Another exciting week at the stock exchange! At first it looked like it would be a bad week on the stock market. But the investors saw the fall of the indices as an opportunity and drove the indices high again.
As we do every week, we let our community decide which stocks they thought were relevant or not. Some will look familiar, while others may be a hidden gem.
P.S. and as always, please remember that investing comes with risk, especially at times like now when we are seeing an increased volatility and an abundance of liquidity in the markets.
1. Morgan Stanley
Safely prepared for tough times
Morgan Stanley recently announced that it will double its quarterly dividend from $0.35 to $0.70 beginning in the third quarter. This would increase the yield for the current year from 1.5 percent to 2.3 percent.
Since April 2020, the major bank from the United States has gained about 130 percent. The group is very well positioned, having accumulated considerable excess capital in recent years. Morgan Stanley currently has the largest capital buffer in the industry. 💰💰
2. Accenture PLC
Management consulting firm shines with big margin
This year, Accenture again beat experts' expectations in both profit and revenue. 2020 revenue was $12.8 billion and earnings per share were $2.24. This represents a 26 percent increase in profit. Operating margin was also 16 percent. This is a good result for a consulting company, which naturally has very high personnel costs.✈️
Since the beginning of the year, the stock of the consultancy has recorded an increase of around 20 percent.
More losses for Subaru
Subaru this week released its financial statements for the quarter ending May 31, 2021. Earnings per share were negative. Per share, a loss of JPY 61.260 was recorded. In a year-on-year comparison, -106.720 JPY was recorded. Converted, these values are approximately 0.47 euros and -0.82 euros.
Recently, the Japanese automaker had to shut down a plant near Tokyo for a short period of time. The reason for this is the global shortage of semiconductors.🚗
Strong results for LG
LG Electronics continues to perform very strongly. Recently, the company announced that it expects sales to reach $15 billion in Q2. The Korean company is also expected to report a profit of just under one billion USD. Analysts think that the traditional cash cows are the reason for this success. LG's cash cows are mainly home appliances and televisions.📺
The tech manufacturer announced in April that it will stop producing smartphones until further notice.
On track for success through acquisition
Qualcomm CEO Cristiano Amon has announced that he plans to achieve the best performance in battery-powered devices. He now wants to achieve this with the acquisition of Nuvia. Indeed, Nuvia had most recently been working on an ARM-based CPU core. The core is called Phoenix and is supposed to be extremely efficient.
Qualcomm now wants to get into the smartphone manufacturer business. The smartphone for Snapdrogon Insiders, as the manufacturer calls its fans, is to be produced by Asus.📱