Composite Currency – The Window Sat, 13 Aug 2022 09:21:00 +0000 en-US hourly 1 Composite Currency – The Window 32 32 Nasdaq bear market: 5 brilliant growth stocks you’ll regret not buying on the downside Sat, 13 Aug 2022 09:21:00 +0000

This year has reminded Wall Street and the investing community that stocks do not move in a straight line. The first six months of 2022 saw the S&P500 deliver its worst performance in 52 years. Meanwhile, the propelled growth Nasdaq Compound (^IXIC 2.09%) plunged as much as 34% from its closing high set in November 2021. You will notice by the magnitude of this decline that the widely followed Nasdaq has firmly entrenched itself in a bear market.

While bear market declines can be confusing, unpredictable, and test investors’ resolve, they are a perfect part of the investment cycle and the perfect time for long-term investors to put their money to work. After all, every double-digit percentage decline in major US indexes, including the Nasdaq Composite, was eventually recovered (and some) by a bull market rally.

Image source: Getty Images.

The current bear market is a particularly good time to buy growth stocks at a deep discount. Below are five brilliant growth stocks you’ll regret not buying during the Nasdaq bear market decline.

PayPal Credits

The first phenomenal growth stock that investors are likely to flip over if they miss this Nasdaq bear market drop is a fintech specialist PayPal Credits (PYPL 2.01%). Although historically high inflation is currently disproportionately affecting low-income people, which could reduce activity on PayPal’s digital payment platforms, the company’s long-term growth potential remains unchanged.

PayPal is at the center of the digital payment revolution. According to a report by The Insight Partners, the digital payment industry is expected to grow at a compound annual rate of more than 15% through 2028. PayPal has the potential to blow those numbers. Total payment volume on its platform grew 13% at constant exchange rates during a second quarter that saw inflation hit a four-decade high and US gross domestic product fell 0.9%. Imagine what PayPal can do during long periods of expansion in the US economy.

What’s really impressive is the engagement that PayPal has been able to get from its active users. At the end of 2020, active users performed an average of 40.9 transactions in the last 12 months (ttm) period. As of June 30, 2022, this amounted to an average of 48.7 transactions per active ttm user. Since PayPal is primarily a fee-based business, increasing engagement should lead to steadily increasing profits.

With many parts of the world still underbanked, the addressable market for digital payments is huge.

Intuitive surgery

A second stellar growth stock that investors will regret not buying during the Nasdaq bear market decline is the robotic-assisted surgical systems company Intuitive surgery (ISRG 1.00%). Despite the COVID-19 pandemic pushing back some selective surgeries, the future is bright for this high-growth stock.

For starters, health values ​​are generally defensive. No matter how the US economy and stock market perform, there will always be demand for prescription drugs, medical devices and healthcare services. Although some procedures are elective, Intuitive Surgical is expected to have a fairly high demand floor.

More importantly, this is a company that absolutely dominates the robot-assisted surgery industry. In just over two decades, it has placed 7,135 of its da Vinci surgical systems around the world. This is far more than any of its competitors. Given the price of these systems and the training of surgeons in their use, buyers tend to remain customers for a long time.

But the best thing about Intuitive Surgical is its razor and blade operating model. Throughout the 2000s, most of the company’s revenue came from the sale of its expensive da Vinci (the “razor”) systems. Unfortunately, these are complex machines that are expensive to build, meaning the associated margins weren’t the best. Over time, the sale of instruments with each procedure and the maintenance of its da Vinci systems (the “blades”) became the lion’s share of sales. These are much higher margin segments.

A miniature orange basket and a small pyramid of mini boxes on top of a tablet and an open laptop.

Image source: Getty Images.

Sea Limited

The third bright growth stock just begging to be bought by opportunistic investors during this Nasdaq bear market decline is Singapore-based Sea Limited (SE 0.15%). What makes Sea such an intriguing buy for patient investors is its three diverse but rapidly growing operating segments.

At the moment, the company’s digital entertainment segment, known as Garena, is the only one of the three to generate positive earnings before interest, taxes, depreciation and amortization (EBITDA). In particular, the worldwide hit game Free fire continues to be Sea’s big winner. While most game companies average a pay-to-play conversion rate of around 2%, Garena saw a 10% paid user rate in the first quarter.

Second, the company’s SeaMoney digital financial services division is rapidly gaining new customers. Many target markets in the sea are underbanked or have limited access to basic financial services. Offering digital/mobile wallets seems like a quick way to achieve sustainable double-digit sales growth.

But most investors are drawn to Shopee, the company’s e-commerce segment. Shopee has consistently been the most downloaded retail app in Southeast Asia, and the company has made significant inroads in Brazil. After seeing $10 billion in gross market value (GMV) flow through its network in 2018, Sea’s Q1 GMV of $17.4 billion puts it on track for nearly $70 billion in annual GMV. in 2022.

Cresco Laboratories

The fourth fantastic growth stock you’ll regret not recovering with the Nasdaq plunging into a bear market is the US Multistate Cannabis Operator (MSO) Cresco Laboratories (CRLBF -2.79%).

There’s no two ways marijuana stocks have been buzzing since February 2021. Wall Street has been hyped that a Democrat-led Congress and President Joe Biden would usher in an era of federal legalization of weeds. With none of that coming to fruition, the buzz around pot stocks died. However, with individual states able to legalize cannabis, there remains more than enough opportunity for companies like Cresco Labs to thrive.

By the end of March, Cresco had 50 operating dispensaries and was primarily focused on expanding its brand(s) into limited license markets. Choosing markets where dispensary licenses are capped ensures that Cresco won’t be crushed by a deeper-pocketed MSO.

Additionally, Cresco is in the midst of a transformative acquisition that will see it buy MSO Care British Columbia under a fully shared agreement. When closed, the combined company will have a footprint in 18 states (up from 10 currently) and the sport north of 130 operating dispensaries.

But arguably the best part of Cresco Labs is its industry-leading wholesale operations. Wall Street often rejects wholesale cannabis because of its lower margins. However, with Cresco holding a cannabis distribution license in California, it can more than compensate for low wholesale margins by placing its proprietary pot products in more than 575 dispensaries across the Golden State.


The fifth and final bright growth stock you’ll regret not buying during the Nasdaq bear market decline is none other than FAANG stock. Alphabet (GOOGL 2.39%) (GOOG 2.36%). Alphabet is the parent company of the Google search engine and YouTube streaming platform.

One of the most logical reasons to add Alphabet to your portfolio is its ultra-dominant internet search segment. According to data from GlobalStats, Google has controlled no less than 91% of the global Internet search market share over the past two years. As a convenient monopoly, Google has no trouble imposing industry-leading pricing power for ad placement.

While this fundamental segment is a cash cow, it’s the growth initiatives that Alphabet has funneled its cash into that should excite investors. YouTube, easily one of the best acquisitions of all time, is now the second most visited social media site in the world (2.48 billion monthly active users). With so many active users, it’s perhaps no surprise that YouTube can hit $30 billion in ad revenue this year, not including subscription sales!

Additionally, Google Cloud has become the #3 global cloud infrastructure services spender. Not only is cloud growth still in its infancy, cloud service margins are generally higher than advertising margins. While Cloud is a money loser for Alphabet right now, he could be a serious cash flow driver by the middle of the decade.

If you need another good reason to buy Alphabet, consider this: it’s never been cheaper than Wall Street’s earnings forecast for the year.

BSP imposes 3-year ban on virtual currency-related licenses – Manila Bulletin Thu, 11 Aug 2022 07:53:00 +0000

The Bangko Sentral ng Pilipinas (BSP) imposes a three-year moratorium on licensing of Virtual Asset Service Providers (VASPs) as it reviews the local market for trading virtual assets or digital currencies.

In a memo (Memorandum Order M-2022-035) she signed on August 10, BSP Deputy Governor Chuchi G. Fonacier said the regular application window for new VASP licenses will be closed. for three years starting next month, September 1.

Fonacier, currently governor in charge of the BSP, said that the BSP will reassess market developments during the ban on new VASP licenses.

Virtual Currency/Virtual Assets (Manila Bulletin article)

BSP refers to virtual currencies as virtual assets. It issued a circular to govern VASPs in 2017. The VASP regulation expands previous BSP rules on virtual currency exchanges to include businesses that engage in an exchange between one or more forms of virtual assets, the transfer of assets assets and custody or administration of virtual assets. assets.

Fonacier called the moratorium a “modified approach” in granting VASP licenses that was approved by the BSP’s Monetary Board on August 4.

She said the ban is BSP’s way of striking a balance between promoting innovation in the financial sector “and ensuring that associated risks remain at manageable levels.” At the end of June, the BSP supervises 19 PSAVs.

With respect to all pending VASP license applications, Fonacier stated that applicants who completed or passed Stage 2 of the licensing process on or

before August 31 will still be processed and evaluated for completeness and sufficiency of documentation as well as compliance with licensing criteria to operate as a VASP based on Stage 3 requirements.

In the meantime, all VASP applications that are deemed incomplete by August 31 will be considered “closed” applications. “The Bangko Sentral will not process these requests further,” Fonacier said.

As for existing BSP supervised financial institutions (BSFl) intending to offer VASP services, including non-custodial VASPs for custodial and custodial services, Fonacier can still apply for a license if it has a rating “stable” composite of the prudential assessment framework (SAFr). Particular attention will be paid to OSFI’s risk management systems, including its client suitability assessment and onboarding processes, as well as financial consumer education and awareness programs when assessing of his candidacy, she added.

Fonancier said the BSP recognizes that virtual assets offer opportunities to “promote greater access to financial services at reduced costs, they also present varied risks that can undermine financial stability.”

“In this regard, the regular application window for new VASP licenses will be closed for three years, subject to reassessment based on market developments,” she said.

The last time the BSP made changes to its VASP rules was in early 2021 when it updated and revised its rules on the exchange of virtual assets by expanding the guidelines covering currency exchanges. virtual machines and VASP registration and licensing.

Last year’s changes closed regulatory gaps in existing VASP regulations that were previously identified by the Financial Action Task Force (FATF) after it issued its guidance for a risk-based approach to virtual assets and virtual assets. virtual asset service providers in 2019 in response to new technologies, services and products. The FATF has described VASPs as entities that facilitate financial services through the conduct of virtual asset activities.

The BSP has amended its 2017 guidelines on virtual currency exchanges to also cover new business models and activities. The update is also aligned with fintech or financial technology company best practices and complies with risk management standards set by international standards bodies such as the FATF.

On June 25, 2021, the FATF placed the Philippines on its “grey list” as a country with strategic deficiencies in AML/CFT or AML/CTF regulation.



US tech stocks fell on slowing demand for semiconductors Tue, 09 Aug 2022 16:42:41 +0000

Technology stocks on Wall Street fell on Tuesday after chipmaker Micron Technology warned of slowing consumer demand, raising concerns about the sector’s outlook.

Shares of the US group fell nearly 5% after it said demand was falling for chips used in personal computers and smartphones as customers curb spending.

The warning added to bearish sentiment in the sector after its counterpart Nvidia’s disappointing results on Monday. The broader Philadelphia Semiconductor index fell 5.3%.

Investor concerns over consumer demand dragged the Nasdaq Composite down about 1.4% in midday trading in New York and weighed on other global equity indices. The US benchmark S&P 500 fell 0.7%.

In Germany, Adidas and Puma fell 3.4 and 4.6% respectively, while industrial giant Siemens fell 2.6% after disappointing results on Monday. The hit to consumer companies helped push the country’s Dax index down 1.1% at the close, while Europe’s Stoxx 600 lost 0.7%.

The economic outlook will become brighter with Wednesday’s release of the closely watched U.S. Consumer Price Index, which is expected to influence the U.S. Federal Reserve’s plans for monetary policy tightening as it faces searing inflation. .

Economists polled by Reuters expect headline inflation to have risen 0.2% from June to July, core inflation – not including food and energy costs – is expected to have risen 0.5% . They expect inflation to have reached 8.7% on an annual basis, slightly below the June figure.

“A higher-than-expected inflation print will lead to a new round of hawkish expectations from the Fed,” said Patrick Moonen, senior strategist at NN Investment Partners. “Then the balance could shift to value stocks, like financials. On the other hand, if it’s better than expected, [high-quality] growth stocks can continue to perform well.

Recent data from the United States showed that inflation has continued to rise in recent months, the Fed’s favorite inflation indicator, the core personal consumption expenditure index and the latest report on the employment cost index, which tracks wages and benefits, has also risen in recent weeks.

Fed Chairman Jay Powell has taken a meeting-by-meeting approach to rate hikes, rather than providing advice ahead of time. Markets are pricing in the possibility of a 0.75 percentage point hike at the central bank’s next policy meeting in September.

In government bond markets, the yield on the 10-year US Treasury added 0.04 percentage point to 2.8% as its price fell. The German 10-year Bund yield traded flat. The dollar lost 0.3% against a basket of six currencies.

In Asia, Hong Kong’s Hang Seng index closed down 0.2%, while Japan’s Topix lost 0.7%, led by a 7% drop in SoftBank shares after the conglomerate announced on Monday a record loss of $23 billion for the first quarter.

U.S. inflation data released Wednesday could provide additional clues about the economic outlook and consumer demand, as well as how aggressively the Fed will raise interest rates to fight inflation.

“The next 30 hours will be the calm before the storm, or perhaps herald the true start of summer’s scorching days,” Deutsche Bank strategist Jim Reid wrote Tuesday morning.

Dark clouds over the economy Mon, 08 Aug 2022 02:54:48 +0000

Rome is burning, and Emperor Nero and the Roman elites are busy reveling in gladiatorial trysts and despicable sleight of hand with the future of the empire. Nigerian leaders are playing Nero and Nigerian elites are bewildered by the danse macabre of preparing for the upcoming elections. While overlooking the hard truth that the backs of millions of Nigerians are being broken by the harsh tripartite economic realities – hyperinflation, especially food; massive unemployment; and the energy crisis caused by the Russian-Ukrainian war in a post-COVID context

19 economy. The political class seems indifferent to the collapsing economy and the collapsing standard of living of Nigerians.

The average Nigerian these days may be economically illiterate or uninterested in economic indicators, but almost every Nigerian knows from impact and experience that the health of the economy is in shambles. You don’t have to be an economist to know that a loaf of bread you bought for 500 naira in June sold for 700 naira at the end of July or that the cost of 10 kg of cooking gas has almost doubled in the space of four months from March to July 2022 Airfare from Abuja to Kano went from an economy ticket of 50,000 naira to around 100,000 naira between June and July. The average cost of road transport has also doubled over the same period. The above pattern is most visible in fuel prices including diesel, food prices, transportation and the cost of imported items, however insignificant.

There is an increase in the cost of goods and services of most commodities in Nigeria while wages and incomes stagnate or depreciate. This situation is aggravated by the deterioration of the exchange rate regime. Nigeria is an import dependent economy. This situation is aggravated by imported inflation due to the high price of goods and services abroad due to worsening global economic crises. When the prices of goods increase abroad, importing these goods means importing the inflation attached to the goods. Combined with the rapid fall in value of the Naira against major global currencies in the unofficial market (Dollar traded for almost N720 to $1).

The economists among us try to explain the situation with the help of critical economic data, mainly from the National Bureau of Statistics (NBS). Recent statistics will cause any Nigerian to reflect soberly on the fate of this country, although the full effect of this has yet to materialize. The inflation spiral stands at 18.6% in June 2022 on an annual basis, and on a monthly basis, the inflation rate increased to 1.82% in June 2022, higher than the rate recorded in May 2022.

The food composite index on an annual basis rose to 20.60% in June 2022. The food sub-index increased by 2.05% on a monthly basis in June 2022. of the year, from 15 .6% in January to the current rate of 18.6% in June. In the same vein, the inflation rate for food products, which is a catalyst for the surge in inflation, rose to 20.6% in June from 17.13% recorded in

January. The outlook sends the signal of a dark cloud.

Ordinary Nigerians are losing faith in the ability of the managers of our economy to stop and reverse this trend. From the prism of the man in the street, it appears that our economic ruin is inevitable. The highest inflation peaks are in the prices of food, gasoline, cooking gas, clothing, road and air passenger transport.

After months of caution, the CBN’s Monetary Policy Committee (MPC) raised the benchmark interest rate by 100 basis points (1%) in its last two consecutive meetings to combat this inflation. Theoretically, this should slow down inflation and improve the economic situation. However, the opposite is happening: the higher the key rate, the higher the inflation. The reasons for this may be, firstly, too much money in the system due to Covid 19 financial interventions by the government. The second is imported inflation which is not affected by the MPR. The third is the continued depreciation of the naira, and finally, the survival instinct of businesses to mark up costs and pass on the consumers who bear the brunt of the price increase. The last but probably the biggest culprit is the government’s uncontrolled borrowing mainly by ways and means at the behest of the CBN, a euphemism for printing money.

This situation is not helped by declining government revenue due to insecurity and Nigeria’s inability to maximize the production and sale of crude oil during this regime of high prices in the international market. Our low productivity meant that the government did not derive much revenue from taxes, duties and levies on economic activities. Our revenue-to-debt-service ratio is around 120%, and Nigeria owes over $100 billion, or almost a quarter of our gross domestic product. The private sector is struggling due to a lack of enabling environment for its activities. Insecurity has crippled economic activities in most parts of the country, and lives and property have been lost due to relentless attacks by terrorists, bandits, criminals, secessionists and agitators.

Given this grim picture of the economic road we are most likely to travel as a nation, what are our options? Our government must act decisively with speed, clarity, transparency and innovation. Traditional thinking cannot help us in this situation. The government should wake up and aggressively pursue economic policies and actions that will improve the situation. Now is not the time to point fingers at accusers. Any fair-minded person will admit that it is not entirely the fault of the government that these economic woes are happening to us. However, it must also be said that the government has not shown the capacity and will to tame the situation.

This situation is the result of financial mismanagement and policy misdirection accumulated by previous administrations, including this one. But we must recognize the devastating impact of COVID 19 on our economy and the unpredictable, unstable and conflict-affected international economic climate such as the ongoing Russian-Ukrainian war and ensuing energy crisis. Having recognized this, I must emphasize that these facts do not absolve the current government from assuming absolute responsibility to address the situation, whatever the root causes.

Therefore, I recommend that the government put in place corrective policies and actions to alleviate the painful consequences of economic hardship on many Nigerians. More than one hundred million Nigerians live below the poverty line. Imagine how they deal with this tough inflationary economic trend. What about people on fixed incomes with families and other responsibilities? How do they cope with the constant wiping out of the net worth of their fixed income securities due to devastating inflation? No wonder the labor movement is agitating for better wages and working conditions.

At this point, the government must urgently tackle the problem with a four-pronged approach: First, the government must design how to protect the poorest among us using policy instruments. If the government fails to do this, it could encourage an increase in crime. Second, the government must be decisive in managing the price at the pump of petroleum products and give priority to the supply of domestic gas to the local market. Today, most of the inflation is linked to an increase in the cost of crude oil, which translates into an increase in the price of petroleum products.

Third, although the government through the Central Bank of Nigeria has done a lot to boost local food production, it needs to go further to invest in food processing, storage and distribution and help farmers and other businesses to create more value through value. string spectrum. Fourth, the CBN, as an important stakeholder, should continue to use monetary policies in conjunction with federal government fiscal policies to stabilize the economy.

The depreciation of the naira has continued to directly or indirectly affect most Nigerian families due to the import dependent nature of the economy.

The unregulated “black market” activities for foreign currency portend great danger to our import-dependent economy unless the CBN and the Federal Government step in to control the situation. Unfortunately, the average Nigerian regards the black market rate of the dollar against the naira as the de facto market rate and when traders in this market determine the exchange rate, it is dangerous to our collective economic interest.

At this time of election campaign, it is incumbent upon Nigerians to hold the presidential candidates accountable and examine their skills and abilities to pull Nigeria out of this economic quagmire. Any populist promises by our presidential candidates to revive the economy, create jobs and put us back on the path to growth must be questioned by voters. Without the finer details and mechanics of how it can and should be done, it must be taken for what it is, wishful thinking, and discarded accordingly. The era of economic guesswork is over.

Presidential candidates must give Nigerians details on how they intend to save Nigeria and Nigerians from soaring energy costs, rising food prices, soaring debt profile, lower revenues and lower governance costs. Nigerians have been taken for granted enough. May 2023 be a turning point of economic change. We have to get it right this time and we have no choice. The government and political elites must stop playing Nero and start working hard to save our “burning Rome”.

Stocks turn as investors anticipate Friday’s jobs report Thu, 04 Aug 2022 18:49:00 +0000

Stocks faltered on Thursday as traders awaited Friday’s July jobs report, which will provide the latest insight into the labor market and the health of the economy.

The Dow Jones Industrial Average lost 79 points, or 0.24%. The S&P 500 fell 0.07% after hitting its highest level since June on Wednesday. The Nasdaq Composite gained 0.30%.

An uptick in weekly jobless claims, reported Thursday morning, weighed on investors watching for signs of a weakening labor market. The July jobs report, due out on Friday, will show how employers hired last month. Economists estimate the economy added about 250,000 jobs in July, down from 372,000 in June. The unemployment rate is expected to remain at 3.6%, according to FactSet.

Additionally, investors will get an updated look at inflation data from the July Consumer Price Index report next week.

“I would definitely consider today one of those days of waiting while we wait for the most important data to come out this week,” said Art Hogan, chief market strategist at B. Riley Financial, referring to the Friday jobs. report.

Oil prices fell on global recession worries and dragged down the energy sector. The sector was the biggest laggard on the S&P 500.

The earnings season continued, with a slew of reports on Thursday. Shares of Eli Lilly fell after the company missed Wall Street estimates for its quarterly results and cut its full-year guidance. Shares of Datadog and Lucid also fell after both companies cut their future outlook.

Investors will receive another batch of income on Thursday. Virgin Galactic, AMC Entertainment and Beyond Meat are expected to report after the bell.

Wall Street was coming out of a solid session. On Wednesday, the Dow Jones advanced more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite jumped about 2.5%.

RBI enables invoicing and payments for international trade in Indian Rupee Wed, 03 Aug 2022 01:42:35 +0000
Image source: PTI RBI allows invoicing and payments for international trade in Indian rupee: minister

Strong points

  • A circular in this regard was issued by the RBI on July 11, 2022
  • The circular was submitted “Indian Rupees (INR) International Trade Regulations”
  • The information was confirmed by the Union Minister of State for Finance, Bhagwat Kisanrao Karad.

The Reserve Bank of India (RBI) has authorized invoicing and payments for international trade in Indian Rupee, Union Minister of State for Finance Bhagwat Kisanrao Karad informed the Rajya Sabha on Tuesday.

In a written response to a question posed to Rajya Sabha, Karad said the central bank had allowed payments for international trade in Indian currency through a circular on “International Trade Regulations in Indian Rupees (INR) published on July 11, 2022.

Giving more information, the Minister said that under paragraph 10 of the circular, the approval process is that for the opening of special INR Vostro accounts, the banks of the partner countries can contact the banks of the authorized dealers (AD) in India who can seek approval from RBI with the details of the arrangement.

The AD bank that operates the Vostro INR Special Account is required to ensure that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on High-Risk and Non-Cooperative Jurisdictions on which the FATF called for countermeasures, he said. .

RBI’s Financial Inclusion Index rises

Meanwhile, the RBI Composite Financial Inclusion Index (FI-Index) reflecting the extent of financial inclusion across the country rose to 56.4 in March 2022, showing growth in all metrics .

The index captures information about various aspects of financial inclusion in a single value between 0 and 100, where 0 represents complete financial exclusion and 100 indicates complete financial inclusion.

“The value of the FI index for March 2022 stands at 56.4 compared to 53.9 in March 2021, with growth seen across all sub-indices,” the RBI said in a statement.

In August last year, the central bank said it had been conceptualized as a comprehensive index, incorporating details of banking, investment, insurance, post, as well as the pensions sector, in consultation with government and respective industry regulators.

The FI index comprises three main parameters: access (35%), use (45%) and quality (20%), each of which consists of various dimensions, which are calculated on the basis of several indicators.

The FI Index was constructed without any “base year” and as such reflects the cumulative efforts of all stakeholders over the years towards financial inclusion.

The index is now published annually.

(With agency contributions)

Read also | Exceptional fuel export tax reduced; raised on domestic crude oil

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Bull of the day: Illumina (ILMN) Mon, 01 Aug 2022 09:20:00 +0000

Illumina ILMNis the $32 billion leader in genetic sequencing equipment for biotech companies and research labs worldwide.

Illumina, based in San Diego, provides integrated tools and systems for the analysis of genetic variation and function. Through its proprietary technologies, the company offers innovative sequencing and microarray solutions for genotyping, copy number variation analysis, methylation studies, and gene expression profiling of DNA and RNA.

Its customers include leading genomics research centers, academic institutions, government laboratories, hospitals and reference laboratories as well as pharmaceutical, biotechnology, agrogenomics, commercial molecular diagnostics and consumer genomics companies.

Illumina generates revenue from two segments – Product and Service.

Product revenue (87.7% of total revenue in 2021; up 45.1% from 2020) are primarily attributed to partnerships and collaborations to develop distributable clinical in vitro diagnostics (IVDs) for Illumina sequencers. Product revenue consists of proceeds from sales of the Consumables and instruments used in genetic analysis segment. This includes reagents, flow cells and beadchips based on the company’s proprietary technologies.

Revenue from services (12.3%, up 10.7%) includes genotyping and sequencing services as well as instrument maintenance contracts.

Next Generation Sequencing (NGS)

Illumina’s sequencing platform portfolio represents a family of systems designed to meet the workflow, throughput, and accuracy requirements of a full range of sequencing applications.

The Company’s MiSeq Sequencing System is a low-cost desktop sequencing system that provides individual researchers with fast turnaround, high accuracy and streamlined workflow.

NextSeq 500 offers flexibility from whole genome sequencing to targeted panels in a desktop platform. The HiSeq 2500 Sequencing System allows customers to sequence an entire human genome in approximately one day.

How ILMN rose in rank Zacks

Illumina ended the first quarter of 2022 with better than expected earnings and revenue. The solid year-over-year improvement in Core Illumina’s business looks encouraging.

Revenue contributions from the new GRAIL venture, primarily Galleri testing fees, bode well. Shipments of NovaSeq consumables and instruments reached new highs in the quarter as the company saw strong demand for NextSeq 1000, 2000 from new customers.

The company also saw significant growth in the installed base and a record order backlog, instilling optimism. Orders for sequencing consumables topped $1 billion for the first time in the quarter, setting a new record for the company.

Although there was a significant year-over-year decline in adjusted earnings per share, analysts raised estimates for next year. So while this fiscal year will see a 30% decline in EPS, next year will rebound with a 30% gain.

And more encouraging is the flat revenue with projected growth of 15% this year to $5.2 billion and next year expected to cross $6 billion for a 16.5% lead.

Controversy over the GRAIL merger: it’s complicated

Five years ago, Illumina established its GRAIL cancer detection unit. Last year, management decided it would be best to fold the business.

GRAIL’s Galleri blood test detects 50 different cancers before they are symptomatic. Illumina’s acquisition of GRAIL will accelerate access and adoption of this vital test worldwide.

Since the deal was announced last summer, it has come under intense scrutiny from the EU. It’s a shame because as Illumina wrote last August…

The Galleri test is available but costs $950 because it is not covered by insurance. Bringing the two companies together is the fastest way to make the test widely available and affordable. Illumina’s development and market access expertise has already covered genomic testing for more than one billion people worldwide. This experience will contribute to the coverage and reimbursement of the Galleri test.

Late last week, Reuters reported that Illumina’s Grail deal was likely to be blocked by EU regulators. Illumina’s proposed takeover of Grail is likely to be blocked by EU antitrust regulators amid concerns over concessions offered by the U.S. life sciences company, Reuters’ Foo Yun Chee reported, citing people familiar with the matter. .

There are doubts whether concessions offered by Illumina last week to assuage EU concerns over the transaction will increase competition, the author noted. The company has offered competitors worldwide royalty-free licenses for some of its patents and a three-year patent truce with China’s BGI in Europe in a bid to address EU antitrust concerns.

Bullish reaction from analysts regardless of the merger

On July 14, Canaccord analyst Kyle Mikson noted that the EU court had ruled that Illumina’s merger with GRAIL could proceed, but he said the decision did not reflect the merits of the company. merger. The analyst remains positive on the outlook for Illumina with or without GRAIL and believes investors are undervaluing the company’s strong core performance. Mikson reiterated his buy rating and $520 price target on Illumina shares.

On July 13, Piper Sandler analyst David Westenberg observed that EU regulatory uncertainty increased the likelihood that Illumina would have to completely divest the asset, which would be a “net positive for the stock if it was happening.” Westenberg, who sees the EU decision as a “headache” since both companies are based in the United States, says the news is delaying a “compensation event” for Illumina. Still, he reiterates an overweight note on stocks, saying the company has the most comprehensive sequencing product line in a 20% growing market.

Reproductive Health and Genetics Markets

Illumina is currently delivering on its goals of building its presence in the multi-billion dollar global gene sequencing market with highly competitive products in its existing portfolio and pipeline. This market is rapidly expanding globally, which has enabled the company to witness continued growth in the number of non-invasive prenatal testing (NIPT) samples.

Here’s how the company describes its position in this market…

Based on past experience, when Illumina enters a market, the market grows. When Illumina entered the non-invasive prenatal testing space, prices fell, reimbursement increased, the number of providers increased, and more expectant parents gained access to testing.

I completely agree with this point of view because I have been a frequent investor in Natera NTRA, a $4 billion diagnostics company specializing in NIPS (non-invasive prenatal screening). This is a vital area that must be accessible to every woman and her baby, no matter the cost.

Conclusion on ILMN: Be a long term buyer near $200. This leader in genomics will make science and medicine exciting in the coming decades of the century of biology.

Disclosure: I own shares of ILMN and NTRA for the Zacks Healthcare Innovators portfolio.

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Why Microsoft’s earnings disappointment signals an investment opportunity Sat, 30 Jul 2022 13:57:00 +0000

Microsoft (MSFT 1.57%) missed on both revenue and profit in its fourth quarter of fiscal 2022. The disappointing news, which the company announced after Tuesday’s close, appeared to confirm the negative segment that has weighed on the tech sector since the end of last year.

But Microsoft shares rose 5% on Wednesday, trading on a more optimistic outlook. The factors underlying this market reaction could cause investors to consider adding shares of Microsoft to their portfolios — and possibly some of its peers as well.

Microsoft revenue

It was a rare miss for the company. Microsoft’s revenue rose 12% to $51.9 billion in its fourth fiscal quarter, which ended June 30. Wall Street expected $500 million more.

In particular, the strong dollar had a negative effect on its international revenues – at constant exchange rates, revenue growth was 16%. Similarly, net income rose only 2% to $16.7 billion, below expectations by about 3%. A 17% increase in the cost of sales and a 20% increase in research and development costs had a dramatic impact on the bottom line.

However, in the fiscal 2023 guidance that management provided on the earnings call, it projected double-digit percentage growth in revenue and earnings in both constant currency and U.S. dollars.

The impact of income

This more positive outlook appeared to negate the impact of lost earnings and revenue, explaining why the stock rose after the report.

The report and guidance also underscores the continued strength of non-consumer technology. Despite weak sales overall, Microsoft’s Azure revenue grew 40% and intelligent cloud remained the company’s largest and fastest growing segment. Additionally, cloud services tend to be cost-effective options for the businesses that use them. So even if the economy slides into a recession, the cloud segment is likely to shield Microsoft from the impact of lower consumer spending.

Amid this bear market, Microsoft is trading at a price-earnings ratio of 28, a near two-year low. Although not the cheapest cloud stock, it is vastly undervalued compared to its cloud rival Amazonwhich trades for 57 times earnings.

Additionally, the movement in Microsoft’s share price on Wednesday could signal positivity and improving investor outlook for the tech sector in general. Market leaders tend to be the last to fall in a downturn and the first to recover. The fact that Microsoft gained ground despite the quarterly failure may indicate that the slide in the technology sector is about to bottom. This could give hope to investors who have seen the Nasdaq Composite Index fall over 23% and many growth tech stocks fall over 80% in a brutal year for the overall market.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. will heal has no position in the stocks mentioned. The Motley Fool holds positions and recommends Amazon and Microsoft. The Motley Fool has a disclosure policy.

Seoul shares open higher on easing uncertainty over Fed rate hikes Thu, 28 Jul 2022 00:48:01 +0000

On Thursday, an electronic chart showing the Korea Composite Stock Price Index (Kospi) in a trading room at Hana Bank’s headquarters in Seoul. (Yonhap)

South Korean stocks opened higher on Thursday as the US Federal Reserve raised its benchmark rate by a widely expected 0.75 percentage points.

Korea’s composite stock price benchmark added 16.88 points, or 0.7%, to trade at 2,432.1 points in the first 15 minutes of trading.

Concluding a two-day meeting, the U.S. central bank on Wednesday (US time) announced a three-quarter-point rate hike to put its key rate in a range of 2.25-2.5%, the most high level since 2018, to curb inflation.

But Fed Chairman Jerome Powell hinted that this could slow the pace of aggressive monetary tightening at some point.

The US stock market welcomed the latest developments. The Dow Jones Industrial Average rose 1.37% and the tech-heavy Nasdaq Composite jumped 4.06%.

In Seoul, most large-cap stocks traded higher, with the technology sector leading the market advance.

Market giant Samsung Electronics rose 0.65% and No. 2 chipmaker SK hynix added 0.5%.

Battery giant LG Energy Solution jumped 1.14% and Samsung SDI 0.36%.

Bio shares also gained ground, with Samsung Biologics rising 2.02% and Celltrion rising 0.53%.

But major automaker Hyundai Motor lost 1.02% and LG Chem lost 0.88%.

The local currency was trading at 1,308.75 won against the US dollar, up 4.55 won from the close of the previous session. (Yonhap)

Asian stocks slide, but Chinese stocks rose on ownership promise Tue, 26 Jul 2022 11:00:46 +0000

Asian investors were in a wait-and-see mood on Tuesday, with indices rising ahead of the US Federal Reserve meeting this week.

Chinese markets were the outliers boosted by Beijing’s promise of a $44 billion war chest to help its ailing real estate sector, but traders elsewhere stayed on the sidelines ahead of US growth data. and a slew of US earnings reports all set to come out this week.

Japan’s Nikkei saw a slight decline, while the broader Topix was flat as investors kept their cards close to their chests. The Nikkei closed down 0.16%, its second consecutive daily decline. Turnover, like Monday, was light.

Read more: Alibaba shares jump on Hong Kong dual listing news

“Markets are definitely in a wait-and-see mode, what you’re seeing is a slight adjustment in position,” said Jeffrey Halley of Singapore-based brokerage OANDA. “It’s the calm before the storm.”

Tech investor SoftBank Group Corp rose 3.2% – its biggest daily gain in about a month – after Hong Kong shares rose for one of its holdings, Chinese tech giant Alibaba. Alibaba plans to add a main listing in Hong Kong.

Japan also improved its overall view of the economy for the first time in three months in July, as the government turned more positive on consumption and employment.

Chinese stocks rebounded as property developers continued to rise after Beijing planned to set up a fund to help the struggling industry.

Property developers jumped 5.4% in China and mainland developers climbed 3.3% in Hong Kong, extending gains from the previous session.

The CSI300 index rose 0.9% to 4,250.82 at the end of the morning session, while the Shanghai Composite Index rose 0.83%, or 27.05 points, to close at 3,277.44.

Alibaba HK Main Listing Offer

The Hang Seng Index gained 1.67%, or 342.94 points, to 20,905.88, while the Shenzhen Composite Index on China’s second-largest stock exchange rose 1.01%, or 21.87 points, to 2,187, 23. China’s Hong Kong Enterprise Index gained 1.5% to 7,182.28.

The Hang Seng Tech index rose 1.5%, with Alibaba Group up 5% to lead the gains.

Alibaba will apply for a main listing in Hong Kong and keep its listing in the United States, and Ant Group executives are no longer part of the Alibaba Partnership, a body that can appoint a majority of the e-commerce giant’s board. .

Elsewhere in the region, shares in Kuala Lumpur and Bangkok fell 0.2% to 0.8%.

Taiwan stocks fell 0.9%, a day after China issued harsher warnings to US officials over a possible visit by House Speaker Nancy Pelosi to Taiwan.

Indian stocks fell with Mumbai’s Nifty 50 index down 0.67%, or 112.10 points, to 16,518.90.

Apple, Microsoft, Amazon

Globally, investors are bracing for a likely 75 basis point interest rate hike from the Federal Reserve later this week – with markets pricing around 10% risk of a bigger hike, and waiting to see if the economic warning signs prompt a change in rhetoric.

“We think 75 basis points is the most likely but won’t be the endgame unless they see demand destruction and some moderation in inflation,” said John Milroy, investment adviser at Ord Minnett.

“We fear they will further slow the US economy.”

Big tech companies such as Apple, Microsoft and are due to report results this week.

In currencies, the dollar weakened slightly but did not deviate too far below recent highs as uncertainty continued to swirl around interest rates and the economic outlook.

Oil prices rose further on expectations that reduced natural gas supplies from Russia to Europe could encourage a switch to crude, with Brent futures lately rising 1.27% to $106.45 a barrel and US crude up 1.26% to $97.92 a barrel.

Benchmark 10-year Treasury yields fell to 2.875% as growth concerns supported bonds.

Key figures

Tokyo–Nikkei 225

Hong Kong – Hang Seng Index > UP 1.67% to 20,905.88 (closing)

Shanghai – Composite > UP 0.83% to 3,277.44 (close)

New York – Dow Jones up 0.28% at 31,990.04 (close Monday)

  • Reuters with additional editing by Sean O’Meara

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Sean O’Meara

Sean O’Meara is an editor at Asia Financial. He has been a newspaper man for over 30 years, working for local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. Passionate about football, cricket and rugby, he is particularly interested in the financing of sport.