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Opening of a restaurant at the Canyon Ferry Mini Basket

Like a puppy chasing its tail, some new investors are often looking for “the next big thing,” even if that means buying “history stocks” with no revenue, let alone profit. But as Warren Buffett said, “If you’ve been playing poker for half an hour and you still don’t know who the sucker is, you’re the sucker.” When buying such stocks, investors are too often suckers.

Contrary to all that, I prefer to spend time on companies like FLEX LNG (OB:FLNG), which not only generates revenue, but also profits. Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

Check out our latest analysis for FLEX LNG

Improved profits of FLEX LNG

In a capitalist society, capital drives out profits, which means stock prices tend to rise with earnings per share (EPS). So like the hint of a smile on a face I love, EPS growth usually makes me look twice. It is therefore impressive that FLEX LNG’s EPS rose from US$0.15 to US$3.05 in just one year. While this rate of growth is unlikely to be repeated, it looks like a breakout improvement. But the key is to discern if something profound has changed or if it’s just a one-time nudge.

A careful look at revenue growth and earnings before interest and tax (EBIT) margins can help inform a view on the sustainability of recent earnings growth. The good news is that FLEX LNG is increasing its revenues and EBIT margins have improved by 12.6 percentage points to 59% compared to last year. Checking those two boxes is a good sign of growth, in my book.

The graph below shows how the company’s bottom line and top results have grown over time. Click on the table to see the exact numbers.

The trick, as an investor, is to find companies that go to perform well in the future, not just in the past. To that end, right now and today, you can view our 100% Free Future FLEX LNG EPS Future Analyst Consensus Forecast Visualization.

Are FLEX LNG insiders aligned with all shareholders?

Personally, I like to see high insider ownership in a company, as it suggests that it will be run in the interests of shareholders. We are therefore pleased to report that FLEX LNG insiders own a significant share of the business. In fact, with 47% of the company to their name, insiders are deeply invested in the company. I take comfort in this type of alignment, as it suggests that the company will be run for the benefit of shareholders. At the current share price, this insider stake is worth US$4.9 billion. That’s what I call serious skin in the game!

Should you add FLEX LNG to your watchlist?

FLEX LNG’s revenue took off like any random cryptocurrency in 2017. This type of growth is just eye-catching, and the significant investment held by insiders certainly informs my view of the business. The hope is, of course, that the strong growth marks a fundamental improvement in the business economy. So, in my opinion, FLEX LNG deserves to be put on your watch list; after all, shareholders succeed when the market undervalues ​​fast-growing companies. What about the risks? Every business has them, and we’ve spotted 2 warning signs for FLEX LNG (1 of which is potentially serious!) that you should know about.

Of course, you can (sometimes) buy stocks that are not increased income and do not have insiders buying stocks. But as a growth investor, I always like to check out companies that do have these characteristics. You can access a free list of them here.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

What’s new? (13-19 Feb.)

Google Privacy Changes

Google announced on Wednesday that it plans to change its Android smartphone software to limit data sharing between apps and with third parties. The other major smartphone software provider, Apple, which has made privacy a selling point, announced new measures last year. But the two companies took different approaches. Apple allows customers to choose whether or not to block tracking, which has had a significant impact on companies that rely on customer data to target ads. Meta said this month that the changes will cost it $10 billion in ad revenue this year. Google, which unlike Apple makes most of its money from selling digital ads rather than devices, has promised its changes won’t be as disruptive. It plans to support its existing technologies for at least two more years to give advertisers a chance to prepare.

Americans keep shopping

Despite shortages of some products and hordes of workers sick from Omicron, Americans continued to shop last month. Retail sales in January rose 3.8% from the previous month, according to data released Wednesday by the Commerce Department. That’s a rebound after a sharp decline in December, when spending fell 2.5%. The new numbers don’t account for rapidly rising prices, and there are some data quirks to consider (gift cards received in December are often spent in January, for example), but economists said that the rebound was always a good sign for the economy. In another sign of consumer spending resilience, Walmart said on Thursday it beat earnings expectations last quarter, though as the nation’s largest grocery chain it is particularly sensitive to inflation and rising wages. Macy’s, Home Depot and Lowe’s report earnings this week.

The Chinese version of the Olympic Games

The Winter Olympics, which end on Sunday, looked rosier on social media than it did in person. China has used bots, fake accounts, genuine influencers and other tools to push its narrative of the Games (a feel-good success of an event) and downplay other aspects (like boycott calls of the Games on the country’s human rights violations). Some of these efforts were aimed at foreign viewers. Inside China, the state has more power of curation. The men’s hockey game between the United States and China, which the American team won 8-0, was not broadcast, for example, on the main public sports television channel. Brown, snowless mountains were blanked out by state media. And an appearance by Peng Shuai, the professional tennis player who disappeared after accusing a senior Communist Party leader of sexually assaulting her, was not mentioned.

And after? (20-26 Feb.)

The energy impact of an invasion

President Biden said Thursday that a Russian invasion of Ukraine remains a “very high” possibility. And that’s not good news for energy markets. An invasion could drive up oil and natural gas prices, prolong high inflation and affect global financial markets. Countries that depend on Russia for energy could be particularly susceptible to economic repercussions. In 2021, 38% of the natural gas used by the European Union came from Russia, according to research organization Bruegel. If the flow of natural gas is interrupted, businesses could be forced to close and household bills, already higher than usual, could continue to rise.

Some have more money than sense, they say, so even companies with no revenue, no profit and a history of failures can easily find investors. But as Peter Lynch said in One Up on Wall Street“Long shots almost never pay off.”

In the era of blue-sky tech-stock investments, my choice may seem old-fashioned; I always prefer profitable companies like Affle (India) (NSE: AFFLE). Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

See our latest analysis for Affle (India)

Affle (India) profit improvement

Over the past three years, earnings per share of Affle (India) have taken off like a rocket; fast and from a low base. So the actual growth rate doesn’t tell us much. It therefore makes sense to focus on the most recent growth rates instead. Like the latest New Year’s Eve fireworks accelerating across the sky, Affle (India)’s EPS has risen from ₹7.19 to ₹15.30 over the past year. 113% annual growth is certainly a sight to behold. This could be a sign that the company has reached a real inflection point.

I like to see revenue growth as an indication that growth is sustainable, and I look for a high margin on earnings before interest and taxes (EBIT) to point to a competitive moat (although some low-margin companies also have moats). I note that income from Affle (India) operations was lower than its turnover over the last twelve months, which could distort my analysis of its margins. While we note that Affle (India)’s EBIT margins have remained stable over the past year, revenues have grown by 105% to ₹9.3 billion. This is a real plus point.

In the table below, you can see how the company has increased its profits and revenue over time. For more details, click on the image.

As we live in the moment at all times, there is no doubt in my mind that the future matters more than the past. So why not check out this interactive chart outlining future EPS estimates for Affle (India)?

Are Affle (India) insiders aligned with all shareholders?

Like standing on the lookout, surveying the horizon at sunrise, insider buying, for some investors, brings joy. This view is based on the possibility that stock purchases signal an uptrend on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions.

Whichever way you look at it, Affle (India) shareholders can gain quiet confidence from the fact that insiders have shelled out £30m to buy shares over the past year. And when you consider that there has been no insider selling, you can understand why shareholders might believe that lady luck will grace this company. It should also be noted that it was CFO and COO Kapil Bhutani who made the largest single purchase, worth ₹28 million, paying ₹1,194 per share.

It’s reassuring that insiders at Affle (India) are buying the shares, but that’s not the only reason to believe management is fair to shareholders. I mean the very reasonable level of compensation for CEOs. I found out that the median total compensation of CEOs of companies like Affle (India) with a market capitalization between ₹75 billion and ₹239 billion is around ₹32 million.

The CEO of Affle (India) received a total compensation of just ₹250,000 in the year at . This could be considered a token amount and indicates that the company does not need to use the payment to incentivize the CEO – this is often a good sign. CEO compensation isn’t the most important aspect of a company to consider, but when it’s reasonable, it gives me a bit more confidence that executives are looking out for shareholders’ interests. It can also be a sign of a culture of integrity, broadly defined.

Does Affle (India) deserve a spot on your watch list?

Earnings per share for Affle (India) took off like a rocket aimed straight at the moon. Even better, we can see insider buying and the CEO salary seems reasonable. It could be that Affle (India) is at an inflection point, given the growth in EPS. If so, the potential for additional earnings probably deserves a spot on your watch list. We don’t want to rain too much on the parade, but we also found 1 warning sign for Affle (India) which you must take into account.

The good news is that Affle (India) is not the only growth stock with insider buying. Here’s a list…with insider purchases over the past three months!

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Published:
09:00 a.m. 10 February 2022

You don’t have to be living on the subsistence level to be affected by the cost of living crisis. All but the wealthiest among us are noticing rising food bills, and many are having to make tough choices to ensure there is food on their family’s plates.

Inflation is expected to reach over 7% this year, and even that number doesn’t reflect true increases in real-world groceries.

Food writer Jack Monroe, who first rose to prominence by writing a blog that shared inexpensive recipes she created as a single mother with a young child, has recently received a lot of press for having pointed out that for many people, food inflation far exceeds the official CPI figure, meaning those with the lowest incomes face the biggest price increases of all.

For too many people, simply feeding their families is becoming increasingly difficult. For many others, budgeting for food is possible, but certainly tighter than it used to be.

The good news is that careful planning can reduce the cost of meal prep (although I agree this won’t help those whose budgets don’t even stretch to the essentials).

Saving money in this way usually requires a trade-off in terms of time: planning the menu for the week to eliminate waste and make sure you only buy what you need; shop around for the cheapest place to buy these ingredients; and cooking from the basics rather than relying on ready meals and meals.

Of course, the way many of us live our lives today means we crave the exact opposite: groceries delivered to our doorstep, often on very short notice, because we didn’t plan in advance. There’s nothing wrong with that – provided we’re happy to happily set fire to five pound notes in the process.

Of course, there’s nothing wrong with paying for convenience, but throwing away large sums of money out of laziness when people have nothing to eat is unforgivable. And even…

I’m sure you’ve seen the TV commercials for these boxed recipes that are shipped to your door. At first glance, they seem like a good way to encourage people to cook from ingredients rather than ordering takeout or eating ready meals loaded with additives. But when you look a little deeper, you wonder who has so much money to spend?

As an experiment, I went to the site of one of the biggest suppliers of recipe boxes, and I selected a typical dish: a risotto with bacon bits and mushrooms. Helpful, the website gives you an exact list of ingredients, which included risotto rice, bacon bits, onion, garlic, and chestnut mushrooms.

So far, so good. But then the big shock. Ordering enough to make this meal for four people (with just 80 grams of risotto rice per person, so no huge portions) costs £24.99. I put the ingredients on a major supermarket website, and they were only £6. Even if you factor in delivery costs, the total cost is still less than half of what you’ll pay for the recipe box. And in both cases, you still have to cook the food yourself.

Have we really become so helpless that we can’t make our own shopping list, but are we willing to pay a £19 bounty for someone else to write a list of just nine ingredients?

Another one of those recipe box websites just sends you little containers of herbs and condiments, waiting for you to buy all the other ingredients.

I’m looking at one of the recipes right now – pasta with chorizo, tomatoes, peas and parmesan. After shelling out £2.50 for the recipe box, all you have to do is go to the supermarket and buy, um, pasta, chorizo, tomatoes, peas and parmesan cheese. Are people really that gullible?

Who buys these things? These aren’t even the people who don’t have cookbooks, as the recipe box website helpfully gives you the method of cooking the dish along with a full list of ingredients.

I understand people are busy and willing to pay a little extra for convenience. But when people are literally hungry, it seems obscene to be willing to spend so much money out of sheer laziness.

So here’s my suggestion: if you have as much money as you think it’s okay to throw in those overpriced recipe boxes, why not just order the ingredients online from a supermarket and donate the difference at your local food bank, where it will likely feed an entire family for several days.

2020 saw the entertainment world come to an abrupt halt, but as the pandemic situation improved, 2021 brought relief as we saw the slow but steady return of our beloved shows.

NBC was one of those channels that took a hit and many of its shows had to go on hiatus, one of the biggest being the One Chicago franchise which consists of ‘Chicago Fire’, ‘Chicago PD’ and “Chicago-Med”. The return of the Windy City medical drama was celebrated, but fans had to take a break to tune in to the gripping, fast-paced show that heralded a step back now due to the Olympics broadcast from beloved winter. As they all eagerly await its return, here’s some good news on how many more episodes fans can look forward to!

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How many episodes does “Chicago Med” season 7 consist of?

For fans of the show who were treated to fewer episodes than usual in Season 6, there’s some big good news in store! Covid may have caused the previous season to only have 16 episodes due to many issues, but the current latest season will have 23 episodes aired! This number is much higher than the usual season which averages around 20 episodes. This news was confirmed by NBC head of programming Steve Kern, who broke the good news to Variety when asked about the schedule change due to the Beijing Winter Olympics TV broadcast. .

Explaining further, he said that the average length of different Chicago shows is 35 weeks for a season, which means there are 12 or 13 weeks that the channel has to schedule repeats for the shows to run. fit into the season, adding that he is more than happy to have a pre-emption that he knows will go well, namely the Winter Olympics.

“Chicago Med” typically runs in lesser episodes than “Chicago Fire” and PD, so the news about it being nearly on par with its episode numbers is a chance for fans of the medical drama to rejoice!

When does ‘Chicago Med’ season 7 return with new episodes?

“Chicago Med” is set to return on February 23, 2022, after the Winter Olympics conclude. The medical drama along with the other One Chicago shows will resume their normal timeslots and are expected to air with little to no interruptions or week-long breaks.

If you have an entertainment scoop or story for us, please contact us at (323) 421-7515

For starters, it might seem like a good idea (and an exciting prospect) to buy a company that tells investors a good story, even if it completely lacks a track record of revenue and earnings. And in their study titled Who falls prey to the wolf of Wall Street? » Leuz and. al. found that it is “fairly common” for investors to lose money by buying into “pump and dump” schemes.

If, on the other hand, you like businesses that generate revenue and even profit, then you might be interested in AGCO (NYSE: AGCO). Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

Check out our latest analysis for AGCO

How fast is AGCO growing its earnings per share?

If a company can keep increasing its earnings per share (EPS) long enough, its stock price will eventually follow. Therefore, there are many investors who like to buy shares in companies that grow EPS. Who among us wouldn’t applaud AGCO’s stratospheric annual EPS growth of 51%, compounded, over the past three years? This kind of growth never lasts long, but like a shooting star, it’s worth watching when it happens.

One way to check a company’s growth is to look at the evolution of its revenues and its earnings before interest and taxes (EBIT) margins. The good news is that AGCO is increasing its revenue and EBIT margins have improved by 2.4 percentage points to 8.7% compared to last year. It’s great to see, on both counts.

In the table below, you can see how the company has increased its profits and revenue over time. To see the actual numbers, click on the chart.

Of course, the trick is to find stocks that have their best days in the future, not in the past. You can of course base your opinion on past performance, but you can also check out this interactive chart of professional analyst EPS forecasts for AGCO.

Are AGCO insiders aligned with all shareholders?

Given that AGCO has a market capitalization of US$8.6 billion, we wouldn’t expect insiders to hold a high percentage of shares. But we are reassured by the fact that they have invested in the company. Indeed, they have invested a mountain of glittering wealth in it, currently valued at US$108 million. This suggests to me that management will be very mindful of shareholder interests when making decisions!

It’s good to see that insiders are invested in the company, but are the compensation levels reasonable? Well, based on the CEO’s salary, I’d say they are indeed. I found that the median total compensation for CEOs of companies like AGCO with a market capitalization between $4.0 billion and $12 billion is around $6.5 million.

AGCO offered total compensation worth US$4.5 million to its CEO during the year at . This is below average for companies of a similar size and seems pretty reasonable to me. Although the level of CEO compensation is not a determining factor in my view of the company, modest compensation is positive, as it suggests that the board has the interests of shareholders in mind. I would also say that reasonable levels of compensation attest to good decision-making more generally.

Should you add AGCO to your watch list?

AGCO’s earnings per share took off like a rocket aimed straight at the moon. The icing on the cake is that insiders own a bunch of stock, and the CEO salary really seems quite reasonable. The strong improvement in EPS suggests businesses are doing well. AGCO certainly ticks a few of my boxes, so I think it’s probably worth looking into further. Once you’ve identified a business you like, the next step is to figure out what you think it’s worth. And right now is your chance to see our exclusive discounted cash flow assessment of AGCO. You might benefit from taking a look today.

You can invest in the company of your choice. But if you’d rather focus on stocks that have been insider buying, here’s a list of companies that have been insider buying over the past three months.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Like a puppy chasing its tail, some new investors are often looking for “the next big thing,” even if that means buying “history stocks” with no revenue, let alone profit. But as Warren Buffett said, “If you’ve been playing poker for half an hour and you still don’t know who the sucker is, you’re the sucker.” When buying such stocks, investors are too often suckers.

Contrary to all that, I prefer to spend time on companies like Roche Bobois (EPA:RBO), which not only generates revenue, but also profits. Although profit is not necessarily a social good, it is easy to admire a company that can produce it consistently. While a well-funded business may suffer losses for years, unless its owners have an endless appetite to subsidize the customer, it will eventually have to turn a profit, or else breathe its last breath.

Check out our latest analysis for Roche Bobois

How fast is Roche Bobois increasing its earnings per share?

If a company can keep increasing its earnings per share (EPS) long enough, its stock price will eventually follow. Therefore, there are many investors who like to buy shares in companies that grow EPS. Who among us wouldn’t applaud Roche Bobois’ stratospheric annual EPS growth of 58%, compound, over the past three years? Although this type of growth rate is not sustainable for long, it certainly catches my eye. like a crow with a sparkling stone.

I like to take a look at earnings before interest and tax margins (EBIT), as well as revenue growth, to get another view of the quality of the company’s growth. The good news is that Roche Bobois is increasing its revenues and EBIT margins have improved by 5.2 percentage points to 9.3% compared to last year. It’s great to see, on both counts.

You can check the company’s revenue and profit growth trend in the table below. For more details, click on the image.

In investing, as in life, the future matters more than the past. So why not check this out free interactive visualization of Roche Bobois provide profits?

Are Roche Bobois insiders aligned with all shareholders?

I feel safer owning stock in a company if insiders also own stock, thereby aligning our interests more closely. Accordingly, I am encouraged by the fact that insiders hold Roche Bobois shares of considerable value. Indeed, they have invested a mountain of glittering wealth there, currently valued at 101 million euros. This equates to 32% of the company, making insiders powerful and aligned with other shareholders. It may be my imagination, but I feel the glimmer of opportunity.

Should Roche Bobois be added to its watch list?

Roche Bobois revenue took off like any random cryptocurrency in 2017. This BPA growth is certainly catching my attention, and the large insider ownership only heightens my interest. Sometimes rapid EPS growth is a sign that the business has reached an inflection point; and I like those. So yes, on this short analysis, I think it’s worth considering Roche Bobois for a spot on your watch list. However, before you get too excited, we found out 3 warning signs for Roche Bobois (1 is a little unpleasant!) which you should be aware of.

You can invest in the company of your choice. But if you’d rather focus on stocks that have been insider buying, here’s a list of companies that have been insider buying over the past three months.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.