber`s first-quarter revenue of $3,1 billion with an adjusted Ebitda loss of $869 million. Some investors are worried by Uber`s competiton in the global market and they are concerned about the ability to ever reach profitability.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Will investors lift Lyft?

Investors are jumping into the market again and some say you must buy the dip. Can investors lift the Lyft stock to a higher level? Lyft is expected to report earnings on Wednesday 8 after market close.

The company is scheduled to announce Q2 earnings results on Wednesday and EPS Estimate is -$1,66 and the consensus Revenue Estimate is $809,64M. The history of the company is short and so are the company itself. Lyft was founded 7 years ago as Zimride in San Fransico, California.

General Motors is one of the biggest owners with a 6,6% stake but the biggest owner is Rakuten with a 11% stake. Rakuten is a Japanese electronic commerce and internet company based in Tokyo. Its e-commerce platform Rakuten Ichiba is the largest e-commerce site in Japan and among the world`s largest by sales.

Lyft are operating in 640 cities in the U.S and 9 cities in Canada. It develops, markets, and operates the Lyft mobile app, offering car rides, scooters, and a bicycle-sharing system. Lyft is the second-largest TNC with a 28% markets share in the U.S, according to Second Measure.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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