Forest Products Industry
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]
In this article you are going to find out whether hedge funds think Carnival Corporation & Plc (NYSE:CCL) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus […]
Earnings Update: Smartsheet Inc. (NYSE:SMAR) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 […]
Trade Alert: The Founder & Independent Director Of Standard Lithium Ltd. (CVE:SLL), Anthony Alvaro, Has Just Spent CA$93k Buying 20% More Shares
USNR recently installed and started up new vision scanning systems on the edger and trimmer at Waipapa Pine in New Zealand. These systems are the 27th and 28th vision scanning systems that USNR has installed in mills processing Radiata Pine, and adds to the 170+ vision scanning systems sold globally.
“The results we have seen are outstanding, across all key measures within the business. Raw log input costs have reduced, and overall value return has been improved. This investment will provide us the opportunity to maximize efficiencies across our complete processing footprint, and better manage any changing landscape we have in front of us.”
– Grant Arnold, Director at Waipapa Pine
USNR has experience with a very wide range of wood species, for all of our vision scanning systems. These species include Spruce, Pine, Fir, Hemlock, Cedar, Oak, Maple, Aspen, Eucalyptus, and many more.
Read all about the Waipapa Pine as well as a Quebec hardwood vision scanning installation in the next issue of USNR’s MillWide Insider.
The post USNR’s vision scanning numbers continue to grow in a wide range of species appeared first on International Forest Industries.
(Bloomberg) -- Libya’s internationally recognized government said on Friday it had taken the remaining stronghold of Khalifa Haftar in the country’s west, effectively ending with Turkish military support an offensive by the Russian-backed strongman to capture the capital.The fall of Tarhouna came after a month of advances that forced the commander’s self-styled Libyan National Army to fall back from around Tripoli, along with hundreds of Russian mercenaries. After meetings in Cairo on Thursday, Haftar’s spokesman announced his forces would redeploy and rejoin United Nations-sponsored cease-fire talks with the Tripoli-based Government of National Accord.The events cap a dramatic reversal for Haftar, who launched the war in April 2019 claiming to be best placed to unite a fractured Libya and defeat the Islamists he said propped up the government of Premier Fayaz al-Sarraj. He won backing from Russia, the United Arab Emirates and Egypt, and appeared poised to take the capital until a full-throttled Turkish military intervention turned the tide.Haftar still controls Libya’s south and east, as well as its oil fields, which remain shut. But he’s been substantially weakened. An emboldened Turkey, along with Russia, will now likely take leading roles steering events in the North African country.Eastern PlanLibya has been fractured and often convulsed by conflict since the 2011 NATO-backed ouster and killing of Moammar Qaddafi. That’s left the nation that sits atop Africa’s largest crude reserves in an economic shambles.With his defeat in the west, the 76-year-old Haftar’s days as a military commander may be numbered. The field marshal is holding meetings in Egypt, but Cairo has also supported a political initiative launched by the speaker of the eastern-based parliament, Aguileh Salah, who’s won interest from Russia, France and other major powers.Salah resisted a move by Haftar last month to assume full political control of the east, underscoring widening cracks in their coalition as the offensive on Tripoli flagged and then turned into a rout.“Haftar will face increasing pressure from his allies especially from the Egyptians and Russians to take a step back and give way to new leadership,” said Mohamed Eljarh, a Libyan analyst. “However, this is not a done deal. Haftar’s allies in and outside Libya understand the difficulty of finding a replacement for Haftar who is able to keep the LNA together.”Turkish AidTurkey is now the dominant power in Libya’s west while Russia has major influence in the east, where it has moved in a fleet of jet fighters, said Wolfram Lacher, a Libya expert with the German SWP research center.“It remains to be seen to what extent Russia will now enforce red lines to the GNA, whether Russia will now prevent GNA advances to Sirte and Jufra, where Russia has a presence,” he said.Turkey has continued to supply weapons and fighters from Syria, shoring up its presence in western Libya. More than 1,000 Russian mercenaries who’d been fighting in Tripoli have pulled back to Haftar’s base in the central region of Jufra and to the south, two Western diplomats said. They are expected to help resist any further GNA advances.The U.S. ambassador to Libya, while warning of a possible new escalation after Russia moved in at least 14 jet fighters to Libya’s east, on Thursday joined those saying events could open a window for peace talks.Regional powers that back Haftar worry about the clout of non-Arab nations in Libya. Both Egypt and the UAE opposed an attempt in January by Russian President Vladimir Putin and his Turkish counterpart, Recep Tayyip Erdogan, to pressure their clients into signing a cease-fire.A senior Arab official said “the Syrianization of Libya,” where its future is determined by a small number of foreign actors, cannot be allowed to stand.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Sibexport signed a contract with AriVislanda AB for the supply of a Swedish-made modern profiling equipment to its sawmill in Irkutsk region, Russia. Installation and commissioning of the equipment is planned for the 4Q 2020.
“We thank you for your trust and look forward to a good and long-term cooperation,” says Fredrik Lindkvist, Marketing Manager at AriVislanda.
AriVislanda designs, manufactures and delivers sawmill equipment worldwide with a speciality being circular saw technique.
Photo: Fredrik Lindkvist, Marketing Manager at AriVislanda.
The post AriVislanda to supply modern profiling equipment to Sibexport’s sawmill in Russia appeared first on International Forest Industries.
(Released April 2020) Nature conservation consideration taken in connection with Södra’s regeneration harvests and thinning operations has made positive progress over the past decade and is now at a consistently high level. This was revealed by the company’s Green Balance Sheet.
“It is gratifying to see that we can remain at this high level over time, particularly considering the extreme weather conditions we had to manage during the period. The Green Balance Sheet for the entire 2010s indicates that our systematic effort has helped to develop good nature conservation considerations in connection with forestry operations, which is something we want to continue to develop over the coming decade,” said Klara Joelsson, Ecologist at Södra.
The regeneration harvests and thinning operations included in the Green Balance Sheet are assessed using a number of parameters that taken together approve or reject the measure. Over the past ten years, the proportion of final harvesting and thinning operations approved has steadily increased and since 2015, these have been consistently above 90 percent.
Parameters assessed as part of the Green Balance Sheet include:
- Saving and promoting buffer strips towards watercourses, wetlands and open agricultural land
- Leaving dead wood to benefit species that depend on this
- Taking into account the impact on soil and water when driving on forest land
“Södra has improved on all of these points during the decade, though with some variation between the years. In recent years, we have worked with specific measures to prevent damage to soil and water in connection with both final harvesting and thinning and offer a soil protection guarantee when we carry out these services for forest owners. This has helped to reduce driving damage on forest land,” said Klara Joelsson.
“Over the next decade, we will continue to build on our solid platform and work actively with consideration activities. There are always areas for improvement, and we will make sure we maintain or raise the quality of aspects where we are already strong. Measures will include a targeted initiative for cultural environments, where we have seen a need to raise quality. Taking appropriate and effective consideration is a continuous process,” said Klara Joelsson.
Södra prepares a Green Balance Sheet every year. Internal auditors verify how more than 150 regeneration harvests and the same number of thinning operations have complied with the requirements of PEFC™ and FSC® forest certification schemes regarding general considerations in final harvesting and thinning operations. How closely the company has followed its own policies and procedures for environmental considerations is also reviewed. The aim of the Green Balance Sheet is to create a basis for the continuous improvement of consideration activities. External audits are also performed every year by the international certification body, DNV GL.
For questions, please contact:
Klara Joelsson, Ecologist, Södra.
Tel: +46 (0)470-893 35
The post A decade with steadily improving nature conservation considerations appeared first on International Forest Industries.
Royal Caribbean (NYSE:RCL) is having itself a month. RCL stock is up over 40% since the beginning of May on what can only be described as discount shopping at the clearance rack. Right now, it seems that investors keep buying the stock as if they're afraid of missing out on the next leg up.Source: Laszlo Halasi / Shutterstock.com The problem with that thinking is that Royal Caribbean had already nearly doubled from where it had fallen in March. And at around $40 per share, RCL stock felt a little ahead of itself. So, with a stock price nearing $60 per share, it seems like a classic case of investors who have a fear of missing out (FOMO). Royal Caribbean Is Not to BlameLike all cruise lines, Royal Caribbean saw its stock price plummet in March as the Covid-19 pandemic forced a complete suspension of operations. The cruise line industry is no stranger to overcoming situations regarding shipborne illnesses. But the nature of the novel coronavirus and its potential to be transmitted asymptomatically is a particular problem for an industry that relies on having a captive audience for days or even weeks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThen you throw in the possibility of being quarantined on a cruise ship (those cabins aren't that big) and you can understand why many cruise line passengers may be taking a wait-and-see approach. * 7 Hotel Stocks to Buy Before Vacationing Restarts In early May, I questioned if the stock was priced too high at $41 per share. Since then, the company reported its first-quarter earnings. And it announced that it would not start sailing again until August 1, 2020. That's a month longer than previously planned.The company also said that forward bookings for the remainder of 2020 were "meaningfully lower" on a year-over-year basis. The Future Revenue Picture Is Still Not ClearLast year, Royal Caribbean brought in about $10.6 billion in revenue. On the conference call to discuss first quarter earnings in May, Jason Liberty, RCL's CFO announced that the company had cut back on capacity by 25%.Liberty also stated that Royal Caribbean, like every other cruise line, was offering its guests who had their cruises suspended the option to receive a 125% future cruise certificate (FCC) in lieu of a cash refund. However, as of the earnings call, approximately half (45%) of guests had asked for a refund.On the face of it, retaining approximately half of potential revenue would seem like "less bad" news. But here's something else to remember about the future cruise certificates. In a blog post from the company, Royal Caribbean stated "the deadline to request to change a future cruise credit to a refund deadline is December 31, 2020."It makes sense that many customers will want to take a wait-and-see attitude. If cruise lines begin to sail without incident, they can book a trip. If they don't, they can get their cash refund.The company did say about 20% of the guests who have an FCC have already rebooked future cruises. But here's the rest of that story. On the same conference call, Chairman and CEO Richard Fain spoke about Royal Caribbean's Cruise with Confidence program that allows guests to cancel a booking up to 48 hours before the cruise is set to sail.All of this put together makes a tricky revenue picture even more complex. RCL stock seems priced for the company to realize all available revenue. And that seems unlikely. You Can Wait on RCL StockCovid-19 and the novel coronavirus that causes it will continue to infect cruise lines for quite some time. Fain confidently told investors that he was confident the cruise industry would bounce back similar to what occurred after 9/11.I do believe that people will continue to cruise. As treatments, and possibly a vaccine, become available, the number of passengers should increase. But right now, RCL stock has a price-earnings ratio of over 60 at a time when the cruise line is burning through between $250 million to $275 million per month.My InvestorPlace colleague Todd Shriber has a different opinion. Shriber suggests that you can't wait for the right time to buy cruise line stocks because the market will already have beaten you to it. He also says RCL's forward bookings are within historical ranges.I understand his point, but I don't agree with it. There are times when things can be simple. RCL stock is needlessly expensive at the current price. I want to see revenue before I'm going to overpay for a cruise line stock.Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Thereas No Reason to Have FOMO About Royal Caribbean appeared first on InvestorPlace.
Pine seedling sales continue to break new records. In four years, the number of pine seedlings from Södra that are sold has risen from just over three million to just over six million.
“Demand is so high that pine seedlings are now in short supply, despite a very robust plan on our part. The plan entailed a major business risk when it was presented, even though we were hoping for, and expected to see, increased demand. It is very gratifying that the interest in pine has actually exceeded our expectations. Our goal for next year will be to further increase production and sell 7.5 million pine seedlings, which is more than double the figure for 2016,” said Olof Hansson, President of Södra Skog Bisnuess Area.
Södra has been actively informing about the importance of planting more pine in the landscape for several years. Not least through the Kraftsamling Tall (pine mobilisation) project that has been ongoing since January 2019. These efforts have now yielded results.
“The are several reasons why interest in planting the right trees in the right place has grown. It will lead to higher profitability and faster growth, better wildlife habitats, and lighter and more open environments. But more pine seedlings are not the only thing needed for success. We will also need to increase hunting in the very near future, otherwise the initiative is at risk of being eaten up by cloven-hoofed game,” said Tomas Andersson, Project Manager of Kraftsamling Tall at Södra.
For many years, far too much of Götaland has been planted with spruce – even areas that are best suited to pine. Due to excessively high game populations, landowners have not dared to adapt stands to the right extent, and have often replaced pine with spruce. This is not sustainable in the long term, since spruce planted in the wrong type of soil will not grow as well, be less vital and more prone to diseases, insect attacks and storms. The effects will be devastating for landowners, biodiversity, the climate, the economy, and especially for wildlife.
We can now see that the trend has turned, and that pine seedling sales are increasing at a very high pace.Statistics show that sales of pine seedlings have risen 100 percent since 2016. However, demand is even higher than expected and at the nurseries, even more pine seedlings are being sown for sales from 2021 and onwards. The production target is 7.5 million seedlings by 2021.
“We can see clearly that Södra’s members have received the message and taken the step to invest in pine regeneration. It’s a question of both biodiversity and the future profitability of forest estates in a changing climate. We can expect drier and warmer periods in some parts of our forestry operations area, and pine is better suited to those conditions. To continue regenerating with spruce on the wrong soil is therefore a major risk,” said Olof Hansson.
Increasing the proportion of pine regeneration also increases the berry bushes and herbs that thrive in pine environments, which is important for creating a balance between cloven-hoofed game populations and feed access.
For more information, please contact:
Olof Hansson, President of Södra Skog Business Area,
Tel: +46 470-857 67
The post Pine seedling sales significantly exceed expectations appeared first on International Forest Industries.
(Bloomberg) -- Some of the biggest names in finance and business made a fortune on Zoom Video Communications Inc.: Hong Kong’s Li Ka-shing, Tiger Global Management’s Chase Coleman and, of course, founder Eric Yuan, whose net worth has surged to $10.7 billion.And then there’s Samuel Chen, a little-known Taiwanese investor who made his initial wealth through ink trading and started putting money in the video-conferencing juggernaut about a decade ago.His Digital Mobile Venture Ltd., which participated in Zoom’s early funding rounds, controls a $1.6 billion stake, assuming it hasn’t sold stock since the holding was last disclosed at the end of March. Shares of Zoom, which recently reported a 170% increase in first-quarter revenue, have more than quintupled since their initial public offering last year.Chen is also a board member of Taiwan circuit maker Sonix Technology Co., and Digital Mobile is the biggest shareholder of Santa Clara, California-based Telenav Inc., a maker of navigation software.He keeps a low profile and doesn’t give interviews. Shumin Huang, a spokeswoman for Sonix, said he doesn’t engage in that firm’s daily operations. With respect to the Zoom investment, he considers himself lucky, she said.For that, Chen can thank Telenav Chief Executive Officer H.P. Jin, who introduced him to Yuan, according to a person familiar with the relationship. Jin knew Yuan from when they played soccer together on weekends in the San Francisco area, and he invested alongside Chen in Zoom’s early financing rounds partly because of how Yuan conducted himself on the pitch.“The way you behave on the soccer field is very important,” said Jin, who estimates his Zoom stake is worth more than $100 million.Analysts SplitChen’s investment firm has already sold some Zoom shares, including a $22 million chunk at Zoom’s April 2019 IPO and an additional 13 million shares through March, according to a filing. That means it could have earned a windfall of as much as $2.1 billion.Analysts tracked by Bloomberg are split on the stock’s prospects. A dozen recommend that investors buy the shares, 13 have hold ratings and five say sell. Zoom’s surging popularity has come with concerns over its security practices, prompting the company to bolster protective measures for users.There’s also the risk that people will abandon the service after the pandemic ends and they return to the workplace en masse. The stock slipped 6% to $210.35 on Thursday, giving the company a $59.3 billion market value. On the other hand, Zoom’s cloud-based phone offering is a “significant opportunity” that could set it up as a unified communications provider, Alex Zukin, an analyst at RBC Capital Markets, said in a note to clients this week in which he upgraded the shares to a buy.There’s “still money to be made in the stock,” he said.Chen and other investors made initial investments in Zoom in 2011, according to a post last year on Medium by Louis Li of venture-capital firm TSVC, formerly known as TEEC Angel Fund.A year later, as Zoom burned through its seed funding and few venture-capital funds showed interest, Chen stepped in to lead a series A round.The investor, now in his late 60s, left Zoom’s board in 2018, four years after Digit Mobile Inc., a Taiwan-based company where he serves as chairman, brought the service to the island.Chen, who received a bachelor’s degree in chemistry from Taiwan’s National Tsing Hua University, earned his early fortune through a business trading ink, according to a book on successful former students published to celebrate the college’s 100th anniversary.(Updates with stock price in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Södra has now ended the furlough scheme introduced at the sawmill in Hamina, Finland, in April due to reduced demand from the UK, in particular, related to the ongoing pandemic. All of Södra’s sawmills have therefore resumed their normal production rates.
“The UK is opening up again and we have also identified new business opportunities – demand in the building materials trade, in particular, is very strong in several countries. We have been monitoring the market closely and successively ending the furlough schemes. Orrefors was first, followed by Mönsterås and then the port, and Hamina resumes its normal rate of production from 1 June. We will then be back to our normal production rate of 2 million m³ of sawn timber,” said Jörgen Lindquist, President of the Södra Wood business area.
The post Södra ends furlough scheme at Hamina sawmill in Finland appeared first on International Forest Industries.
For all but a select few industries, the novel coronavirus represented the blackest of black swan events. This was especially the case for telecommunications equipment providers like Nokia (NYSE:NOK) and regional rival Ericsson (NASDAQ:ERIC). After trudging through some uncertain waters in 2019 due to the U.S.-China trade war, along with concerns about a global recession, 2020 offered hope. For instance, Nokia stock found itself up double-digit percentage points in early February.Source: RistoH / Shutterstock.com However, the Covid-19 pandemic immediately crushed that optimism. Although NOK has been through multiple health-related crises before - most notably SARS and the 2009 H1N1 outbreak - the coronavirus took such calamities to another dimension.To stem the tide against this rapidly proliferating virus, multiple countries, including the U.S., instituted broad lockdowns.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis was particularly harmful for Nokia stock as it meant that the underlying company would see progress in its 5G business come to a halt. After years of blunders and bad decisions, NOK was not in a position to treat setbacks as mundane affairs. * 7 Hotel Stocks to Buy Before Vacationing RestartsBut after diving to ridiculous lows around mid-March, Nokia stock has put on a remarkable recovery. Basically, shares are right back to where they were in the first half of February. Not only that, there's a case that NOK could continue moving higher.In mid-May, President Donald Trump issued a new rule that will prevent Huawei and its suppliers "from using American technology and software," according to the New York Times. Clearly, this move was aimed directly at China, for which Trump has consistently expressed disdain, first for China's intellectual property theft of U.S. assets and recently, for failing to contain the coronavirus.Economically, this backdrop sends a chill, unless you're holding Nokia stock. A Cynical Opportunity for Nokia StockBefore the pandemic, one of the biggest concerns that the U.S. had was China's growing global influence, particularly in the technology realm. Further, Trump was undoubtedly irked that China used American semiconductor components to essentially undermine U.S. tech dominance.As a new strategy to outsmart the Chinese, the Trump administration called on American tech firms to develop a uniform standard for 5G. By allowing 5G software developers to run code on any hardware, this uniformity helps eliminate the need for Huawei equipment, which is a leader in the 5G hardware space.Not only that, the measure found support from companies such as Microsoft (NASDAQ:MSFT), Dell Technologies (NYSE:DELL) and AT&T (NYSE:T). According to White House economic adviser Larry Kudlow:"The big-picture concept is to have all of the U.S. 5G architecture and infrastructure done by American firms, principally. That also could include Nokia and Ericsson because they have big U.S. presences."Usually, when your top competitor suffers a setback, that's a net positive for you. And when these politically motivated developments were occurring earlier this year, Nokia stock took off. However, assuming that the coronavirus pandemic never happened, this narrative for NOK would have faced stiff challenges.Primarily, as the Wall Street Journal noted, Huawei "has won fans globally -- including small rural telecom carriers in the U.S. -- for the quality of its equipment and technical support." Significantly, this sentiment extended to the U.K., which allowed Huawei to build part of its 5G infrastructure, to American objections.Of course, the coronavirus did happen, which completely changes the story for Nokia stock. Frankly, the world hates China. For example, Australia is rethinking its economic dependency on China after the Asian country balked against Australia's request for an independent inquiry into the novel coronavirus' origins. More Pain, More Gain for NOKBased on what I see politically, I don't think the Trump administration will let up on China. As you know, our country is wrestling with nationwide protests calling for social equality and justice. Amid this backdrop is an economic catastrophe where a sadly ridiculous number of Americans have filed for unemployment benefits.Judging from his words and actions, I'm 100% sure that Trump blames China for ruining his chances for reelection. Realistically, the only hope for the president is to target a foreign "other." From America's perspective, you couldn't get more foreign than China.To put it another way, we're on a determined path to hold China accountable. That's bad news for Huawei and excellent news for Nokia.Still, you don't want to dive into Nokia stock blindly. Let's not forget that China can just as easily retaliate against American businesses - and I'm not just talking about tech firms. Besides, NOK is technically overheated.But on a significant dip, I believe risk-tolerant investors should take a look at the telecom equipment provider. On a fundamental basis, the narrative has changed dramatically and favorably.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he is long AT&T stock. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Nokia Is a Cynical Beneficiary of the Trump Administration appeared first on InvestorPlace.
(Bloomberg Opinion) -- Warren Buffett says “nothing can stop America.” To put his money where his mouth is and spend some of his $137 billion stash before this crisis is over, he wouldn’t have to look far. If there’s one company that warrants the dealmaker’s attention, it may be Costco Wholesale Corp., a retailer in which Buffett’s Berkshire Hathaway Inc. already owns a stake. At Berkshire’s virtual shareholder meeting last month, Buffett signaled that the Covid-19 pandemic hasn’t afforded him deal opportunities at bargain-basement prices the way past economic meltdowns have. Despite the nationwide shutdowns that are just starting to lift and a soaring unemployment rate, the S&P 500 Index is only 8% off its February all-time high. That’s partly due to aggressive actions taken by the Federal Reserve to mitigate the crisis, though one can’t deny that there exists an astonishing disconnect between stock prices and the economic realities of many Americans right now.Costco wouldn’t be a typical crisis-era bet for Buffett in this regard. The shares are up, not down, this year and its operations have carried on throughout the pandemic. Zoom, Netflix, TikTok, Costco — the retailer is right up there with those services that have become centerpieces of the stay-at-home recession.But in so many other ways a Costco deal would still be classic Buffett. For starters, Buffett already likes Costco. Berkshire has owned the stock for two decades; its 1% stake is valued at about $1.3 billion currently. Buffett’s business partner Charlie Munger, the 96-year-old vice chairman of Berkshire Hathaway, also sits on Costco’s board. Last year, Buffett even publicly marveled at Costco’s in-house Kirkland brand, which at that point had $39 billion of annual sales. “Here’s somebody like Costco, establishes a brand called Kirkland and it’s doing $39 billion — more than virtually any food company,” including Kraft Heinz Co., he said. Berkshire is Kraft Heinz’s largest shareholder.Costco has proven during this crisis that it has a durable brand and a wide competitive moat, two of the key attributes Buffett looks for. More than 90% of Costco’s U.S. club members renew, and globally the rate is nearly as high at 88%. Those warehouse memberships are a predictable source of cash flow, almost akin to Berkshire’s insurance float that Buffett uses to invest. While the majority of Costco’s 787 warehouse clubs are in the U.S. and Canada, it does have locations in Mexico, the U.K., Japan, South Korea, Taiwan and Australia. It’s also expanding in China, offering Buffett exposure to the country’s growing middle class.Costco’s same-store sales have risen 6.5% on average for the last 10 quarters, topping other U.S. mass retailers including Walmart Inc., the parent of Sam’s Club. Costco also generated more than $1,300 of sales per square foot in fiscal 2019 — more than any of its peers.The share price has gotten a bump from all the panic-shopping, and at 34 times earnings, Costco’s valuation certainly isn’t what Buffett would call cheap. But Costco should continue to fare well in a post-virus America, especially if it leads some residents to ditch cities for suburbs and spend more time at home. After the meat and toilet paper shortages, more shoppers may even turn to bulk-buying to be better prepared for future lockdowns or shortages.The biggest hurdle to a takeover is that Costco’s market value is $137 billion — precisely the amount of cash Berkshire has available. Berkshire’s last major acquisition was Precision Castparts, a maker of airplane engine parts, for $37 billion in 2016. After years spent searching for his next target, Buffett signaled recently that his hunt is on hold, suggesting that he thinks the crisis could still get worse before it gets better. “The cash position isn’t that huge when I look at the worst-case possibilities,” he told a stunned audience last month that tuned into the livestreamed annual meeting expecting to hear something a little more upbeat or at least hopeful from the Oracle of Omaha.(1)Berkshire could simply increase its stake in Costco, a stable holding that pays a 70-cent quarterly dividend. But it wasn’t all that long ago that Buffett spoke of the possibility of an acquisition Costco’s size. “If a $100 billion deal came along that Charlie [Munger] and I really liked, we’d get it done,” he said in May 2018. With Buffett set to turn 90 in August, it would be uncharacteristic to not want to do one last splashy transaction.It also wouldn’t be the first time Berkshire acquired one of its stock holdings. Berkshire owned shares in Precision Castparts before that deal. It also took a stake in the BNSF railroad in 2007 and kept adding to that position until it eventually purchased the whole company. Berkshire’s ownership of Geico even dates back to the 1950s when Buffett first bought shares and as a curious young investor began a serendipitous friendship with the insurer’s former CEO, Lorimer Davidson, as Buffett often retells it.Whether as a takeover candidate or stock pick, Buffett’s best option may be right under his nose. (1) One well-known shareholder, Bill Ackman’s Pershing Square Capital Management, even exited its Berkshire position, deciding itcan find worthwhile investing opportunities faster than Berkshire can at this rate.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The purpose of the modernisation is to replace existing frame saws with modern profiling equipment. “This project aims to improve the quality of the products as well as production efficiency as a whole and is the first step in the plant’s modernisation program,” says Viktor Melnik, Investment Director at Ilim Timber LLC. The Ilim Timber branch in Ust-Ilimsk specializes in the production of timber from pine and Siberian larch.
The production capacity of the plant is approximately 600,000 m³ of sawn timber per year. “We thank you for your trust and look forward to a good and long-term cooperation,” says Fredrik Lindkvist, Marketing Manager at AriVislanda. Installation and commissioning of the equipment is planned for the first half of 2021.
The post AriVislanda gains momentum when Ilim Timber invests in its saw line in Ust-Ilimsk appeared first on International Forest Industries.
Is now the time to be fearful? Some will warn, it's a guilty as charged environment for the market. But when it comes to financial heavyweight Bank of America (NYSE:BAC), the jury is still out and trying to overturn that more bearish conviction. Let me explain the issues surrounding Bank of America stock.Source: 4kclips / Shutterstock.com Many investors can argue there's a very large disconnect between the stock market and economy right now. And understandably so. The broad-based, large-cap S&P 500 is up nearly 40% since its historic March 23 bear market bottom despite a still very real and problematic coronavirus.Has the market no sense of what's right and wrong? At the same time, shares of Bank of America are up 48%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMore recently, Wall Street has seen fit to ignore polarized and sometimes violent nationwide protests in the wake of the senseless death of George Floyd. And those gains have the S&P 500 nearly wiping its hands clean of the Covid-19 driven sell-off. * 7 Hotel Stocks to Buy Before Vacationing RestartsIs there no justice? Maybe not. More certain, there is that other branch of the government known as the Fed that's been so instrumental in the rally's success.The defiant and well-supported behavior is even more profound in Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Home Depot (NYSE:HD) and other stocks near or even making fresh highs in recent days. But the separation of Main Street versus Wall Street gets even worse. The market's betrayal is showing up in CNN's multi-faceted fear-and-greed indicator.The sentiment tool analyzes extremes using options activity, safe haven and junk bond demand, market breadth, volatility and price momentum. A current reading of 62 in the indicator has just entered greed territory. It's also a full 180-degree swing away from the pandemic's correctly warned fearful lows.Nevertheless, while those warnings have been duly noted, the writing isn't on the wall for Bank of America investors. Bank of America Stock Monthly Chart Click to EnlargeSource: Source: Charts by TradingView Despite Bank of America's outperformance since the March low, shares remain situated in their enduring position of relative weakness versus the broader market. But right now, the opportunity for the stock to continue its rally and make more of a bullish pattern impact is growing in our estimation.What has our interest as a buy is Bank of America's bullish stochastics crossover as shares begin to follow through off support after two months of inside candlestick consolidation work. That's not to say the situation is without any challenges.Front and center, shares are now challenging the 50% retracement level of the Covid-19 sell-off. There's also a slightly smaller and already broken uptrend dating back to 2016. That's potentially another layer of resistance just modestly above today's Bank of America stock price.Still, in a world where greed has been espoused as good and today's seemingly unthinkable bullish behavior is also at the low end of the "overenthusiastic" range, the argument for buying or continuing to hold Bank of America stock today makes sense. The Bottom Line on BACMy price target for Bank of America over the next several months is for shares to conservatively revisit their pre-coronavirus highs near $35. For a long-only position, without fully calling into question the integrity of the chart's bottoming pattern, I'd argue for a line in-the-sand and stop-loss beneath an eyeballed $22.85.Alternatively, and for like-minded investors, I'd make the case for having a great defensive team in your possession and put together a dynamic collar around a long stock position. Currently and with Bank of America shares near $26.50, the August $23 / $30 combination for ten cents of premium over shares looks about right.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article, but does maintain hedged positions in the SPDRs Financial ETF (XLF).The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Bank of America Stock Is Still Worth Buying appeared first on InvestorPlace.