Profit margin – Kat Masters http://katmasters.com/ Tue, 21 Sep 2021 21:20:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://katmasters.com/wp-content/uploads/2021/06/icon-2021-06-25T173039.237-150x150.png Profit margin – Kat Masters http://katmasters.com/ 32 32 2 very high quality ASX shares to be held on September 22, 2021 https://katmasters.com/2-very-high-quality-asx-shares-to-be-held-on-september-22-2021/ https://katmasters.com/2-very-high-quality-asx-shares-to-be-held-on-september-22-2021/#respond Tue, 21 Sep 2021 21:20:00 +0000 https://katmasters.com/2-very-high-quality-asx-shares-to-be-held-on-september-22-2021/ Image source: Getty Images Some high quality ASX stocks may be worth holding for the long term. Quality investments can offer better growth potential or greater reliability over time. There are a number of factors to consider with businesses including their market share, profit margins, and continued growth. Here are two to consider: Xero is […]]]>

Image source: Getty Images

Some high quality ASX stocks may be worth holding for the long term.

Quality investments can offer better growth potential or greater reliability over time.

There are a number of factors to consider with businesses including their market share, profit margins, and continued growth.

Here are two to consider:

Xero is one of the world leaders in cloud accounting software. Its clientele is focused on small and medium-sized businesses. It has built a very impressive market share in its national New Zealand market, but the growth is not really slowing down – in fiscal 21 New Zealand subscriber numbers increased by 14% to reach 446,000.

Indeed, the ASX share is growing strongly in several countries. In FY21, Australian subscribers jumped 22% to 1.12 million, UK subscribers jumped 17% to 720,000, North American subscribers increased 18% to 285,000, and subscribers the rest of the world rose 40% to 175,000.

Xero actually has a very high gross profit margin, one of the highest in ASX. The gross profit margin was 86% in FY21, an increase from 85.2% in FY20. Despite the company’s preference for a high growth strategy, involving a lot of investment, it is experiencing a high level of growth in its free cash flow. Free cash flow for fiscal 21 increased 110% to $ 57 million.

ASX stock may already have some revenue growth for FY22 and beyond. While FY21 operating revenue was $ 849 million, its annualized monthly recurring revenue was $ 964 million (up 17%) and its total subscriber value increased 38% for reach $ 7.65 billion.

Despite the huge growth it has already achieved, Xero still aims for long-term growth. It says:

Xero will continue to focus on growing its global platform for small businesses and will maintain a preference for reinvesting the cash generated, subject to investment criteria and market conditions to generate long-term value for shareholders.

Betashares Nasdaq 100 ETF (ASX: NDQ)

It’s a exchange-traded funds (ETFs) which aims to give investors exposure to 100 companies on the NASDAQ, which is a stock exchange in North America.

As it turns out, most of the North American tech giants have chosen to list with NASDAQ.

So when you look at the top headlines in ASX stock, it is full of names like Apple, Microsoft, Amazon, Alphabet, Facebook, and Nvidia..

But the ETF isn’t just limited to these few tech giants. There are many industry leaders including Tesla, Adobe, PayPal, Netflix, Costco, Moderna, Advanced micro-devices, intuitive surgery, reservation, MercadoLibre, ASML, Regeneration, Zoom, Autodesk and Docusign.

Having such a quality group of companies gives this ETF the potential to perform well over time.

While past performance is not a reliable indicator of future performance, it does show how well the ETF has performed in the past. Including management fees of 0.48% per annum, it has generated an average annual return of 27.9% over the past five years.

Many of the companies in this portfolio are the ones launching new products and services. This means that as a group they can capture market share, open up new sources of income and hopefully achieve rising profit margins.

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PensionBee in expansion phase – Investors’ Chronicle https://katmasters.com/pensionbee-in-expansion-phase-investors-chronicle/ https://katmasters.com/pensionbee-in-expansion-phase-investors-chronicle/#respond Tue, 21 Sep 2021 14:35:58 +0000 https://katmasters.com/pensionbee-in-expansion-phase-investors-chronicle/ Rising marketing and workforce costs Profitability target by 2023 At this stage of its development, PensionBee’s (PBEE) financial performance is of secondary importance to its conquest of the market, especially since the online retirement provider has given itself a few years to become profitable. Nonetheless, revenue more than doubled in the first half of 2021, […]]]>
  • Rising marketing and workforce costs
  • Profitability target by 2023

At this stage of its development, PensionBee’s (PBEE) financial performance is of secondary importance to its conquest of the market, especially since the online retirement provider has given itself a few years to become profitable. Nonetheless, revenue more than doubled in the first half of 2021, and if you discount the marketing costs, the negative cash profit margin declined from 45% to 28% – an improvement of sorts.

The company raised £ 55million on the high-growth segment of the London Stock Exchange in April this year, although cash profits contracted as staff and marketing expenses skyrocketed early in the year. expansion phase. The workforce has grown to 151 full-time employees from 99 at the end of June 2020. And there has also been an increase in costs related to share-based payments, in particular the accelerated vesting of options.

The increase in capital demands is understandable, but the new business volumes are more illuminating. Assets under management grew 117 percent from the 2020 mid-range mark to £ 1.99 billion, helped by a stable retention rate of 95 percent. The number of clients invested increased 81% to 92,000, but the pro-rated costs were on the rise, so any advantages of scale were wiped out by the costs of expanding the business.

It’s still early days, so we can expect further investment in marketing, coupled with the rollout of new features on the technology platform, tempered by a disciplined approach to customer acquisition costs, according to management. Bosses expect high double-digit income growth for the remainder of the year, but there is still a significant “blue sky” element to these types of market disruptors. So if you’ve ever bought stocks, you might as well stay invested. Socket.

Last seen IC: Hold, 168p, Jul 22, 2021

PENSIONBEE (PBEE)
ORDER PRICE: 148p MARKET VALUE: £ 326 million
TO TOUCH: 147-151p UP TO 12 MONTHS: 170p LOW: 149p
DIVIDEND RETURN: NIL P / E RATIO: N / A
NET ASSET VALUE: 24p NET CASH : £ 55million
Semester on June 30 Turnover (£ m) Profit before tax (£ m) Earnings per share (p) Dividend per share (p)
2020 2.59 -5.22 n / A nothing
2021 5.40 -12.8 -6.54 nothing
% cash +109
Ex-div:
Payment:
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Dominion Virginia Made Way Above Fair Profit https://katmasters.com/dominion-virginia-made-way-above-fair-profit/ https://katmasters.com/dominion-virginia-made-way-above-fair-profit/#respond Mon, 20 Sep 2021 23:24:32 +0000 https://katmasters.com/dominion-virginia-made-way-above-fair-profit/ RICHMOND, Va. (AP) – State Corporation Commission staff testified that Dominion Energy earned more than $ 1.1 billion above fair profit from customers in Virginia over a four-year period, but customers are not likely to see as much in refunds. The testimony was filed as part of an ongoing review of public service books, the […]]]>

RICHMOND, Va. (AP) – State Corporation Commission staff testified that Dominion Energy earned more than $ 1.1 billion above fair profit from customers in Virginia over a four-year period, but customers are not likely to see as much in refunds.

The testimony was filed as part of an ongoing review of public service books, the Richmond Times-Dispatch reported on Monday. But due to several state laws favorable to the utility and its shareholders, clients won’t see a similar comeback as a result of Dominion’s triennial commission review.

Commission staff found that Dominion made a profit of 13.6% from 2017 to 2020, which generated revenues of $ 1.143 billion above the fair return on equity of 9.2% established by law. , according to testimony filed Friday by Patrick W. Carr, deputy director of the commission’s utility accounting and finance division.

Under current law, clients are expected to receive a refund of $ 312 million, according to CSC staff. For such reimbursement to take place, the three judges of the commission would have to make certain decisions and side with the recommendation of the staff. In a pitch, Dominion Energy said the company has not earned a surplus and the commission is expected to increase its future profit margin from 9.2% to 10.8%.

Dominion is Virginia’s largest electric utility, serving approximately 2.6 million residential customers, and in return for a monopoly to provide electricity, the company accepts a fair return under the regulations of the SCC. If the company earns too little, the CCS could increase the rates paid by customers. If it earns too much, the CCS can order refunds and rate cuts which, however, are limited due to legislation supported by the Dominion by members of the General Assembly which has limited the powers of the commission.

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Boris Johnson to tell Bezos that Amazon must pay a fair share of taxes https://katmasters.com/boris-johnson-to-tell-bezos-that-amazon-must-pay-a-fair-share-of-taxes/ https://katmasters.com/boris-johnson-to-tell-bezos-that-amazon-must-pay-a-fair-share-of-taxes/#respond Mon, 20 Sep 2021 10:11:39 +0000 https://katmasters.com/boris-johnson-to-tell-bezos-that-amazon-must-pay-a-fair-share-of-taxes/ British Prime Minister Boris Johnson has said he will tell Jeff Bezos that Amazon.com Inc. has to pay its fair share of taxes in the country when the two meet on Monday. He will also ask the president of Amazon to address labor standards for employees in the UK. “He invests heavily in planting trees […]]]>

British Prime Minister Boris Johnson has said he will tell Jeff Bezos that Amazon.com Inc. has to pay its fair share of taxes in the country when the two meet on Monday.

He will also ask the president of Amazon to address labor standards for employees in the UK. “He invests heavily in planting trees around the world.

Johnson also explained how the UK is seeking to ease tensions with France and the energy crisis resulting from rising gas prices.

Amazon has been the target of efforts by countries seeking to reform the international corporate tax system. In June, global policymakers were crafting their international tax plan to ensure the e-commerce giant was included, even if the U.S. company’s profit margin was below the proposed 10% threshold that would give other countries the right to collect income.

In July, in a round of talks hosted by the Organization for Economic Co-operation and Development, countries argued for a more balanced international corporate tax system, setting a minimum corporate tax rate. and establishing a new regime for sharing taxes levied on the profits of multinational enterprises. .

Amazon said in May that it plans to hire 10,000 more people in the UK, bringing its total workforce in the country to 55,000 by the end of 2021 and making the company one of the few big employers to create jobs during the pandemic.

The new jobs, on par with Amazon’s UK additions last year, will be primarily in fulfillment and parcel delivery centers, but will also include roles in fashion, digital marketing, engineering, video production, software development, cloud computing and AI, the company said then.

Amazon has been criticized for the way it treats workers, especially warehouse and delivery staff who have become frontline workers during the pandemic.

Bezos is the second richest person in the world with a net worth of nearly $ 200 billion, according to the Blomberg Billionaires Index.

This article was provided by Bloomberg News.

To read more stories, click here

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“I don’t think we’ll survive the winter”: a call for help from a small energy supplier | Energy industry https://katmasters.com/i-dont-think-well-survive-the-winter-a-call-for-help-from-a-small-energy-supplier-energy-industry/ https://katmasters.com/i-dont-think-well-survive-the-winter-a-call-for-help-from-a-small-energy-supplier-energy-industry/#respond Sun, 19 Sep 2021 19:02:00 +0000 https://katmasters.com/i-dont-think-well-survive-the-winter-a-call-for-help-from-a-small-energy-supplier-energy-industry/ Energy supplier Green has warned that it is one of those small suppliers threatened with bankruptcy due to record market prices for gas and electricity. “I don’t think we’ll survive the winter if there isn’t a big change,” said Peter McGirr, CEO of the startup, which was founded in 2019 and has more than 250,000 […]]]>

Energy supplier Green has warned that it is one of those small suppliers threatened with bankruptcy due to record market prices for gas and electricity.

“I don’t think we’ll survive the winter if there isn’t a big change,” said Peter McGirr, CEO of the startup, which was founded in 2019 and has more than 250,000 customers and 185 employees.

This recent record rise in energy market prices threatens to force the company to shut down by the new year, unless the government and regulator agree to throw a lifeline on small suppliers.

McGirr said crisis talks held over the weekend by Business Secretary Kwasi Kwarteng had not included the small suppliers most vulnerable to the energy market shock and said calls for the His company’s help with the industry regulator had “fallen on deaf ears.” .

Record-breaking energy prices have already claimed five suppliers in the past five weeks, with four more expected to drop by the end of the month.

McGirr said there would be “one more tsunami to come” because small suppliers don’t have their pockets deep enough to withstand soaring costs without passing them on to their customers.

“We are an independent company,” he said. “It is difficult to access funding and nothing has been done to help. “

McGirr said his company had already achieved a healthy profit margin of around 3.5% on its energy deals, but all suppliers in the market are currently suffering a net loss as costs have risen faster than the regulator’s cap on energy deals. energy tariffs.

Around 40% of Green’s suppliers pay for their energy through a standard variable tariff which is controlled by Ofgem through the energy price cap. The cap is expected to be lifted in October and is expected to rise again in April, but McGirr said the hikes won’t come soon enough to save struggling businesses.

“I am against price caps,” he said. “There is a built-in delay and we have to pass higher prices on to customers to recover our costs. “

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Latent Tuberculosis Screening Market Share Expected To Record Robust Growth Through 2026 https://katmasters.com/latent-tuberculosis-screening-market-share-expected-to-record-robust-growth-through-2026/ https://katmasters.com/latent-tuberculosis-screening-market-share-expected-to-record-robust-growth-through-2026/#respond Sun, 19 Sep 2021 01:57:52 +0000 https://katmasters.com/latent-tuberculosis-screening-market-share-expected-to-record-robust-growth-through-2026/ The Latent Tuberculosis Screening Market The Intelligence Report provides important information on the growth catalysts, constraints and challenges defining the growth matrix in the years to come. According to the study, the Latent Tuberculosis Test market is poised to register an annual growth rate of XX% over the forecast period (2020-2025), while amassing notable revenue […]]]>

The Latent Tuberculosis Screening Market The Intelligence Report provides important information on the growth catalysts, constraints and challenges defining the growth matrix in the years to come.

According to the study, the Latent Tuberculosis Test market is poised to register an annual growth rate of XX% over the forecast period (2020-2025), while amassing notable revenue by the end of the duration of the study.

Amid the COVID-19 pandemic, the global economy plunged and several industries faced unprecedented hardship. While immediate revenue losses are inevitable, long-term uncertainties reign over some businesses, so this is a constant headache.

Request a copy of this report @ https://www.nwdiamondnotes.com/request-sample/13857

This report conducts an in-depth assessment of the current market scenario with the aim of helping companies with solid contingency plans, while suggesting a review of their budget to draft an action plan to restore the profit path. .

Moreover, the report features in-depth analysis of segmental dynamics, with their contribution to revenue and growth rate over the expected duration, thereby extending the knowledge of lucrative fields.

Key Indicators Included in the Latent Tuberculosis Testing Market Report:

  • Detailed review of the coronavirus pandemic on the industry growth matrix
  • In-depth analysis of prevailing market trends
  • Figures relevant to market size, overall revenue and sales volume
  • Profitable prospects
  • Forecast market growth rate over the analysis period
  • Information relating to industry distributors, traders and resellers
  • Advantages and disadvantages of direct and indirect sales

Highlighting segmentations of the latent tuberculosis testing market:

Regional Ambit: North America, Europe, Asia-Pacific, South America & Middle East & Africa

  • Geographic and national market study
  • Data on sales generated, valuation achieved and the share of industry held by each region
  • Projections relating to the growth path followed and the total revenues garnered by the regions during the forecast years

Product field: Tuberculin skin test (TST) and gamma interferon assay (IGRA)

  • Price model for each type of product
  • Sales volumes and gross margins accumulated by all products in the past, and estimates for the future

Application spectrum: Hospitals and clinics, diagnostic laboratories and others

  • Sales and returns data generated by each application segment
  • Price trend of products according to their field of application

Competitive landscape:

  • Qiagen
  • Sanofi
  • Oxford Immunotec
  • Thermo Fisher Scientific
  • Laboratories Par Sterile and Bio-Rad

  • Business profile of each company, with information about their manufacturing facilities and competitors
  • Detailed list of products and services offered by these companies
  • Statistics on product unit price, sales volume, profit margin and industry participation of all companies
  • SWOT analysis and distribution channels deployed by these suppliers
  • Summary of the marketing matrix, marketing strategies and other facets related to the business.

Summarize the key indicators

  • Competitive dashboard: The study documents the business profiles of the major players, while focusing on the products offered by these companies, product specifications, production capacity, sales data, gross margin and revenue generated over the course of the forecast period.
  • Global and regional market research: The dominant trends and projections on the valuation along with the growth graph of global and regional market size over the analysis period are taken into account, based on the export and import patterns and trends of production and consumption for each country and region specified.
  • Product field: The report brings together different product segments and provides information on their specifications as well as sales volume and value.
  • Application spectrum: Several applications of the products are mentioned in the report, which further explains the market share held by each type of application and their contribution to revenue in the following years.
  • In addition, the report leverages expert opinions to educate the reader on existing market trends, drivers, opportunities and challenges influencing company size, and Porter’s five forces analysis on the competitive landscape.

Top reasons to buy the report

  • To gain valuable market insights and better understand the overall size of the industry and its business environment.
  • Evaluate product processes, major challenges and risk prevention methodologies.
  • To understand the major driving and restraining factors and their effects on the global market.
  • Learn about the key strategies used by large companies.
  • Know the future prospects and the prospects of the industry.
  • In addition to the standard structure reports, one can also obtain a personalized search according to specific needs.

Request customization on this report @ https://www.nwdiamondnotes.com/request-for-customization/13857

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Investor column: Accesso Technology Group, Pendragon, Petra Diamonds https://katmasters.com/investor-column-accesso-technology-group-pendragon-petra-diamonds/ https://katmasters.com/investor-column-accesso-technology-group-pendragon-petra-diamonds/#respond Sat, 18 Sep 2021 04:00:38 +0000 https://katmasters.com/investor-column-accesso-technology-group-pendragon-petra-diamonds/ PURCHASE: Accesso Technology Group (ACSO) With the relaxation of pandemic restrictions, Accesso is taking advantage of new customer behavior, writes Christopher Akers. The publicly traded Accesso Technology Group recorded strong sales and profit margins in its interim results as of June 30. After a disappointing 2020, when the group was forced to focus on operational […]]]>

PURCHASE: Accesso Technology Group (ACSO)

With the relaxation of pandemic restrictions, Accesso is taking advantage of new customer behavior, writes Christopher Akers.

The publicly traded Accesso Technology Group recorded strong sales and profit margins in its interim results as of June 30. After a disappointing 2020, when the group was forced to focus on operational resilience and cost savings rather than growth due to the impact of the pandemic on the business, it seems the tide has turned. .

The group, which provides software focused on virtual queues and ticketing, recorded an operating profit margin of more than 3% compared to an interim loss and an annual loss for 2020. The Ebitda, a key measure of the group, exceeded analysts’ expectations with a record $ 9.8. m (£ 7.2million) was recorded after a negative $ 10.4million last year.

The group’s revenue of $ 50.7 million was a 106% increase, rising to pre-pandemic levels. The Accesso Passport division, which facilitates virtual sales, stood out with a 40% or $ 6.3 million increase in revenue compared to the same period in 2019.

Chief Executive Steve Brown said a combination of high labor costs for businesses, continued capabilities and social distancing measures helped generate revenue. Accesso’s software enables customers to reduce labor costs (since tasks can be performed virtually) and its operating model is now well positioned to serve customers in an uncertain pandemic environment. He also noted that footfall at customer sites, such as amusement parks, is around 85-90% of 2019 levels, indicating potential for additional revenue and growth.

UK revenue in particular struggled, up $ 2.6 million from last year but still down $ 7.1 million from 2019. This was due to restrictions pandemics that have shut down customer sites such as the West End Theaters – a resumption of this revenue stream is expected as events begin to unfold. one more time. Costs are estimated to increase by around 8-12% by the end of the year, but this is simply a recalibration to a “normal” cost base rather than an unusual increase.

Performance for the year should at least be in line with pre-pandemic levels. The July 2021 revenue figures for passports and the virtual queue are 51% from July 2019, and confident management has extended a share grant program to all staff. Analysts expect revenues and profitability to increase further due to changes in customer habits and the growing shift to e-commerce. Broker Numis has an updated EBITDA forecast of $ 18.6 million for 2022.

HOLD: Pendragon (CEO)

Car dealership Pendragon appears to be heading in the right direction after a sharp turnaround last year, writes Michael Fahy.

After moving away from merger talks with Lookers, the Nottingham-based company began to eliminate loss-making sites in the UK and changed its operating model, laying off around 1,800 employees in a bid to cut overhead costs . He also put the rest of his US dealer assets on the block.

The result of these actions allowed it to declare its first half-year profit in three years.

Pendragon was helped by a buoyant automotive sales market, from which it derives more than 90 percent of its turnover. New car registrations in the UK rose 20.3% in the first eight months of the year, according to the Society of Motor Manufacturers and Traders.

Showrooms were once again affected by Covid-19 lockdowns, with most remaining closed between January and April 12, but its improved digital sales channels (it delivered 40,000 cars during lockdowns) and the estate Lightened enabled him to convert an underlying loss of £ 31million. in the first six months of last year in a profit of £ 35.1million.

The company’s UK franchises have sold more than 30,000 new cars, an increase of 43% on a like-for-like basis from the same period last year. Like-for-like used car sales increased 38%, with more than 48,000 units moved.

These sales, along with improved working capital and rental vehicle movements, enabled it to generate nearly £ 115million in operating cash flow, most of which was used to repay £ 110million. pounds of net debt, thus improving its balance sheet.

The closure of 54 loss-making sites in the UK (bringing the total to 150) and the sale of its last two US dealers have reduced underlying costs by around £ 75million compared to the same period in 2019, sacrificing just £ 24.1million in gross margin in the process, said chief executive Bill Berman.

When defining his new strategy last year, he set a long-term goal of growing underlying profit before tax to £ 85 million to £ 90 million by 2025. Pendragon reiterated his forecast according to which he expects an annual profit of £ 55-60million this year. , despite short-term headwinds due to supply disruptions caused by chip shortages and other potential Covid shutdowns.

The results indicate that the new strategy “is having a demonstrable impact,” said Andrew Wade, analyst at Jefferies. It has a target for a share price just below its current valuation of 19p, based on an estimated earnings per share of 2.1 and a price-to-earnings ratio of 9.

HOLD: Petra Diamonds (PDL)

© Jock Fistick / Bloomberg

The mining company is planning a big year as sales of a handful of major stones land in its bottom line, writes Alex Hamer.

Miner Petra Diamonds returned to positive territory in its 2021 fiscal year, ending June 30. This was aided by moving the Williamson mine to the ‘for sale’ accounting category, given that it is not in production, but the figures also exclude $ 40m (£ 29million) from a diamond sold. in July.

This year marked a turning point for Petra, which diluted its shareholders almost to zero to deal with debt tightening, handing the vast majority of the company over to creditors. Net debt fell to $ 228 million from $ 700 million at the end of 2020 as a result of this move.

Conditions are also improving in the luxury market where Petra sells its stones. Managing Director Richard Duffy estimates that $ 40 million for the 39-carat blue diamond is “possibly the highest price per carat ever for a rough diamond.”

Petra’s adjusted cash profit for the year of $ 135 million was double that of last year, helped by generally higher prices and more sales of “exceptional stones”, which are sold for 5 million dollars and more.

The miner operates three mines in South Africa and owns the Williamson mine in Tanzania, which is undergoing upkeep and maintenance. The plan was to reopen Williamson next year, but Petra “has decided to review her strategic options” for the mine, while preparatory work for the restart continues.

Broker Peel Hunt expects Petra’s cash profits to rise by more than a quarter this fiscal year, to $ 172 million.

Petra has turned a corner, but there is still enough risk to keep us out.

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Big insurers prepare to take advantage of Democratic proposal to expand Medicaid https://katmasters.com/big-insurers-prepare-to-take-advantage-of-democratic-proposal-to-expand-medicaid/ https://katmasters.com/big-insurers-prepare-to-take-advantage-of-democratic-proposal-to-expand-medicaid/#respond Fri, 17 Sep 2021 20:46:40 +0000 https://katmasters.com/big-insurers-prepare-to-take-advantage-of-democratic-proposal-to-expand-medicaid/ But it’s not entirely clear what would happen in the three non-expanding states that do not have MCOs, although the legislation gives HHS the ability to contract with a “third-party plan administrator.” North Carolina, another state that has not extended Medicaid, recently contracted with several MCOs, including Centene Corp. and UnitedHealth Group, to manage their […]]]>

But it’s not entirely clear what would happen in the three non-expanding states that do not have MCOs, although the legislation gives HHS the ability to contract with a “third-party plan administrator.” North Carolina, another state that has not extended Medicaid, recently contracted with several MCOs, including Centene Corp. and UnitedHealth Group, to manage their program. Major national carriers Centene, UnitedHealthcare, Anthem, Molina Healthcare and Aetna have contracts to cover 60% of the Medicaid managed care market, according to an analysis by KFF.

Hempstead said there had been significant entry into the ACA markets in states without expansion, with insurers that operate OLS potentially anticipating that those states will eventually expand Medicaid or that Congress will act to close the gap. blanket.

Insurers may think this gives them an advantage of already serving clients in the marketplace or in Medicaid when the time comes to submit offers, she said.

This is what the regional and local plans are worried about.

Regulators must ensure that community plans operating only in a certain region of the state are not disadvantaged in their bidding process, said Dan Jones, vice president of federal affairs at the ‘Alliance of Community Health Plans. Local and regional MCOs control around 40% of the market, according to KFF.

“If you only had two offerings across the state with no expansion, we have plans that work in parts of the state,” Jones said. “So it looks like they would be at a disadvantage if that was the path they would take.” The legislation states that the secretary of the HHS can contract with more than one MCO or plan administrator in each geographic gap in coverage.

While the idea of ​​offering a federal Medicaid option has been debated since at least the creation of the Affordable Care Act, the proposal to privatize the service is new, Jones said.

In the past, managed care organizations have been criticized for charging more for administering the plans than traditional, fee-for-service Medicaid. The ACA allows plans to keep 15% of premiums collected for administration – the rest must be spent on members’ medical care, which insurers measure through their medical loss ratios. Some states have said local regulators manage the program more effectively than private companies.

In the run-up to privatizing health care for the state’s most vulnerable population, the Oklahoma Health Care Authority, which has supported the shift to managed care, said its administrative costs of running Medicare at the deed amounted to only 5%, for example. The decision to privatize Oklahoma’s Medicaid program, named SoonerSelect, ultimately failed.

“In terms of what they count for administrative costs, what benefits are included? What type of care coordination is provided to improve health outcomes and reduce costs? Jones said. “I just think there are a lot of variables that go into looking at the value provided by private companies.”

Medicaid managed care organizations have also gained the attention of regulators recently. The federal government this week unveiled a whistleblower lawsuit accusing Aetna of lying about her provider network to secure Medicaid contracts in Pennsylvania this week, although the Hartford, Connecticut-based insurer denies the claims. Aetna is owned by CVS Health.

The legislation gives the Secretary of HHS the power to set supplier prices, network suitability standards, quality requirements, and any other standards he deems necessary. Contracts should also include a minimum MLR and a requirement for “timely” payments to suppliers.

“I don’t think it’s universally true that managed care entities do things right,” said Dr Vikram Bakhru, chief medical officer at managed care startup Medicaid Circulo. “Sure, you know, there are cases of failure.”

But he believed that the introduction of private companies into the market would add a level of competition that would benefit government and registrants, and that the experience of care management companies in managing costs and care would translate into ultimately reduced costs across the program, compared to traditional fees. service option. As an example, he highlighted the success of the lucrative and growing market for Medicare Advantage, a private alternative to paid health insurance that covers 26.7 million seniors, or more than 42% of all seniors. eligible, according to the most recent federal report. July data.

In 2021, member satisfaction with their Medicare Advantage program increased for the third year in a row, according to a report by data analytics firm JD Powers. But as satisfaction increased, federal spending also increased. The cost per beneficiary is rising faster for people on Medicare Advantage than for people on traditional Medicare and Part D drug plans, according to MedPAC. Medicare Advantage also accounts for a larger portion of the federal budget, at 46%, than the enrolled population it serves, according to KFF.

“Is the private option a guaranteed solution? No, of course not,” Bakhru said. “But this represents an option that brings competition to the landscape, and I think it’s a healthy component of the ecosystem.”

While privatizing a federal Medicaid plan would offer a short-term boost to the companies chosen to run the program, the long-term proposal could have a negative impact on insurers as it could cause a small portion of commercial members to drop out. switch to Medicaid, which offers lower benefits. margins, said Glenn Melnick, professor of health finance at the University of Southern California.

In 2020, Medicaid managed care registrants offered insurers the lowest profit margin of any type of plan, according to KFF.

“If you want to bid and you only have one buyer, which is the federal government, they have the power to negotiate a contract,” Melnick said. “I guess all things being equal, corporations would prefer their members to remain commercial.”

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Epic Games wins lawsuit against Apple https://katmasters.com/epic-games-wins-lawsuit-against-apple/ https://katmasters.com/epic-games-wins-lawsuit-against-apple/#respond Fri, 10 Sep 2021 21:21:08 +0000 https://katmasters.com/epic-games-wins-lawsuit-against-apple/ Rule out Gilgamesh, Apple’s epic tale against Epic Games just ended and we’ve got the details. Yesterday, a federal judge ruled (mainly) in favor of Epic in its vendetta against the fees of the App Store. The court of investor opinion quickly followed suit, with shares in games like Roblox and Zynga climbing after the […]]]>

Rule out Gilgamesh, Apple’s epic tale against Epic Games just ended and we’ve got the details.

Yesterday, a federal judge ruled (mainly) in favor of Epic in its vendetta against the fees of the App Store. The court of investor opinion quickly followed suit, with shares in games like Roblox and Zynga climbing after the announcement.

The backstory: Epic CEO Tim Sweeney martyred his highest-grossing game last summer Fortnite by encouraging users to make in-game purchases (hamburger headsets, demogorgon skins) outside of Apple’s payment systems to protest the high commission Apple charges developers in its App Store.

The game was quickly started from the App Store and Epic kicked off its revolution with a 1984style video and a lawsuit against Apple, which resulted in a high-profile lawsuit with testimony from Apple CEO Tim Cook.

Tim S. had a big win over Tim C. The judge ruled that Apple should allow developers to send users out of the App Store to make payments – the biggest change to the platform since its inception in 2008. The court also ruled that Epic’s ends did not justify its means, and the company would be required to pay Apple more than $ 4 million in damages.

But $ 4 million is a roll of quarters beside the multibillion-dollar pile of App Store commissions that Apple stands to lose. The App Store in its current state earns Apple more than $ 20 billion a year with a profit margin of at least 75%, analysts say.

Here’s why Apple is more like Mr. Brightside about it

A few billion in revenue a year is a small price to pay for the court ruling that the Apple App Store is not a monopoly. As Apple wrote in a statement, “Today the court confirmed what we have always known: the App Store does not violate antitrust law.”

Looking ahead …Apple could appeal this decision, and Sweeney still has a Sisyphus effort ahead of him to release Fortnite third-party costs, including complaints against Apple in several other countries as well as an upcoming lawsuit against Google. – JW

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Lululemon reports results for the second quarter of tomorrow: will it maintain success while battling supply chain costs? https://katmasters.com/lululemon-reports-results-for-the-second-quarter-of-tomorrow-will-it-maintain-success-while-battling-supply-chain-costs/ https://katmasters.com/lululemon-reports-results-for-the-second-quarter-of-tomorrow-will-it-maintain-success-while-battling-supply-chain-costs/#respond Tue, 07 Sep 2021 20:40:00 +0000 https://katmasters.com/lululemon-reports-results-for-the-second-quarter-of-tomorrow-will-it-maintain-success-while-battling-supply-chain-costs/ Lululemon Athletica‘s (NASDAQ: LULU) first-quarter sales rebounded from last year’s pandemic-induced drop. However, the recovery was not easy. The sportswear maker faces a new set of challenges regarding its supply chain and material shortages, and investors will be eager to understand its impact when the company releases its results tomorrow. With economies reopening and more […]]]>

Lululemon Athletica‘s (NASDAQ: LULU) first-quarter sales rebounded from last year’s pandemic-induced drop. However, the recovery was not easy. The sportswear maker faces a new set of challenges regarding its supply chain and material shortages, and investors will be eager to understand its impact when the company releases its results tomorrow.

With economies reopening and more and more people visiting stores in person, customer interest is obviously increasing compared to last year. Additionally, the warmer weather means people engage in outdoor fitness activities more frequently, meaning the company’s second-quarter sales are also expected to be driven by a seasonal tailwind. The difficulty, however, is meeting this customer demand in a cost-effective manner.

Lululemon is trading at a futures price-to-earnings ratio of 58. Image source: Getty Images

Strong sales, but keep an eye on costs

Investors will pay close attention to management’s comments on the company’s supply chain. Several companies are reporting problems with shortages of materials and rising costs of shipping products. Inventory levels for the second quarter should give some indication of whether this is an issue at Lululemon. At the end of the last quarter, the company reported $ 733 million in inventory on hand, a 17% increase from levels a year ago, which should allay immediate concerns.

The good news about supply shortages in the industry is that fewer companies are offering discounts and promotions, which means more products are sold at or near full price. It remains to be seen whether higher margins on goods will be enough to offset rising costs for materials and freight.

And as supply chain shortages persist across all industries, shareholders will want to watch the company’s inventory levels as the second quarter ends. If the company has strong sales but fails to replenish inventory, it could hurt sales for the next quarter or two.

Revenue increased 88% in its last quarter. Of course, that was compared to the lower numbers from the same period last year, when many of its stores were still closed. Yet looking back two years, the sales of the stores operated by the company were 3% higher. Meanwhile, e-commerce revenue grew 55% from last year.

Digital sales remain the key

Lululemon has a strong digital channel where e-commerce sales totaled 44% of revenue in the last quarter. This is relevant because digital sales are direct to customer sales that eliminate another retailer in between and thus increase profit margins. In contrast, rival Nike (NYSE: NKE) often sells its products through retailers like Nordstrom and Macy’s. Nike has to sell its products to the aforementioned chains at lower prices so that they can also make a profit, which is eating away at Nike’s margins.

Indeed, Lululemon has averaged an operating profit margin of 21.2% over the past decade, while Nike has averaged 13.2%. And at the same time, Lululemon is increasing its revenue to more than double the rate of Nike. The higher profit margin can in part be attributed to its robust digital channel, while the higher growth is in part due to departing from a smaller revenue base.

What this could mean for investors

Wall Street analysts expect Lululemon to report revenue of $ 1.33 billion and earnings per share of $ 1.18 in the second quarter. If the company reports estimated EPS growth, it would be a 59% increase from the previous year.

A graph comparing the price / earnings ratios of Nike and Lululemon.

Data source: YCharts.

With the worst of the pandemic behind him, Lululemon appears to be in a great position. It is trading at a futures P / E of 58, compared to Nike’s 38 (see chart). However, the premium could be justified given that Lululemon operates with much better profit margins and grows revenue faster than Nike. Long-term investors may feel good about adding the stock to their portfolio.

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Parkev Tatevosian owns shares in Macy’s. The Motley Fool owns shares and recommends Lululemon Athletica and Nike. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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