Advertisements

Amazon Is Launching a New Program to Donate Unsold Products, After Reports That Millions Were Being Destroyed

5.jpg

Amazon wants its third-party sellers to make better use of their unsold or unwanted products that often get dumped — by giving them away to charity.

Amazon is launching a new donations program, called Fulfillment by Amazon (FBA) Donations, for third-party sellers that store their inventory in Amazon’s warehouses in the U.S. and UK, CNBC has learned. Starting on September 1, the donation program will become the default option for all sellers when they choose to dispose of their unsold or unwanted products stored in Amazon warehouses across those two countries. Sellers can opt out of the program, if they want.

The donations will be distributed to a network of U.S. nonprofits through a group called Good360 and UK charities such as Newlife and Barnardo’s. After this story was published, Amazon announced the program via a blog post on Wednesday afternoon.

The new donations program is designed to reduce the amount of inventory that must be dumped from Amazon’s warehouses, helping the environment and putting otherwise wasted products to some use. Recent reports found that Amazon routinely discards unsold inventory, with one French TV documentary estimating Amazon to have destroyed over 3 million products in France last year. Given that Amazon generates the bulk of its sales in the U.S., the number of destroyed inventory in its U.S. warehouses is likely much larger than those found in other countries.

“This program will reduce the number of products sent to landfills and instead help those in need,” Amazon wrote in the email to sellers announcing the launch.

Sellers who spoke to CNBC said the new program makes it cheaper to donate their unwanted inventory. Amazon charges 50 cents to return unsold inventory to sellers, much more than the 15 cents charged for disposal. Sellers destroy their inventory for a variety of reasons, including returns that are no longer usable or for safety issues.

In an email statement to CNBC, Amazon’s spokesperson confirmed the launch of the new program, adding it’s “working hard” to bring the number of destroyed products to zero.

“At Amazon, the vast majority of returned products are resold to other customers or liquidators, returned to suppliers, or donated to charitable organizations, depending on their condition,” Amazon said.

By: Eugene Kim

Source: https://www.cnbc.com/

 

Advertisements

More Selloff Strategies: Cramer’s ‘Mad Money’ Recap

When investors encounter tough days in the stock market, they need a game plan for how to respond, Jim Cramer told his Mad Money viewers Friday. That means knowing what type of selloff you’re dealing with and how best to navigate it. Fortunately, history can be your guide in identifying those inevitable moments of weakness and keep you from panicking.

Stocks finished down Friday, as Donald Trump’s recent threat to levy 10% tariffs on an additional $300 billion of Chinese imports overshadowed the latest U.S. jobs data.

The Dow Jones Industrial Average, which hit a session low of 334 points, finished down 98 points, or 0.37%, to 26,485. The S&P 500, which saw its worst week of the year, fell 0.73% and the Nasdaq dropped 1.32%. The Dow had its second worst week of the year as it fell 2.6%.

Cramer told his viewers that the U.S. stock markets have only seen two truly horrendous selloffs since he began trading in 1979. Those were the Black Monday crash in October 1987 and the rolling crash of the financial crisis from 2007 through 2009. But while both of these declines saw huge losses, they were in fact very different.

Many investors don’t remember Black Monday, where the Dow Jones Industrial Average lost 22% in a single day. Even fewer remember that the market lost 10% during the week prior, and continued its losses on the Tuesday after. While it wasn’t known at the time, this crash was mechanical in nature, caused by a futures market that overwhelmed the ability to process the flood of transactions. In the confusion, buyers stepped aside and prices plunged.

The carnage wasn’t stemmed until the Federal Reserve stepped in with promises of extra liquidity. But in the end, the economy was strong. There was nothing wrong with the underlying companies, the market just stopped working. That’s why it only took 16 months to recover to their pre-crash levels.

Investors witnessed similar mechanical meltdowns in the so-called “flash crash” of 2010 and its twin in 2015. On May 6, 2010 at precisely 2:32 p.m. Eastern, the futures markets again overwhelmed the markets, only this time machines were doing most of the trading. The crash lasted for a total of 36 minutes, during which time the Dow plunged 1,000 points from near the 10,000 level.

In August of 2015, another flash crash occurred at the open, with the Dow again falling 1,000 points in the blink of an eye. In the confusion, traders couldn’t tell which prices were real and which ones were pure fantasy. Only those with strong stomachs risked trading at the heart of the decline, but those traders were rewarded handsomely.

In all of these cases, Cramer said, the machinery of the markets was broken. Even the circuit breakers put in place after 1987 were not able to stem the declines and in fact, did very little to even slow them down. But for those investors who were able to recognize what was actually happening, these declines were a once- (well, twice-) in-a-lifetime gift.

Cramer and the AAP team are making three more trades as they reposition on this week’s selloff, including Burlington Stores, (BURLGet Report) and Home Depot (HDGet Report) . Find out what they’re telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

The Great Recession

The Great Recession was a totally different animal. The market began falling in October 2007, but didn’t bottom until March 2009, almost two years later. Afterwards, it took until March of 2013, four years later, for the markets to get back to even. Cramer said this kind of decline is the most dangerous, but fortunately, it’s truly a once-in-a-lifetime event, only occurring every 80 years or so.

The Great Recession was caused by the Fed raising interest rates 17 times in lock step, trying to cool an already cooling economy. The recession could have been avoided had the Fed done their homework and actually talked to CEOs, as Cramer did at the time.

Cramer recalled talking to the CEOs of banks, all of whom told him that defaults on mortgages were on the rise in a fashion none of them had seen before. Cramer’s famous “They know nothing” rant on CNBC stemmed from those conversations, as the Fed did nothing until the first banks began to collapse. The market fell 40% before finally finding its footing.

How can investors identify this type of devastating decline? Cramer said investors can ask whether the economy is on a solid footing. Is business declining? Is employment falling? Are interest rates still rising even as cracks are appearing? If big companies are unable to pay their bills, the problem could be a lot deeper than you think.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Today’s Market

Today’s market is not like 2007, however, Cramer said. Business is stronger, our banking system is stronger and there’s still time for the Fed to take their foot off the brakes and wait for more data before proceeding.

So you’ve just spotted a mechanical breakdown in the market, what should you buy? Cramer said he’s always been a fan of accidental high-yielders, companies whose dividend yield is spiking because their share prices are falling with the broader averages.

He said that these stocks are always among the first to rebound, as their dividends help protect them. He advised always buying in wide scales as the market declines. That way, if the rebound is swift, you’ll still make a little money, but if it’s a larger, multiday sell off, you’ll make even more.

Cramer reminded viewers that when the Fed is cutting interest rates, almost every market dip is a buying opportunity. But when it’s raising rates, things get tricky. Not every rate hike causes a crash, however, only ones that push rates high enough to break the economy.

During these times, it’s important to remember that stocks aren’t the only investment class out there. You can also invest in gold, bonds or real estate to stay diversified.

It’s Not Just the Fed

The Fed isn’t the only reason why the market declines, and Cramer ended the show with a list of the other common culprits.

The first sell-off culprit are margin calls. Too often, money managers borrow more money than they can afford and when their bets turn south, they are forced to sell positions to raise money. We saw this happen in early 2018 when traders were betting against market volatility by shorting the VIX. When volatility returned, these traders lost a fortune and the whole market suffered.

There are also international reasons for the market to sell off, including crises in Greece, Cyprus, Turkey and Mexico, among others. Cramer said in these cases, it’s important to ask whether your portfolio will actually be impacted by these events. Usually, the answer is no.

Then there’s the IPO market. Stocks play by the laws of supply and demand after all, so when tons of new IPOs are hitting the markets, money managers often have to sell something in order to buy them. Declines can also stem form multiple earnings shortfalls as well as, yes, political rhetoric coming from Washington.

Cramer said many of these declines happen over multiple days. The key is to watch if the selling ends by 2:45 p.m. Eastern. If so, it may be safe to buy. But if not, there will likely be more selling the following day and it will pay to be patient.

By:

Search Jim Cramer’s “Mad Money” trading recommendations using our exclusive “Mad Money” Stock Screener.

To watch replays of Cramer’s video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer’s free Booyah! newsletter with all of his latest articles and videos please click here.

Source: More Selloff Strategies: Cramer’s ‘Mad Money’ Recap

 

How Important Is Frito-Lay For PepsiCo’s Growth?

Image result for PepsiCo

Frito-Lay North America has maintained its position as the fastest growing segment for PepsiCo (NASDAQ: PEP) over recent years. PepsiCo Revenues (shows PepsiCo’s key revenue components) have increased from $62.8 billion in 2016 to $64.7 in 2018, growing at a CAGR of 1.5%. During the same period, FLNA saw its revenues increase from $15.5 billion to $16.3 billion, at a CAGR of 2.5%.

A] Division Overview

1) What is on offer?

  • FLNA makes, markets, distributes, and sells branded snack foods, which include branded dips, Cheetos cheese-flavored snacks, Doritos tortilla chips, Fritos corn chips, Lay’s potato chips, Ruffles potato chips, and Tostitos tortilla chips.
  • In addition, FLNA’s joint venture with Strauss Group makes, markets, distributes, and sells Sabra refrigerated dips and spreads.

2) Who is paying?

  • FLNA’s branded products are sold to independent distributors and retailers.
  • Frito-Lay targets people across demographic sections through its products.
  • The products are positioned as a quick fix solution for hunger and are thus normally included in the category of fast foods.

3) Available Alternatives?

  • The segment faces intense competition from other snacks offerings from Procter & Gamble, Kraft Foods, Kellogg’s Company, and General Mills.

You can view the Trefis interactive dashboard – Frito-Lay North America: PepsiCo’s Primary Growth Driver – and alter the assumptions to arrive at your own estimate for the segment’s and company’s revenues and profitability. In addition, here is more Consumer Staples data.

B] Frito-Lay: Revenue Trend and Revenue Share

  • FLNA has been able to add $0.8 billion to its revenues over the last 2 years, at a CAGR of 2.5%.
  • Revenue growth has been driven by continuous innovation, new products, effective pricing strategies and volume growth.
  • As per the latest PepsiCo Earnings, FLNA revenues increased by 4.5% (y-o-y) in Q2 2019.
  • The segment is expected to grow at a healthy rate to add about $1.3 billion in revenues over the next two years, driven by growth in variety packs and its trademark Doritos.
  • Frito-Lay contributes about a quarter of PepsiCo’s revenues, with its share continuously rising.
  • We expect FLNA to continue to grow at a rate faster than PepsiCo as a whole, taking the segment contribution to 25.6% in 2020, from the current 25.3%.
uncaptioned
Trefis

C] Innovation and Strategies

  • Over the recent years, Frito-Lay has been successfully able to expand its reach to cater to different categories of consumers.
  • Frito-Lay was traditionally a dominant player only in the mid-tier snack segment. It did not have a significant presence in the premium or the bottom end of the snacks market.
  • However, Frito-Lay made its premium products available in high-end stores (such as Citarella) and the deli sections of grocery chains in order to create the right perception of these products.
  • In the bottom end of the segment, Frito-Lay has Cracker Jack as a brand offering high value for money. Similarly, Taqueros was made available in dollar stores and other retail outlets that typically attract value-seeking consumers.
  • Additionally, conscious of a consumer shift toward health snacks, the segment has come up with offerings such as Stacy’s Pita Chips and Sabra, which offers packaged Mediterranean dips such as hummus.

D] Most Profitable Segment

  • Frito-Lay is the most profitable division of PepsiCo, with its operating profit margin being almost 2x PepsiCo’s total operating margin.
  • We expect the segment to improve its margins from the current level of 30.6% to 31.8% by the end of 2020.
  • Improved profitability is expected to be driven by healthy revenue growth along with productivity savings.
  • The recently announced 2019 Productivity Plan, under which PepsiCo will leverage new technology and business models to further simplify, harmonize, and automate processes, and in addition optimize its manufacturing and supply chain footprint, is likely to provide a further boost to the profitability of its already high-margin Frito-Lay segment.

E] Conclusion

Trefis estimates PepsiCo to add close to $4 billion in revenues over the next two years, out of which $1.3 billion (over 31%) is expected to come from Frito-Lay. As per PepsiCo Valuation (shows valuation analysis) by Trefis, we have a price estimate of $128 per share for PEP’s stock. Thus, the primary factor for the company to report a healthy revenue growth rate, improved profitability, enhanced shareholder returns, and elevated stock price, is a solid and sustained performance in the Frito-Lay division.

What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs

For CFOs and Finance Teams | Product, R&D, and Marketing Teams

More Trefis Data

Like our charts? Explore example interactive dashboards and create your own.

 

Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company’s products, that you tou…

Great Speculations’ contributor page is devoted to investing ideas that will help make you wiser and richer. Most articles will contain actionable advice

 

Source: How Important Is Frito-Lay For PepsiCo’s Growth?

BlockTower Capital CIO: Wall Street in “wait and see” mode with BTC

Ari Paul, co-founder and CIO of crypto hedge fund BlockTower Capital, sent a tweet storm out earlier today giving insights into his conversations with “traditional investors, traders and crypto funds”.  Paul, who has actually sent out about 20 tweets regarding the topic, shared mostly positive impressions coming from his conversations, as there definitely seems to be interest coming from Wall Street towards Bitcoin, although there is some debate as to what would be the optimal point of entry for these institutional investors………..

Source: BlockTower Capital CIO: Wall Street in “wait and see” mode with BTC

Dubai Emerging Market Maverick Abraaj Gets A Lifeline – Kenneth Rapoza

1.jpg

The past 12 months weren’t great for emerging markets—but it’s been far worse for Dubai-based private equity firm Abraaj Group and its founder Arif Naqvi. Bad fortune of being in the wrong place with the wrong people at the wrong time, including a scandal at a key lender, is what did them in. Its fall from being a respected, $14 billion powerhouse in the world of impact investing in private equity to a company offered a buyout of just $1 is in one of the biggest stories in emerging markets this year. At one time, it was the largest private equity firm in the world, attracting the likes of the Gates Foundation…………

 

 

 

Donate us if you like

 

5 Reasons Bitcoin Prices are Plunging Aagain – Nathaniel Popper

1.jpg

San Francisco: The news on Wall Street this week has been bleak: sharp declines, fears of a bear market and high-flying technology stocks that suddenly took a tumble.

Traditional stock investors may be taking a beating, but they should be glad they didn’t put their money in cryptocurrencies. As of Wednesday, the price of a Bitcoin had fallen about 25% in a week and was down more than 75% from its peak in December.

Other digital tokens have fallen even more sharply in value.

The latest declines are occurring almost a year after cryptocurrency markets, fuelled by a rush of new, wealthy investors, went into overdrive. There are several factors behind the collapse in prices, with many of them the flip side of what drew people to cryptocurrencies in the first place.

Relying on unregulated infrastructure and exchanges is risky

Most cryptocurrency trading happens outside the United States on exchanges with little or no regulatory oversight. That allowed investors to pile in with abandon, but the inherent dangers have long been clear.

This year, researchers at the University of Texas published evidence suggesting that one of the largest exchanges, Bitfinex, had helped create a proprietary cryptocurrency, Tether, that was used to artificially pump up the price of bitcoin and other digital tokens.

Bloomberg reported Tuesday that the Justice Department was conducting a criminal investigation of price manipulation using Tether, one of many issues related to Tether that are scaring investors away. Every unit of Tether is supposed to be backed by a dollar in a bank, but managers of Bitfinex and Tether have struggled to show that they even have bank accounts. Many traders have been selling Tether at a loss just so they can take their money out.

The activities of another large exchange, OKEx, have also led traders to question whether they can trust the institutions at the center of the cryptocurrency industry.

OKEx, which began in China, altered some trading rules without advance notice, according to a large hedge fund, Amber AI, which published a post on Medium about the changes. Amber AI said customers appeared to have lost millions of dollars because of the changes. OKEx, without acknowledging the losses, apologized to customers for some of the changes, which it said had been made to cope with chaotic trading.

Regulators are cracking down

Much of the excitement surrounding the cryptocurrency markets last year was stirred up by companies that raised money selling custom cryptocurrencies in so-called initial coin offerings, which let startups raise money without going through regulators.

At the time, lawyers warned that these offerings would probably run afoul of securities rules. The Securities and Exchange Commission recently stepped up punishment of companies that violated securities law with their offerings. In the most chilling case, the commission punished two companies Friday for their initial coin offerings, forcing them to return money to investors while saying the cases would be templates for future actions.

Cryptocurrencies are managed by communities of developers. That can get messy.

The bitcoin network was created with so-called open-source software released to the world in January 2009. For many years, members of the bitcoin community worked together to improve the software. That collegiality has faded. Last year, after a bitter fight, one group released a new version of bitcoin software with slightly different rules that gave rise to a new cryptocurrency, Bitcoin Cash.

The people backing Bitcoin Cash subsequently had their own disagreements. This week, they splintered into two groups. In the software world, it’s known as a fork: Bitcoin Cash was split into two new cryptocurrencies, Bitcoin ABC and Bitcoin SV.

The new forks have not altered the original bitcoin. But they have created chaos in the trading markets, as exchanges struggle to define which coin customers are trading. The battles have also raised questions about one of the fundamental attractions of cryptocurrencies: their apparent scarcity.

The creator of bitcoin said only 21 million bitcoins would ever be created. But how scarce do those 21 million bitcoins seem if there are also 21 million tokens of each new copycat?

As Naeem Aslam, the chief market analyst at the trading firm ThinkMarkets, put it in a note to clients this week: “Forking has become so common that it puts at risk the notion of limited supply altogether.”

Cryptocurrencies were going to solve all kinds of real-world problems. But the real world hasn’t had much use for cryptocurrencies.

Bitcoin was supposed to make it easier to send payments instantly over international borders. Ethereum, the second-largest cryptocurrency network until recently, was going to create a kind of global super computer. Thousands of other tokens were also designed to be used for high-minded purposes. But so far, about the only thing the tokens have been used for is speculative trading.

Developers have complained that bitcoin, Ethereum and most other networks are hobbled by technical problems that make their tokens hard to use in real-world transactions. Those working on the cryptocurrencies have promised solutions, but they have been slow to produce them.

Governments could get into cryptocurrencies, and do a better job of managing them.

One hopeful sign for digital tokens came from Christine Lagarde, the leader of the International Monetary Fund. In a speech last week, she made a case for why countries and central banks might want to issue digital currencies similar to bitcoin. (Some countries are already experimenting with this.)

But Lagarde added a note of caution. While saying cryptocurrencies could improve on current payment networks, she also said governments could manage them more effectively and eliminate the issues of trust that have hobbled them. The remarks could have a chilling effect on existing, nongovernmental tokens.

Bitcoin, Ether, Ripple and other cryptos lose nearly $700 billion since January – Eric Lam

1.jpg

Hong Kong: The great cryptocurrency crash of 2018 is heading for its worst week yet. Bitcoin sank toward $4,000 and most of its peers tumbled on Friday, extending the Bloomberg Galaxy Crypto Index’s weekly decline to 25 percent. That’s the worst five-day stretch since crypto-mania peaked in early January. After an epic rally last year that exceeded many of history’s most notorious bubbles, cryptocurrencies have become mired in a nearly $700 billion rout that shows few signs of abating.

Many of the concerns that sparked the 2018 slump – including increased regulatory scrutiny, community infighting and exchange snafus – have only intensified this week. Even after losses exceeding 70 percent for most virtual currencies, Oanda Corp.’s Stephen Innes has yet to see strong evidence of a capitulation that might signal a market bottom.

“There’s still a lot of people in this game,” Innes, head of trading for Asia Pacific at Oanda, said by phone from Singapore. If Bitcoin “collapses, if we start to see a run down toward $3,000, this thing is going to be a monster. People will be running for the exits.” Innes said his base case forecast is for Bitcoin to trade between $3,500 and $6,500 in the short term, with the potential to fall to $2,500 by January.

A Fifth of China’s Homes Are Empty That’s 50 Million Apartments – Bloomberg

1.jpg

Chinese President Xi Jinping’s mantra that homes should be for living in is falling on deaf ears, with tens of millions of apartments and houses standing empty across the country. Soon-to-be-published research will show roughly 22 percent of China’s urban housing stock is unoccupied, according to Professor Gan Li, who runs the main nationwide study. That adds up to more than 50 million empty homes, he said. The nightmare scenario for policy makers is that owners of unoccupied dwellings rush to sell if cracks start appearing in the property market, causing prices to spiral……….

Read more: https://www.bloomberg.com/news/articles/2018-11-08/a-fifth-of-china-s-homes-are-empty-that-s-50-million-apartments

 

 

 

 

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you

Five Reasons Business Strategy Is Mission Critical – Aaron Vick

1.jpg

Navigating new terrain without a road map is hard. The same can be said about your business no matter how long it has been established. A business strategy process is critical to define your company’s mission, create goals and create a plan to achieve them. All too often, businesses skip strategy and just wing it. It’s a decision that comes with repercussions. Statistics show that 95% of employees aren’t aware of or don’t understand their company’s overall strategy…..

Read more: https://www.forbes.com/sites/forbestechcouncil/2018/10/19/five-reasons-business-strategy-is-mission-critical/#747c3da97793

 

 

 

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you

%d bloggers like this:
Skip to toolbar