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The IPOX® Week, June 1, 2020

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  • Everything IPOX records big returns during May as investors flock to the New Generation of stocks.
  • FANG-free, broad-based IPOX 100 U.S. (ETF: FPX) jumps +11.26%. Diversified IPOX International (ETF: FPXI) rises to +14.33% YTD, closes week at fresh all-time high.
  • JDE Peet’s strong Amsterdam debut, ZoomInfo lined up.

Everything IPOX records big returns during May as investors flock to the New Generation of stocks. Amid stable U.S. yields, lower equity risk (VIX: -2.31%), geo-political jitters, declining global anxiety over Covid-19 and the S&P 500 (SPX) zooming through big technical resistance, IPOX finished May with another strong showing, with multiple Indexes closing out the month at or near all-time highs. In the U.S., e.g., the FANG-free, broad-based IPOX 100 U.S. (ETF: FPX) jumped +3.28% last week to gain +11.26% during May, a massive +673 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks. The IPOX 100 U.S. (ETF: FPX) also finished out the month by recording its first positive YTD close since Feb. 26, 2020, as late-day positioning amid previously delayed index rebalancing’s propelled IPOX holdings which are typically underrepresented in the benchmarks. 88% of portfolio constituents rose during May, with the equally-weighted average (median) stock adding a massive +13.96% (+11.52%), ahead of the applied market-cap weighted IPOX 100 U.S. (ETF: FPX) and underlying the big strength in small- and mid-cap specialty exposure in light of a good month for the Russell 2000 (RTY), which gained +6.36% to -16.45% YTD.

Diversified IPOX International (ETF: FPXI) rises to +14.33% YTD, closes week at fresh all-time high. Strong IPOX momentum continued to extend to firms domiciled outside the U.S. with the diversified IPOX International (ETF: FPXI) adding +3.35% to +14.33% YTD, its 8th consecutive weekly gain, and up +10.69% for May. All global regions represented in the portfolio drove returns, including China (CNI), Developed Asia-Pacific (IPTA), Europe (IXTE, IPND) and Japan (IPJP). Gains were broad-based across market-cap spectrum and industries, led by Asia-Pacific key tech plays Sea (SE US: +43.58%), Meituan Dianping (3690 HK: +41.33%), Pinduoduo (PDD US: +40.96%), Freee KK (4478 JP: +39.29%) and Mercari (4385 JP: +18.32%), followed by specialty exposure linked to diverse other industries including Danish drug maker Genmab (GMAB US: +25.24%), Brazil Financial XP (XP US: +20.67%) and leading global energy plays Orsted (ORSTED DC: +14.29%) and Saudi Arabian Oil (ARAMCO AB: +4.27%).

IPOX International ETF (FPXI)-Investing since 11/2015

Long-only IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 12.23 27.93 12.79
IPOX® International (IPXI)* (USD) (ETF: FPXI) 10.69 31.37 14.33
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 11.26 29.60 0.38
IPOX® ESG (IPXT) (USD) 7.13
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 11.99 34.55 15.03
IPOX® Nordic (IPND) 15.29 38.52 14.71
IPOX® 100 Europe (IPOE)* (USD) 9.52 30.97 3.02
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 10.67 4.41 9.23
IPOX® China (CNI) (USD) 7.79 26.31 14.52
IPOX® Japan (IPJP)** (JPY) 13.00 37.91 -3.10

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact info@ipox.com

NOW TRADING: 0.25 tick IPOX 100 U.S. Index Futures (Front month: IPOM0). Whether you are a risk manager or speculator, CME Group – the world’s largest exchange operator – now offers efficient and cost-effective access to the IPOX 100 U.S. Index (ETF: FPX) via emini IPOX 100 U.S. Index Futures (Front month: IPOM0). Contact info@ipox.com for further info and Free Data & Resources.

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (May 2020 in %):
MYOKARDIA (FPX) 62.83 ARVINAS (FPX) -36.63
LIVONGO HEALTH (FPX) 49.79 HAPAG-LLOYD (FPXE) -34.07
ARGENX (FPXE) 49.70 COUNTRYSIDE (FPXE) -28.23
APPFOLIO (FPX) 44.28 GSX TECHEDU (FPXI) -20.73
SEA (FPXI) 43.58 AIB GROUP (FPXE) -20.08
REDFIN (FPX) 41.93 KOOLEARN TECH. (FPXI) -16.84
MEITUAN DIANPING (FPXI) 41.33 CHINA FEIHE (FPXI) -13.37
PINDUODUO (FPXI) 40.96 COOR SERVICE (FPXE) -10.08
FREEE KK (FPXI) 39.29 ROKU (FPX) -9.67
KINSALE CAPITAL (FPX) 37.47 GILEAD SCIENCES (FPX) -7.35

IPO Deal-flow Review and Outlook: JDE Peet’s surges in Amsterdam $2.4 billion debut. ZoomInfo lined up. With no U.S. IPOs taking place during the shortened U.S. trading week, focus was on deals in Europe with JAB’s coffee empire JDE Peet’s (JDEP NA: +13.78%) and German analytic database management firm Exasol (EXL GR: +35.58%) debuting strongly. With the global IPO window now open, the world’s third-largest record label Warner Music Group (WMG US), business-intelligence platform ZoomInfo Technologies (ZI US), fibrosis biopharma Pliant Therapeutics (PLRX US) and J&J-backed GenScript cell therapy unit spin-off Legend Biotech (LEGN US) are scheduled to list in the U.S. this week, while Tencent-backed payment platform Yeahka (9923 HK) is set to launch with over 600x oversubscription in Hong Kong. Other IPO news include: 1) Brookfield-backed WeWork rival Industrious poised for IPO; 2) Germany OTC drug maker PharmaSGP plans Frankfurt listing; 3) U.S.-listed NetEase and JD.com to list in Hong Kong in upcoming weeks; 4) multiple biotechs added to the U.S. pipeline including Avidity Biosciences Generation Bio, Progenity and Vaxcyte.

The post The IPOX® Week, June 1, 2020 appeared first on Low Cost Stock & Options Trading | Advanced Online Stock Trading | Lightspeed |.



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TSX Energy Stocks: Dividend Bargain or Trap?

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While stocks have been hit hard across the board recently, the energy sector has been hurting more than most sectors. This has driven investors to search for dividend bargains with TSX energy stocks.

However, the issues at hand for these stocks could amount to more than just some short-term market turbulence. Material changes to the way these stocks do business could have lasting effects on their yields and valuations.

It’s not enough to simply offer investors a large yield, as there are many blue-chip stocks doing the same. These stocks need to also instill confidence in investors that the business is resilient to economic headwinds.

Today, we’ll look at two TSX energy stocks and whether they might be dividend bargains or yield traps for investors.

Suncor

Suncor Energy (TSX:SU)(NYSE:SU) is an oil production company based out of Calgary, Alberta. Given the state of the oil market recently, this TSX energy stock has been hit hard.

Recently, the company reported year-over-year quarterly revenue growth of -17.7% and huge losses. As a result, the stock cut its dividend by more than 50%.

As of this writing, SU is trading at $23.08 and yielding 3.64%. While the yield might be safer now given the recent large cut, its now quite paltry compared to other blue-chip dividend stocks.

That’s why I think SU might be a great cautionary tale for the next stock in this article.

SU was looking like a bargain buy when its yield was in excess of 7% in recent months, with investors citing its resiliency and strong backing.

However, with the yield cut by more than half, I’d say there are stocks with less risk and higher yields on the market today.

Enbridge

If Enbridge (TSX:ENB)(NYSE:ENB) is to follow a similar path to SU, it might be best to steer clear of the pipeline giant as well.

While this TSX energy stock isn’t a direct producer of oil, its entire business practically relies on the transportation of oil.

With less oil being produced as a result of cut-rate prices, it stands to reason that ENB could see a dip in business.

In fact, ENB posted year-over-year quarterly revenue of -6.6%.

As a result of these conditions, ENB’s payout ratio has skyrocketed. This might be another red flag to suggest that the yield could be on the chopping block.

As of this writing, ENB is trading at $41.23 and yielding 7.86%, with a payout ratio over 300%.

That doesn’t sound like a very sustainable yield for the time being. While the reward is certainly there for investors in the form of a nearly 8% yield, the risk is certainly there.

Investing with ENB today would essentially be placing a bet that the yield won’t get cut as it did for SU.

For risk-loving investors, this might be worth a look. However, many blue-chip stocks with more stable yields can be found on the TSX today.

TSX energy stock strategy

The TSX energy stocks are in a precarious position these days. With great economic pressures, yields have already been sliced for stocks like SU and could be on the chopping block for stocks like ENB.

While there’s some reward to be had here for risk-loving investors, the risk-to-reward ratio seems heavily skewed towards risk.

For now, it seems like these two TSX energy stocks might be closer to yield traps than dividend bargains.

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Fool contributor Jared Seguin has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.

The post TSX Energy Stocks: Dividend Bargain or Trap? appeared first on The Motley Fool Canada.



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The IPOX® Week, July 13, 2020

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  • IPOX Indexes continue broad-based rally. IPOX 100 U.S. (ETF: FPX) closes week at highest level on record.
  • IPOX 100 U.S. (ETF: FPX) adds +3.64% to +10.20% YTD. IPOX International (ETF: FPXI) rises +3.40% to +35.56% YTD. IPOX 100 Europe (ETF: FPXE) gains +1.70% to +12.81% YTD.
  • “Hot” IPO market: Big initial openings characterize the week’s IPOs in the U.S. and Hong Kong.

IPOX Indexes continue broad-based rally. IPOX 100 U.S. (ETF: FPX) closes week at highest level on record. The IPOX Indexes surged last week as: 1) Momentum buying continued to press technology and select consumer/health care stocks into uncharted territory amid the continued historical divergence in equity indexes spreads ahead of U.S equity option expiration week (NDX: +4.78%, RTY: -0.64%), 2) Falling U.S. yields amid Covid-19 anxiety provided further support to equity risk (VIX: -2.03%). Momentum in the IPOX Indexes, however, slowed into the week-end as investors took profits in some recently well-performing portfolio holdings. In the U.S., e.g., the FANG-free and broad-based $1.4 billion IPOX-100 U.S.-linked “FPX” ETF, the world’s largest IPO-focused ETF, added +3.64% to +10.20% YTD, extending its YTD lead vs. the S&P 500 (SPX) by +188 bps. to a large +1162 bps. Here, 62/100 firms rose, with the average (median) equally-weighted IPOX 100 U.S. portfolio holding adding +2.61% (+1.03%), significantly underperforming the

FPX: World’s largest U.S. IPO-focused ETF sets All-time High

Chart: IPO asset allocation with the “FPX” ETF since fund launch in 2006.

index. Big momentum also drove the diversified IPOX International, underlying for the $153 million “FPXI” ETF, to a fresh weekly all-time high, adding +3.40% to +35.56% YTD, a massive +4673 bps. ahead of the MSCI World (ex. U.S.) (MXWOU Index) YTD. In the IPOX 100 U.S., firms including biotechs Livongo Health (LVGO US: +45.14%) and Principa Biopharma (PRNB US: +14.34%), social networker Snap (SNAP US: +9.95%) and recreational vehicle distributer Camping World (CWH US: +8.98%) stood out, while phone maker H.K.-traded Xiaomi (1810 HK: +18.37%) and property servicing firm Country Garden Services (6098 HK: +14.09%), Brazils IPO M&A multichannel retailer Magazin Luiza (MGLU3 BS: +11.36%), and Riyadh-traded Dr. Sulaiman Al Habib Medical Services Group (SULAIMAN AB: +6.91%) recorded notable gains in the IPOX International. Firms including U.S. real estate website firm Redfin (RFIN US: -11.47%) and Germany’s online food ordering platform operator Delivery Hero (DHER GY) ranked amongst the worst performing IPOX portfolio holdings on the week.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 4.13 27.93 31.67
IPOX® International (IPXI)* (USD) (ETF: FPXI) 3.40 31.37 35.56
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 3.64 29.60 10.20
IPOX® ESG (IPXT) (USD) 3.42
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 0.76 34.55 22.93
IPOX® Nordic (IPND) 1.45 38.52 30.67
IPOX® 100 Europe (IPOE)* (USD) 1.70 30.97 12.81
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 1.97 4.41 16.75
IPOX® China (CNI) (USD) 6.64 26.31 44.32
IPOX® Japan (IPJP)** (JPY) 3.00 37.91 0.69

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact info@ipox.com

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):

LIVONGO HEALTH INC 45.14 ADC THERAPEUTICS SA -14.99
TESLA INC 27.80 KARUNA THERAPEUTICS -12.17
XIAOMI CORP 18.37 REDFIN CORP -11.47
CARDLYTICS INC 17.29 JOHN LAING GROUP PLC -9.31
ALIBABA GROUP HOLDING 16.73 ASCENDIS PHARMA A/S -9.29
EVER SUNSHINE LIFESTYLE 16.02 HEADHUNTER GROUP P -9.16
PRINCIPIA BIOPHARMA INC 14.34 VIELA BIO INC -9.01
COUNTRY GARDEN SERV. 14.09 VARTA AG -8.35
ZSCALER INC 13.86 SAFEHOLD INC -7.37
FARFETCH LTD 12.39 DELIVERY HERO SE -7.32

IPO Deal-flow Review and Outlook: E-cigarette maker Smoore doubles on largest deal of the week in Hong Kong. Busy week for IPOs ahead. At least 13 sizable IPOs commenced trading across the global regions last week, with the average (median) equally-weighted deal adding +59.53% (+39.13%) based on the difference between the final offering price and their respective market’s close. Pre-clinical biopharmaceutical company Nkarta (NKTX US: +166.11%) almost tripled, while Chinese LGBTQ dating app BlueCity (BLCT US: +53.13%) also rose strongly on debut. H.K. had the busiest week YTD with e-cigarette vaping device maker Smoore (6969 HK: +150.00%) and 1896x oversubscribed ophthalmic company Ocumension (1477 HK: +152.39%) recording big initial returns. Lined up for this week in the U.S. are Financial software developer nCino (NCNO US) and Chicago-based health insurance marketplace GoHealth (GOCO US), while H.K. is set for another busy week with H.K.’s largest IPO YTD, China Bohai Bank (9668 HK) lined up. Other IPO news include: 1) Data analytics titan Palantir, U.S. largest mortgage lender Rocket Companies (Quicken Loans) and egg & butter producer Vital Farms filed for IPO 2) Cryptocurrency trading platform Coinbase, Apollo-backed Rackspace prepares for listing 3) SoftBank backed Chinese real estate brokerage Beike Zhaofang, Goldman Sachs-backed payment card issuer Marqeta eyes U.S. IPO 4) Brazilian energy and infrastructure group Cosan considers to spin off its sugar and fuel distribution units Raizen Combutiveis and Raizen Energia in IPO, Brazilian mobile network operator Surf plans U.S. listing 5) French pharmaceutical giant Sanofi proceeds with its $2B+ active ingredient unit IPO 6) Postmates IPO off the table with Uber’s $2.65B takeover in place.

The post The IPOX® Week, July 13, 2020 appeared first on Low Cost Stock & Options Trading | Advanced Online Stock Trading | Lightspeed |.



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The Rise of Grocery E-commerce and Returns

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Grocery e-Commerce as a temporary change…

As a global pandemic and quarantine swept the world, consumers fled to grocery stores to stock up on essentials. Then ensued the shortage of items like toilet paper and hand sanitizer, and purchases of items such as fresh produce spiked by as much as 600%. As quarantine regulations went into effect, shoppers started opting for online grocery orders rather than going into the physical stores, creating a surge in grocery e-commerce. So much so that Instacart—the San Francisco-based grocery delivery service—had a sales increase of 55% in the month of May; a 30% increase from February that has allowed it to secure a $225 million in new funding to scale its operations. 

The future of grocery e-commerce 

So, what does this translate to in the grocery e-commerce landscape? As it turns out, about $38 billion. In 2019, online grocery orders increased by 22% and accounted for about 2.6% of U.S. food and beverage retail sales. But recent figures show that in light of the pandemic and consumer purchase shifts, these same orders are expected to surge to about 40% in 2020, bringing the projected growth in online grocery purchases to 3.5%—or roughly $38 billion. 

Without a doubt, the impacts of COVID-19 have been felt across all sectors of retail, and consumer shopping habits are changing. In fact, whether we look at actual online grocery orders or plans to place online grocery orders, both figures have more than doubled in the last two years. 

Year Purchased groceries online in the last 12 months  Planned to purchase groceries online in the next 12 months
2018 23.1% 25.8%
2019 36.8% 39.5%
2020 52% 62.5%

But what about grocery returns? 

Remember those purchase spikes we talked about earlier? Well, considering the fact that grocery stores remained open and supplied with most items during the quarantine, how much of that over purchasing was necessary, and how much of it will be returned? On the other side of the purchase boom, there is typically a return boom. Over the past several months, items of various types have sold out, such as hygiene products, canned, and bottled goods. So, with a surge in grocery e-commerce fueled by a global pandemic, what will happen with the items that consumers over-purchased and no longer need? 

As quarantine restrictions ease, different retailers have updated their return policies. Costco is not accepting returns of toilet paper, paper towels, sanitizing wipes, water, rice, or disinfecting spray. CVS on the other hand, has stated that “Most new, unopened items purchased from CVS Pharmacy or CVS.com can be returned to any CVS Pharmacy store within 60 days.” Walmart is restricting returns of essential goods, but is also recommending that consumers start a return process online—for products in any category. And grocers in Michigan are now accepting can and bottle returns

What Can Grocers Do?

In a world where a global pandemic has created a pathway for grocery e-commerce to thrive, grocers need a liquidation solution to sell overstock items that can no longer be sold in grocery stores that extends beyond their omnichannel strategies. That’s where B-Stock can help. We provide retailers a private, online marketplace to auction off their returned and overstock merchandise to a large network of vetted business buyers from all over the globe. It’s why nine of the top 10 U.S. retailers are currently using our solution to offload their excess inventory—regardless of product type. 

If you’re ready to tap into an e-commerce solution for your excess grocery products, request a demo.

Request Demo

The post The Rise of Grocery E-commerce and Returns appeared first on B-Stock Solutions.



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