PINS Stock still trades at a market capitalization that is below that of Twitter, yet its subscription growth is ahead. /PRNewswire/ — Blue Shield of California today announced the nonprofit health plan is providing more than $50 million in premium credits for its customers… If ever there was a restaurant chain built for COVID-19, this is it. /PRNewswire/ — CMG Financial, a well-capitalized privately held mortgage banking firm headquartered in San Ramon, California, was ranked the…
Investors cannot get enough social networking companies. Pinterest (NYSE:PINS) is no exception. PINS stock is enjoying an uptrend that has little chance of losing momentum.
In its Q2 earnings report the company shared unimportant developments that led to PINS stock heading higher. The only near-term risk is that investors paid too much for the stock.
Pinterest will probably report its next quarterly earnings report at the end of next month or later. Why should investors continue holding shares?
On Aug. 28, Pinterest announced that it terminated its office space that would have been constructed at its headquarters campus in San Francisco. This will save it money in the long-term as it pivots its operations toward supporting more staff who work from home.
“A more distributed workforce will give us the opportunity to hire people from a wider range of backgrounds and experiences,” said Chief Financial Officer Todd Morgenfeld.
On the income sheet, Pinterest will take an $89.5 million charge in the third quarter. In doing so, it will save on lease payments that would have cost it $440 million. Near-term risks from breaking the deal include a lawsuit from the landlord. Conversely, the company may settle out of court and still lower its operating costs.
Management likely figured that its staff may work from home by using tools to get work done. For example, staff may use Zoom Video Communications (NASDAQ:ZM) to conduct meetings.
It may use Dropbox (NASDAQ:DBX) or Microsoft (NASDAQ:MSFT) for file-sharing or project collaboration, respectively.
Investors will need to weigh Wall Street’s concerns on Pinterest’s prospects, 10 of the 21 analysts rate the stock as a buy. The average price target is $37.38 (per Tipranks). Conversely, Simply Wall.St highlighted the company’s financial health and strong future growth prospects.
Pinterest has plenty of short-term assets that exceed its liabilities. The company is debt-free, so it has no interest in debt costs to worry about.
In the second quarter, investors piled on the stock when it reported global monthly active users topped 416 million. Revenue grew $272 million, up 4% from last year. The company lost $101 million on a GAAP basis and lost $34 million on an adjusted EBITDA measure.
“In these tough times, we’re seeing more and more people rely on Pinterest to cook at home, plan kids activities, and set up a home office,” said Ben Silbermann, Pinterest’s CEO and co-founder.
Trading at yearly highs and unfavorable valuations, investors are betting that this trend continues. And if the company adds more users, Pinterest will have a powerful audience base. Advertisers will reallocate their budget, spending on Pinterest’s platform instead of on Twitter (NASDAQ:TWTR) or Facebook (NASDAQ:FB).
Pinterest forecast revenue for the month of July will grow by an impressive 50%. For Q3, it expects revenue will grow in the mid-30% range Y/Y. The company lost money last quarter and will need to re-evaluate its operating costs.
But given the increasing revenue, it does not need to lower expenses yet just to satisfy investors. Increasing research and development efforts will strengthen the platform and attract even more users.
In the seasonal performance chart shown right, Pinterest stock should have fallen in September. It should fall more next month, if the seasonal pattern repeats itself.
Cautious investors unwilling to chase Pinterest shares at these valuations should wait for shares to pull-back to the 50-day moving average, at around $37.00. Although it is unlikely, the 200-day moving average at $25.00 is the next level of support to watch out for.
Despite the downside technical risks, Pinterest has a good chance of beating its forecast. If it does, it will rise again. Besides, the stock trades at a market cap of $26 billion, below that of Twitter. With its impressive user growth, it could be worth more than Twitter.
Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Chris Lau, InvestorPlace Contributor
Blue Shield of California Provides Over $50 Million in Premium Relief for Customers to Help Ease Financial Burden During COVID-19 Pandemic
OAKLAND, Calif., Oct. 14, 2020 /PRNewswire/ — Blue Shield of California today announced the nonprofit health plan is providing more than $50 million in premium credits for its customers facing economic hardship caused by the COVID-19 pandemic.
Blue Shield is applying a one-time premium credit to bills issued for the month of November or December for its fully-insured employer customers. Premium credits will also be applied to November bills for people enrolled in Blue Shield dental and/or vision plans, plus those enrolled in Blue Shield’s Medicare Supplement plans.
“We are looking for ways to support our customers and members in these unprecedented, challenging times,” said Paul Markovich, president and CEO, Blue Shield. “It is especially important during this pandemic to serve our nonprofit mission and help all Californians have access to high-quality health care at an affordable price.”
The credit, which will vary by customer, will appear on their November or December billing statement. Today’s announcement is part of Blue Shield’s ongoing support for members, employer customers, providers and communities during the COVID-19 crisis. Blue Shield of California and its subsidiary Blue Shield of California Promise Health Plan efforts include:
Blue Shield’s extensive support for medical providers during the pandemic include:
Blue Shield also has created a dedicated COVID-19 website to inform members of their coverage under specific Blue Shield health benefit plans, as well as to support our employers, plan sponsors and brokers.
About Blue Shield of California
Blue Shield of California strives to create a healthcare system worthy of its family and friends that is sustainably affordable. Blue Shield of California is a tax paying, nonprofit, independent member of the Blue Cross Blue Shield Association with over four million members, 6,800 employees and more than $20 billion in annual revenues. Founded in 1939 in San Francisco and now headquartered in Oakland, Blue Shield of California and its affiliates provide health, dental, vision, Medicaid and Medicare healthcare service plans in California. The company has contributed more than $500 million to the Blue Shield of California Foundation since 2002 to have an impact on California communities.
For more news about Blue Shield of California, please visit news.blueshieldca.com.
Or follow us on LinkedIn, Twitter, or Facebook.
SOURCE Blue Shield of California
Author: Blue Shield of California
Could Domino’s Pizza Be a Millionaire-Maker Stock?
Domino’s Pizza (NYSE:DPZ) continues to demonstrate its ability to thrive during the pandemic. The global pizza franchisor posted 21.3% sales growth in the U.S. and 7.7% sales growth internationally during the fiscal third quarter of 2020, helped by social distancing which kept more people eating at home and ordering out.
Though it’s already one of the largest chains in the world with more than 17,000 locations worldwide at the start of September, this restaurant with deep roots in delivery and technology was built for the new digital era that is dawning. But don’t expect it to get you to millionaire-status all on its own.
Image source: Getty Images.
For the last few years, Domino’s has embarked on a growth strategy it calls “fortressing” in which new locations are opened in existing markets to get stores progressively closer to consumers. While fortressing may cannibalize sales at existing locations, more restaurants means shorter delivery times and a quicker drive for those diners who favor pick-up. Management has long believed that increased convenience will lead to long-term growth.
Leading up to the pandemic, the strategy was working. Domino’s comparable-store sales growth (or “comps”) remained in positive territory even as the restaurant industry overall stagnated. And it turns out fortressing was fortuitous given the current state of affairs. In the fiscal second-quarter (the three months ended June 14, 2020), U.S. comps surged 16.1% year over year and international 1.3%. The winning streak continued in the latest quarter (the three months ended Sept. 6, 2020) with U.S. comps rising 17.5% and international comps up 6.2% from a year ago. The global restaurant industry has been in decline since the spring, so Domino’s focus on delivery is serving it well and helping it scoop up industry market share.
Profit margins have also improved. Through the first nine months of 2020, Domino’s has generated a net income margin of 12.3% on revenue of $2.76 billion — compared to an 11.0% margin on sales of $2.47 billion in 2019. Free cash flow (revenue minus cash operating and capital expenses) is similarly on the rise, up 13% so far this year to $319 million. For the highly competitive food service industry, even low single-digit percentage margins are an enviable result, with or without COVID-19.
Lots of restaurant stocks traded at a steep premium headed into the pandemic, even though their growth was lackluster and profit margins thin. In hindsight, Domino’s looks like one of the few that deserved a premium price tag, given that delivery services are in such high demand right now. And with digital and delivery likely to be an enduring consumer must-have going forward, Domino’s stock trading for a whopping 36 times trailing 12-month earnings is at least partially justified — although it’s a little rich for my taste at the moment.
However, I wouldn’t fault investors for picking Domino’s stock over other restaurant chains that are attempting a recovery. Domino’s needs no such rebound as it was built for crises like the current one, and its investments in technology to make online ordering a cinch and enable flexible order fulfillment options have built an enduring growth story.
For those investors who also want in on autonomous vehicle and logistics development, this restaurant stock yields some exposure there too. It has signed partnerships over the years to develop the tech, like a pilot program in Houston, Texas with autonomous delivery start-up Nuro over the summer of 2019. Domino’s supply chain fees (related to delivery services) were $1.63 billion so far in 2020 — nearly 60% of total revenue — making advancements in delivery and logistics another possible growth driver for the pizza chain in the years ahead.
Nevertheless, with a market cap of $16 billion as of this writing, Domino’s is already one of the largest restaurant businesses in the world. And cash and equivalents of $331 million and total debt of $4.1 billion reflect that this is already a mature business. All by itself, I don’t think Domino’s Pizza will be a millionaire-maker bet. But as part of an investment motif focused on a more digital future, this is one of the better restaurant stocks around.
Author: Nicholas Rossolillo
CMG Financial Ranked Among Top Mortgage Lenders by Austin Business Journal
AUSTIN, Texas, Oct. 14, 2020 /PRNewswire/ — CMG Financial, a well-capitalized privately held mortgage banking firm headquartered in San Ramon, California, was ranked the second-highest-producing residential mortgage lender in Austin, Texas. Additionally, five loan officers ranked as top mortgage producers among a select list of 74 top producers in the Austin area. CMG congratulates its three Austin branches and all of its Austin-area originators for earning this distinct recognition.
Chris Minjarez (NMLS# 273165) ranked 5th with $100,636,565 in volume and 366 families served. Justin Hrabovsky (NMLS# 1022103) ranked 9th with $68,480,968 in volume and 255 families served. Joey Pochron (NMLS# 282897) ranked 30th with $44,919,731 in volume and 186 families served. Chad Mullenix (NMLS# 260298) ranked 64th with $25,400,111 volume and 89 families served. Josh Hanly (NMLS# 390434) ranked 66th with $24,507,332 in volume and 102 families served.
The Austin Business Journal compiled its rankings by reviewing closed loan data from 2019. All top-producing loan officers are licensed and have to provide verification of all new purchase and refinance loan data. Repurchase, home equity, cash-outs, second liens, and wholesale loans are not included.
CMG Financial has three local branches in Austin and 15 more branches throughout Texas for statewide coverage. CMG operates with the efficiency of a national mortgage bank without sacrificing the personalized service of a local lender. Recently named the Best Lender for First-Time Home Buyers by Investopedia, CMG is committed to working with all types of buyers to find the right home loan to fit their current and future financial goals.
About CMG Financial
CMG Financial is a well-capitalized, privately held mortgage banking firm founded in 1993. The company makes its products and services available to the market through three distinct origination channels: retail lending, wholesale lending, and correspondent lending.
CMG Financial currently operates in all states, including the District of Columbia, and holds federal agency lending approvals with HUD, VA, RHS, GNMA, FNMA, and FHLMC. CMG Financial is widely known throughout the mortgage banking and housing markets for responsible lending practices, industry and consumer advocacy, product innovation, and operational efficiency.
Email: [email protected]
Austin Business Journal Names CMG Financial #2 Top Mortgage Lenders
Austin Business Journal Names CMG Financial #2 Top Mortgage Lenders
SOURCE CMG Financial
Author: CMG Financial