Profit margin – Kat Masters http://katmasters.com/ Sat, 08 Jan 2022 16:00:00 +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 Rupert Soames de Serco: scandal dice on the front line of outsourcing | Serco https://katmasters.com/rupert-soames-de-serco-scandal-dice-on-the-front-line-of-outsourcing-serco/ Sat, 08 Jan 2022 16:00:00 +0000 https://katmasters.com/rupert-soames-de-serco-scandal-dice-on-the-front-line-of-outsourcing-serco/ Rupert Soames was driving north on a “dark and stormy night” at the end of 2013 when an article on the 6pm news made its ears prick up. Serco, the outsourcing giant that has become synonymous with taxpayer scam, has just sacked its CEO. “I went to the headhunter that night and said, ‘So can […]]]>

Rupert Soames was driving north on a “dark and stormy night” at the end of 2013 when an article on the 6pm news made its ears prick up. Serco, the outsourcing giant that has become synonymous with taxpayer scam, has just sacked its CEO.

“I went to the headhunter that night and said, ‘So can I do this? Can I do it? ‘ I had always wanted to make a turnaround which was very important… but above all I wanted to do something in the public service.

Soames got the job and joined it in early 2014, when Serco was in contention for Britain’s most hated company label. He was on the dock for overcharging the Department of Justice (MoJ) by tens of millions of pounds for electronically tagging offenders, some of whom were dead or still in prison; his actions were in free fall; and he was prohibited from winning any new government job.

“I have a horrible habit of walking towards gunshots,” Soames says with a smile, sitting in the central London office of his PR adviser, wearing his trademark blue shirt embroidered with the words “Serco and proud of being”. (He ordered a lot when he was named.)

The new CEO’s approach combined enthusiasm with a heavy dose of gallows humor. His first call to staff was, “Bring out your dead. In response, he said, “quite a lot of bodies flew out.”

Soames whets his appetite for danger in the line of duty to his ancestors: his grandfather was Sir Winston Churchill.

“It may surprise you, but it’s something that comes with a family history of public service,” he says. “And I could never be a politician because I can’t remember people’s names.”

Westminster could have been the obvious choice: his older brother, Sir Nicholas Soames, is a former Conservative defense minister; his father was Sir Christopher Soames, a Conservative minister in the 1960s and later Ambassador to France.

The public service chosen by Soames was of an altogether more gritty kind. Serco works in some of the most sensitive corners of government, grappling with scandals on a daily basis. It manages six prisons for the Ministry of Justice; it accommodates asylum seekers; it manages the Santander bicycle rental program in London; and it helps to run


CV

Age 62

Family Married with three children

Education Eton College, followed by Politics, Philosophy and Economics at the University of Oxford.

To pay £ 4.9million including bonus

Last holidays A trip to Mallaig on the west coast of Scotland, where he has a house.

The best advice he ever received Something he read rather than told him: J Paul Getty’s maxim, “Get up early, work hard, find oil.” However, he qualifies that by adding, “You can’t tell people who work 12-hour shifts in a prison that they’re not working hard enough.” This is largely an accident of birth. And this is largely luck.

Biggest career mistake An attempted management buyout, when he was in his thirties, of the Birmingham scale company Avery. “The timing and the funding were bad and I was fired.”

Word he abuses “Yes”, and another word “this is not for a family journal”.

How he relaxes “Walk the hills of Scotland and take a boat ride. If I weren’t doing this job, I’d like to be the coxswain of the RNLI lifeboat in Mallaig.


the much-criticized £ 37bn Covid testing and tracing system for the NHS.

Soames keeps a toilet brush on his desk – he calls it his “shit meter” – to emphasize how precarious this all is. “His hair is finely tuned, so if I walk in in the morning and they snap, something’s wrong somewhere.”

With a few exceptions, the shit-o-meter hasn’t rocked so hard in recent years. Serco’s shares haven’t quite taken off, but it has restored its dividend and is considering expansion.

Yet despite Soames’ best efforts, the principle of government outsourcing – where the state pays the private sector to do its job – has rarely seemed so uncertain. Water companies are under fire for pumping sewage into rivers and the sea, and a Conservative government has set out to renationalize services – from energy supplier Bulb to railways.

Soames says some of his predecessors were “deeply satisfied” that the trend of supercharged outsourcing by New Labor would continue unchallenged – and this led to Serco’s near-death experience and the collapse of his rivals. from Carillion to Interserve. Yet, he says, the principle still stands. “It’s called choice. This is called competition. This is called calling for new ideas.

Yet there are limits that even Soames will not cross – “actually fire shots” in the defense sector, or “make decisions or pass judgments about people’s lives” in prisons and hospitals. ‘immigration.

As governments relied heavily on the private sector during the pandemic for everything from developing vaccines to providing PPE, accusations of profit, cronyism and poor contract control have further unraveled this pact.

Serco – and Soames – were paid well for their testing and tracing work. At one point, Serco had 20,000 people working there – many of them calling contacts of infected people and telling them to self-isolate. Last year the company generated around £ 700million in Covid-related revenue globally – most of it in the UK – with a 5% profit margin.

There is a pause as Soames ponders whether contact tracing actually worked or was a waste of taxpayer money. “It’s a complicated answer. The tracing worked until the point where the pandemic got completely out of hand, ”he says. “I personally think it worked between times of the biggest peaks. “

Now, with Omicron endemic and around one in 15 people in the UK infected, tracing seems futile. Soames says the question of whether it was a good idea or whether it worked is above Serco’s pay level. “The government was following the advice of scientists, who said you had to do tracing… What if there had been no tracing? I think people would have been outraged.

Soames made a winding journey to Serco. The old Etonian went to Oxford University, where he was union president, member of the famous Bullingdon Club and DJ. His boss, Lord Weinstock, offered him a job at GEC Marconi, then moved to the software company Misys, before running Aggreko, a Glasgow-based emergency power generator company, to integrate him into the FTSE 100.

There has been anger over his salary at Serco: Last year’s £ 4.9million package brought his total income since joining to £ 23.5million. “I’m very well paid,” he says. “Sure, I think about the pay difference (with the lowest paid staff in the company), but I’m made of flesh and blood.”

We’re almost out of time, but there is still enough left for one last Soames the DJ party piece. He triumphantly puts his iPhone on the table and Samuel Barber’s blown chords Adagio for strings fill the room, before Puff Daddy’s lament for Biggie Smalls, I’ll Be Missing You, kicks in.

The CEO of Serco jumps up and makes the impression of a dancing porter: “This is what I want to have at my funeral.”

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Sales, Price, Revenue, Gross Margin and Share of Carcinoembryonic Antigen Quantitative Determination Kit 2021-2026 https://katmasters.com/sales-price-revenue-gross-margin-and-share-of-carcinoembryonic-antigen-quantitative-determination-kit-2021-2026/ Sun, 02 Jan 2022 05:12:39 +0000 https://katmasters.com/sales-price-revenue-gross-margin-and-share-of-carcinoembryonic-antigen-quantitative-determination-kit-2021-2026/ Industry analysis, growth development, and current trends outlined in the Carcinoembryonic Antigen Quantitative Determination Kit market report is a great help for new industry players entering the market report. Marlet. This market report provides a comprehensive overview of the significant factors that will impact the growth of the market such as drivers, restraints and opportunities […]]]>

Industry analysis, growth development, and current trends outlined in the Carcinoembryonic Antigen Quantitative Determination Kit market report is a great help for new industry players entering the market report. Marlet. This market report provides a comprehensive overview of the significant factors that will impact the growth of the market such as drivers, restraints and opportunities for players, challenges, current trends and technological advancement. This Carcinoembryonic Antigen Quantitative Determination Kit market report conducts an in-depth assessment of the Carcinoembryonic Antigen Quantitative Determination Kit market and provides insights into the market evolution by studying the current market scenario and future projections . This research analysis further focuses on industry volume, growth aspects and market share.

Summary:

The latest Carcinoembryonic Antigen Quantitative Determination Kit market research report provides an inclusive analysis of this industry, with a focus on all the factors that will drive or limit the growth of the industry in the coming years. Further, it provides a detailed account of market segmentation and unveils all available growth opportunities followed by in-depth analysis of the competitive landscape.

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According to experts, the market value of the carcinoembryonic antigen quantitative determination kit is expected to increase at a CAGR of XX% over the forecast period (2021-2026).

In addition to this, the research literature studies major developments in this sphere of business amid the Covid-19 pandemic and reveals multiple approaches to successfully address the challenges during and after this global crisis.

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Regional perspective:

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Punjab Oil Mills Limited – BR Research https://katmasters.com/punjab-oil-mills-limited-br-research/ Fri, 31 Dec 2021 02:56:48 +0000 https://katmasters.com/punjab-oil-mills-limited-br-research/ Punjab Oil Mills Limited (PSX: PMOL) was established as a limited company in 1981. It manufactures and sells ghee, cooking oil, specialty fats, laundry soap, mushrooms and coffee in its factory located in Islamabad. Shareholding model As of June 30, 2021, more than 24% of the shares are held by the directors, the CEO, their […]]]>

Punjab Oil Mills Limited (PSX: PMOL) was established as a limited company in 1981. It manufactures and sells ghee, cooking oil, specialty fats, laundry soap, mushrooms and coffee in its factory located in Islamabad.

Shareholding model

As of June 30, 2021, more than 24% of the shares are held by the directors, the CEO, their spouses and their minor children. Of this total, the majority is held by Mr. Furqan Anwar Batla, a non-executive director. Almost 49 percent of the shares are owned by the local general public, followed by 10 percent in NIT & ICP. Another 8 percent of the shares are held in each of the following: modarabas and mutual funds, and associated companies, companies and related parties. The remaining shares, around 1%, are owned by joint-stock companies.

Historical operational performance

With the exception of three years i.e. FY15, FY16 and FY20, the company has seen growing revenue. Profit margins, by contrast, have followed a gradual downward trajectory.

After a two-year contract, revenue for fiscal 2017 increased by more than 5% due to improved prices and volumes. The latter came mainly from the cooking oils segment. But the price of raw materials has risen, leading the cost of production to consume a larger share of income to over 84 percent, up from nearly 81 percent in FY16. input cost could not be passed on to the consumer without losing market share. While other factors have remained more or less the same, the decrease in the net margin to 3.24%, from almost 5%, was not as significant due to the reduction in the tax burden.

FY18 sales grew 11.5%. This was mainly due to volume growth as prices changed only slightly. However, this did not translate into higher profitability as the cost of production increased, albeit marginally. Thus, was attributed to higher raw material costs as well as a higher contribution of low margin products in the total turnover. In addition, higher marketing expenses, coupled with an expansion of the sales force, increased distribution expenses. In addition, the tax burden was also higher year on year, therefore the net margin was reduced to 1.4% from 3.24% last year.

Revenue growth in fiscal 2019 was stable at 11%, with revenue exceeding Rs 5 billion. This has been attributed to an increase in volumes as well as the selling price. The cost of production remained close to 85 percent, keeping the gross margin more or less stable at around 15 percent. Distribution spend as a percentage of revenue has been reduced due to a conscious decision by the company to reduce ad spend. Thus, the net margin improved slightly to 1.9% for the year.

In FY20, revenues contracted 4.3% after increasing for three consecutive years. Sales in the first half of the year were affected by the refusal of wholesalers and distributors to come net of tax, while the second half of the year was affected by the Covid-19 pandemic which resulted in a drop in demand from the entertainment and restaurant industry. . With a marginal decrease in production costs, the gross margin improved slightly to almost 15%. However, the net margin was lower, albeit marginally at 1.6 percent, due to slight increases in overall operating and financial expenses.

In FY21, the company experienced the strongest revenue growth to date, at over 13%. This was mainly attributed to an increase in selling prices triggered by an increase in the international prices of edible oils. However, the increase in prices was not offset by the increase in the cost of inputs, therefore, the cost of production increased to consume more than 88 percent of the income. As a result, the gross margin fell to 11.7%. The increase in prices could not match the increase in costs due to competition and market trends. Along with other expenses incurred, the company suffered a loss of Rs 17 million for the first time.

Quarterly results and future outlook

FY22 first quarter revenue increased nearly 48% year-on-year. This has been attributed to volume growth alongside price growth. However, the similar trend of increasing input costs continued, as evidenced by the cost of production which absorbed almost 89% of revenues in 1QFY22, compared to nearly 83% in 1QFY21. Again, this could not be fully offset by a similar increase in the sale price. As a result, the gross margin was reduced to 11 percent, from 17 percent in the same period last year. This was reflected in the bottom line as well, but the reduction was somewhat limited by notable reductions in administrative and distribution expenses. As a result, the net margin was recorded at 1.5%, compared to almost 3% in 1QFY21.

The risk of future profitability persists as volatility in international oil prices persists, which will have a negative impact on input costs for the company.

© Copyright Business Recorder, 2021

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What inflation in 2022 will tell us about capitalism https://katmasters.com/what-inflation-in-2022-will-tell-us-about-capitalism/ Wed, 29 Dec 2021 03:10:59 +0000 https://katmasters.com/what-inflation-in-2022-will-tell-us-about-capitalism/ By John Authers, In 2021, inflation returned. After a year of debate, no one can deny it anymore. Next year, we’ll find out if he’s here to stay and how much bitter economic medicine will be needed to quell him. Opinions are more divided than ever on this vital question. Optimists still maintain that while […]]]>

By John Authers,

In 2021, inflation returned. After a year of debate, no one can deny it anymore. Next year, we’ll find out if he’s here to stay and how much bitter economic medicine will be needed to quell him.

Opinions are more divided than ever on this vital question. Optimists still maintain that while inflation turned out to be more than a transitory hitch, it will soon fade away. Whether they are right depends on the outcome of some of capitalism’s deepest conflicts.

A number of factors will indeed combine to bring inflation down next year. Used car prices have doubled and gasoline prices rose 50% last year. This will not happen again. The bottlenecks in world trade have already started to ease somewhat. And central banks have ample room to tighten monetary policy; So far, there has been no attempt to reduce demand by raising the price of silver or reducing its supply.

Read also | What 2021 has taught us about inflation

Encouragingly, the bond market expects inflation to barely exceed 2% in five years and the Fed’s interest rates won’t even rise that high. Consumer expectations are not very different. If they were to change and take root, then inflation would be difficult to dislodge. But for now, investors believe the price increases can and will be brought under control relatively painlessly.

Nonetheless, persistently higher inflation remains a possibility. Whether this happens will depend on two fundamental questions that have long plagued capitalism: Will labor gain a greater share at the expense of capital? And, if so, will companies absorb higher labor costs or pass them on to customers?

Labor for capital

Since the 1980s, capitalism has evolved to control inflation. The risk now is that capitalism will engage in regime change.

Labor’s share of GDP remained stable at just over 60% for the five decades following World War II. But it began to decline sharply after the dot-com bubble burst in 2000 and continued to decline after the 2008 financial crisis. As Ellen Zentner, chief economist at Morgan Stanley put it, the historically “unprecedented fall” “Labor share in GDP” marks a break in the fundamental structure of the economy.

The growing powerlessness of unions has made it more difficult for workers to bargain collectively. Demographics have also diminished their bargaining power. While the baby boom generation was of working age, the labor supply was plentiful. The ability of companies to outsource production to countries with lower payrolls, particularly China, has further held back wages, as has the influx of migrants from Mexico.

What was already a bad deal for the lowest paid turned terrible in the years following the 2008 financial crisis, as companies increasingly resorted to part-time workers who received fewer benefits and more. could be made redundant at lower cost. For several years under President Barack Obama, the wages of part-time workers were far behind those of full-time workers, and also behind inflation:

This malaise led to populist anger and the rise of President Donald Trump. Over the past year, however, the pandemic appears to have turned the job market upside down. In the wake of virus-related closings, job postings have reached near record highs as companies have tried and failed to fill low-paying jobs.

Low-skilled, undereducated and poorly paid people gained more bargaining power and used it. Now they are getting the best salary deals in a generation; their wages are rising faster than for the well paid and expensive to educate. The growth in wages of women and non-whites has exceeded that of men and whites.

Unfortunately for them, another trend has also been reversed. The extra wages they negotiated are nowhere near enough to cover the rapid rise in inflation. Data produced by the Federal Reserve Bank of Atlanta shows a sharp decline in real wages.

This gives workers even more pressure to push for higher wages next year, which would be crucial for built-in inflation. It was data like this that prompted Federal Reserve Chief Jerome Powell to say at the last central bank meeting of the year: “The job market is in many ways warmer than it is. it never was in the last expansion.

Who pays?

If the capitalists are forced to pay their workers a larger share of their income, they have two alternatives. One is to take the hit themselves, leave the prices unchanged, and settle for a tighter profit margin. The other is to pass wage increases on to consumers by raising prices, if they can.

Will they and do they have the power to do it? As Morgan Stanley’s Zentner puts it, this is the “needle point” time for the Federal Reserve, which aims to balance full employment with price stability. If companies decide to take the blow, the acceleration of wages should not be reflected in the rise in prices.

Until the last decade or so, history has provided clear indications. Over time, profit margins have been an almost perfectly cyclical mean reversion phenomenon. Margins improve when times are good and decline during recessions as companies choose to take some of the brunt of the economic downturn on their own.

But something has changed since the financial crisis. The margins of S&P 500 companies rebounded quickly after 2008, helped by stagnating wages. On the eve of the pandemic, margins had avoided a significant drop for a decade and reached a record high.

Since the pandemic, margins have moved further away from the traditional model, experiencing a slight decline (thanks to massive layoffs at the start) and now returning to reach a level of profitability never seen before.

At this point, however, companies need to recruit more people to increase production. And it looks like they won’t be able to do that unless they raise wages.

Executives assure investors that they are confident in their pricing power and Wall Street predicts that margins are expected to rise further next year. This is prompting complaints from politicians, who suggest that the concentration of heavy industry, thanks to mergers and acquisitions of recent decades, has left companies with the discretion to charge the prices they want.

This argument, long the stuff of academic papers and Davos panels, will come to a head next year. In recent decades, the balance of capitalism has tilted sharply in favor of capital. In particular, this had the effect of controlling inflation. Now, after a once-in-a-generation pandemic disrupted labor markets, workers, especially the lowest-paid, appear to be regaining their strength.

The story of inflation in 2022 will also be the story of whether the regime of capitalism is really changing and returning to an arguably healthier equilibrium. We should be watching prices not only for their impact on the economy, but for what they tell us about the future of our societies.

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UV applied: a relevant experience https://katmasters.com/uv-applied-a-relevant-experience/ Sun, 26 Dec 2021 22:38:35 +0000 https://katmasters.com/uv-applied-a-relevant-experience/ Actor of the disinfection technology Applied UV Inc. (AUVI, Financial) has been one of my favorite microcaps. The company has an interesting history as it began as a marriage between a furniture company, Munn Works, and a proprietary surface disinfection technology, SteriLumen. The management team was able to make the most of the Covid-19 pandemic […]]]>

Actor of the disinfection technology Applied UV Inc. (AUVI, Financial) has been one of my favorite microcaps. The company has an interesting history as it began as a marriage between a furniture company, Munn Works, and a proprietary surface disinfection technology, SteriLumen. The management team was able to make the most of the Covid-19 pandemic and then forged key partnerships with some of the largest hotel chains in the world, where they were able to sell their UV-based furniture such as drains and mirrors. . The company has had a very interesting journey so far, including a promising set of updates and recent acquisitions that could re-energize the action.

Company summary

Applied UV may have started out as an expert in surface disinfection technology with a focus on the hospitality industry, but then diversified both its product offerings and its customer base. Today, the company has customers among military facilities, museums, hospitals, wineries, schools, manufacturing companies and home users. Its first major product diversification move took the form of acquiring the rights to produce and sell Airocide air purification technology from Akida Holdings. Since Airocide was developed to meet the needs of NASA, Applied UV was able to attract a good portion of the high profile clientele, including the Boston Red Sox. The company has further strengthened its position in this space with a few new acquisitions.

Acquisition of KES Science and JJS Technologies

Applied UV recently completed the acquisition of the assets of privately held KES Science & Technology Inc., based in Kennesaw, Georgia, and JJS Technologies LLC through its wholly owned subsidiary, SteriLumen. The acquisition gives Applied UV the rights to produce and distribute all of its patented air disinfection and air purification tools around the world. The consideration for the acquisition was a mix of $ 4.3 million in cash and 300,000 common shares of Applied UV, but it involved acquiring the asset base of both companies. This acquisition complements the Airocide air purification systems as well as the SteriLumen surface disinfection systems and allows the company to have customers in sectors such as cannabis, food distribution and post-harvest markets. . The impact of the acquisition on the company’s results is not yet visible.

Key developments

One of the most significant developments of Applied UV recently was the appointment of James Alecxih as CEO and member of the Board of Directors on December 8th. He replaced Keyoumars Saeed, who had been CEO of Applied UV since its inception in early 2020.

Alecxih is a veteran of the biotechnology and healthcare industry and was previously the President of ViveBio Scientific. With a new CEO at the helm, Applied UV appears poised to further expand its customer base. Earlier this month, the company announced the installation of its Airocide air purification systems at a prestigious biomedical facility in Thailand. This was a major development that resulted in a temporary rise in the company’s share price when its Thai distributor, Sithiporn Associates, confirmed the deployment of Airocide units to the Armed Forces Research Institute in medical sciences (AFRIMS) in Bangkok. Airocide’s photocatalytic oxidation technology is believed to be ideal for a biomedical research center like AFRIMS to help create cleaner and safer environments for visitors and staff. It also happens to be used by the Walter Reed Army Institute of Research of the United States Army, where rigorous research is conducted on diseases related to infectious pathogens. In addition to Applied UV’s successful business-to-business strategy, Applied UV is also attempting to sell its disinfection offerings directly to consumers online, priced at approximately $ 900. All of these developments point to significant revenue growth expected in the future.

Improve financial performance

Applied UV’s revenue has already started to gain momentum and its recent quarterly results for the third quarter are a prime example. The company’s net sales increased 127.6% to nearly $ 3.6 million, from about $ 1.6 million in the previous year quarter. The increase in turnover occurred despite the fact that, like most industrial players, the company also suffered from various supply chain and transportation issues in key markets, resulting in delays in l ‘fulfillment of orders. The company’s net loss of $ 1.08 million for the quarter represents a 49% improvement over the loss reported in the second quarter. Applied UV has a positive gross margin of nearly 30% and with rapidly expanding distribution and revenue, it is only a matter of time before the company hits its breakeven point.

Key points to remember

Every major spike in the Applied UV share price has always been followed by significant profit taking, which is not always justified. The same goes for the recent massive sell-off, which came after the company’s shares rose when the AFRIMS facility was announced. Interestingly, Chairman Max Munn recently bought 10,000 shares this week, showing just how confident the management team is about the rise in stock prices. Applied UV trades at a price / book ratio of 1.78 and an enterprise value / revenue multiple of approximately 4.5. Its current value tells me that the market is ignoring the potential for future growth. Overall, I am extremely bullish on Applied UV and believe the company could be a great choice for microcap investors with a high risk appetite.

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After the pandemic losses, the businesses on Magazine Street relied on revenues from the carnival parade. Then the routes changed. https://katmasters.com/after-the-pandemic-losses-the-businesses-on-magazine-street-relied-on-revenues-from-the-carnival-parade-then-the-routes-changed/ Fri, 24 Dec 2021 15:35:43 +0000 https://katmasters.com/after-the-pandemic-losses-the-businesses-on-magazine-street-relied-on-revenues-from-the-carnival-parade-then-the-routes-changed/ Dinah Rogers, messenger from upscale neighborhoods The Knights of King Arthur toss beads and coloring books to the crowds on Magazine Street during the 2020 Krewe of King Arthur Parade. While most New Orleans residents are happy that parades return to the streets for the 2022 carnival season, the route changes will hurt many small […]]]>

Dinah Rogers, messenger from upscale neighborhoods

The Knights of King Arthur toss beads and coloring books to the crowds on Magazine Street during the 2020 Krewe of King Arthur Parade.

While most New Orleans residents are happy that parades return to the streets for the 2022 carnival season, the route changes will hurt many small businesses along Magazine Street.

The 2022 routes, announced Tuesday by Mayor LaToya Cantrell, eliminate the section of Magazine Street from Jefferson to Napoleon Avenue, where nine krewes begin their procession, and the longer section of Magazine from Henry Clay Avenue that the Krewe of Thoth commands. These parades will all line up on Napoleon and Prytania streets.

The owners of Tito’s Ceviche and Pisco at 5015 Magazine expected income from crowds watching the parade to help them recover from the pandemic.

“The Mardi Gras parades are a financial boost for us,” said Tito co-owner Tatiana Lock.

Other businesses on Magazine Street, she said, are also unhappy with the move. the restaurant industry.

And the expected crowds meant that Tito’s could recruit and increase employee hours. “We’re not going to fire anybody,” Lock said. “But the absence of parades means that we will not have the expected activity because customers will descend lower. So at the end of the day we will reduce staff hours, which means they will experience a loss of income. “

Le Bon Temps Roule, Magazine and Bordeaux Street’s iconic tavern, is a popular gathering place for parade-watchers, generating income that owners and employees alike rely on.

Joe Bikulege, partner of Bon Temps Roule, said he uses the extra income from the parades to pay property taxes and maintain an emergency fund. “You never know when something is going to go wrong with a building,” Bikulege said.

The money is especially needed now, he said, after losses from the pandemic. The bar and concert hall were closed for nine months and then operated at 25% capacity.

“Now is the third year that we have to suffer,” Bikulege said, adding that relief from the bars in the US bailout was of little help. “The bar and restaurant restoration fund ran out almost immediately – and no one seemed to care. ”

And like other business owners, Bikulege lamented that it would be the employees who would suffer. He thinks the city should have a plan to allow business owners to deduct sales taxes over the next five years to alleviate these tough times, times made more difficult for his business due to the shifting routes of the city. parade 2022.

At a press conference on Tuesday, Cantrell cited public safety as the reason for the parade’s shorter routes. The parades are straining the city’s police, fire, medical and other emergency services, which are already suffering from a severe shortage of personnel.

Cantrell says in a press release that the changes were made after extensive consultation with all relevant government agencies and Mardi Gras krewes.

Sabree Hill, Uptown Messenge file photo

Crowds flock to the corner of Magazine and Jefferson for the Okeanos parade in 2012.

The Reginelli Pizzeria on Magazine and State Street, near the traditional magazine route, gets a significant increase in income even when the parades do not pass by the restaurant. And it’s especially busy on the Sunday before Mardi Gras when the Krewe of Thoth rolls past its front door.

We were disappointed, but not surprised, ”said Jay Smith, deputy general manager of Reginelli, when asked about the shortened Uptown parade route. Are they usually busy during the parades? “Oh yes!” Smith said. “It was going to be a great chance for us to earn some much needed extra money during the parades.”

Like Bikulege and Lock, he cited the adverse effects of the pandemic on restaurants and catering workers. When Reginelli’s magazine further down in the Garden District closed in In May 2020, the franchise owner cited the challenges of the pandemic as one of the reasons for the shutdown.

Reginelli’s on Magazine and State survives, Smith said, but that will mean fewer hours of work that will cost workers money.

“Thot and the Muses, and other parades, bring us a lot of money,” he said. “Running them on Magazine would give us some leeway and make a positive difference to our profit margin. “

Lock also said Thoth and the Muses were a boon to them, as well as Cleopatra the week before.

And they all said how much they all loved the Magazine Street parades. They make customers and staff happy.

On another note, Lock commented, “This will keep parade spectators more focused on the shorter route. How can that be good in the days of the virus?

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Oshkosh Corp. sues former Chinese employee and competitor for trade secrets https://katmasters.com/oshkosh-corp-sues-former-chinese-employee-and-competitor-for-trade-secrets/ Wed, 22 Dec 2021 12:03:42 +0000 https://katmasters.com/oshkosh-corp-sues-former-chinese-employee-and-competitor-for-trade-secrets/ By Miles Maguire Oshkosh Corp. brought a complaint against a former employee and a major Chinese competitor, accusing them of compromising confidential information and trade secrets on a “whole new generation” of products from its subsidiary JLG Industries. The lawsuit names McKenzie Ditty, a mechanical engineer who lived for two years in Tianjin, China, and […]]]>

By Miles Maguire

Oshkosh Corp. brought a complaint against a former employee and a major Chinese competitor, accusing them of compromising confidential information and trade secrets on a “whole new generation” of products from its subsidiary JLG Industries.

The lawsuit names McKenzie Ditty, a mechanical engineer who lived for two years in Tianjin, China, and Sany America, whose parent company, based in Hunan province, ranks as the fourth-largest maker of mechanical equipment. construction in the world with $ 14.4 billion in sales in 2020.

The engineer has filed or obtained several patents according to an online database. He was lured from JLG to Sany in September with a “50% pay rise,” Oshkosh said in his lawsuit, filed in Winnebago County Circuit Court.

“Ditty may have taken or kept confidential information and trade secrets from JLG after leaving the company, without immediately handing them over or returning them to the company,” Oshkosh said. “Also, before leaving JLG, Ditty wiped her company-issued cell phone before returning it.”

Oshkosh is concerned about confidential information relating to a new line of aerial work platforms that JLG is working on. The new generation of elevators “will feature entirely new products, with entirely new technology and with more environmentally friendly operation”.

A boom lift, also known as a boom lift, is “a piece of equipment with a hydraulic boom and a platform at the end for raising and lowering people,” according to the JLG website.

“Ditty has been intimately involved in and helped design and develop the next generation of JLG’s aerial work platform product line and has extensive knowledge of new products, new technologies and other confidential information and trade secrets. relating to it, “Oshkosh said.

Access to this information has been “extremely limited,” but Ditty’s new job “will inevitably require her to use or disclose” her insider knowledge, Oshkosh said.

JLG is Oshkosh’s largest segment and generates most of its profit, including nearly $ 250 million in operating profit in the fiscal year ended Sept. 30. Oshkosh Defense, although it has a higher profit margin, reported operating profit of just $ 198 million for the fiscal year.

China is a critical market for Oshkosh and especially for JLG.

“The access equipment segment in China has slowed down a bit as the Chinese economy has slowed down a bit, but it is still a very robust market and one of the largest – it will be one of the most major markets in the world, ”said John C, CEO of Oshkosh. Pfeifer said in a conference call with stock analysts on Oct. 28.

Oshkosh is not alone among American companies concerned about the loss of intellectual property to Chinese competitors.

Former President Trump started the trade war with China in part over concerns over the loss of intellectual property. His administration said in 2018 that the underpayment or outright theft of intellectual property costs US businesses at least $ 50 billion a year.

Oshkosh is seeking a court order that would prevent Sany from “misappropriating or threatening to misappropriate JLG’s trade secrets.” The lawsuit also requests that pecuniary damages be assessed against Ditty and Sany “in an amount to be determined at trial”.

Neither party responded to invitations to comment.

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Is Winnebago a buy after reporting record Q1 profits? https://katmasters.com/is-winnebago-a-buy-after-reporting-record-q1-profits/ Mon, 20 Dec 2021 15:31:33 +0000 https://katmasters.com/is-winnebago-a-buy-after-reporting-record-q1-profits/ Recreational vehicle (RV) manufacturer Winnebago Industries, Inc. (WGO) in Forest City, Iowa, operates in six segments – Grand Design Towables; Winnebago towables; Winnebago motorhomes; Newmar motorhomes; Chris-Craft Marine; and specialized Winnebago vehicles. Demand for motorhomes increased dramatically amid the COVID-19 pandemic as people sought alternative travel options with less risk of contracting the virus. CEO […]]]>

Recreational vehicle (RV) manufacturer Winnebago Industries, Inc. (WGO) in Forest City, Iowa, operates in six segments – Grand Design Towables; Winnebago towables; Winnebago motorhomes; Newmar motorhomes; Chris-Craft Marine; and specialized Winnebago vehicles. Demand for motorhomes increased dramatically amid the COVID-19 pandemic as people sought alternative travel options with less risk of contracting the virus. CEO of WGO Michael Happe said in an interview that the pandemic has accelerated WGO’s growth trajectory because the company has been able to optimize retail prices in a way it hasn’t been able to do for a long time.

For its first quarter of fiscal 2022, ended November 27, 2021, WGO’s revenue grew 45.7% year-on-year to a record $ 1.20 billion, exceeding the FactSet consensus estimate of $ 1.03 billion. This can be attributed to organic growth of 37.5%, driven by strong consumer demand and price increases. Its gross profit was $ 229.40 million, up 67.4% from the previous year. Its net profit improved 73.5% from the same period last year to $ 99.60 million. And its adjusted EPS stood at $ 3.51, reflecting a 97.2% increase from the previous year’s quarter. And the company beat Street’s BPA estimates by 50%.

After the results were released on December 17, WGO shares gained 1.1% during the day to close Friday’s trading session at $ 68.41. WGO outperformed the larger S&P 500 index, which was down 0.6% during the day on Friday. In addition, the stock has gained 14.1% in progress since the start of the year.

Click here to view our automotive industry report

Here’s what could shape WGO’s performance in the short term:

Dividend yield lower than industry

In August, WGO increased its quarterly dividend by 50% to $ 0.18 per share. WGO Chief Financial Officer Bryan Hughes said, “This action further reflects the company’s strong financial position and the continued appeal of our portfolio of premium outdoor lifestyle brands, which leads to a high level of confidence in our future ”.

However, WGO’s 1.05% forward dividend yield is 41.4% lower than the industry average of 1.79%. In addition, the one-year contract of the company return on cost and the five-year return on cost of 0.86% and 1.51%, respectively, are significantly lower than industry averages of 1.82% and 2.16%. Its return on free cash flow of 5.71% is 2.8% below the industry average of 5.88%.

Additionally, WGO’s four-year average dividend yield of 0.99% is 46.9% lower than the industry average of 1.87%.

Low profit margins

WGO’s gross profit margin of 18.6% over the past 12 months is 48.2% lower than the industry average of 35.89%. The Company’s 4.37% last 12-month leveraged free cash flow margin is 25.6% below the industry average of 5.88%. Its 12-month rolling EBITDA margin of 12.66% is slightly below the industry average of 12.8%. In addition, the Company’s rolling 12-month CAPEX / sales of 1.49% is 40.5% lower than the industry average of 2.5%.

Consensus rating and price target indicate upside potential

Of the four Wall Street analysts who rated WGO, three rated it Buy and one rated it Hold. The 12-month median price target of $ 96.00 indicates a 40.3% upside potential from the Friday closing price of $ 68.41. Price targets range from a low of $ 85 to a high of $ 115.

POWR ratings reflect uncertainty

WGO has an overall rating of C which equates to Neutral in our property POWR odds system. POWR scores are calculated taking into account eight distinct factors, each factor being weighted to an optimal degree.

WGO has a C rating for stability and momentum. The stock’s relatively high 1.86 beta is in line with the stability rating. Additionally, WGO is currently trading below its 50-day and 200-day moving averages of $ 71.50 and $ 72.61, respectively, indicating a downtrend.

Out of 67 stocks in the F-rated Automobile and vehicle manufacturers the industry, WGO is ranked # 15.

In addition to the ratings I highlighted, check out the WGO ratings for Growth, Momentum, Sentiment, and Value here.

Final result

WGO is a leading recreational vehicle manufacturer with a substantial market share in the United States and internationally. So analysts expect the company’s revenue and profits to grow at a steady pace in the near term. However, WGO has announced plans to go carbon-free by 2050, indicating a growing shift towards electric recreational vehicles. But as the semiconductor shortage is expected to continue through 2022, lower-than-industry profit margins could decline further. Thus, we believe investors should wait until WGO’s profit margins increase before investing in the stock.

How does Winnebago Industries, Inc. (WGO) compare to its peers?

Although WGO has a C rating in our proprietary rating system, you may want to consider looking at its industry peers, Daimler AG (DDAIF), Isuzu Motors Limited (ISUZY) and Suzuki Motor Corporation (SZKMY), which have a B (Buy) rating.

Click here to view our automotive industry report


WGO shares were trading at $ 66.57 per share on Monday morning, down $ 1.84 (-2.69%). Year-to-date, WGO has gained 11.93%, compared to a 22.26% increase in the benchmark S&P 500 during the same period.

About the Author: Aditi Ganguly

Aditi is a seasoned content developer and financial writer who is passionate about helping investors understand the dos and don’ts of investing. She has a keen interest in the stock market and has a fundamental approach to stock analysis. Following…

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3 best IPO stocks to buy in 2022 https://katmasters.com/3-best-ipo-stocks-to-buy-in-2022/ Sat, 18 Dec 2021 15:08:00 +0000 https://katmasters.com/3-best-ipo-stocks-to-buy-in-2022/ 2021 has been a crazy time for growth stocks. Some names are now (in December) in the midst of a third pullback last year and double-digit percentages down from their all-time highs. Among the hardest hit stocks are recent IPOs, which tend to be particularly volatile in their first year as publicly traded companies. However, […]]]>

2021 has been a crazy time for growth stocks. Some names are now (in December) in the midst of a third pullback last year and double-digit percentages down from their all-time highs. Among the hardest hit stocks are recent IPOs, which tend to be particularly volatile in their first year as publicly traded companies.

However, the recent massive sell-off appears to be another fantastic buying opportunity for investors focused on the long term (at least a few years, but the more the better). Three 2021 IPOs that deserve to be on your radar for 2022 are DigitalOcean (NYSE: DOCN), Global Coinbase (NASDAQ: COIN), and SoFi Technologies (NASDAQ: SOFI).

Image source: Getty Images.

A decade of rapid adoption of cloud computing awaits

DigitalOcean, the cloud computing platform designed specifically for small and medium-sized businesses and start-ups, completed its IPO in March 2021 and raised around $ 775 million in fresh cash in the process. As of this writing, the little cloud technologist’s shares are up 57% from their IPO price, despite falling 45% from all-time highs reached last month.

At this point, DigitalOcean is now trading at the same level as before its fantastic Q3 earnings update. Specifically, stocks trade around 17 times after 12 months of earnings, and although earnings are reinvested into the company to promote expansion, DigitalOcean is nonetheless positive in terms of free cash flow.

Given that third quarter revenue grew 37% year-over-year to $ 111 million and Adjusted EBTIDA profit margin is on track to be very healthy 30% for the set of the year, this 2021 IPO is fantastic long-term value. In a few years, the company aims to maintain 30% annual sales growth, which will put it on track for a billion dollar turnover by 2024. With developers and With companies flocking to highly efficient cloud-based operations, DigitalOcean is expected to be a growth story throughout this decade.

Of course, there is a worry that the public cloud giants love. Amazon, Microsoft, and Alphabet could run DigitalOcean, hence a reasonable valuation relative to other small, high-growth cloud companies. But the big three of the public cloud also offer services to small and medium-sized businesses and, to date, they haven’t been able to oust this little upstart. I remain optimistic about the prospects for DigitalOcean.

Leading the charge in the cryptocurrency economy

Cloud and advanced computing are the driving force behind the development of the Internet today, and in many ways cryptocurrency is a possible next wave of increased decentralization of the World Wide Web. Crypto owners own more than just digital currency. Ownership of some of these tokens allows the holder to participate in blockchain computing, making their device part of a global network of individual computers that combine to form a type of supercomputer (like data centers, l computing unit of the cloud, today are supercomputers).

Of course, the crypto movement has a long way to go before it becomes this decentralized, long-term view of the digital economy. But until then, crypto trading and related services are booming. One of the main exchanges (measured by trading volume) is Coinbase, which started trading in April 2021 following a direct listing. This was not a traditional IPO, as Coinbase did not need to raise capital from investors by issuing new shares. Nevertheless, the race has been tumultuous since then. Coinbase is down 26% from its closing price on its first day of trading.

There’s a lot of debate about whether the company’s revenue growth (up 330% year-over-year to $ 1.24 billion in the third quarter) is sustainable – or whether sales could collapse if the extremely volatile cryptocurrency market decides to collapse. There is also a lot of competition, and given the adolescence of the crypto industry as a whole, things will move quickly with blockchain technology in the years to come. Coinbase’s current leadership position could quickly falter if it does not stay abreast of these challenges (for example, the development of the Metaverse which has recently gone viral).

However, at nine and 22 times 12-month sales and profits, respectively, Coinbase’s incredible growth can be bought at a relative price – assuming its business and the crypto economy continue to grow at a pace. even modest in the years to come. I’m ready to start soaking my toe in water at this point with the Coinbase stock.

A growing fintech

Another nontraditional IPO was SoFi Technologies, a digital lender and fintech company. The company went public through the SPAC merger in June 2021, raising some $ 2.4 billion in cash in the process to help it continue to grow rapidly. It has been a heartbreaking race ever since. The stock has jumped 90% from its value in early 2021 (when it was just a SPAC stock before the official merger) three times, only to fall back down after each round of gains. As of this writing, stocks have only risen 20% since the start of the year.

Not that these crashes indicate that something is seriously wrong with the company itself. Member accounts continued to nearly double year-over-year in the third quarter, and revenue increased 35% to $ 272 million. So what gives?

Sales growth has slowed compared to previous quarters and SoFi is still not profitable. It generated a net loss of $ 30 million in the quarter (although it was profitable for the fifth consecutive quarter based on adjusted EBITDA).

SoFi is expected to continue to grow for many years to come, however. Its one-stop app for a wide range of digital banking, lending and investing capabilities is clearly resonating with young consumers, and its Galileo platform is helping other fintech start-ups create new digital native services, a true differentiator. The company had a balance of $ 854 million in cash and short-term equivalents at the end of September and then raised an additional $ 95 million in cash when it repurchased warrants on its shares in December (related at the initial merger of PSPC).

Trading at 11.7 times sales over 12 months, SoFi is far from cheap banking stock. But the business is much more than a traditional bank, effectively combining many mobile-centric financial services in one convenient place and thus unlocking incredible new dynamics for customers. I plan to add a bit more to my small position for early 2022.

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 motley! 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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MedPAC calls for 5% cuts in skilled nursing care https://katmasters.com/medpac-calls-for-5-cuts-in-skilled-nursing-care/ Sun, 12 Dec 2021 18:23:22 +0000 https://katmasters.com/medpac-calls-for-5-cuts-in-skilled-nursing-care/ For an industry where low profit margins are a widely discussed concern, a federal advisory board found that 2020’s robust 25% margin in Medicare payments warranted a suggested reduction in base payment rates during the year. 2023. The Medicare Payment Advisory Commission (MedPAC) said industry transactions “rebounding” had also informed its recommended 5% cut, thanks […]]]>

For an industry where low profit margins are a widely discussed concern, a federal advisory board found that 2020’s robust 25% margin in Medicare payments warranted a suggested reduction in base payment rates during the year. 2023.

The Medicare Payment Advisory Commission (MedPAC) said industry transactions “rebounding” had also informed its recommended 5% cut, thanks to stable government funding throughout the pandemic.

The reduction would bring Medicare’s payment structure closer to a goal of budget neutrality.

MedPAC’s suggestion for Congress is in line with comments from the Centers for Medicare & Medicaid Services (CMS) – the agency faced a backlash when its patient-centered payment model (PDPM) increased payments to homes. nursing care by 5%, or $ 1.7 billion.

MedPAC is an independent congressional agency that advises Congress on Medicare reimbursement policies each year.

The MedPAC analysis took into account four factors before making its recommendation: access to care, quality of care, access to capital and health insurance payments in relation to the costs of health facilities. qualified nurses (SNF).

There are more than three SNFs available for 88% of Medicare beneficiaries, MedPAC reported; approximately 15,000 establishments exist across the country. Quality was difficult to assess during the pandemic, MedPAC said, because risk adjustment models did not take into account diagnostic information from COVID-19.

“Medicare is a small share of the volume for most facilities, but a larger share of revenue,” said Carol Carter, MedPAC policy analyst, adding that the 25% marginal benefit was an incentive to treat patients. beneficiaries of health insurance.

Carter presented the SNF data during Friday’s webinar.

The availability of capital is expected to lead to agreements in 2022, if government funding remains stable, MedPAC said in its report. Although there were fewer mergers and acquisitions (M&A) in 2020 compared to 2019, transactions resumed this year – margins fell from 0.6% in 2019 to 3% in 2020, while financing HUD decreased by 10%.

MedPAC analysis of Medicare payments and SNF costs found that average costs per day increased 2.1%, while headcount decreased 9.6% between February and December 2020. There were fewer costs. associated with therapy due to PDPM.

“The increase in costs would have been smaller, but weekly wages increased over the same period, capturing the greater use of more expensive contract labor over time and the payment of the premium in pandemic, ”Carter noted.

Daily Medicare fee for service (FFS) payments were 27% higher than Medicare Advantage (MA) payments, MedPAC said.

Commission members agreed with the chair on the suggested reduction, but expressed concern that it would affect rural communities more severely than other parts of the country.

“I’m not sure we’re looking at this with a lens that would protect underserved people,” said Lynn Barr, member of the MedPAC commission and founder of Caravan Health.

“I don’t understand why we can’t make different payment recommendations for underserved populations. We have different payments for rural doctors and hospitals, but we don’t have different payments for rural post-acute care, ”Barr said. “The quality of post-acute rural care is terrible – ask CMS, they know it better than anyone. I don’t know what their margins are, I think they are very low. They are of low volume, and obviously of low quality.

MedPAC President Michael Chernew said the data suggests Medicare payment margins at rural facilities are “not significantly worse” than the organization reports overall.

Medicare’s average margin was 16.5%, edged up to 19.2% if the organization included Provider Relief Fund (PRF). MedPAC expects the SNF Medicare margin to decline by 14% in 2022, citing higher costs exceeding payment rate updates between this year and next.

“We can’t set our payment updates so that the most vulnerable places are correct, but that will involve overpaying a wide variety of providers,” Chernew said. “Fairness issues, access issues… there are some really important suppliers that we have to try to support but we don’t want, for lack of a better word, to create 25% margins for everyone. “

Historically, MedPAC has called for SNF payments to be frozen on a consistent basis, according to a note from investment bank Stifel. MedPAC considers SNF Medicare’s margins too high compared to other payers, the company said.

Congress ultimately chose a base payment increase of 1.2% for fiscal 2022.

“Congress has not acted on this. However, we see a moderate risk that the proposed cuts for fiscal 23 will materialize, ”Stifel analysts wrote. “If adopted, the change in reimbursement would have a significant impact on the financial health of the average SNF provider. “

Skilled nursing operators and real estate investment trusts (REITs) with large skilled nursing portfolios would experience financial stress if Congress passes the recommendation, given the industry’s low margins and disruption, Stifel analysts say. persistent pandemics, according to analysts at Stifel.

In a subsequent MedPAC presentation, commission members also suggested a 5% reduction in inpatient rehabilitation (IRF) facilities, citing $ 8 billion paid to 1,113 IRF in 2020.

RFIDs were seen as a significant competitor to SNFs last year, as hospitals sought to place higher acuity COVID-19 cases within this framework – as well as acute long-term care (LTAC) hospitals at most. height of the pandemic. The trend was highlighted in an analysis conducted by healthcare consulting firm ATI Advisory in May.

Interestingly, MedPAC suggested to Congress to increase the basic LTAC Medicare payment rate by 2%.

Members estimated that the SNFs had maintained their financial performance thanks to loans from the Provider Relief Funds and the Paycheck Protection Program (PPP), even though the supply of the IRF fell by 3.4% and the number of beds declined. decreased by 1.8%.

Some IRFs closed in 2020 due to “historically poor financial performance,” Stifel said in another analyst note. IRFs received a payment update of 1.9% for fiscal 2022, according to data from MedPAC.

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