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☆ ISS backs all four ValueAct director candidates in Seven & I boardroom fight
▼ + stars: | 2023-05-10 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +3 min

"A vote AGAINST company nominees Isaka, Goto, Yonemura, (Shinji) Wada and (Fuminao) Hachiuma is warranted." ISS said ValueAct is calling for a deliberate succession process for the CEO. On Tuesday, ISS extended support for ValueAct's campaign by endorsing all of its candidates and spelling out where the company has faltered. ValueAct and other investors had urged the company to undertake a strategic review and consider spinning off its 7-Eleven chain or selling the entire company. ISS said that ValueAct's nominees bring board experience, capital allocation and executive experience, and Levinson would add a shareholder perspective.

☆ ValueAct loses its temper in 7-Eleven
▼ + stars: | 2023-05-10 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +4 min

HONG KONG, May 10 (Reuters Breakingviews) - ValueAct Capital’s chief Mason Morfit prefers to chide undervalued conglomerates behind closed doors. In its latest 151-page presentation, ValueAct took its case directly to shareholders, the second time it has seen fit to do so in its history. That highlights the U.S. fund’s frustration from its two-year long campaign calling for Seven & i to spin off its 7-Eleven convenience stores, among other things. That implies a standalone 7-Eleven could be worth 10 trillion yen, roughly a quarter more than its parent today. He may have a point, and in truth ValueAct has far more experience turning around technology companies than food retailers.

☆ ISS backs all 4 ValueAct director candidates in Seven & I boardroom fight
▼ + stars: | 2023-05-09 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

"A vote AGAINST company nominees Isaka, Goto, Yonemura, (Shinji) Wada and (Fuminao) Hachiuma is warranted." ISS said ValueAct is calling for a deliberate succession process for the CEO. On Tuesday, ISS extended support for ValueAct's campaign by endorsing all of its candidates and spelling out where the company has faltered. ISS said that ValueAct's nominees bring board experience, capital allocation and executive experience, and Levinson would add a shareholder perspective. ValueAct has experience on boards at Japanese companies, having won seats at Olympus and JSR Corp.

☆ Gold holds ground as investors brace for U.S. inflation data
▼ + stars: | 2023-05-09 | by ( ) www.cnbc.com time to read: +2 min

A five hundred gram gold bar, left, and a a one kilogram gold bar, produced by Swiss manufacturer Argor Hebaeus SA, in Budapest, Hungary. Gold prices flitted in a narrow range on Tuesday ahead of U.S. inflation data, which investors will scrutinize for clues on the Federal Reserve's policy path. If the inflation report comes hot and fans worries of another Fed rate hike in June, gold prices could eventually drop to $1,950-$1,920 level, said Ajay Kedia, director at Kedia Commodities in Mumbai. Besides economic data, market participants are also monitoring developments surrounding the U.S. banking sector and debt ceiling. "If there is news of further stress in the banking sector, we will see gold move towards the $2,100 level," Kedia added.

Spot gold was little changed at $2,023.41 per ounce, as of 0232 GMT. If the inflation report comes hot and fans worries of another Fed rate hike in June, gold prices could eventually drop to $1,950-$1,920 level, said Ajay Kedia, director at Kedia Commodities in Mumbai. Bullion is considered an inflation hedge, but higher rates dent the non-yielding asset's appeal. Besides economic data, market participants are also monitoring developments surrounding the U.S. banking sector and debt ceiling. "If there is news of further stress in the banking sector, we will see gold move towards the $2,100 level," Kedia added.

☆ Berkshire Hathaway's operating earnings increase 12% in the first quarter, cash hoard tops $130 billion
▼ + stars: | 2023-05-06 | by ( Fred Imbert | ) www.cnbc.com time to read: +2 min

Earnings for Warren Buffett's Berkshire Hathaway jumped in the first quarter, thanks in part to a rebound in the conglomerate's insurance business. Operating earnings, which encompass profits from the conglomerate's fully-owned businesses, totaled $8.065 billion in the first quarter. Profit from insurance underwriting came in at $911 million, up sharply from $167 million a year prior. The auto insurer suffered a $1.9 billion pretax underwriting loss last year as it lost market share to competitor Progressive. Berkshire's cash hoard swelled to $130.616 billion from $128 billion in the fourth quarter of 2022.

☆ Johnson & Johnson's consumer health unit Kenvue started trading. What it means for J&J shareholders like us
▼ + stars: | 2023-05-05 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +9 min

For now, it's not exactly clear how J & J will go about the second step of this divestiture. In this scenario, we would have the option to relinquish some, all or none of our J & J shares. In fact, our optimism around the breakup was a big reason we bought into J & J nearly a year ago . J & J continues to argue against claims that its baby powder and other talc products caused cancer lack merit. "Look at it as a whole company today, knowing that [roughly] 10% doesn't belong to J & J," explained Cantor Fitzgerald analyst Louise Chen, who has a buy rating and maintains a $215 price target on J & J.

☆ Global issuance of mortgage-backed securities falls to a 23-year low
▼ + stars: | 2023-05-04 | by ( Patturaja Murugaboopathy | ) www.reuters.com time to read: +3 min

May 4 (Reuters) - The issuance of global mortgage-backed securities (MBS) slumped to a 23-year low in the first four months of this year, highlighting the turmoil in the real estate sector as higher mortgage rates hit property sales and refinancing. According to Refinitiv data, global MBS issuance stood at $100 billion in the first four months of this year, the lowest since 2000. Reuters GraphicsThe property sector, often a leading indicator for other economic activity, has seen a slump this year due to a spike in mortgage rates as global central banks increased interest rates to tame inflation. MBS consist of pools of home loans and other real estate debt and typically carry higher yields than U.S. Treasuries. The refinancing of existing mortgages may also be affected, as there may be fewer lenders available to refinance existing loans leading to private lenders and higher rates."

While the Dow Jones Industrial Average 's year-to-date move into the red on Thursday may signal more choppy, range-bound trading ahead, technical analysts say they don't think it's an omen for new multi-year lows. Chart experts say the closely followed blue-chip Dow Jones average could test long-term moving averages. .DJI YTD mountain The Dow Failing to hold above its 200-day moving average of 32,707 could mean more downside ahead for the 30-stock average, said JC O'Hara, chief technical strategist at Roth MKM. "On average the stocks have an aggregated [earnings] surprise of nearly +10%, but the stocks are not being rewarded," O'Hara said of earnings season for Dow stocks thus far. Now, the Dow is the only one of the three in the red on the year as investors favor growth stocks over value.

☆ Berkshire Hathaway is outperforming during turmoil, but Warren Buffett's favorite child Geico is in trouble
▼ + stars: | 2023-05-04 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Berkshire Hathaway shareholders attending this year's meeting will want to know more about the company Warren Buffett once called his "favorite child" – the auto insurer Geico. With tens of thousands of shareholders in attendance, Berkshire's annual "Woodstock for Capitalists" will be held in Omaha, Nebraska on Saturday, the second in-person gathering since 2019. "I think it's the biggest issue out there at the moment is really Geico," said Bill Stone, chief investment officer at Glenview Trust and a Berkshire shareholder. Geico, until recently, wasn't involved in telematics," Jain said at Berkshire's 2022 meeting. Geico represents one area of weakness for Berkshire, which overall has been beating the broader market.

☆ Goldman downgrades this oil giant, says steam is running out after years of massive gains
▼ + stars: | 2023-05-01 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

Goldman Sachs thinks it's time to ease exposure to Exxon Mobil after the oil giant's massive multiyear run. The firm downgraded the oil giant's stock from buy to neutral on Monday, with a $125 per share price target, or 5.6% upside compared to Friday's $118.34 close. Goldman Sachs analyst Neil Mehta noted the firm upgraded Exxon in December 2020. That hot run makes Exxon today a less engrossing pick among oil stocks, he said. Still, Goldman remains optimistic on the overall forward outlook on oil prices.

☆ Actively managed funds come with unique risks and rewards. Here's how investors can pick a winner
▼ + stars: | 2023-04-28 | by ( Sarah Min | ) www.cnbc.com time to read: +5 min

Still, actively managed funds can have a better chance of outperforming during periods of volatility. Actively managed funds have historically underperformed passive strategies, but 2022 was a better year than most for stock pickers . As investors navigate another uncertain year in markets, actively managed funds could add differentiated performance to their portfolios – if traders choose carefully. Actively managed funds can help diversify portfolios, but investors will have to do their due diligence, she said. Other interesting strategies within actively managed funds include long-short and total return strategies, according to Bellis.

☆ Here’s how one investor is finding underappreciated opportunities this earnings season
▼ + stars: | 2023-04-28 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Longtime investor and trader Jim Lebenthal said the real opportunities lie outside of the popular tech sector during this earnings season. "The most earnings beats have not been from technology stocks," Lebenthal said Friday. "The biggest beats both in terms of frequency and in terms of size has come from materials, energy and industrials." The investor noted that many stock in these sectors haven't actually responded well to major earnings beats, such as Cleveland-Cliffs , General Motors and Exxon Mobil. That's where the earnings growth is the biggest and that's where the opportunities are the greatest," Lebenthal said.

LONDON, April 26 (Reuters) - GSK (GSK.L) began 2023 with a quarterly performance that beat analyst expectations and extended a series of positive results following strong sales of its roster of vaccines as well as HIV and respiratory medicines. Investors are also concerned about the company's long-term prospects, given the pending loss of patent protection of one of GSK's HIV compounds and setbacks in its marketed oncology portfolio. GSK is also relying in part on its potential blockbuster vaccine for RSV, which leads to thousands of hospitalisations and deaths each year. It anticipates launching the vaccine later this year in the U.S. and Europe, pending regulatory approval, as does rival Pfizer (PFE.N). ($1 = 0.8039 pounds)Reporting by Maggie Fick and Natalie Grover in London, Editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

☆ ISS urges Pitney Bowes shareholders to back 4 dissident directors in proxy fight
▼ + stars: | 2023-04-26 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

"Substantial board change is still necessary," ISS wrote in its report to investors which was seen by Reuters. Still, it is not enough, ISS wrote, adding Pitney Bowes has a "history of failing to deliver on important self-established expectations." "We strongly disagree with the recommendation of ISS that shareholders vote for such an extreme and destabilizing level of change at Pitney Bowes," company spokesman Bill Hughes said. Pitney Bowes is valued at $624 million, down from its peak of $2 billion when CEO Marc Lautenbach joined in 2012. "Shareholders have endured a decade of underperformance and disappointment, there are unanswered questions and serious concerns about the path forward," ISS wrote.

☆ Citigroup defends revamp as shareholders complain about sluggish stock
▼ + stars: | 2023-04-25 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +2 min

"We completely understand" shareholders' frustration with the share price, he said, after fielding several questions from shareholders on the topic. Still, Mayo welcomed Citigroup CEO Jane Fraser's pledge to receive 85% of her pay in stock, a higher proportion than peers at other banking giants. Separately, Fraser said the sale of Citigroup's Mexican consumer business, known as Banamex, was taking "longer than expected," because of its complexity. The bank is still pursuing two options for the business: a sale or initial public offering, she said. SHAREHOLDER PROPOSALSThe majority of Citigroup shareholders agreed to management proposals to elect board members and pay executives.

☆ These vulnerable major stocks could be activists' next targets, according to Goldman
▼ + stars: | 2023-04-21 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Shareholder activism could continue its momentum this year, and a number of major companies could be popular targets, according to Goldman Sachs. "Sales growth has been the most important variable in determining an activist target, followed by EV/sales valuation." Goldman screened the Russell 3000 index for companies that may be susceptible to a campaign by an activist investor. Bath & Body Works could experience more action from activists this year, according to Goldman's screen. In the retail space, Goldman also predicts activists may target Best Buy , Burlington Stores and CarMax .

☆ Magic: The Gathering remains a 'key risk' for Hasbro stock as collectors grow cautious on investing in new card sets
▼ + stars: | 2023-04-20 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Hasbro stock faces challenges with Magic: The Gathering, according to Bank of America. The bank said stores and collectors have grown more cautious about investing in new product sets of the game. "We still see Magic underperformance as a key risk especially in 2H23 as Hasbro laps a crowded release schedule," BofA said. And it's that "wallet fatigue" that could hurt the sales growth of Magic: The Gathering for Hasbro going forward, according to BofA analyst Jason Haas. He reiterated an "Underperform" rating on Hasbro stock and $42 price target, which represents potential downside of 19% from current levels.

☆ Woodford investors offered up to $292 mln over fund failure
▼ + stars: | 2023-04-20 | by ( Kirstin Ridley | ) www.reuters.com time to read: +2 min

LONDON, April 20 (Reuters) - Investors in the failed equity income fund run by fallen star stock picker Neil Woodford have been offered up to 235 million pounds ($292 million) in redress after a British regulatory investigation. The failure of the Woodford fund, which managed billions of pounds before it was suspended amid a political and public outcry in 2019, trapped 300,000 investors, triggering the FCA investigation and three London investor lawsuits. Woodford, once one of Britain's most high-profile investors, was criticised for holding a large number of hard-to-sell illiquid assets. He suspended the fund after struggling to meet redemption requests following months of underperformance. The proposed redress falls short of a scheme suggested by the FCA, under which it wanted WEIF investors to receive 298 million pounds.

☆ Investor Karen Firestone says this group of stocks is the next attractive segment of the market
▼ + stars: | 2023-04-19 | by ( Karen Firestone | ) www.cnbc.com time to read: +4 min

I have written several pieces that touched on the stocks with over $5 billion in market cap that fell hard from 2021's elevated grace. Market cap as a differentiator What might lead to such a wide discrepancy? What stands out is the big difference in market capitalization of the stocks in the top-performing quintile and the bottom group. The average market cap for the top fifth is $79.5 billion compared to $15.6 billion for the lowest performers. There are 4,279 stocks listed on the NYSE and Nasdaq with a market value of $5 billion or less.

☆ Farallon steps up activism at biotech company Exelixis. Here’s what could happen next
▼ + stars: | 2023-04-15 | by ( Kenneth Squire | ) www.cnbc.com time to read: +9 min

Farallon is not an activist investor but will pursue an activist agenda when it feels forced to do so. As the strategy of shareholder activism has become more mainstream, it has been utilized by a larger breadth of investors. The firm has been a shareholder of Exelixis since 2018 and is just now going public with their concerns. Farallon would also like to see Exelixis commit to a much larger share repurchase program than the $550 million it has announced. Farallon is nominating only three directors to this board, and it befuddles us as to how Exelixis does not see this as a gift.

☆ Top chart analyst sees trouble ahead for this retail bellwether beating the market
▼ + stars: | 2023-04-15 | by ( Sean Conlon | ) www.cnbc.com time to read: +1 min

Trouble may be in store for Walmart — a stock which has been outperforming the major market indexes. Worth sees particular trouble ahead for the stock at $140 level. "The P/E is high-ish, but it's actually not quite as high as it seems because they've been spending, spending, spending," she said. Retail sales recorded a 1% drop in March — a bigger drop than Wall Street was expecting. Walmart shares fell almost 2% last week, but they're up about 5% so far this year.

☆ In signing 6-week ban, DeSantis wades into thorny debate over abortion and 2024
▼ + stars: | 2023-04-14 | by ( Joseph Ax | ) www.reuters.com time to read: +6 min

April 14 (Reuters) - When Florida Governor Ron DeSantis signed a 15-week abortion ban on April 14, 2022, he held a morning ceremony at a church in front of an enormous "Protect Life" sign, flanked by women and children. On Thursday, exactly one year later, DeSantis – now a likely 2024 Republican presidential candidate – signed a six-week ban with decidedly less fanfare. Republican presidential hopefuls, including former President Donald Trump, have largely sidestepped the issue. REPUBLICANS TREAD CAREFULLYOther Republican presidential contenders have also treaded carefully. In a social media post after November's midterm elections, he blamed the "abortion issue" for the party's underperformance.

MSCI's Europe index, for example, still trades more than a point below its average historic valuation - with the index priced at less than 13 times its 12-month forward earnings. The top sectoral weighting in the STOXX Europe 50, for example, is healthcare - at almost 23%. With British-based stocks the biggest country weighting in the STOXX Europe index at 26%, the other top four sectors in the index include the food, beverages and tobacco grouping, consumer products, industrial goods and energy. The dollar peaked late last year against most European currencies as the Federal Reserve raced to ratchet up interest rates. Some think the slide in the dollar index of some 12% since last September is barely half of the whole move.

☆ These stocks crushed it this week, including one name analysts expect to rally 95% from here
▼ + stars: | 2023-04-14 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

Some individual stocks ran laps around the broader stock market this week. More than three-fourths of analysts covering the stock rate the stock a buy, with the average price target pointing to upside of 95.3% over the next year. Of these three stocks, only Bio-Techne is expected by the average analyst to see share prices rise in the next year. Outside of health, solar stocks Enphase and SunPower were also among the best performers this week. ENPH SPWR 5Y mountain Enphase and SunPower over the last 5 years — CNBC's Fred Imbert and Michael Bloom contributed to this report

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