This Biotech Startup Just Raised $255 Million To Make Its AI-Designed Drug A Reality

Science technology concept. Research and Development. Drug discovery.

While many AI biotech companies are on journeys to discover new drug targets, Hong Kong-based Insilico Medicine is a step ahead. The startup not only scouts for new drug sites using its AI and deep learning platforms but also develops novel molecules to target them.

In February, the company announced the discovery of a new drug target for idiopathic pulmonary fibrosis, a disease in which air sacs of the lungs get scarred, leading to breathing difficulties. Using information about the site, it developed potential drug targets. The startup recently raised $255 million in series C funding, taking its total to $310 million. The round was led by private equity firm Warburg Pincus. Insilico will use the funds to start human clinical trials, initiate multiple new programs for novel and difficult targets, and further develop its AI and drug discovery capabilities.

The company has stiff competition in the industry of using AI to discover new drugs. The global AI in Drug Discovery market was valued at $230 million in 2021 and is projected to reach a market value of over $4 billion  by 2031, according to a report from Vision Gain. The area has already minted at least one billionaire, Carl Hansen of AbCellera, and others have also gained attention from investors. Flagship Pioneering-backed Valo Health announced this month it’s going public via SPAC.

Investors said that Insilico’s AI technology and partnerships with leading pharmaceuticals attracted them to the startup, despite the crowded field. “Insilico fits strongly with our strategy of investing in the best-in-class innovators in the healthcare,” said Fred Hassan of Warburg Pincus, “Artificial Intelligence and Machine Learning is a powerful tool to revolutionize the drug discovery process and bring life-changing therapies to patients faster than ever before, he added.

CEO and founder Alex Zhavoronkov got his start in computer science, but his interest in research into slowing down aging drew him to the world of biotech. He received his Masters from Johns Hopkins and then got a PhD from Moscow State University, where his research focused on using machine learning to look at the physics of molecular interactions in biological systems.

The process for finding a preclinical target for idiopathic pulmonary fibrosis highlights Insilico’s approach. The company had initially found 20 new target sites to treat fibrosis. Then it used its machine learning processes to narrow those down to a specific target which is implicated in idiopathic pulmonary fibrosis. Then using its in-house tool, Chemistry42, it generated novel molecules to target the new site. The new preclinical drug candidate was found efficacious and safe in mice studies, the company said in a press release. 

“Now we have successfully linked both biology and chemistry and nominated the preclinical candidate for a novel target, with the intention of taking it into human clinical trials, which is orders of magnitude more complex and more risky problem to solve,” Zhavoronkov added in a statement.

Treatments for this condition are a dire need. Patients with idiopathic pulmonary fibrosis develop respiratory failure as their blood doesn’t receive adequate oxygen. Most patients die within two to three years of developing the condition. If the company’s drug candidate proves out during clinical trials, it would be a major step forward both for these patients and the industry as a whole.

“To my knowledge this is the first case where AI identified a novel target and designed a preclinical candidate for a very broad disease indication,” Zhavoronkov said in a statement.

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I am a New York based health and science reporter and a graduate from Columbia’s School of Journalism with a master’s in science and health reporting. I write on infectious diseases, global health, gene editing tools, intersection of public health and global warming. Previously, I worked as a health reporter in Mumbai, India, with the Hindustan Times, a daily newspaper where I extensively reported on drug resistant infections such as tuberculosis, leprosy and HIV. I also reported stories on medical malpractice, latest medical innovations and public health policies.

I have a master’s in biochemistry and a bachelor’s  degree in zoology. My experience of working in a molecular and a cell biology laboratory helped me see science from researcher’s eye. In 2018 I won the EurekAlert! Fellowships for International Science Reporters. My Twitter account @aayushipratap

Source: This Biotech Startup Just Raised $255 Million To Make Its AI-Designed Drug A Reality

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Critics:

CEO Alex Zhavoronkov founded Insilico Medicine in 2014, as an alternative to animal testing for research and development programs in the pharmaceutical industry. By using artificial intelligence and deep-learning techniques, Insilico is able to analyze how a compound will affect cells and what drugs can be used to treat the cells in addition to possible side effects. Through its Pharma.AI division, the company provides machine learning services to different pharmaceutical, biotechnology, and skin care companies. Insilico is known for hiring mainly through hackathons such as their own MolHack online hackathon.

The company has multiple collaborations in the applications of next-generation artificial intelligence technologies such as the generative adversarial networks (GANs) and reinforcement learning to the generation of novel molecular structures with desired properties. In conjunction with Alan Aspuru-Guzik‘s group at Harvard, they have published a journal article about an improved GAN architecture for molecular generation which combines GANs, reinforcement learning, and a differentiable neural computer.

In 2017, Insilico was named one of the Top 5 AI companies by NVIDIA for its potential for social impact. Insilico has R&D resources in Belgium, Russia, and the UK and hires talent through hackathons and other local competitions. In 2017, Insilico had raised $8.26 million in funding from investors including Deep Knowledge Ventures, JHU A-Level Capital, Jim Mellon, and Juvenescence. In 2019 it raised another $37 million from Fidelity Investments, Eight Roads Ventures, Qiming Venture Partners, WuXi AppTec, Baidu, Sinovation, Lilly Asia Ventures, Pavilion Capital, BOLD Capital, and other investors.

Morrisons Shares Surge As Investors Bet On Low U.K. Supermarket Valuations

Morrisons, CD&R. Tesco, Sainsbury's, Asda

Shares in U.K. publicly-listed supermarket chain Morrisons surged by almost a third in morning trading today, after Britain’s fourth biggest grocer rebuffed a $7.6 billion takeover from U.S. private equity giant Clayton, Dubilier & Rice.

The huge spike in its valuation was prompted by emerging news over the weekend that Morrisons had become a takeover target for CD&R, potentially sparking a bidding war for the grocer.

The news prompted shares to rise across the grocery sector, as investors bet that other supermarket groups could become targets for private equity investors or that a bidding battle could erupt, with online giant Amazon AMZN -0.9% – which has an online delivery deal with Morrisons – one possible bidder for its partner.

American private equity firms Lone Star and Apollo Global Management APO +1.9% have also been mentioned as possible suitors for Morrisons, which has been battling with a declining market share, now down at 10%, from 10.6% five years ago. There is a sense that the U.K. supermarket sector could be ripe for more potential takeovers. The share price performance of the entire sector is seen as under-performing compared with U.S. grocers, for example, despite being profitable and achieving typical dividend yields of around 4%.

CD&R has history, having previously made investments in the discount U.K. store chain B&M, from which it made more than $1.4 billion.

Morrisons Rebuffs Bid But More Could Follow

Morrisons first announced on Saturday that it had turned down a preliminary bid by Clayton, Dubilier & Rice, which is believed to have been made on or around 14 June. The Bradford-based company said that its board had “unanimously concluded that the conditional proposal significantly undervalued Morrisons and its future prospects”.

CD&R had offered to pay nearly 320c a share in cash, while Morrisons’ share price closed at 247c on Friday, before its surge today as trading reopened for the first time since the announcement.

The New York-headquartered private equity firm has until 17 July to make a firm offer and to persuade a reluctant Morrisons management team to recommend that shareholders agree to the deal.

Sir Terry Leahy, a former Tesco chief executive, is a senior adviser for CD&R and, like its market-leading rival Tesco, Morrisons’ shares have been trading below their pre-pandemic levels as higher costs due to operating throughout the pandemic have taken their toll despite booming sales at essential stores across the U.K.

Morrisons currently employs 121,000 people and made a pre-pandemic profit of $565.5 million in 2019, which plunged to $278.6 million in 2020. It owns the freehold for 85% of its 497 stores. One-quarter of what it sells comes from its own supply chain of fresh food manufacturers, bakeries and farms.

CD&R has so far declined to comment on whether it will return with a higher bid, but analysts believe its approach is probably just the first salvo.

Previously, former Walmart WMT +0.9%-owned Asda was snapped up by the U.K.’s forecourt billionaire Issa brothers along with private equity firm TDR Capital in a debt-based $9.4 billion buyout. Likewise, CD&R could adopt a similar model and combine Morrisons, which has just a handful of convenience stores after a number of limited trials of smaller store formats, with its Motor Fuel Group of 900 gas stations.

There are also wider political concerns that it could emulate the Issas by saddling Morrisons with debt and selling off its real estate assets and CD&R is understood to be weighing political reaction before determining whether or not to come back with a higher bid.

Supermarket Takeovers More Likely Than Mergers

For tightly-regulated U.K. competition reasons, takeovers or mergers between supermarket groups appear increasingly complex. The competition watchdog blocked a proposed $9.7 billion takeover by Sainsbury’s for rival Asda two years ago, determining that the deal threatened to increase prices and reduce choice and quality.

However, comparatively relaxed rules on private equity bids mean few such restrictions apply to takeovers. Private equity firms have acquired more U.K. firms over the past 18 months than at any time since the financial crisis, according to data from Dealogic, and Czech business mogul Daniel Křetínský has established a 10% stake in Sainsbury’s, the U.K.’s second biggest supermarket chain. Having failed in an attempt to take over Germany’s Metro Group last year, he could yet make an offer for a British grocer.

AJ Bell investment director Russ Mould added in an investor note this morning that Morrisons’ balance sheet looks highly attractive, in particular to a private equity firm looking to sell business assets to release cash.

“Morrisons’ balance sheet has plenty of asset backing and the valuation was relatively depressed before news of private equity interest,” he said. “The market value of the business had weakened so much that it clearly triggered some alerts in the private equity space to say the value on offer was looking much more attractive.”

Follow me on Twitter or LinkedIn. Check out my website.

I am a global retail and real estate expert who looks behind the headlines to figure out what makes consumers tick. I work as editor-in-chief for MAPIC and editor for World Retail Congress, two of the biggest annual international retail business events.  I also organise, speak at, and chair conferences all over the world, with a focus on how people are changing and what that means for the retail, food & beverage, and leisure industries. And it’s complicated! Forget the tired mantra that online killed the store and remember instead that retail has always been dog-eat-dog: star names rise and fall fast, and only retailers that embrace the madness will survive. Don’t think it’s not important, your pension funds own those malls!

Source: Morrisons Shares Surge As Investors Bet On Low U.K. Supermarket Valuations

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Critics:

Wm Morrison Supermarkets plc (Morrisons) (LSEMRW) is the fourth biggest supermarket in the United Kingdom. Its main offices are in Bradford, West Yorkshire, England.The company is usually called Morrisons. In 2008, Sir Ken Morrison left the company. Dalton Philips is the current head. The old CEO was Marc Bolland, who left to become CEO of Marks & Spencer.

As of September 2009, Morrisons has 455 shops in the United Kingdom. On 15 March 2007, Morrisons said that it would stop its old branding and go for a more modern brand image. Their lower price brand, Bettabuy, was also changed to a more modern brand called the Morrisons Value. This brand was then changed again in 2012 as Morrisons started their low price option brand called M Savers.

In 2005 Morrisons bought part of the old Rathbones Bakeries for £15.5 million which make Rathbones and Morrisons bread. In 2011, Morrisons opened a new 767,500 square/foot centre in Bridgwater for a £11 million redevelopment project. This project also made 200 new jobs.

References:

  1. “Morrisons Distribution Centre Preview”. Bridgwater Mercury. Retrieved 6 July 2012. This short article about the United Kingdom can be made longer. You can help Wikipedia by adding to it.

How Entrepreneurs Are Capitalizing on Digital Transformation in the Age of the ‘New Normal’

How Entrepreneurs Are Capitalising on Digital Transformation in the Age of the 'New Normal'

The Covid-19 pandemic has carried a significant impact on the rate in which businesses are embracing digital transformation. The health crisis has created an almost overnight need for traditional brick and mortar shopping experiences to regenerate into something altogether more adaptive and remote. While some businesses are finding this transition toward emerging technology a little tricky, it’s proving to be a significant opportunity for entrepreneurs in the age of the “new normal.”

Astoundingly, data suggests that digital transformation has been accelerated by as much as seven years due to the pandemic, with Asia/Pacific businesses driving forward up to a decade in the future when it comes to digital offerings.

With entrepreneurs and new startup founders finding themselves in a strong position to embrace modern digital practices ahead of more traditional companies, we’re likely to see a rise in innovation among post-pandemic businesses. With this in mind, let’s take a deeper look into the ways in which digital transformation are benefiting businesses in the age of the new normal:

Fast, data-driven decisions.

Any digital transformation strategy needs to be driven by data. The emergence of big data as a key analytical tool may make all the difference in ensuring that startups take the right steps at the right time to ensure that they thrive without losing valuable resources chasing the wrong target audience, or promoting an underperforming product.

Enterprises today have the ability to tap into far greater volumes of data than ever before, thanks largely to both big data and Internet of Things technology. With the right set of analytical tools, this data can be transformed into essential insights that can leverage faster, more efficient and accurate decisions. Essentially, the deeper analytical tools are embedded in business operations, the greater the levels of integration and effect that may have.

By incorporating more AI-based technology into business models, it’s possible to gain access to huge volumes of big data that can drive key decisions. The pandemic has helped innovations in terms of data and analytics become more visible in the world of business, and many entrepreneurs are turning to advanced AI capabilities in order to modernise their existing applications while sifting through data at a faster and more efficient rate.

Leveraging multi-channel experiences.

Digital transformation is empowering customers to get what they want, when they want, and however they want it. Today, more than half of all consumers expect to receive a customer service response within 60 minutes. They also want equally swift response times on weekends as they’ve come to expect on weekdays. This emphasis on perpetual engagement has meant that businesses that aren’t switched on 24/7/365 are putting themselves at a disadvantage to rivals that may have more efficient operations in place.

The pandemic has led to business happening in real-time – even more so than in brick and mortar stores. Although customers in high street stores know they’re getting a face to face experience, this doesn’t mean that business representatives can offer a similar personalised and immediately knowledgeable service than that of a chatbot or a live chat operative with a sea of information at their disposal.

Modern consumers are never tied to a single channel. They visit stores, websites, leave feedback through mobile apps and ask questions for support teams on social networking sites. By combining these interactions, it’s possible to create full digital profiles for customers whenever they interact with your business – helping entrepreneurs to provide significantly more immersive experiences.

Fundraising via blockchain technology.

Blockchain technology is one of the most exciting emerging technologies today. Its applications are far-reaching in terms of leveraging new payment methods and brokering agreements via smart contracts, and while the use cases for these blockchain applications will certainly grow over the coming years, today the technology is already being widely utilised by entrepreneurs as a form of raising capital through Initial Token Offerings (ITOs), also known as Initial Coin Offerings (ICOs).

As an alternative to the use of traditional banks, venture capital firms, angel investors or crowdfunders, ITO tokens can be made available for exchanges where they can trade freely. These tokens are comparable to equity in a company, or a share of revenue for token holders.

Interested investors can buy into the offering and receive tokens that are created on a blockchain from the company. The tokens could have some practical use within the company where they can be spent on goods or services, or they could purely represent an equity share in a startup or project.

There are currently numerous companies that use blockchain technology to simply and secure its operations. From large corporations like HSBC’s Digital Vault, which is blockchain-based custody platform that allows clients to access details of their private assets to small education startups like ODEM, which aim to democratize education.

Another company that’s pioneering blockchain technology within the world of business is OpenExO, which has developed its own community-driven utility token EXOS, to help build a new transformation economy that helps companies to accelerate, democratise and internationalise their innovation.

Salim Ismail, OpenExO founder, is the former Yahoo technology innovator who developed the industry of Exponential Organizations. He has become a household name in the entrepreneur and innovation landscape, and now he launches the blockchain ecosystem that includes Fortune 500 companies, cities and even countries.

Reaping widespread rewards.

Although digital transformation could begin with a focus on just one facet of a startup, its benefits can be far reaching for employees, consumers and stakeholders alike. It could limit the mundane tasks required of workers, offer greater levels of personalisation for consumers and free up new skills to be developed in other areas of a business.

This, in turn, helps to build more engaged and invested teams that know the value of fresh ideas and perspectives. Although the natural adaptability of entrepreneurs makes the adoption of digital transformation an easier one to make than for established business owners, the benefits can be significant for both new and old endeavours.

The pandemic has accelerated the potential of emerging technologies by over seven years in some cases, the adoption of these new approaches and tools can be an imperative step in ensuring that your business navigates the age of the new normal with the greatest of efficiency.

Dmytro Spilka

By: Dmytro Spilka / Entrepreneur Leadership Network VIP – CEO and Founder of Solvid and Pridicto

Source: How Entrepreneurs Are Capitalising on Digital Transformation in the Age of the ‘New Normal’

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Critics:

Digital Transformation (DT or DX) or Digitalization is the adoption of digital technology to transform services or businesses, through replacing non-digital or manual processes with digital processes or replacing older digital technology with newer digital technology. Digital solutions may enable – in addition to efficiency via automation – new types of innovation and creativity, rather than simply enhancing and supporting traditional methods.

One aspect of digital transformation is the concept of ‘going paperless‘ or reaching a ‘digital business maturity’affecting both individual businesses and whole segments of society, such as government,mass communications,art,health care, and science.

Digital transformation is not proceeding at the same pace everywhere. According to the McKinsey Global Institute‘s 2016 Industry Digitization Index,Europe is currently operating at 12% of its digital potential, while the United States is operating at 18%. Within Europe, Germany operates at 10% of its digital potential, while the United Kingdom is almost on par with the United States at 17%.

One example of digital transformation is the use of cloud computing. This reduces reliance on user-owned hardware and increases reliance on subscription-based cloud services. Some of these digital solutions enhance capabilities of traditional software products (e.g. Microsoft Office compared to Office 365) while others are entirely cloud based (e.g. Google Docs).

As the companies providing the services are guaranteed of regular (usually monthly) recurring revenue from subscriptions, they are able to finance ongoing development with reduced risk (historically most software companies derived the majority of their revenue from users upgrading, and had to invest upfront in developing sufficient new features and benefits to encourage users to upgrade), and delivering more frequent updates often using forms of agile software development internally.This subscription model also reduces software piracy, which is a major benefit to the vendor.

Digitalization (of industries and organizations)

Unlike digitization, digitalization is the ‘organizational process’ or ‘business process’ of the technologically-induced change within industries, organizations, markets and branches. Digitalization of manufacturing industries has enabled new production processes and much of the phenomena today known as the Internet of Things, Industrial Internet, Industry 4.0, machine to machine communication, artificial intelligence and machine vision.

Digitalization of business and organizations has induced new business models (such as freemium), new eGovernment services, electronic payment, office automation and paperless office processes, using technologies such as smart phones, web applications, cloud services, electronic identification, blockchain, smart contracts and cryptocurrencies, and also business intelligence using Big Data. Digitalization of education has induced e-learning and Mooc courses.

See also

China’s Xtep Closes At New Record On Hillhouse Investment; Ding Clan’s Fortune Tops $2 Bln

Xtep

Shares in China sportswear supplier Xtep ended the week at a new record high today after the company announced investment hook-ups with China private equity firm Hillhouse Capital Management, one of China’s largest private equity firms.

Xtep’s Hong Kong-traded shares rose 5.6% to HK$13.16 today; they’ve more than doubled since mid-May.

Xtep said it would raise HK$500 million from the sale to Hillhouse of bonds that can be converted into its own underlying shares. In addition, subsidiary Xtep Global raised $65 million from Hillhouse from the sale of bonds that can be converted into that unit’s shares. (See announcements here and here.) Funds will help boost sales of Xtep-owned brands.

The doubling of Xtep’s stock price has lifted the fortune of company’s controlling Ding family to $2.3 billion.  Trusts held by chairman Ding Shui Bo, executive director Ding Mei Qing (his sister) and executive director Ding Ming Zhong (his brother) collectively own 1.3 billion shares that were worth $2.2 billion today. Xtep’s annual report doesn’t give a clear down of the ownership split among them. Shui Bo has another 60.7 million shares worth another $103 million.

Spending on sportswear in China has picked up amid a continuing economic recovery from the Covid-19 pandemic. Xtep, whose rivals include Anta and Nike, said in April first-quarter sales had a mid-50% increase compared with a year earlier. Nike has faced backlash in China after a statement in March expressed concern about alleged forced labor practices its Xinjiang region.

Hillhouse is led by billionaire Zhang Lei, who is worth $3 billion today on the Forbes Real-Time Billionaires List.

See related story:

Hong Kong Is Gaining On The U.S. As An Alternative For Tech Listings

@rflannerychina

Send me a secure tip.

I’m a senior editor and the Shanghai bureau chief of Forbes magazine. Now in my 20th year at Forbes, I compile the Forbes China Rich List. I was previously a correspondent for Bloomberg News in Taipei and Shanghai and for the Asian Wall Street Journal in Taipei. I’m a Massachusetts native, fluent Mandarin speaker, and hold degrees from the University of Vermont and the University of Wisconsin at Madison.

Source: China’s Xtep Closes At New Record On Hillhouse Investment; Ding Clan’s Fortune Tops $2 Bln

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Critics:

Xtep International Holdings Limited (SEHK stock code: 1368) is a Chinese manufacturing company of sports equipment based in Kowloon Bay, Hong Kong.[2] Established in 2001, the company was listed on the Main Board of the Hong Kong Stock Exchange on 3 June 2008.[3]

Xtep engages mainly in the design, development, manufacturing, sales, marketing and brand management of sports equipment, including footwear, apparel, and accessories. Xtep is a leading professional sports brand with an extensive distribution network of over 6,300 stores covering 31 provinces, autonomous regions and municipalities across the PRC and overseas.

In 2019, Xtep has further diversified its brand portfolio which now includes four internationally brands, namely K-Swiss, Palladium, Saucony and Merrell. Xtep is a constituent of the MSCI China Small Cap Index, Hang Seng Composite Index Series and Shenzhen-Hong Kong Stock Connect.

In August 2019, Xtep signed on famous Asian basketball player Jeremy Lin as spokesperson, marking its foray into the basketball business realm. Xtep also unveiled its “Basketball Product Co-Creation Plan” to come up with basketball products via product co-creation.

After previously supplying then-Premier League side Birmingham City and La Liga side Villarreal in 2010 and 2014 respectively, Xtep left the major football scene in 2017 and focused on other sports, mainly in running. In mid-2018, Xtep returned again to the football scene by signing a contract with Saudi Professional League side Al-Shabab ahead of the 2018–19 season in a reported three-year contract. On 13 October 2019, Egyptian Premier League side Al Ittihad Alexandria announced Xtep as their new official kit supplier until 2022, replacing German company Uhlsport.

References

  1. “الاتحاد السكندري يُعلن عن الزى الجديد .. و يتعاقد حصرياً مع شركة سعودية للملابس الرياضية” [Al Ittihad Alexandria reveals new kits for the 2019–20 as they announce new deal with Chinese-Saudi Arabian company Xtep]. Al Ittihad Alexandria Club official website. 13 October 2019. Retrieved 5 January 2020.
  1. Xtep 2019 Interim Report [2019-08-21]
  2. XTEP INT’L Forms JV to Run Merrell, Saucony Brands – AASTOCKS [2019-03-04]
  3. Xtep buys E-Land Footwear to develop series – The Standard [2019-05-03]
  4. Xtep expands its sportswear portfolio into basketball shoes and apparel, signing on star Jeremy Lin as brand spokesman – South China Morning Post [2019-08-09]

Netflix And Boeing Among Today’s Trending Stocks

According to a report from the Washington Post dropped June 12, 1-year inflation is up 5%, while 2-year inflation sits around 5.6%. This has impacted everything from raw materials like lumber and glass to manufactured products. Used cars are up 29.7% in the last year, while gas has shot up over 56%, and washing machines and dryers sit up around 26.5%.

This comes as the global microchip shortage compounds retailers’ problems as they struggle to automate their supply chains. And while the economy (and the stock market) is certainly rebounding from covid-era recession pressures, consumers are stuck footing high-priced bills as both demand and the cost of materials continue to rise. Still, the Fed maintains that prices should stabilize soon – though “soon” may mean anywhere from 18-24 months, according to consulting firm Kearney.

Until then, investors will have to weigh their worries about inflation on the equities and bonds markets against the growing economy to decide which investments have potential – and which will see their returns gouged by rising prices across the board. To that end, we present you with Q.ai’s top trending picks heading into the new week.

Q.ai runs daily factor models to get the most up-to-date reading on stocks and ETFs. Our deep-learning algorithms use Artificial Intelligence (AI) technology to provide an in-depth, intelligence-based look at a company – so you don’t have to do the digging yourself.

Netflix, Inc (NFLX)

First up on our trending list is Netflix, Inc, which closed at $488.77 per share Friday. This represented an increase of 0.31% for the day, though it brought the streaming giant to down 9.6% for the year. The company has experienced continual losses for the past few weeks, with Friday ending below the 22-day price average of $494 and change. Currently, Netflix is trading at 47.1x forward earnings.

Netflix, Inc. trended in the latter half of last week as the company opened a new e-commerce site for branded merchandise. Currently, the store’s offerings are limited to a few popular Netflix tv shows, but the company hopes to increase its branded merchandise branded to shows such as Lupin, Yasuke, Stranger Things, and more in the coming months. With this latest move, the company hopes to expand its revenue channels and compete more directly with competitors such as Disney+.

In the last fiscal year, Netflix saw revenue growth of 5.6% to $25 billion compared to $15.8 billion three years ago. At the same time, operating income jumped 21.8% to $4.585 billion from $1.6 billion three years ago. And per-share earnings jumped almost 36% to $6.08 compared to $2.68 in the 36-month-ago period, while ROE rose to 29.6%.

Currently, Netflix is expected to see 12-month revenue around 3.33%. Our AI rates the streaming behemoth A in Growth, B in Quality Value and Low Volatility Momentum, and D in Technicals.

The Boeing Company (BA)

The Boeing Company closed down 0.43% Friday to $247.28, trending at 9.93 million trades on the day. Boeing has fallen somewhat from its 10-day price average of $250.67, though it’s up over the 22-day average of $240 and change. Currently, Boeing is up 15.5% YTD and is trading at 180.1x forward earnings.

The Boeing Company has trended frequently in recent weeks as the airplane manufacturer continues to take new orders for its jets, including the oft-beleaguered 737 MAX. United Airlines is reportedly in talks to buy “hundreds” of Boeing jets in the next few months, while Southwest Airlines is seeking up to 500 new aircraft as it expands its U.S. service. Alaskan Airlines, Dubai Aerospace Enterprise, and Ryanair have also placed orders for more Boeing jets heading into summer.

Over the last three fiscal years, Boeing’s revenue has plummeted from $101 billion to $58.2 billion, while operating income has been slashed from $11.8 billion to $8.66 billion. At the same time, per-share earnings have actually grown from $17.85 to $20.88.

Boeing is expected to see 12-month revenue growth around 7.5%. Our AI rates the airline manufacturer B in Technicals, C in Growth, and F in Low Volatility Momentum and Quality Value.

Nvidia Corporation (NVDA)

Nvidia Corporation jumped up 2.3% Friday to $713 per share, trending with 10.4 million trades on the books. Despite its sky-high stock price, Nividia has risen considerably from the 22-day price average of $631.79 – up 36.5% for the year. Currently, Nvidia is trading at 44.44x forward earnings.

Nvidia is trending this week thanks to surging GPU sales amidst the global chip shortage, as well as its planned 4-for-1 stock split at the end of June – but that’s not all. The company also announced Thursday that it also plans to buy DeepMap, an autonomous-vehicle mapping startup, for an as-yet undisclosed price. With this new acquisition, Nvidia will improve the mapping and localization functions of its software-defined self-driving operations system, NVIDIA DRIVE.

In the last fiscal year, Nvidia saw revenue growth of 15.5% to $16.7 billion compared to $11.7 billion three years ago. Operating income jumped 20.8% in the same period to $4.7 billion against $3.8 billion in the three-year ago period, and per-share earnings expanded 22.6% to $6.90. However, ROE was slashed from 49.3% to 29.8% in the same time frame.

Currently, Nvidia is expected to see 12-month revenue growth around 2%. Our AI rates Nvidia A in Growth, B in Low Volatility Momentum, C in Quality Value, and F in Technicals.

Nike, Inc (NKE)

Nike, Inc closed up 0.73% Friday to $131.94 per share, closing out the day at 5.4 million shares. The stock is down 6.7% YTD, though it’s still trading at 36.8x forward earnings.

Nike stock has slipped in recent weeks as the athleticwear retailer suffers supply chain challenges in North America. And despite recent revenue growth in its Asian markets, it also continues to deal with Chinese backlash to its March criticism of the Chinese government’s forced labor of persecuted Uyghurs.

In the last fiscal year, Nike saw revenue grow almost 3% to $37.4 billion, up 5.8% in the last three years from $36.4 billion. Operating income jumped 40.9% in the last year alone to $3.1 billion – though this is down from $4.45 billion three years ago. In the same periods, per-share earnings grew 33.7% and 82.8%, respectively, from $1.17 to $1.60. And return on equity nearly doubled from 17% to 30%.

Currently, Nike is expected to see 12-month revenue growth around 10.3%. Our AI rates Nike average across the board, with C’s in Technicals, Growth, Low Volatility Momentum, and Quality Value.

Mastercard, Inc (MA)

Mastercard, Inc ticked up 0.33% Friday to $365.50, trading at a volume of 2.7 million shares on the day. The stock is up marginally over the 22-day price average of $363.86 and 2.4% for the year. Currently, Mastercard is trading at 43.64x forward earnings.

Mastercard has faltered behind the S&P 500 index for much of the year – not to mention competitors like American Express. While there’s no one story to tie the credit card company’s relatively modest stock prices to, it may be due to a combination of investor uneasiness, already-high share prices, and increased digital payments. But with travel recently on the rise, it’s possible that Mastercard will be making a comeback.

In the last three fiscal years, Mastercard’s revenue has risen 3.3% to $15.3 billion compared to $14.95 billion. In the same period, operating income has fallen from $8.4 billion to $8.2 billion, whereas per-share earnings have grown from $5.60 to $6.37 for total growth of 16.4%. Return on equity slipped from 106% to 102.5% at the same time.

Currently, Mastercard’s forward 12-month revenue is expected to grow around 4.7%. Our deep-learning algorithms rate Mastercard, Inc. B in Low Volatility Momentum and Quality Value, C in Growth, and D in Technicals.

Q.ai, a Forbes Company, formerly known as Quantalytics and Quantamize, uses advanced forms of quantitative techniques and artificial intelligence to generate investment

Source: Netflix And Boeing Among Today’s Trending Stocks

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Critics:
The S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises 505 common stocks issued by 500 large-cap companies and traded on American stock exchanges (including the 30 companies that compose the Dow Jones Industrial Average), and covers about 80 percent of the American equity market by capitalization.
The index is weighted by free-float market capitalization, so more valuable companies account for relatively more of the index. The index constituents and the constituent weights are updated regularly using rules published by S&P Dow Jones Indices. Although called the S&P 500, the index contains 505 stocks because it includes two share classes of stock from 5 of its component companies.

See also:

References:

JP Morgan Chase Launches Its Own Health Business Unit Three Months After Haven Implodes

https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F616249%2Fjpmorgan-branch-courtesy.jpg&w=1200&h=630&op=resize

JPMorgan Chase is staking out its own healthcare venture, after its joint project with Berkshire Hathaway and Amazon failed earlier this year. On Thursday, the financial firm announced the launch of Morgan Health, a business unit focused on improving employer-sponsored healthcare, to be led by Dan Mendelson, founder and former CEO of the Washington, D.C.-based healthcare consultancy Avalere Health.

The move comes a little over three months since the joint venture Haven Health, which also aimed to lower employee healthcare costs and boost quality services, said it would be winding down.

Morgan Health will invest up to $250 million in “promising healthcare solutions” and will also enter into strategic partnerships, the company said. The new division, which will be headquartered in Washington, D.C., will also focus on health equity issues.

“JPMorgan Chase has been focused on improving healthcare for its employees for many years,” Morgan Health CEO Mendelson said in a statement. “We are going to take what we’ve learned and accelerate healthcare innovation in the employer-sponsored healthcare market, partnering with and investing in companies that share our goals, and measuring key health outcomes to show what works.”

Mendelson has a background in both health policy and finance. He was an operating partner at healthtech PE firm Welsh Carson for the past two years and served as the associate director for health in the Office of Management and Budget in the Clinton White House prior to founding Avalere. With 165,000 employees in the United States, JPMorgan Chase provides health insurance to around 285,000 people, including dependents.

Haven was announced with much fanfare in 2018, with billionaire Warren Buffet calling rising employee healthcare costs “a hungry tapeworm on the American economy.” Around half of Americans receive healthcare benefits through their employers, according to the Kaiser Family Foundation. The federal government estimates total national healthcare spending reached $3.8 trillion, or $11,582 per person, in 2019. And health spending continues to outpace inflation, growing 4.6% in 2019.

The implosion of Haven three years later demonstrated how even well-capitalized corporate juggernauts could be thwarted by the complexity of the U.S. healthcare system. “We were fighting a tapeworm in the American economy, and the tapeworm won,” Buffet said at Berkshire’s annual shareholder meeting earlier this month, according to Yahoo Finance.

“Haven was supposed to show how creativity, ingenuity and private sector, entrepreneurship could beat the healthcare sector. And it failed,” David Blumenthal, a physician and president of the healthcare think-tank The Commonwealth Fund, told Forbes in an interview earlier this year.

He said the speculation as to one of the big challenges Haven faced was that each company wanted to make its own choices for its employees, which has been the downfall of many similar coalitions. Amazon has also been making its own big push into the healthcare sector recently with a virtual primary care service called Amazon Care, the launch of its wearable Amazon Halo and its purchase of online pharmacy PillPack for $750 million.

The radical change needed to control healthcare costs requires buy-in on many levels, including some that employees might not be happy about, says Blumenthal. It could mean narrower networks of physicians to choose from or requiring travel for certain surgeries so they take place at top-ranked facilities, as opposed to the comfort of a local community hospital.

But the biggest impediments are structural—the lack of purchasing power for employers and consolidation among health systems, he said. “In the end, controlling costs in almost every other Western country is a responsibility that government assumes,” Blumenthal said. “It’s for precisely this reason that the alternatives are not effective.”

Despite what may be an uphill battle ahead, JPMorgan leadership is giving it another go. “Covid has shed light on both the greatness of our healthcare system and its challenges,” Peter Scher, vice chairman of the company who will be overseeing Morgan Health, said in a statement. “The firm has been investing in developing solutions to address social and economic challenges over the past 10 years. We plan to take what we’ve learned there and apply it to healthcare.”

Follow me on Twitter or LinkedIn. Send me a secure tip.

I am a staff writer at Forbes covering healthcare, with a focus on digital health and new technologies. I was previously a healthcare reporter for POLITICO covering the European Union from Brussels and the New Jersey Statehouse from Trenton. I have also written for the Los Angeles Times and Business Insider. I was a 2019-2020 Knight-Bagehot Fellow in business and economics reporting at Columbia University. Email me at kjennings@forbes.com or find me on Twitter @katiedjennings.

Source: JP Morgan Chase Launches Its Own Health Business Unit Three Months After Haven Implodes

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References

 

“The History of JPMorgan Chase & Co.: 200 Years of Leadership in Banking, company-published booklet, 2008, p. 5. Predecessor to J.P. Morgan & Co. was Drexel, Morgan & Co., est. 1871. Retrieved July 15, 2010. Other predecessors include Dabney, Morgan & Co. and J.S. Morgan & Co” (PDF).

Strong Buyout Fund Returns Drive Private Equity Stocks Higher

Private equity

Over the past decade, as private equity firms like Blackstone, KKR and Carlyle Group have grown into a gargantuan size and raised buyout funds nearing or eclipsing $20 billion, one critique of their cash gusher was that it would inevitably drive fund returns lower. Now, as the U.S. economy emerges from the Coronavirus pandemic and markets soar to new record highs, recent earning results from America’s big buyout firms reveal a trend of rising returns even as funds surged in size.

Fueled by piping-hot financial markets, returns from the flagship private equity funds of Blackstone, KKR and Carlyle are on the rise. Mega funds from these firms that recently ended their investment period are all running ahead of their prior vintages and raise the prospect that PE firms can achieve net investment return rates nearing or exceeding 20%.

Carlyle, which reported first quarter earnings on Thursday morning, is the newest firm to exhibit rising performance. Its $13 billion North American buyout fund, Carlyle Partners VI, which was launched in 2014 and ended its investment period in 2018, is now being marked at a 21% gross investment rate of return and a net return of 16%, or a 2.2-times multiple on invested capital.

The fund has realized $8.8 billion of investments, like insurance brokerage PIB Group and consultancy PA Consulting, and sits on a portfolio marked at nearly $20 billion. The returns are two-to-three percentage points ahead of Carlyle Partners V, the flagship buyout fund it raised just before the financial crisis. That fund is on track to earn a net IRR of of 14%, or a multiple of 2.1-times its invested capital.

Rising fund profitability, even at scale, is helping to fuel Carlyle’s overall profitability. Net accrued performance fees from Carlyle VI ended the quarter at nearly $1.4 billion and Carlyle sits on a record $3.2 billion in such performance fees that will likely be fully realized in 2021. The firm’s once-lagging stock has recently risen to new record highs.

The trend is even more clear at Blackstone and KKR, which have both used spongy IPO markets to realize multi-billion dollar investment windfalls in recent months.

Blackstone’s flagship $18 billion private equity fund, Blackstone Capital Partners VII, was closed in May 2016 and ended its investment period in February 2020, just before the Covid-19 economic meltdown. After taking public or exiting investments like Bumble, Paysafe and Refinitiv, this fund is now marked at a 18% net investment rate of return, five percentage points better than its prior fund, which raised in the aftermath of the 2008 crisis.

In the past two quarters, the fund has been the single biggest driver of Blackstone’s record profitability, generating over $1.6 billion in combined accrued performance fees. In the first quarter, the fund was responsible for 82-cents in quarterly per-share profits, filings show. Overall, Blackstone sits on a record $5.2 billion in net accrued performance fees.

At KKR, it’s a similar story. The firm’s $8.8 billion Americas XI fund, which was raised in 2012 and ended its investment period in 2017, is generating net IRRs of 18.5%, or a 2.2-times multiple on invested capital, according to the its annual 10-k filing from February. That sets up the fund to be KKR’s most profitable buyout fund since the 1990s.

KKR’s first quarter results, set to be released in early May, may show even bigger windfalls and higher returns. Its recent public offering of Applovin looks to be one of the greatest windfalls in the firm’s history, bolstering returns and profits for its even newer $13.5 billion Americas Fund XII. Asia could also be an area of big returns as its $9 billion Asian Fund III monetizes investments.

As returns rise, PE firms have seen their stocks soar to new record highs.

Once a laggard, Carlyle is up 36% year-to-date to a new record high above $42, according to Morningstar data. The firm, now led by chief executive Kewsong Lee, has returned an annual average of 23% over the past five-years.

KKR has done even better, rising 40% this year alone and 125% over the past 12-months. It’s five and ten-year total stock returns are now 33% and 13.5%, respectively.

The top performer in the industry is Blackstone Group, which recently eclipsed a $100 billion market value. Up 39% this year alone, Blackstone’s generated an average annualized total return of nearly 19% over the past decade, which is about five-percentage-points better annually than the S&P 500 Index.

Bottom Line: With public markets hitting new record highs, buyout firms are reporting LBO returns not seen since the 1990s. Their stocks, which once badly lagged the S&P 500, are beginning to beat the market.

I’m a staff writer and associate editor at Forbes, where I cover finance and investing. My beat includes hedge funds, private equity, fintech, mutual funds, mergers, and banks. I’m a graduate of Middlebury College and the Columbia University Graduate School of Journalism, and I’ve worked at TheStreet and Businessweek. Before becoming a financial scribe, I was a member of the fateful 2008 analyst class at Lehman Brothers. Email thoughts and tips to agara@forbes.com. Follow me on Twitter at @antoinegara

Source: Strong Buyout Fund Returns Drive Private Equity Stocks Higher

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Equitable Workplaces Require Getting Over Fear of Conflict

Many employers made dramatic commitments after the murder of George Floyd last year about making their workplaces (and leadership teams) more equitable. Despite this, most of the tech industry, which built its reputation on speed, scale, and innovation, is falling short—and it’s because of fear.

Fear of open conflict is destroying workplaces, and it’s disproportionately harming Black and Latinx women workers. It is limiting any possibility for the 21st-century workforce to reflect the demographics of this country. But it’s possible to lead in a different way.

We want to take you through a few aspects of our working relationship, as leaders of the nonprofit Code2040, which is committed to proportional representation of Black and Latinx people at all levels of tech leadership. Our partnership is based on a mutual commitment to eradicating the ways that fear of conflict and systemic racism maintain white, male dominance in the vast majority of workplaces.

As a Latinx woman manager (Karla), and a Black woman direct report (Mimi), we saw our working relationship as racial equity leaders in tech as a unique opportunity to unpack, unlearn, and redesign relational systems that didn’t serve us. In the years that we‘ve worked together at Code2040, we cultivated a relationship based in candor and feedback, which allowed us to unearth the variety of ways we were socially, professionally, and economically discouraged from bringing the full breadth of our talents to our work.

We noticed that the obstacles to our leadership within and outside of Code2040 fell into a few similar categories, and we began communicating with other women of color in tech and at non-profits, to further develop our hypotheses. It was in those conversations we understood that not only were we not alone. We were all in the same compression chamber, and it was sucking the oxygen out of our capacity to lead.

Failing to recognize common tropes (aka racism)

Stereotypes about Black and Latinx women reinforce themselves and serve to police behavior that could build Black and Latinx power. This is called stereotype threat: The hyper-awareness that one could be confirming a stereotype actually impacts our performance—and sometimes confirms the stereotype about our group. For example, one common trope about Black women is that Black women are intimidating or angry.

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How can mentorship in the workplace help to close the job equity gap? Award-winning diversity, inclusion and mentorship expert Janice Omadeke shares her personal mentorship journey along with four helpful takeaways, as she discusses how women and allies can start closing the job equity gap through mentorship. Janice Omadeke | Change Maker & Entrepreneur

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Trying to never come across as intimidating or angry can be such a focus that it impacts a Black woman’s ability to participate fully in contentious conversations or projects. Essentially, knowing that avoiding conflict with white folks is key to being seen as agreeable and therefore to being safe at work, a Black woman might hold back feedback, edits, or observations that actually could benefit the team and build her standing as a leader in the organization.

We’ve had moments in our journey together where anti-Blackness and Latinx erasure supported assumptions that Mimi was pulling the strings (anti-Blackness) and Karla was being manipulated (Latinx erasure). When Karla became CEO and chose to restructure our organization there were whispers and even reports to the board that Karla’s decision was made because of Mimi’s influence. Stereotype threat on both of our parts meant that Karla being decisive threatened blowback on Mimi as being controlling, or Karla moving more slowly reinforced stereotypes of her being too emotional.

What you can do instead:

  • Educate yourself on how racism, sexism, and xenophobia are commonly leveraged to police women of color’s behavior or even our very presence in the world.
  • Use Karla’s CADREES acronym, which describes the ways in which racism is manifesting in your perception of others. CADREES is Comparison, Assumption, Disproportionate Anger/Punishment/Fear, Resentment, Envy and Erasure, Suspicion.
  • Do not vilify Black folks for the actions that white men are promoted for, such as giving critical feedback on product direction, or lauding their own accomplishments.

Discouraging conflict and punishing candor

In the first few months at Code2040, Karla made a decision Mimi vehemently disagreed with, and Mimi tried to give feedback unemotionally. Weeks later, Karla said “You know, you can cry or even yell with me, and I won’t think you less of a professional.” Never before or since had Mimi been told that she could bring the wholeness of her passion to work without risking being perceived as emotional or angry.

Through the coded language of “professionalism,” Black women are taught to shrink themselves into smaller and less offensive packages through feedback on things like the (lack of) appropriateness of their natural hair, the unfriendliness of their facial expressions, or the tone of their voice.

Tone policing, where the content of someone’s message is ignored because of the listener’s feelings about the way it  was delivered, is a common silencing tool used against Black women. It’s often used when a candid conversation feels threatening to a white person or when the white person is being triggered because they perceive a conflict coming on, and want to derail the conversation or deflect the feedback.

What you can do instead:

  • Pause and reflect. It is important to pull away from your fight, flight, freeze, and appease responses. White supremacy thrives on urgency.
  • Ensure that in tough conversations, you are focusing on the content of the message rather than the delivery.
  • Remember that limiting candor to opinions devoid of feeling often eliminates opportunities for candor altogether.

Grounding feedback in anti-Blackness

Black women are consistently denied direct feedback on their work. When it’s given, it’s often on their communication style, rather than content, systems building, or strategy. Too often, Black women are denied advancement opportunities because they are not seen as a “good culture fit” by white leadership.

Culture fit is often a coded way to suggest that the person in question has not assimilated into white culture or the white standards of professionalism of that particular workplace, or that the person in question challenges authority, is unwilling to be silenced, or points out behaviors or systems that leadership would rather not recognize.

Knowing that feedback for Black women is almost always cloaked in anti-Blackness, Karla took explicit care at the beginning of our management relationship to understand Mimi’s prior experiences with managers and how they might inform Mimi’s relationship to feedback and power.

Karla designed explicit growth arcs, allowed Mimi to make mistakes without punitive consequences, and listened to Mimi’s experience of the workplace. When feedback about Mimi was grounded in anti-Blackness, Karla learned to push team members to articulate their feedback explicitly and challenged them to examine where anti-Blackness was creeping in.

What you can do instead: 

  • Accept that anti-Blackness is a material factor that will limit all Black staff. If you think anti-Blackness never shows up, you haven’t paused or learned enough to identify it.
  • Go to Black women directly and privately with actionable, non-personality-based feedback. Focus on content, ideas, strategy, and deliverables.
  • Develop your own resilience for conflict and candor especially with staff of color. Work with therapists and/or coaches with expertise in racial equity to develop skills and learn tools to help you discern between when you are triggered because a) someone has violated a legitimate boundary of yours versus b) you expect Black compliance or deference and you’re not getting it.
  • Consider framing like “values match” or “culture add,” when hiring and assessing performance. When designed well, a set of “values match” criteria can help assess whether a candidate or employee is aligned with explicit performance or achievement values rather than implicit cultural values.

Invisibilizing Latinx women

Latinx women’s leadership is typically accepted only when it is helpful but invisible. If Latinx women are unwilling to be invisible, the consequences for their visibility can be career-ending. One of Karla’s superpowers as a leader is her uncommon depth of empathy and her willingness to be vulnerable at group level. This skill plays into her gift of connecting patterns to detect shifts in a team, company, or even an industry or culture before they happen.

As VP of Programs, Karla’s vulnerability was often seen as useful when it was behind closed doors—for example, to help quell discord between two staff members. But when deployed organization-wide, or publicly, Karla often got feedback that her vulnerability was discomfiting and unwelcomed, even when that vulnerability created positive visibility and insightful pattern spotting. There were moments when she was challenged as too weak to lead or too radical to be palatable—even when those sentiments conflicted with each other. Once, Karla received feedback from a leader that their “life would be so much easier” if she didn’t lead so vulnerably.

The sentiment was astute in that the rules of power worked differently at Code2040 because of Karla’s leadership, but that caused resentment from many, because of the work that was required to understand more equitable ways of distributing power. White folks often resent when the rules of the workplace that have supported their success and hegemony are challenged, and often prefer that the challenger simply disappear, rather than lay bare the places where upgraded skills are required in order to succeed in the 21st century workplace.

What you can do instead: 

  • Encourage women of color to take stretch opportunities. Don’t penalize them for learning.
  • Factor in the social consequences that come from women of color stepping into the spotlight. Make a plan to protect their social capital.

Today we announced that after three years as CEO, Karla is moving on from her day-to-day work at Code2040, and Mimi is taking the helm as CEO. Though we’re both a bit grief-stricken to lose this partnership, it has been the formative professional experience of a lifetime. We hope that sharing a glimpse into our journey gives you a sense of the power of shared leadership, a taste of the hope and creativity available when you brazenly fight anti-Blackness and Latinx erasure, and the joy of building a place where Black and Latinx people can lead.

By: Mimi Fox Melton and Karla Monterroso

Source: Equitable workplaces require getting over fear of conflict

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Bitcoin Price Prediction 2021: Where Is The Top?

JP Morgan is my friend, not the bank, but the Victorian banker. He said, “I’ve made a fortune selling too early” and as a bitcoin seller at $32,000 I invoke him as justification. Having said that, and I have stated this tactic in previous columns, I have done at least as well with about half the VAR (value at risk) by playing with the fire that is DeFi.

If you are using decentralized exchanges or keeping  tokens or passing them through your wallet, it is often hard to keep track of it all. It is even easy to forget what you have and where. However, there is a great app to keep tags on your ethereum and DeFi positions and it’s called Zerion. It is a tremendous tool for keeping a tally of what you have in the wild game of token trading and it’s free and you can log in using your wallet so there is no painful registration process. I am finding it indispensable.

Meanwhile I am now back in the same position as I was before I sold the bitcoin, of hanging onto my positions by my cuticles with a wildly undiversified and unbalanced portfolio that morphs by the day into a gloriously profitable but unmanageable series of extremely volatile positions. Leaving good investing and/or trading practice at the door is an extremely hazardous approach but it seems unavoidable to capture this rapture.

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In a matter of days I’ve gone from “buying all the things” to wanting to flee but that is purely because pretty much all DeFi, credible or otherwise, has gone on a massive vertical that dwarfs the performance of bitcoin and ethereum.

Here is one of my favorites that I hold and you can see why an old school equity guy, a value investor to boot, gets a nose bleed from this kind of price ascent:

One of my favorite DeFi tokesns, Matic, has gone vwertical
One of my favorite DeFi tokesns, matic, has gone vwertical Credit: ADVFN

MORE FOR YOUAs Bitcoin Soars Toward $50,000, Data Reveals Tesla Billionaire Elon Musk Triggered A $1.2 Billion Price Short-SqueezeLawyers Warn Tesla Billionaire Elon Musk Over Bitcoin Boosting TweetsData Reveals Bitcoin Could Be About To Become The New GameStop After Huge Price Spike

Matic, previously called polygon, is not a one-off, it is just a good example. The “why” of it is simple: Matic is a solution to many of the difficulties facing ethereum and its congestion: it is a seasoned project, it is linked to a lot of major players in Silicon Valley by investment, and it has a market cap of about $1 billion, 10% of a Bumble. In the current hepped up investment environment this is chump change and the winners in DeFi will go on to be worth $10-$100 billion, even without the printing press shifting the decimal point with inflation. Chainlink, the leader of the gang, is already nearing a $10 billion valuation. So this is not a ridiculous valuation if you grok that DeFi really is a revolutionary tech that will change everything, it’s just the price performance that makes an old investor’s nerve endings start shorting out.

All that aside, the key question once again is, is the market going up or down? Bitcoin down, all crypto down; bitcoin up, all crypto up. To me, I believe these price levels are the upper faces of this mountainous cycle, but many still consider them the foothills.

So what can help us know where we are? The all-seeing eye of Google can help. Here is a chart from Google Trends:

Google Trends shows interest in bitcoin, ethereum, DeFi and stocks
Google Trends shows interest in bitcoin, ethereum, DeFi and stocks Credit: Google

You can see how diagnostic Google trends is when you see the progress in search of the crypto hero of the day, doge, and can judge the rise and fall of the stock hoard of Reddit’s WallStreetBets.

Google Trends highlights the spike in interest in dogecoin when wallstreetbets got involved
Google Trends highlights the spike in interest in dogecoin when wallstreetbets got involved Credit: Google

Bitcoin is the leader and definer of this cycle and its performance will direct the performance of all the other cryptos. Musk’s bitcoin tweets are in the data for all to see.

Whether you are a BTC $1 million by Christmas prophet or a doubter expecting an imminent correction, this is a chart to watch because the price of bitcoin and ethereum is FOMO-driven and when that impulse passes, that will be the top for this cycle. FOMO, and we are now seeing corporate FOMO, is a powerful force but it is a acute one not a chronic one, so crypto will not ride the FOMO wave indefinitely.

There are a lot of extremely strong technical charts out there, so for now I’m hanging tough, but as we have seen before, as bitcoin gyrated between $30,000 and $40,000, these markets are fragile.

Volatility is liable to shake me out soon, but it could be days or weeks, perhaps even months before it does – but a week is now a long time in crypto and that in itself is a signal which one can choose to pay attention to.

The final indicator is transaction fees. These are now exorbitant. When they start to fall it will be a signal that the FOMO is falling and for now the only way transaction fees are going is skywards.

While I have to rise at 6:00 a.m. to get reasonable transaction fees before the rest of the world wakes up, I’m going to be holding on.

Good luck everyone. Enjoy the vertical.

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Clem Chambers is the CEO of private investors website ADVFN.com and author of 101 Ways to Pick Stock Market Winners and Trading Cryptocurrencies: A Beginner’s Guide.

Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards in 2018. Follow me on Twitter or LinkedIn. Check out my website.

Clem Chambers

 Clem Chambers

I am the CEO of stocks and investment website ADVFN . As well as running Europe and South America’s leading financial market website I am a prolific financial writer. I wrote a stock column for WIRED – which described me as a ‘Market Maven’ – and am a regular columnist for numerous financial publications around the world. I have written for titles including: Working Money, Active Trader, SFO and Technical Analysis of Stocks & Commodities in the US and have written for pretty much every UK national newspaper. In the last few years I have become a financial thriller writer and have just had my first non-fiction title published: 101 ways to pick stock market winners. Find me here on US Amazon. You’ll also see me regularly on CNBC, CNN, SKY, Business News Network and the BBC giving my take on the markets.

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BitBoy Crypto

The Winklevoss Twins have doubled down on their $500,000 dollar Bitcoin prediction. Banking giant, Citi, has said they believe the Bitcoin price is heading toward $318,000 by the end of this year. JP Morgan says $650k is possible. The stock to flow chart for Bitcoin shows a $290,000 dollar Bitcoin. There are a ton of predictions out there and it’s hard to make sense of these numbers. It’s hard to know who is talking about the price a year from now and who is talking about a price 10 years from now.

But one thing is almost guaranteed. We are very far away from the peak of this bull run. In today’s video, I’m going to give you my new Bitcoin prediction and why I’ve had to upgrade this Bitcoin rally from bullish to ULTRA bullish. After HOURS of examining charts and cycles, I’ve come up with this brand new prediction. I’ll go over my original Bitcoin prediction and evaluate how it worked out.

At the end of this video, I’ll tell you EXACTLY where I think the Bitcoin price will settle. 0:00​- Intro 1:52​- Original Prediction 3:51​- 2017 vs Now 8:36​- Stock to Flow 8:49​- My New Prediction Trade with ByBit ➡️ https://ByBit.BitBoy.Live​ Connect with Me & the BitSquad! Join the BitSquad ➡️ http://t.me/BitSquad​ Join the BitBoy Lab ➡️ http://discord.BitBoy.Live​ Join BitSquad Traders ➡️ http://t.me/BitSquadTraders​ Join Me on Twitter ➡️ https://twitter.com/Bitboy_Crypto​ Join Me on Instagram ➡️ https://www.instagram.com/bitboy_crypto​ Join Me on TikTok ➡️ https://www.tiktok.com/@factsceo​ ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● Best Crypto Products Buy My BitBoy Collectibles ➡️ https://app.rarible.com/bitboy​ Get $25 for Free with a CRO Card ➡️ http://CROcard.BitBoy.Live​ Best Hardware Wallet ➡️ http://Ledger.BitBoy.Live​ Deep Coin Research ➡️ TM.BitBoy.Live ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● All of our videos are strictly personal opinions. Please make sure to do your own research. Never take one person’s opinion for financial guidance. There are multiple strategies and not all strategies fit all people. Our videos ARE NOT financial advice.

Defining And Building Intangible Assets

Branding Strategy Insider helps marketing oriented leaders and professionals like you define and grow brand value. BSI readers know, we regularly answer questions from marketing oriented leaders and professionals everywhere. Today we hear from Ron, a VP of Marketing in Indianapolis, Indiana who asks these questions about intangible assets.

“I’m trying to get a better understanding of intangible assets and have several questions. The first question being, how are they defined?”

Thanks for your questions Ron. Intangible assets are assets that are used in the operation of a business but that have no physical substance. They include such things as brands, customer lists, customer loyalty, patents, copyrights, business processes, specialized knowledge, customer contracts, franchises, and licenses, among others. Such assets stand in contrast to tangible assets, such as land, buildings, vehicles, equipment, and inventory.

“Why are intangible assets receiving so much attention today?”

In contrast to forty or fifty years ago, when tangible assets constituted the vast majority of the assets of a firm, today intangible assets are likely to constitute much of the value of firms. Work by the consulting firms, such as Ocean Tomo and Brand Finance, and accounting firms, such as PwC suggests that more than 80% of the value of many major corporations consists of intangible assets.

“What is the significance of intangible assets being such a large percentage of the value of corporations for managers and investors?”

First, it is important to know that most intangible assets do not appear on the balance sheets of companies. This means that for most companies, much of their value is unreported. Current accounting practices simply fail to capture the value of most intangible assets. Such assets are most likely to appear on the balance sheet as a result of either an acquisition, when there is a need to justify the price paid for the acquisition, which usually does reflect the value of intangible assets, or in the case of an impairment, where the value of an intangible asset, such as a brand, is reduced in value for some reason.

A particularly troubling consequence of such accounting practices is that even when the value of an intangible asset appears on the balance sheet, the value can only decrease; it cannot increase. This makes it very difficult for an investor to evaluate how well management is stewarding the intangible assets it controls. It also creates opportunities for managers to have a free ride because there is no transparency related to how well they are managing most of the assets of the firm. On the other hand, it creates problems for conscientious and responsible managers who wish to demonstrate how they are adding value to a firm through the effective deployment of intangible assets such as brands, copyrighted works, and the like.

“Are there best practices related to managing intangible assets?”

It is useful to recognize that intangible assets have always played a larger role in the value of businesses than was fully appreciated until recently. There is a substantial body of knowledge and practice experience related to the good management of brands, people, and relationships this is very much applicable.

It is just easy to ignore such knowledge and practice when its outcomes do not find their way into financial metrics. This is beginning to change with new ISO standards, such as those for brand valuation and brand evaluation. The critical starting point is recognizing that such assets require identification, management, and reporting over time.

“What concrete suggestions do you have for managers who wish to do a better job of managing the intangible assets in their business?”

Begin by recognizing that intangible assets are owned by the firm and must be managed by a team with the encouragement and active participation of the firm’s most senior management and board. It is not possible to manage something that is invisible. Just as it is difficult to manage physical inventory when it is out of mind and out of sight, so too is this the case for intangible assets.

There needs to be an annual inventory of the firm’s intangible assets that includes a description of who is responsible for their management, how their value, and changes in that value over time are measured and reported, and active strategies for leveraging these assets. There must be a process for making intangible assets visible when making management decisions.

“Would such visibility change decision making?”

In some cases yes; in some cases no; but it would change the questions that are asked. For example, before using a price promotion to move sales of a strong brand, the question to ask is what the focus on price discounting will do to the value of the brand over the long term? For a brand in decline or headed for obsolescence, discounting may make sense, but for a strong brand that commands a premium price, a short-term bump in sales may not be worth the long–term loss of premium pricing power.

Similarly, before laying off 10% of a workforce, managers might ask what knowledge, what relationships with customers and suppliers, and what efficiencies associated with learning from experience will be lost. One reason so many mergers and acquisitions fail to live up to their expectations is failure to consider losses of intangible assets associated with seemingly redundant people and operations.

“Are intangible assets likely to become more important or have we seen their peak?”

The answers to that question depend on the business. There will always need to be some tangible assets in most businesses, if only to help activate the value of intangible assets. The COVID pandemic has taught us that many tangible assets, like office space, may be less important than we thought, but there are still physical assets that play a mission critical role in most businesses.

On the other hand, more and more of what customers buy and consume revolves around experiential attributes, relationships, social interactions, and creative content. I still go to a restaurant for the food, a tangible asset, but much of the value that I am willing to pay for resides in the creativity of the chef and the wait staff members who know me and greet me by name when I arrive.

Do you have questions related to brand and growth strategy? Just Ask The Blake Project

Contributed to Branding Strategy Insider by: David Stewart, President’s Professor of Marketing and Business Law, Loyola Marymount University, Author, Financial Dimensions Of Marketing Decisions.

The Blake Project Can Help You Define Your Brand’s Unique Value In The Brand Positioning Workshop

Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Growth and Brand Education.

By: David Stewart

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ProfAlldredge

This video is an overview of intangible assets and included the accounting for Goodwill. @ProfAlldredge For best viewing, switch to 1080p

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