Long Term Debt – HHQH http://hhqh.net/ Fri, 26 Nov 2021 07:20:10 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://hhqh.net/wp-content/uploads/2021/07/icon-2-150x150.png Long Term Debt – HHQH http://hhqh.net/ 32 32 Kenedix Residential Next Investment: Debt Financing Notice https://hhqh.net/kenedix-residential-next-investment-debt-financing-notice/ Fri, 26 Nov 2021 07:20:10 +0000 https://hhqh.net/kenedix-residential-next-investment-debt-financing-notice/ Translation from the Japanese original November 26, 2021 To all parties involved REIT Issuer: Kenedix Residential Investment Corporation Representative: Tetsu Kawashima, Executive Director (Securities code number: 3278) Asset management company Kenedix Real Estate Fund Management, Inc. Representative: Masahiko Tajima, President and CEO Contact: Shin Yamamoto, Head of Strategic Planning, Residential REIT Department PHONE :+ 81-3-5157-6011 […]]]>

Translation from the Japanese original

November 26, 2021

To all parties involved

REIT Issuer:

Kenedix Residential Investment Corporation

Representative: Tetsu Kawashima, Executive Director

(Securities code number: 3278)

Asset management company

Kenedix Real Estate Fund Management, Inc.

Representative: Masahiko Tajima, President and CEO

Contact: Shin Yamamoto, Head of Strategic Planning,

Residential REIT Department

PHONE :+ 81-3-5157-6011

Debt Financing Notice

Kenedix Residential Next Investment Corporation (the “Investment Company”) today announced its decision on debt financing (total of EUR 1.1 billion). The details are as follows.

1. Details of debt financing

Rising

Interest rate

Contract

Draw

Main

Collateral??

Series

Lender

Dated

refund

Refund

(million)

(Note 1) (Note 2)

Dated

(Program)

Dated (Note 2)

Method

0.32500% (Note 3)

Not guaranteed,

59??

Chiba Bank, Ltd.

600

not guaranteed

(Fixed rate)

??

November

November

November

Refund

0.32500% (Note 3)

26, 2021

30, 2021

30, 2026

of the principal

59??

Musashino Bank, Ltd.

500

in full on

(Fixed rate)

maturity

Dated

??Note 1?? The first interest payment is due at the end of February 2022 and on the last day of every three months thereafter, with the last due on the principal repayment day.

??Note 2?? If the interest payment date or principal repayment date is a non-business day, the date will be the next business day and if that next business day falls within the following month, the date will be the previous business day.

??Note 3?? The applicable interest rate period is from November 30, 2021 to November 30, 2026.

2. Reason for debt financing

The loan mentioned above will be used to use the funds as a payment for the acquisition of the interest of the beneficiary of the real estate trust (T-101: Hulic Residence Tsudanuma) indicated in the press release “Notice regarding the acquisition of properties (total of 2 residential facilities) and 2 healthcare facilities) and sale of property (KDX Residence Tobu Nerima) ”announced on November 26, 2021 and associated costs.

1

3. Statement of interest-bearing liabilities after borrowings (as of November 30, 2021)

(Unit: millions

yen)

Classification

Balance before

Balance after

Difference

borrowings

borrowings

Short-term loans (Note 1)

0

0

Current long-term share

21,250

21,250

loans (Note 2)

Long term loans (Note 3)

118,770

119,870

+1 100

Total borrowings

140,020

141 120

+1 100

Investment company bonds

7,700

7,700

Total interest-bearing liabilities

147,720

148,820

+1 100

??Note 1?? “Short-term borrowings” designate borrowings for which the term is less than or equal to one year from the date of borrowing until the date of repayment. However, if the first anniversary of the date of the loans falls on a non-working day, the repayment date will be the next working day and even if, therefore, the loan term exceeds one year, the loans will be qualified as short – term loans.

??Note 2?? The “Current portion of long-term borrowings” refers to long-term borrowings due within one year.

??Note 3?? “Long-term borrowings” designate borrowings with a term of more than one year from the date of borrowing until the date of repayment.

4. Others

With regard to the risks associated with borrowings, there have been no significant changes to the “Investment risks” indicated in the report on transferable securities (Yuka shook hokokusyo) filed on October 26, 2021.

* URL of the Investment Company’s website: https://www.kdr-reit.com/fr/

[Provisional Translation Only]

The English translation of the original Japanese document is provided for informational purposes only.

In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

2

Disclaimer

Kenedix Residential Next Investment Corporation published this content on November 26, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on November 26, 2021 07:19:01 AM UTC.


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Your mortgage: keep your money https://hhqh.net/your-mortgage-keep-your-money/ Tue, 23 Nov 2021 16:01:28 +0000 https://hhqh.net/your-mortgage-keep-your-money/ When people sell and then buy a home, they tend to set themselves on autopilot when it comes to the bottom line they earn from the sale. What I mean by this is that people who sell a home often assume that the best thing to do is turn that money into a down payment […]]]>

When people sell and then buy a home, they tend to set themselves on autopilot when it comes to the bottom line they earn from the sale. What I mean by this is that people who sell a home often assume that the best thing to do is turn that money into a down payment on a new home. It’s a smart move, but is it always the right thing to do? Maybe not.

Here are three things to consider that may make you want to save your money from the sale of a home:

  • Use the money for fun and for the future

This idea probably won’t be very popular, but I’ll say it anyway. Interest rates are very low right now which makes home ownership quite affordable overall. Many of us focus a great deal of our attention on the future and on building net worth to help us in retirement. Why not do both? Instead, use the funds to focus on the present. Splurge this holiday season for yourself / your family, fund an exotic vacation, or throw an epic holiday party with all of your friends, neighbors and family. Use the rest to focus on the future by paying off long-term debt or investing in the stock market.

  • Use the money to repay / reduce unsecured and / or personal debt

What is the net benefit of using the proceeds to reduce the amount you need to borrow on a new mortgage when you have thousands of dollars in other debt? Each $ 1,000 funded equals approximately $ 6 of a monthly mortgage payment on a 30-year note. If you moved $ 40,000 of the proceeds from the sale into your new home, you would save around $ 240 per month, but if you have the same amount of consumer debt (credit cards, car loans, student loans, etc.) , the payments associated with these will far exceed the reduction in mortgage payments of $ 240. What could be better for you? Have a lower mortgage payment, but still have significant consumer debt or little or no consumer debt with a slightly larger mortgage payment?

  • Use the money to update / improve your new home

Most buyers buy existing homes rather than new construction, which means there’s a good chance they want to change something about the home. Wouldn’t it be nice to make the awesome new home you bought a perfect home with things like new carpet, paint, or a remodeled kitchen? Saving your revenue can fund such projects while also improving the value of the asset you just purchased. What could be better for you? Have home equity without a lot of money to fund improvements or have a perfect home without a lot of equity?

The purpose of this article is not to downplay the importance of using the proceeds from the sale as a down payment for a new home. It might be the smartest decision you can make, but you’re also in a position of great flexibility, so don’t fall into the trap of letting this be an autopilot decision. Take the time to think about your options.

This weekly sponsored column is written by Mike Miles of Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating and empowering clients to make the best financial decision possible for their situation. Contact Fontaine today.

Mike Miles’ NMLS ID: 265927; Fontaine Mortgage NMLS: 1138268


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Biden’s Build Back Better Bill Would Raise Deficit, CBO Estimate https://hhqh.net/bidens-build-back-better-bill-would-raise-deficit-cbo-estimate/ Thu, 18 Nov 2021 23:57:01 +0000 https://hhqh.net/bidens-build-back-better-bill-would-raise-deficit-cbo-estimate/ WASHINGTON – Impartiality The Congressional Budget Office on Thursday released its full cost estimate for President Joe Biden’s Build Back Better bill, projecting the measure would add $ 160 billion to the national debt over the next decade. The CBO reported that the measure would raise more than $ 1.2 trillion in the form of […]]]>



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Turkish private sector external debt down in September https://hhqh.net/turkish-private-sector-external-debt-down-in-september/ Tue, 16 Nov 2021 09:32:00 +0000 https://hhqh.net/turkish-private-sector-external-debt-down-in-september/ Turkey’s private sector foreign loans outstanding in September stood at $ 171.6 billion, down $ 1.4 billion from the end of 2020, the Turkish Central Bank said on Tuesday. The sector’s short-term loans – excluding trade credits – received from abroad stood at $ 8.5 billion in September, down $ 1.2 billion from the end […]]]>

Turkey’s private sector foreign loans outstanding in September stood at $ 171.6 billion, down $ 1.4 billion from the end of 2020, the Turkish Central Bank said on Tuesday.

The sector’s short-term loans – excluding trade credits – received from abroad stood at $ 8.5 billion in September, down $ 1.2 billion from the end of last year.

Some 82.2% of short-term loans were made up of commitments from financial institutions, while 17.8% were commitments from non-financial institutions.

Broken down by currency, 36.7% of Turkey’s short-term credit was in dollars, 35.7% in euros, 23.7% in Turkish lira and 3.9% in other currencies.

Long-term private sector debt over the same period fell by $ 199 million to $ 163.1 billion.

The bank said 40.3% of total long-term foreign loans were owed by financial institutions while 59.7% consisted of liabilities of non-financial institutions.

As for the total long-term loans totaling $ 163.1 billion, 62.1% consisted of dollars, 34% euros, 2.1% Turkish lira and 1.8% other currencies, a- he indicated.

Total private sector loans received from abroad, on a residual maturity basis, show principal repayments of $ 39.9 billion for the next 12 months by the end of September.


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What does eMagin’s debt look like? https://hhqh.net/what-does-emagins-debt-look-like/ https://hhqh.net/what-does-emagins-debt-look-like/#respond Wed, 10 Nov 2021 14:51:07 +0000 https://hhqh.net/what-does-emagins-debt-look-like/ During the past three months, the actions of eMagin (AMEX: EMAN) rose 9.05%. Before we look at the importance of debt, let’s take a look at the amount of debt in eMagin. EMagin’s debt According to eMagin’s most recent financial statement released on August 12, 2021, total debt stands at $ 13.16 million, with $ […]]]>

During the past three months, the actions of eMagin (AMEX: EMAN) rose 9.05%. Before we look at the importance of debt, let’s take a look at the amount of debt in eMagin.

EMagin’s debt

According to eMagin’s most recent financial statement released on August 12, 2021, total debt stands at $ 13.16 million, with $ 11.63 million in long-term debt and $ 1.53 million. of current debt. Adjusted for $ 10.57 million in cash equivalents, the company has net debt of $ 2.60 million.

Let’s define some of the terms we used in the paragraph above. Short-term debt is the portion of a company’s debt that matures within one year, while long-term debt is the portion over one year. Cash equivalents include cash and all liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.

Investors look at the debt ratio to understand a company’s financial leverage. eMagin has $ 50.62 million in total assets, making the debt ratio 0.26. Typically, a debt ratio greater than one indicates that a considerable amount of debt is financed by assets. A higher debt ratio can also mean that the company could default if interest rates were to rise. However, debt ratios vary considerably from sector to sector. A debt ratio of 35% may be higher for one industry and normal for another.

Significance of debt

Debt is an important factor in a company’s capital structure and can help it achieve growth. Debt generally has a relatively lower cost of financing than equity, making it an attractive option for executives.

Interest payment obligations can have an impact on the company’s cash flow. Having financial leverage also allows companies to use additional capital for their business operations, allowing stock owners to keep excess profits generated by debt capital.

Are you looking for stocks with a low debt ratio? Check out Benzinga Pro, a market research platform that gives investors near instant access to dozens of stock market metrics, including the debt ratio. Click here to find out more.


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Rémy Cointreau strengthens its financial flexibility to support the implementation of its long-term growth strategy https://hhqh.net/remy-cointreau-strengthens-its-financial-flexibility-to-support-the-implementation-of-its-long-term-growth-strategy/ https://hhqh.net/remy-cointreau-strengthens-its-financial-flexibility-to-support-the-implementation-of-its-long-term-growth-strategy/#respond Mon, 08 Nov 2021 06:30:00 +0000 https://hhqh.net/remy-cointreau-strengthens-its-financial-flexibility-to-support-the-implementation-of-its-long-term-growth-strategy/ PARIS–(COMMERCIAL THREAD) – Regulatory news: As part of the continuous optimization of its financial structure, Rémy Cointreau SA (hereinafter “Rémy Cointreau”) (Paris: RCO) announces today that it has taken out a loan of 80 million euros from Crédit Agricole d ‘ Ile-de-France. The loan bears interest at a fixed rate of 0.60% per year and […]]]>

PARIS–(COMMERCIAL THREAD) – Regulatory news:

As part of the continuous optimization of its financial structure, Rémy Cointreau SA (hereinafter “Rémy Cointreau”) (Paris: RCO) announces today that it has taken out a loan of 80 million euros from Crédit Agricole d ‘ Ile-de-France.

The loan bears interest at a fixed rate of 0.60% per year and has a maturity of seven years, in accordance with the Group’s desire to back its long-term assets with appropriate financial resources. Rémy Cointreau thus extends the maturity of its debt and continues to gradually reduce its average cost of financing.

This new financing, taken out on favorable terms, reflects the quality and financial strength of Rémy Cointreau (rated Baa3 by Moody’s). It enables the Group to strengthen the structure of its balance sheet by offering it greater flexibility in the implementation of its long-term growth strategy.

About Rémy Cointreau

All over the world there are customers looking for exceptional experiences; customers for whom a wide range of terroirs means a variety of flavors. Their exacting standards are commensurate with our expertise – the finely honed skills that we pass on from generation to generation. The time that these customers devote to drinking our products is a tribute to all those who worked on their development. It is for these men and women that Rémy Cointreau, a French family group, protects its terroirs, cultivates exceptional centuries-old spirits and is committed to preserving their eternal modernity. The Group’s portfolio includes 14 unique brands, such as Rémy Martin and Louis XIII cognacs, and Cointreau liqueur. Rémy Cointreau has only one ambition: to become the world leader in exceptional spirits. To do this, it relies on the commitment and creativity of its 1,850 employees and on its distribution subsidiaries located in the Group’s strategic markets. Rémy Cointreau is listed on Euronext Paris.


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Robbins Geller Rudman & Dowd LLP announce https://hhqh.net/robbins-geller-rudman-dowd-llp-announce/ https://hhqh.net/robbins-geller-rudman-dowd-llp-announce/#respond Fri, 05 Nov 2021 23:05:00 +0000 https://hhqh.net/robbins-geller-rudman-dowd-llp-announce/ SAN DIEGO, November 05, 2021 (GLOBE NEWSWIRE) – The law firm of Robbins Geller Rudman & Dowd LLP announces that buyers or purchasers of securities of Camber Energy, Inc. (NYSE: CEI) between February 18, 2021 and October 4, 2021 inclusive (the “Class Period”) have until December 28, 2021 to solicit an appointment in as principal […]]]>

SAN DIEGO, November 05, 2021 (GLOBE NEWSWIRE) – The law firm of Robbins Geller Rudman & Dowd LLP announces that buyers or purchasers of securities of Camber Energy, Inc. (NYSE: CEI) between February 18, 2021 and October 4, 2021 inclusive (the “Class Period”) have until December 28, 2021 to solicit an appointment in as principal applicant in Coggins v. Camber Energy, Inc., No. 21-cv-03574 (SD Tex.). Started October 29, 2021, Camber energy The class action accuses Camber Energy and some of its senior executives of violations of the Securities Exchange Act of 1934.

If you wish to serve as the principal applicant of the Camber energy class action lawsuit in securities, please fill in your information by clicking here. You can also contact the lawyer JC Sanchez from Robbins Geller by calling 800 / 449-4900 or emailing jsanchez@rgrdlaw.com. The principal applicant’s requests for the Camber energy the class action lawsuit in securities must be filed in court no later than December 28, 2021.

CASE ALLEGATIONS: In December 2020, Camber Energy acquired a controlling interest in Viking Energy Group, Inc., a purported independent exploration and production company. Then, in February 2021, Camber Energy signed a definitive merger agreement with Viking to achieve the full combination of the two entities.

As alleged by the Camber energy class action lawsuit, throughout 2021, Camber Energy failed to timely file the required financial statements with the United States Securities and Exchange Commission (“SEC”). Therefore, financial information services such as Yahoo! Finance and Bloomberg were forced to rely on infrequent and outdated updates to SEC filings to estimate the issued and outstanding common shares of Camber Energy. When Camber Energy provided an update on October 6, 2021, it reported 249.6 million shares issued and outstanding, a significantly higher number.

The Camber energy The Class Action further alleges that, throughout the Class Period, the Defendants made false and misleading representations and failed to disclose that: (i) Camber Energy overstated the financial and business prospects of Viking as well as of the combined company after the merger; (ii) Camber Energy failed to inform investors and / or downplay that its acquisition of a controlling stake in Viking would exacerbate Camber Energy’s overdue financial statements and its New York Stock Exchange listing obligations ( “NYSE”); (iii) an institutional investor was diluting Camber Energy shares at a significant rate following Camber Energy’s update of July 12, 2021 regarding the number of its issued and outstanding common shares; and (iv) accordingly, Camber Energy’s public statements were materially false and misleading at all material times.

On May 24, 2021, Viking announced that Camber Energy’s first quarter ended March 31, 2021 earnings per share (“EPS”) of $ -0.13 under generally accepted accounting principles (“GAAP”), compared to a GAAP EPS of $ 1.39 in the same quarter. the previous year, which is a decrease of 109.35% year-over-year (“Y / Y”), and first quarter revenues of $ 10.49 million, compared to revenues of $ 11.79 million in the same quarter of the previous year, which is an 11% Y / Y decrease. Later that day, Camber Energy revealed that on May 21, 2021, the NYSE notified Camber Energy that it was not in compliance with the NYSE continuous listing standards due, among other things, to “issues that arose. related to. . . finalize the determination of the fair values ​​of the assets and liabilities associated with the acquisition by the Company of a majority interest in Viking. . . in December 2020. “Following this news, Camber Energy’s share price fell.

Then, on August 16, 2021, Viking released its financial and operating results for the quarter ended June 30, 2021, revealing, among other results, a net loss of $ 9.85 million for the quarter, and that, “[a]s of June 30, 2021, [Viking] has a shareholder deficit of $ 15,054,324 and total long-term debt of $ 95,961,611. Regarding Viking’s responsibilities, Viking revealed, among other things, that “as [Viking]The subsidiary of Elysium Energy, LLC and other parties to the term loan agreement are in default of the maximum leverage ratio commitment under the term loan agreement as of June 30, 2021. ” Following this news, Camber Energy’s share price fell almost 7%.

Finally, on October 5, 2021, Kerrisdale Capital released a report alleging, among other things, that “the market is seriously mistaken about the number of Camber shares and ignores [Camber’s] terrifying capital structure ”, estimating that the number of fully diluted shares of Camber Energy is about three times the widely reported number. Following this news, Camber Energy’s share price fell by more than 50%, which further penalized investors.

THE MAIN COMPLAINANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who purchased securities of Camber Energy during the Recourse Period to seek appointment as principal plaintiff in the Camber energy class action lawsuit. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class which is also typical and adequate of the putative class. A lead applicant acts on behalf of all other class members by ordering Camber energy class action lawsuit. The lead plaintiff can choose a law firm of their choice to argue the case. Camber energy class action lawsuit. The ability of an investor to participate in any potential future recovery of the Camber energy the class action does not depend on the function of principal plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller lawyers have secured many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $ 7.2 billion – in In re Enron Corp. Dry. Litigation. The 2020 ISS Securities Class Action Services Top 50 report ranked Robbins Geller # 1 for recovering $ 1.6 billion from investors last year, more than double the amount recovered by any other company from securities claimants. Please visit http://www.rgrdlaw.com for more information.

Lawyer advertising.
Past results do not guarantee future results.
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Contact:
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
JC Sanchez, 800-449-4900
jsanchez@rgrdlaw.com


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Got $ 500? Here is 1 great stock to buy and keep https://hhqh.net/got-500-here-is-1-great-stock-to-buy-and-keep/ https://hhqh.net/got-500-here-is-1-great-stock-to-buy-and-keep/#respond Thu, 04 Nov 2021 13:49:40 +0000 https://hhqh.net/got-500-here-is-1-great-stock-to-buy-and-keep/ Investing in the stock market comes with certain risks, whether you like it or not. If you have $ 500 to invest in the stock market and don’t want to worry too much about losing value, there are probably a few things you should be looking for. First, your investment should probably be in a […]]]>

Investing in the stock market comes with certain risks, whether you like it or not. If you have $ 500 to invest in the stock market and don’t want to worry too much about losing value, there are probably a few things you should be looking for.

First, your investment should probably be in a large, stable company that is a market leader in its field. Second, the stock should be available at a relatively low valuation, with a clear path to growth. Third, the business must have multiple sources of income in order to be able to withstand market fluctuations, if any of its income sources face volatility. Finally, the company must have liquidity, available liquidity to face downturns and invest in its growth.

Image source: Getty Images.

Morgan stanley (NYSE: MS) is a company that ticks those boxes and would make a good, safe place to park your $ 500 with a reasonable expectation of long term growth.

One of the best on Wall Street

When you think Morgan Stanley, you think Wall Street. This is a company that has been around since 1935 and is synonymous with Wall Street and investment banking. He’s pretty much a market leader since his inception – in his first year, he managed $ 1.1 billion in public offerings and private placements and had a 24% market share. Currently, it is the third investment bank behind Goldman Sachs and JPMorgan Chase in terms of income, but second in equity markets behind Goldman Sachs.

It has gained market share this year and is coming off a strong third quarter, where investment banking revenues grew 67% year-over-year and the segment had its best quarter of the year. history, thanks to a record quarter of consulting revenues. And with a significant number of transactions underway, this activity should continue to strengthen in the short term.

Overall, Morgan Stanley saw its net income jump 35% year-over-year to $ 3.7 billion. In addition, revenue increased by about 25% to $ 14.7 billion, of which about half, or $ 7.5 billion, came from Institutional Securities, which includes its investment banking and investment banking business. institutional negotiation. While this has been the lifeblood of the business, Morgan Stanley has taken steps in recent years to strengthen its other two businesses – Wealth Management and Investment Management – and it has helped its revenues and profits grow.

Acquisitions fuel growth

Morgan Stanley is not just one of the top two or three investment banks and trading companies in the country; it is the largest wealth management company in the United States. This is his business as a financial advisor and brokerage, and he owns around $ 1.24 trillion in assets, the most in the United States and the third in the world behind UBS and Swiss credit.

This business saw its revenue increase 28% in the third quarter year-over-year to $ 5.9 billion. Morgan Stanley has also been a leader in this field for a long time, but its acquisition of online brokerage firm E * Trade last year has given it a huge boost, as CEO James Gorman explained during the call for third quarter results:

“The wealth management business, which now includes E * Trade, of course, is growing its assets to levels far beyond what we’ve seen. In the first nine months, this company added over $ 300 billion in new net assets, compounding growth on a client asset base of over $ 4.6 trillion, and we believe this will be an economic driver for Morgan. Stanley for decades to come. ”

These two businesses have historically dominated Morgan Stanley’s revenue share, but another acquisition last year of asset manager Eaton Vance bolstered its third line of business, investment management. Just three years ago, investment management generated $ 653 million in third quarter revenue. In the last quarter, it generated $ 1.4 billion, an increase of 36% over the total for the third quarter of 2020. Three years ago, this segment accounted for 6.6% of revenue overall, this year it represents around 10%.

The investments made in the wealth management and investment business were strategic steps to give Morgan Stanley a more balanced business, so that if M&A activity slows down or trading activity declines, it can be offset by gains in wealth management or investment, which are less volatile companies. Plus, Morgan Stanley is pretty good value, with a price-to-earnings ratio of around 13, despite the stock price rising 52% year-to-date.

A good place to park your $ 500

Morgan Stanley is also in good financial health, with a Tier 1 common stock ratio of 16%, which is well above the required minimum of 13.2% set by the Federal Reserve.

In addition, it has around $ 5.3 billion in cash and its debt-to-equity ratio is around 2.2, which is lower than it has been in the past 10 years, while its current debt ratio, the ability to repay short-term debt, is higher than it has been in recent years. These are two good indicators, given that the company has made two big acquisitions.

Morgan Stanley has been a good investment for decades, averaging 20.5% annualized return over the past decade. It remains a good investment and he may be even better off now, given the recent acquisitions he has made. This stock seems like a great place to park your $ 500 – which would buy you around five stocks at its current price of $ 104 per share.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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Bayerische Motoren Werke (ETR: BMW) has a somewhat strained record https://hhqh.net/bayerische-motoren-werke-etr-bmw-has-a-somewhat-strained-record/ https://hhqh.net/bayerische-motoren-werke-etr-bmw-has-a-somewhat-strained-record/#respond Wed, 03 Nov 2021 13:38:03 +0000 https://hhqh.net/bayerische-motoren-werke-etr-bmw-has-a-somewhat-strained-record/ Howard Marks put it well when he said that, rather than worrying about stock price volatility, “The possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. ” It is only natural to consider a company’s balance sheet when looking at its level of risk, […]]]>

Howard Marks put it well when he said that, rather than worrying about stock price volatility, “The possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. ” It is only natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when a business collapses. We can see that Bayerische Motoren Werke Aktiengesellschaft (ETR: BMW) uses debt in its business. But should shareholders be concerned about its use of debt?

When Is Debt a Problem?

Debts and other liabilities become risky for a business when it cannot easily meet these obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. However, a more common (but still costly) event is when a company has to issue stock at bargain prices, constantly diluting shareholders, just to strengthen its balance sheet. Of course, debt can be an important tool in businesses, especially capital intensive businesses. The first step in examining a company’s debt levels is to consider its cash flow and debt together.

Discover our latest analysis for Bayerische Motoren Werke

What is the debt of Bayerische Motoren Werke?

You can click on the graph below for historical figures, but it shows that Bayerische Motoren Werke had € 101.9 billion in debt in June 2021, up from € 115.0 billion a year earlier. On the other hand, it has 17.2 billion euros in liquidity leading to a net debt of around 84.7 billion euros.

XTRA: history of debt on BMW equity 3 November 2021

A look at the responsibilities of Bayerische Motoren Werke

The most recent balance sheet shows that Bayerische Motoren Werke had liabilities of 74.3 billion euros due within one year and liabilities of 79.0 billion euros due beyond. In return, he had € 17.2 billion in cash and € 3.41 billion in receivables due within 12 months. Its liabilities thus exceed the sum of its cash and its (short-term) receivables by 132.6 billion euros.

This deficit casts a shadow over the € 57.7 billion company, like a colossus towering over mere mortals. We therefore believe that shareholders should watch it closely. In the end, Bayerische Motoren Werke would likely need a major recapitalization if its creditors demanded repayment.

We measure a company’s debt load relative to its earning capacity by looking at its net debt divided by its earnings before interest, taxes, depreciation, and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT) covers its interest costs (interest coverage). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt versus EBITDA) and the actual interest charges associated with this debt (with its coverage rate). interests).

As it turns out, Bayerische Motoren Werke has a rather worrying net debt to EBITDA ratio of 5.2 but very strong interest coverage of 58.6. So either he has access to very cheap long-term debt or his interest charges will go up! Fortunately, Bayerische Motoren Werke is increasing its EBIT faster than former Australian Prime Minister Bob Hawke, posting a gain of 132% in the last twelve months. The balance sheet is clearly the area you need to focus on when analyzing debt. But ultimately the future profitability of the company will decide whether Bayerische Motoren Werke can strengthen its balance sheet over time. So if you are focused on the future you can check this out free report showing analysts’ earnings forecasts.

Finally, a business can only pay off its debts with hard cash, not with book profits. We must therefore clearly check whether this EBIT generates a corresponding free cash flow. Over the past three years, Bayerische Motoren Werke’s free cash flow has been 29% of its EBIT, less than we expected. It’s not great when it comes to paying down debt.

Our point of view

At first glance, Bayerische Motoren Werke’s net debt to EBITDA left us hesitant about the stock, and its total liability level was no more attractive than the single empty restaurant on the busiest night of the year. But on the bright side, his interest coverage is a good sign and makes us more optimistic. Looking at the balance sheet and taking all of these factors into account, we think debt makes Bayerische Motoren Werke stock a bit risky. Some people like this kind of risk, but we are aware of the potential pitfalls, so we would probably prefer him to carry less debt. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks lie on the balance sheet – far from it. For example, Bayerische Motoren Werke has 3 warning signs (and 2 that shouldn’t be ignored) we think you should be aware of.

If, after all of this, you’re more interested in a fast-growing company with a strong balance sheet, take a quick look at our list of cash net growth stocks.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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We believe Beijing North Star (HKG: 588) is taking risks with its debt https://hhqh.net/we-believe-beijing-north-star-hkg-588-is-taking-risks-with-its-debt/ https://hhqh.net/we-believe-beijing-north-star-hkg-588-is-taking-risks-with-its-debt/#respond Mon, 01 Nov 2021 00:28:27 +0000 https://hhqh.net/we-believe-beijing-north-star-hkg-588-is-taking-risks-with-its-debt/ Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. It’s only natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when a […]]]>

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital”. It’s only natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when a business collapses. We note that Beijing North Star Company Limited (HKG: 588) has debt on its balance sheet. But the most important question is: what risk does this debt create?

Why Does Debt Bring Risk?

Debt helps a business until the business struggles to repay it, either with new capital or with free cash flow. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. However, a more common (but still costly) situation is where a company has to dilute its shareholders at a cheap share price just to get its debt under control. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we look at debt levels, we first look at cash and debt levels together.

Check out our latest analysis for Beijing North Star

How much debt does Beijing’s North Star carry?

The image below, which you can click for more details, shows Beijing North Star owed CN 28.5 billion in debt at the end of September 2021, a reduction from CN’s 35.5 billion. over a year. On the other hand, he has CN 11.6 billion in cash, resulting in a net debt of around CN 16.8 billion.

SEHK: 588 History of debt to equity November 1, 2021

A look at the responsibilities of Beijing North Star

The latest balance sheet data shows Beijing North Star had CN 37.2 billion in liabilities maturing within one year, and CN 20.4 billion in liabilities maturing thereafter. On the other hand, he had CN 11.6 billion in cash and CN 2.06 billion in receivables due within one year. Thus, its liabilities exceed the sum of its cash and its (short-term) receivables by 43.9 billion yen.

This deficit casts a shadow over the CN ¥ 4.88b company, like a colossus towering over mere mortals. We therefore believe that shareholders should monitor it closely. After all, Beijing North Star would likely need a major recapitalization if it were to pay its creditors today.

In order to measure a company’s debt relative to its profits, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its profit before interest and taxes (EBIT) divided by its interest. debtors (its interest coverage). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

As it turns out, Beijing North Star has a rather worrying net debt to EBITDA ratio of 6.5 but very strong interest coverage of 1k. So either he has access to very cheap long-term debt or his interest charges will go up! Notably, Beijing North Star’s EBIT was higher than Elon Musk’s, gaining a whopping 123% from last year. The balance sheet is clearly the area you need to focus on when analyzing debt. But it is the earnings of Beijing North Star that will influence the performance of the balance sheet in the future. So, when considering debt, it is really worth looking at the profit trend. Click here for an interactive snapshot.

Finally, a business needs free cash flow to repay its debts; accounting profits are not enough. We must therefore clearly check whether this EBIT generates a corresponding free cash flow. Over the past three years, Beijing North Star’s free cash flow has been 48% of its EBIT, less than we expected. It’s not great when it comes to paying down debt.

Our point of view

We feel some trepidation about the difficulty level of Beijing North Star’s total liabilities, but we also have some bright spots to focus on. For example, its interest coverage and EBIT growth rate give us some confidence in its ability to manage its debt. When we consider all the factors discussed, it seems to us that Beijing North Star is taking risks with its recourse to debt. While this debt may increase returns, we believe the company now has sufficient leverage. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks lie on the balance sheet – far from it. For example, we discovered 4 warning signs for Beijing North Star (2 are potentially serious!) Which you should know before investing here.

If you want to invest in businesses that can generate profits without the burden of debt, check out this free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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