5 Profitable Stocks to Boost Returns Using Net Income Ratio

5 Profitable Stocks to Boost Returns Using Net Income Ratio

Profitability analysis is the best tool to measure the ability of a company to offer sturdy returns to investors even after meeting all its operating and non-operating costs. Welcome to the Capital Note, a newsletter about business, finance and economics. On the menu today: reevaluating the labor share of income, COVID-19 vaccine approval in the U.K., Chinese investments in U.S. tech, and Walter Williams, R.I.P.BEA Accounting Rules & the Labor Share of IncomeThe New York Times editorial board has put out its latest condemnation of American capitalism, claiming that federal tax policy and growing corporate power have decreased workers’ incomes. “Wages are influenced by a tug of war between employers and workers, and employers have been winning,” they argue. Though GDP and productivity continue to grow, the spoils accrue to business owners, evidenced by “the yawning divergence between productivity growth and wage growth since roughly 1970.”The editorial takes for granted that the labor share of income — the amount of national output that goes to worker compensation — has decreased while the earnings of shareholders and landowners have grown. It’s not a new argument: The celebrated French economist Thomas Piketty rose to fame arguing that the returns to capital always outpace the returns to labor.This claim, though, is likely the result of faulty accounting. In a recent paper, economists Dongya Koh, Raül Santaeulàlia‐Llopis, and Yu Zheng argue that changes in national accounting practices obfuscate the relative earnings of employers and employees.In the 20th century, private-sector spending on intellectual property counted as an expense rather than an investment. Funding for the development or purchase of software was recorded as an operational cost, similar to spending on rent, wages, and insurance.In any given year, this practice would understate both the profits and asset values of businesses making investments in information technology. And it would show up in national data: The money spent by Microsoft to develop its Windows operating system, for example, counted as a reduction in private-sector output rather than an increase in aggregate investment (and therefore GDP).In 1999, the Bureau of Economic Analysis (BEA) revised its definition of investment to include spending on software, a revision expanded in 2013 to include all research and development spending, as well as spending on the creation of entertainment property (e.g. films and books). By that time, intellectual property comprised 26 percent of aggregate investment in the U.S., more than triple the portion in 1947. Now, R&D counts as an investment and any value generated by IP counts as capital income.These revisions added $140 billion to private-sector profits in 2018; in other words, a new accounting rule caused a sudden increase in income inequality. Academic work that doesn’t account for the BEA rule change (anything before 2013, including most of Piketty’s work) shows a steady decline in the labor share of income beginning in the 1970s. But the only real change has been an increase in IP investment, and the inclusion of IP almost certainly overstates the returns to capital because: 1. A portion of returns on IP go to labor: The BEA counts all income from IP as a “dividend” paid to capital owners, but a sizeable portion of that income goes to workers in the form of stock-based compensation, commonly used in the tech industry. 2. Companies do not own all their IP: A great deal of Google’s value comes from “organizational capital,” its unique blend of human and physical capital. Because workers can go to another company, Google does not own this intangible asset.Some economists estimate that well over half the returns to IP go to workers, which would mean that the labor share has actually increased over time.That doesn’t necessarily mean that income inequality isn’t a problem. One could argue that increased income for high-skilled workers is a problem irrespective of whether it goes to capital owners. But it is hard to see how higher taxes or minimum wages solve this problem.Around the WebVaccine for thee but not for me: U.K. Authorizes Pfizer, BioNTech’s Covid-19 Vaccine for Emergency Use.China’s state investment funds expand their footprint in U.S. tech:> Pixelworks, Black Sesame Technologies and LightIC Technologies, three companies in the sensitive US semiconductor sector, have attracted investment in recent months from some of China’s so-called government-guided funds.> > The strategic investment funds, which number more than 1,600, are estimated to control more than Rmb4tn ($610bn) in capital, according to Chinese consultancy Zero2IPO.Tyler Cowen and Zach Carter shared an interesting exchange on Keynes:> COWEN: [Keynes is] sympathetic to his own ideas and wants to promote them. But to me, there’s a discord. Milton Friedman spends, what, 45 minutes talking to Pinochet, has a very long record of insisting economic and political freedom come together - maybe even too simplistically - writes against the system of apartheid in South Africa and Rhodesia, calls for free markets there. And people give Friedman hell over that.> > Keynes writes the preface for the Nazis and favors eugenics his whole life, and that’s hardly ever mentioned.> > CARTER: I don’t know that the way that Keynes talks about eugenics is as salient as you suggest. The best article that I came across on Keynes and eugenics is by this guy - I think David Singerman. It’s in the Journal of British Studies. It’s a pretty in-depth look at the way Keynes came to eugenics and what he did and did not support. It’s very clear that Keynes didn’t support eugenics in the way that Americans sterilizing poor Black workers in the South were interested in eugenics…> > COWEN: But he is chair of the British Eugenics Society for eight years late in his career.Walter Williams, R.I.P.From the Economic Policy Journal:> The great free market economist Walter E. Williams has died. He was 84.> > Williams was the John M. Olin Distinguished Professor of Economics at George Mason University.> > He was the author of over 150 publications which have appeared in scholarly journals such as Economic Inquiry, American Economic Review, Georgia Law Review, Journal of Labor Economics, Social Science Quarterly, and Cornell Journal of Law and Public Policy and popular publications such as Newsweek, Ideas on Liberty, National Review, Reader’s Digest, Cato Journal, and Policy Review. He authored ten books:America: A Minority Viewpoint, The State Against Blacks, which was later made into the PBS documentary “Good Intentions,” All It Takes Is Guts, South Africa’s War Against Capitalism, which was later revised for South African publication, Do the Right Thing: The People’s Economist Speaks, More Liberty Means Less Government,Liberty vs. the Tyranny of Socialism, Up From The Projects: An Autobiography, Race and Economics: How Much Can Be Blamed On Discrimination? and American Contempt for Liberty.– D.T.To sign up for the Capital Note, follow this link. Best Investment Management software in India start from Rs. 999. Know more online about software features, price & reviews, etc. Get free demo at Techjockey.com Latest News Virginia Retirement Systems ET AL lessened its holdings in Universal Health Realty Income Trust (NYSE:UHT) by 3.5% in the third quarter, according to its most recent filing with the SEC. The institutional investor owned 8,300 shares of the real estate investment trust’s stock after selling 300 shares during the period. Virginia Retirement Systems ET AL […] Read More

Guggenheim Energy & Income Fund Announces Tender Offer

Guggenheim Energy & Income Fund Announces Tender Offer

NEW YORK, Dec. 02, 2020 (GLOBE NEWSWIRE) — Guggenheim Energy & Income Fund (the “Fund”) (XGEIX) announced today a tender offer to purchase for cash… To get an idea of how much you need to invest each month, Dough Roller shows you how to calculate and tailor your investing goals. Alpine Income Property Trust (NYSE:PINE) and Federal Realty Investment Trust (NYSE:FRT) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations. Dividends Alpine Income Property Trust pays an annual dividend of $0.80 per […] UBS Asset Management Americas Inc. lifted its stake in shares of Realty Income Co. (NYSE:O) by 8.4% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,520,633 shares of the real estate investment trust’s stock after purchasing an additional 194,972 shares […] Latest News Read More

Why NIO Stock Was Down and Then Up Today

Why NIO Stock Was Down and Then Up Today

The market is skittish, but the news on NIO has been good. News explorer – Search Regulatory news, RNS Search, via Company or code, Index, Industry Sector, Headline type, Release date and Source Stocks closed with modest gains Wednesday, nudging the S&P 500 index to an all-time high for the second day in a row /PRNewswire/ — Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, announced that company executives will participate at an upcoming financial… Read More

Invesco Value Municipal Income Trust (NYSE:IIM) Stake Boosted by LPL Financial LLC

Invesco Value Municipal Income Trust (NYSE:IIM) Stake Boosted by LPL Financial LLC

LPL Financial LLC increased its stake in Invesco Value Municipal Income Trust (NYSE:IIM) by 8.3% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 133,826 shares of the investment management company’s stock after purchasing an additional 10,293 shares during the period. […] /PRNewswire/ – The John Hancock closed-end Premium Dividend Fund and John Hancock Tax-Advantaged Dividend Income Fund declared their monthly distributions and… Investing small amounts every month will reap big gains in the long term despite COVID-19 Templeton Global Income Fund [NYSE: GIM] today announced a monthly distribution from net investment income of $0.0170 per share, payable on December 31,… Delaware Investments® Dividend and Income Fund, Inc. Announces Distributions and Appoints Erin Ksenak as Co-Manager Janney Montgomery Scott LLC lessened its holdings in Western Asset Investment Grade Income Fund Inc. (NYSE:PAI) by 13.6% in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 14,212 shares of the financial services provider’s stock after selling 2,243 shares during the quarter. […] Read More

What investors think about Invesco Cef Income Composi $PCEF from here

What investors think about Invesco Cef Income Composi $PCEF from here

Trading Advice and Technical Analysis for PCEF Western Asset Investment Grade Income Fund Inc. (NYSE:PAI) announced a monthly dividend on Monday, November 30th, Wall Street Journal reports. Shareholders of record on Friday, February 19th will be given a dividend of 0.0465 per share by the financial services provider on Monday, March 1st. This represents a $0.56 dividend on an annualized basis and […] NEW YORK, Dec. 01, 2020 (GLOBE NEWSWIRE) — Guggenheim Investments today announced that Guggenheim Energy & Income Fund (the “Fund”) (XGEIX)… Read More

First Alzheimer’s blood test now on the market, without FDA approval

First Alzheimer's blood test now on the market, without FDA approval

More than 5 million people in the United States and millions more around the world have Alzheimer's, the most common form of dementia. Check out the latest Detroit Red Wings news and rumors, including a potential trade, Moritz Seider podcast appearance, and more. Britain and the European Union warned each other on Monday that time was running out to reach a Brexit trade deal, with big differences still to be bridged on state aid, enforcement and fishing. Read More

Industry News: Heating Furnace Market share will grow at CAGR of 3.7 % says Marketstudyreport

Industry News: Heating Furnace Market share will grow at CAGR of 3.7 % says Marketstudyreport

Nov 30, 2020 (Market Insight Reports) —
Selbyville, Delaware. The research report on Heating Furnace Market is an analysis and information corresponding to… IHS Markit is a dynamic organization, bringing some of the brightest minds from all over the world together. Sign in On November 30, holders of the units sold in Duddell Street Acquisition Corp’s IPO may elect to separately sell Class A ordinary shares and warrants. Daily Cash Market Prices – Daily Datafeed, Daily GPI, Daily Historical Data Read More

Realty Income Co. (NYSE:O) Stake Cut by Northstar Investment Advisors LLC

Realty Income Co. (NYSE:O) Stake Cut by Northstar Investment Advisors LLC

Northstar Investment Advisors LLC cut its position in shares of Realty Income Co. (NYSE:O) by 34.7% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 7,931 shares of the real estate investment trust’s stock after selling 4,223 shares during the quarter. Northstar Investment Advisors […] In this investment note, Endre Pedersen, Chief Investment Officer, Fixed Income, Asia (ex-Japan) and Murray Collis, Deputy Chief Investment Officer, Fixed Income, Asia (ex-Japan), analyse the impact of the US election on Asian fixed income, examining how a potentially favourable macro backdrop may amplify the strong fundamentals of the asset class. Overall, assuming… Government securities are well-suited for long-term needs and give assured returns Fixed-income investments are poised to perform well until next year as the Philippine economy gains some recovery, an executive of the Rizal Commercial Banking Corp. (RCBC) said. RCBC Wealth Management Group Relationship Manager Michael A. Ricalde said in a statement on Tuesday that these financial instruments are providing safe and… Zacks Investment Research lowered shares of Alpine Income Property Trust (NASDAQ:PINE) from a buy rating to a hold rating in a research note issued to investors on Friday, Zacks.com reports. According to Zacks, “Alpine Income Property Trust Inc. is a real estate investment trust. It owns and operates a portfolio of single-tenant net lease commercial […] You can’t go wrong with either of these income-producing ETFs. Read More

inTEST to Present at Investor Conferences

inTEST to Present at Investor Conferences

MT. LAUREL, N.J., Nov 30, 2020 (GLOBE NEWSWIRE via COMTEX) —
MT. LAUREL, N.J., Nov. 30, 2020 (GLOBE NEWSWIRE) — inTEST Corporation (NYSE American: INTT), a… /PRNewswire/ — Tetragon has released its Monthly Factsheet for October 2020. Please click below to access the Monthly Factsheet. October 2020 Factsheet About… Shares of SNSS stock are climbing higher on Monday after Sunesis Pharmaceuticals announced a merger deal with Viracta Therapeutics. Read More

Investing in Cryptocurrencies – A quick guide

Investing in Cryptocurrencies - A quick guide

Bitcoin’s economy famously exploded – reaching $19,783 per coin in December of 2017. Know a quick guide about investing in Cryptocurrencies The Cryptocurrency space is fast expanding, with more people, including those at the grassroots embracing the digital investment plan. Even hedge fund providers are now investing a lot in bitcoins.… Uncategorized Bitcoin price hits a new all-time high at $19,863 on Binance Bitcoin price managed to recover strongly from its last dip at $16,188 and has hit a new Today, product managers across all industry sectors are looking to harness the power of blockchain to create real value for both their teams and While many seasoned observers note a slight drop in the prices of gold and silver, these precious metals very popular with investors especially in times of crisis like today, we will analyze together the 3 reasons to invest in 2020 in gold and silver. While it is true that the yellow metal often pulls the … Read More