Globalstar stock extends bounce after $200 million financing deal doesn’t include equity
Shares of Globalstar Inc. GSAT charged 6.9% higher in morning trading Wednesday, after the telecommunications connectivity company announced a financing deal that didn’t include equity. The stock’s gain comes a day after it rose 2.3%, to bounce off Monday’s 13-month closing low of 99 cents. The company said it has entered into a purchase agreement with an affiliate of Värde Partners for the sale of $200 million in 13% senior notes due 2029, which are “non-convertible and therefore do not result in any equity dilution.” The company said it will use the proceeds from the financing to pay off what’s remaining in the 2019…
Seagate to increase the number of employees it lays off by 480
Seagate Technology Holdings PLC STX disclosed Wednesday that it is increasing the number of employees being laid off by 480, or 1% of its workforce. The maker of data-storage technologies had said in October that it planned to cut about 3,000 jobs, or 8% of its staff. The company said the latest cuts will be from “multiple functions and locations throughout the company,” and is expected to “result in further cost savings to better navigate the current macro-economic challenges.” The expansion of job cuts should be mostly completed by the end of the fiscal fourth quarter, that ends in June, and is expected to result in…
Macy’s CEO Gennette to retire after nearly 7 years in the role, and stock falls
Shares of Macy’s Inc. M fell 2.1% toward a six-month low in premarket trading Wednesday, after the department store chain said Chief Executive Jeff Gennette plans to retire at the end of the fiscal year, after nearly seven years in the role and 40 years with the company. The company named Tony Spring, currently executive vice president and CEO of the company’s Bloomingdale’s business, as CEO-elect, effectively immediately. The company expects to name Spring CEO of Macy’s in February 2024. Separately, the company said Chief Financial Officer Adrian Mitchell has also been appointed chief operating officer. Macy’s stock…
FRC, UBS, FLT, DELL and more
A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023.
Mike Segar | Reuters
Check out the companies making the biggest moves midday:
First Republic — Shares tanked 47.11% after Standard & Poor’s cut First Republic’s credit rating to B+ from BB+. S&P first lowered the bank’s rating to junk status just last week. The rating remains on CreditWatch Negative.
New York Community Bancorp — New York Community Bancorp jumped 31.65% after the Federal Deposit Insurance Corporation announced over the weekend that the bank’s subsidiary, Flagstar Bank, will assume nearly all of Signature Bank’s deposits and some of its loan portfolios, as well as all 40 of its former branches.
UBS, Credit Suisse — U.S.-listed shares of Credit Suisse nosedived 52.99% after UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion. UBS’s “emergency rescue” deal is an attempt to stem the risk of contagion in the global banking system. UBS shares gained 3.3%.
US Bancorp — The stock popped 4.55% following an upgrade by Baird to outperform from neutral. The Wall Street firm said US Bancorp could be a beneficiary as the bank crisis pushes depositors to move holdings to larger regional banks.
Regional banks — While First Republic’s stock tumbled, other regional banks rallied as investors appraised the likelihood of expanded deposit insurance. PacWest‘s stock jumped 10.78%, while Fifth Third Bancorp gained 5.05%%. KeyCorp advanced 1.21%
Virgin Orbit— The stock fell 19.5% as the the rocket builder scrambled to secure funding and avoid bankruptcy, which could come as early as this week without a deal, according to people familiar with the matter. The company paused operations last week and furloughed most of the company, CNBC first reported on Wednesday.
Dell — The PC maker added 3.57% after Goldman Sachs initiated coverage of the stock with a buy rating. The Wall Street firm said it expects the headwinds created by personal computer demand trends to subside soon.
Enphase — Shares advanced 4.83% after Raymond James upgraded the stock to outperform from market perform, noting that there were technical and thematic arguments for liking the stock.
TreeHouse Foods — Shares jumped 5.98% after UBS initiated coverage of TreeHouse Foods with a buy rating. The Wall Street firm said the food processing company, which has a wide-ranging portfolio of store brand items, is in the “early innings of a beat and raise cycle.”
Foot Locker — Shares of the footwear retailer fell 5.68% even after the company’s earnings and revenue beat analysts’ estimates. Foot Locker said its comparable store sales increased 4.2% from a year ago, but it provided full-year guidance that missed expectations.
Bed Bath & Beyond — The meme stock tumbled 21.12% after the retailer said Friday it was seeking shareholder approval for a reverse stock split. Bed Bath & Beyond said the move would enable it to rebuild liquidity, which would help it execute turnaround plans.
Exelixis — The stock gained 4.44% after the biotech company announced a $550 million share repurchase program to run through the end of 2023.
Fleetcor Technologies — The stock gained 6.35% after the global business payments company said it will undertake a review of its portfolio and business configuration and consider various strategic alternatives, which may increase the possible separation of one or more of its businesses.
Amazon — Amazon’s stock slipped 1.25% after the e-commerce giant said it plans to cut 9,000 more jobs over the next few weeks. Amazon previously announced a round of layoffs in November that affected more than 18,000 positions.
— CNBC’s Michael Sheetz, Sam Subin, Alex Harring, Pia Singh, Yun Li and Sarah Min contributed reporting.
Reuters reveals General Electric lays off workers at onshore wind unit as part of turnaround strategy
Business & Finance
06 October 2022, 8:59 pm 1 minute
Reuters was first to report General Electric (GE) is laying off workers at its onshore wind unit as part of a plan to restructure and resize the business. The cuts are expected to affect 20% of the onshore wind unit’s workforce in the United States, equating to hundreds of workers. The company also notified employees in Latin America, the Middle East and Africa about the cuts. The news revealed problems with what is widely thought to be a fast-growing clean energy economy. GE and competitors have grappled with rising costs and supply chain delays, despite the energy transition.
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3 Monthly Dividend Stocks to Buy in March for a Passive Income Stream
The market seems more volatile than ever. The recent spate of banking industry problems has created a new wave of tensions for investors.
While stock prices will often fluctuate, sometimes violently, many investors turn to dividends to make things easier. A steady stream of income does a lot to offset the market’s ups and downs.
And, what’s the only thing better than a quarterly dividend? A monthly one. A company providing a paycheck to investors every month can be just the ticket for dealing with an enduring bear market.
In recent years, we’ve seen a few more companies adopt a monthly dividend payment schedule. Still, it’s not all that common among publicly traded U.S. companies.
Regardless, these three monthly dividend stocks should be on the top of your watchlist for reliable income.
Realty Income (O)
Realty Income (NYSE:O), perhaps more than any other company, has popularized the idea of monthly dividend stocks. In fact, the company made a point of calling itself the Monthly Dividend Company many years ago, and the nickname caught on a big way.
Realty Income is a triple-net lease real estate invest trust (REIT). Triple-net leases are attractive since the tenants (rather than the landlord) pay for major expenses such as utilities and taxes.
Triple-net leases tend to create more predictable cash flow streams with fewer unexpected disruptions. They have become even more compelling given the current inflationary environment where many costs have suddenly spiraled out of control.
In any case, Realty Income is managing through the current economic landscape. Higher interest rates are a potential negative, as Realty Income will likely have to pay more to service its debt in future years. On the other hand, inflation helps raise underlying asset valuations along with giving more room for rent increases.
Speaking of increases, Realty Income is known for increasing its dividend frequently; often, many times per year. These are small increases on their own, but over the years, it’s added up to a tremendous amount. For investors purchasing today, O stock starts off with a 5% dividend yield.
LTC Properties (LTC)
LTC Properties (NYSE:LTC) is a REIT focused on skilled nursing facilities and senior housing. The REIT owns about 200 different properties and benefits from a wide geographic range of operations.
Skilled nursing and senior housing were admittedly under significant pressure prior to the onset of the Covid-19 pandemic. However, government aid to the sector during that emergency provided a great deal of additional stability to many of LTC’s tenants.
Industry conditions appear to be improving. The company has reported that more than 97% of rent is being collected on time now. That’s an enviable figure compared to other sectors of real estate such as offices, at the moment. Additionally, LTC’s recent quarterly results showed solid year-over-year growth.
In the longer term, skilled nursing and senior housing should be growth industries. America is in the middle of a great period of aging from a demographic perspective. And with people living longer than before due to improvements in medicine and enhanced treatment options, that should mean that there will be people making more use of senior housing and skilled nursing in their retirement years.
Shares currently trade for less than 13 times forward funds from operations (FFO) and offer a 6.8% dividend yield.
Stag Industrial (STAG)
Founded in 2003, Stag Industrial (NYSE:STAG) is a REIT focused on the industrial sector. It owns more than 500 buildings such as warehouses and distribution and manufacturing centers.
Stag focuses on properties in small markets, owning a wide footprint of warehouses and logistics buildings across the country. This has been a tremendous strategy in the age of e-commerce as vendors need warehouses and distribution facilities as close as possible to consumers to ensure on-time deliveries.
Stag should be fairly immune to the sorts of issues we’ve seen in other sectors of real estate. Malls and shopping centers, for example, are under fire from e-commerce. And the fate of offices remains uncertain in a world where people increasingly work from home. Stag, however, should enjoy a long-term tailwind as more and more of commerce continues to happen online which requires more supporting logistics-related buildings to manage the flow of goods.
Stag Industrial shares have fallen more than 20% over the past year. This makes the stock, which was often pricey, available at a more reasonable valuation today. STAG stock now offers a 4.5% dividend yield, paid monthly, while selling at less than 15 times forward FFO.
On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
3 Penny Stocks to Avoid Like the Plague Heading Into April 2023
There’s been plenty of talk about how far the stock market correction can go from here. Market returns remain choppy, despite inflation rates cooling off last month and the likely slowdown in interest rate hikes. However, the likelihood of a sustained rally appears to be slim, so investors must consider penny stocks to avoid.
Wagering on penny stocks is a tried-and-tested strategy for investors seeking moon-shot gains. Naturally, many top growth stocks started from the bottom to offer multi-bagger returns.
With the current market sentiment, caution with penny stocks is important. More so, with the penny stocks discussed in the article, it’s best to avoid exposure to minimize the risk to your portfolio effectively.
Having said that, let’s look at three penny stocks that you’d want to discard from your portfolios and focus on more profitable long-term options.
| BKKT | Bakkt Holdings | $1.43 |
| MVIS | Microvision | $2.26 |
| FUBO | FuboTV | $1.08 |
Bakkt Holdings (BKKT)
Fintech trailblazer Bakkt Holdings (NYSE:BKKT), which empowered banks and merchants with crypto capabilities, saw its shares drop over 75% in value last year. The sharp decline reflects the transition from a booming crypto market to its dramatic crash last year.
Bakkt started as a global crypto exchange platform, but its business has evolved to include a digital asset marketplace, loyalty redemption services, and alternate payments. It went public in 2021 after completing its merger with shell company VPC Impact Acquisition Holdings, where a major portion of the merger consideration was recognized as intangibles.
However, earlier this year, the company wrote off a whopping $1.9 billion in goodwill and intangible assets. Naturally, the write-off was blamed for the deteriorating market conditions, lackluster partnerships, and product-fit challenges. With more challenges in the crypto realm, expect an even bumpier road ahead for BKKT.
Microvision (MVIS)
Microvision (NASDAQ:MVIS) was a struggling scanning technology firm, pivoting to lidar technology in 2020 to turn its fortunes around. Fast-forward a couple of years later, and it has failed to ink a partnership with any major automotive company. Without a working relationship with any major original equipment manufacturer, it generates zero product-related revenue.
The lidar space is remarkably expensive, requiring tons of cash to finance research and development (R&D) requirements. With only $83 million in its cash till, the firm spent a whopping $30 million in R&D expenses in 2022, a 26% bump from the same period last year. It posted a 23% increase in its net loss last year compared to 2021.
Despite shedding its meme stock gains, it still trades at an alarming 33 times forward sales estimates.
FuboTV (FUBO)
Between cord-cutting and the coronavirus-led shutdowns, the bull-case was apparently set in stone for streaming service providers such as FuboTV(NYSE:FUBO). However, it hasn’t worked out that way for FUBO stock, with it losing 70% of its value last year.
The sports-first streaming service built its business model around the idea of marrying live sports and in-game betting. It was building its sportsbook, another revenue driver besides advertising and subscription revenues.
However, its lackluster numbers forced the company to pull the plug on its sportsbook last year effectively. Consequently, its stockholders are stuck with a business that spends over 90% of its sales on broadcasting rights. That leaves little wiggle room for the company to expand, with its net losses growing over 46.7% from last year. Therefore, its best to avoid penny stocks such as FUBO.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
3 Dividend Stocks That Will Pay You Handsomely Every Quarter
Dividend growth investing is a great way to generate passive income. When there is market uncertainty, the right way to park your funds is in dividend stocks since they keep your money safe and will ensure healthy and consistent cash inflows. If you are here to generate passive income, you need to look out for dividend growth and not the dividend yield. Several companies pay regular dividends, and reward investors, but not every company will pay handsomely each quarter. Let’s take a look at those that do. Here are the three dividend stocks that will pay you quarterly.
| MMM | 3M | $103.28 |
| LMT | Lockheed Martin | $477.45 |
| DVN | Devon Energy | $50.33 |
3M (MMM)
Source: r.classen / Shutterstock.com
3M (NYSE:MMM) is a solid dividend stock that has increased its dividend by 0.7% in the recent dividend declaration in February. The company paid a dividend of $1.5 this quarter and an annual dividend of $5.96 in 2022. It also returned $4.8 billion to the shareholders last year through share repurchases and dividends. And it is one company that has over 100 years of uninterrupted dividend payments. This is one of the most attractive dividend stocks that pay quarterly. 3M stock is currently trading at $104, down 27% in the year. However, the stock has the potential to bounce back once the demand for its products improves.
For 2023, the company expects a 3% decline in organic sales growth and the selling prices up towards the low single digits. However, it aims for an adjusted EPS of $8.50 to $9. While the company is facing a tough market and macroeconomic environment right now, there is a high chance of improvement in the second half of the year. The earnings might not have been impressive, but it is still a solid long-term investment.
3M is a company with healthy financials and a strong balance sheet. The company has high liquidity and several investment options ahead. This means it could spend more on research or make some strategic investments this year. The company has a dividend yield of 5.77% and has consistently paid shareholders each quarter. A dividend yield above 5% is attractive, and with 3M, there is a certainty that the company will not stop or reduce the dividend payouts.
Lockheed Martin (LMT)
Source: Shutterstock
Another dividend stock to own is Lockheed Martin (NYSE:LMT). It is a defense stock that has been rewarding investors for many years. The company manufactures fighter jets which are vital weapons during wars, and while the demand for its products cannot be predicted, it is something that a country will always require. It is also a huge player in the aerospace industry and has a solid satellite business. LMT stock is up 16% over the past six months, trading at $477 today. It is consistently setting new all-time highs. LMT is one of the top dividend stocks that pay quarterly.
The company has been recently awarded $106.95 million Navy contract modification for the F-35 Joint Strike Fighter Program. It is a modification to a previously rewarded contract, and despite a decrease in defense spending in this budget, this is one stock that could pay off in the long term.
If you are here to generate a handsome passive income through stock investment, LMT stock is worth considering. It recently declared a dividend of $3. Another reason to bet on the stock is that it is a robotics company, and robots today are used in military operations. The company is leading the race and has already developed a robotic mule for $500,000, which carries the equipment for a soldier while they are on missions. The use of robots in the military is still early, but there is massive potential. This is where Lockheed Martin could enjoy an early-mover advantage.
LMT stock is a blue-chip stock worth considering, and it might have a dividend yield of only 2.5%, but the annual dividend payout is a whopping $12 per share.
Devon Energy (DVN)
Source: T. Schneider / Shutterstock.com
Energy companies are here for the long term, and one such player is Devon Energy (NYSE:DVN). The company is engaged in hydrocarbon exploration and is one of the top dividend stocks to own. It has a dividend yield of 8.73% which is much better than several blue-chip companies today.
DVN stock is trading at $50 today, down 27% in the past six months. With a rise in crude oil prices, the company saw massive growth and reported a free cash flow of $2.1 billion. Through this, it managed to reduce the outstanding shares by 4%.
The stock dropped after the company showed lower production and higher capital expenditure targets for this year. This drop gives a better entry point for investors looking to add the dividend stock to their portfolio. It announced a dividend increase of 11% in 2023 which came in at $5.17 for the year, and it announced a dividend of $0.89 for this quarter. The company has not indicated that its dividend is in danger. Looking at the balance sheet, we can see that the firm has enough resources to keep rewarding the shareholders.
The stock has been steady, and it rarely falls. After the massive drop in 2022, the stock did snap back and rewarded patient investors. DVN stock is also one of the best oil and gas stocks to own in 2023.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
