first_imgThe Rally to Read organisation hopes to nurture a strong reading culture among the country’s youth living in remote locations. (Image: Rally to Read)In response to the outcry for better educational facilities following the student uprising in 1976, a small group of volunteers gathered at St John’s College to start a movement that would soon spread across the whole of South Africa: the READ Education Trust.The movement gathered huge support both locally and internationally and soon began building libraries and providing books to underprivileged communities, creating a culture of supporting the less fortunate, which continues to this day in the Rally to Read non-profit organisaton.Today, 40 years after the student uprising, the organisation continues to support teachers and learners in some of the country’s most remote locations, allowing them to discover and feed their passion for reading and education.The organisation visits some of the most remote areas in the country to deliver educational material to schools and caregivers who need it most.“Almost all rural schools have one lack in common – educational resources,” said South Africa’s deputy president Cyril Ramaphosa, who touched on the impact that Rally to Read has made on the lives of the learners. “It is in this need that the Rally to Read provides.“Sponsors, organisers and participants of the Rally have visited the most remote and needy schools in rural areas to deliver books, teaching aids, science kits, sports equipment, educational toys and other material – all of which are taken for granted at urban schools,” said Ramaphosa.“But most of all, the Rally delivers hope to rural learners, their teachers and their parents for a better future.”HOW IT WORKSThe organisation calls on corporations and members of the public to sponsor teacher training, library boxes meals for the children on rally days.The library boxes delivered are packed with reading materials and educational aides that are relevant to the level of education of the learners. It covers a wide range of topics to help broaden their understanding of the world.Members travel in convoys consisting of high clearance vehicles meant for gravel roads. This is where the rally element in the organisation’s name comes from.According to the Rally to Read website, more than R86-million has been raised for education in rural areas for more than 1 000 schools since 1979.GET INVOLVEDAny individuals or corporations who want to get involved with Rally to Read can have a look at the organisation’s get involved page for more details.PLAY YOUR PARTAre you playing your part to help improve the lives of those around you or the environment? Do you know of anyone who has gone out of their way to help improve South Africa and its people?If so, submit your story or video to our website and let us know what you are doing to improve the country for all.last_img read more

first_imgShare Facebook Twitter Google + LinkedIn Pinterest By Jon Scheve, Superior Feed Ingredients, LLCWheat’s massive drop was most likely the cause for the decline in corn and beans the past couple of weeks. Large hedge funds often have positions in all three commodities, so if they were selling one, they might be selling all three.In the last 30 days, wheat, corn, and beans had significant decreases with moderate rebounds last week:Wheat decreased $1 per bushel then recovered 20 centsCorn decreased 25 cents per bushel then recovered 14 centsBeans decreased 45 cents per bushel then recovered 20 centsThis week’s recovery could make technical traders think prices have found a low. If so, they may consider re-ownership or short covering of recent sales in the futures market, which could help prices trend higher. I’ve noticed a few analysts and advisors who still have 10% to 25% of their 2017 corn unpriced. One advisor was suggesting that farmers price remaining ‘17 unsold corn if July ’19 futures hit $4. I asked this advisor how farmers, who set their basis last August or September, would show their losses rolling their futures or basis position forward. This advisor said they weren’t sure how to do that, because accounting for spread loss would hurt their average price for the year. It seemed as if they were going to just over look this problem. Why is this a problem?Most farmers who have on-farm storage usually can’t store more than 100% of one year’s harvest. So, if a farmer didn’t sell all of their 2017 harvested grain by September 2018, they would likely have to move the old crop grain in the bin before the start of the 2018 harvest.When the farmer moves their grain to an end user, the farmer is going to have to make a decision as to what will happen with that grain. The market doesn’t just allow farmers to deliver grain a month or two before harvest and wait to price it for free of charge any time in the future. Likely at almost every end user there will be a cost associated to not have the grain priced by Sept. 1. What are those costs?As the end of summer approaches a farmer has three choices with their old crop grain that won’t be stored at home:Price the futures at that time and be done marketing the 2017 cornPay to store their grain for 5 cents per month (or more) until a price point a farmer wants is attainedSet the basis for August or September delivery against September ’18 futures, and then wait for a rally to set the futures price before Sept. 1Sell cash grain at the end of August and buy futures back in a hedge account.Options 3 and 4 will have the exact same outcome going forward because an end user will treat the unpriced futures position the same way as having the long futures in a farmers account. Because the end user is going to want to have the basis priced as well. Option 2 would be the worst choice as the expenses after several months will be much higher than the other choices. So unsatisfied with fall prices, most farmers in this situation probably chose option 3 (or 4) over 1. Given the market situation at the time this was understandable, but there is a cost to do this. Because the market never rallied enough in late summer, most farmers probably looked at extending the pricing period of those bushels beyond Sept. 1. That however would also have cost farmers money because end users will charge the spread between the futures months back to the farmers. In this case, that will be the spread loss from September ’18 futures to Dec ‘18 futures which was 15 cents. So basically, farmers needed prices to rally more than 15 cents before Dec. 1 to be better off than just pricing the futures in late August.This cost is either applied to the basis value that was originally set with the end user when the delivery was being made, or it was applied to the rolling of futures in a hedge account. Again, both of these trades have the exact same outcome. What happened if the farmer still didn’t price the futures by Dec. 1?Likely some farmers didn’t sell and instead rolled their positions forward again this time to March ’19, but doing this meant they took another 15-cent spread loss in either their hedge account or a basis reduction. This would have then required that farmers get their grain priced before March 1. What if farmers didn’t price the futures by March 1?The March ’19 futures were incredibly boring and really went nowhere. So likely the farmer is probably still unpriced and had to roll their position forward again. I have seen several advisors in this situation talk about selling values against the July futures. Right now, the spread loss from March ’19 futures to July ’19 futures is 18 cents.I have seen several advisors suggesting that farmers should look at selling July futures around $4 or so. This means taking into consideration the spread losses from last September until July, using $4.03 July ’19 futures as a price goal is the same as:March ’19 at: $3.85 ($4.03 – .18 spread)December ’18 at: $3.70 ($4.03 – .18 & -.15 spreads)September ’18 at: $3.55 ($4.03 – .18, -.15 & -.15 spreads)In early December, March ’19 futures traded above $3.85 for 2 weeks. Last fall December ’18 corn futures were above $3.70 for 2 weeks. September ’18 was occasionally trading above $3.70 on and off for 2 weeks at the beginning of August.There weren’t that many, including me, who thought any of those trades were a good idea at the time. Many spoke of all the possible reasons the market could go higher. Now farmers are hoping to just get to a level this July that was already available to them at the end of August for the 2017 crop when you account for the spread loss.Delivering grain and waiting to price it until a later date in time is tricky and risky. Farmers will usually be fighting against the spread loss that occurs in a carry market (where futures are higher in the months after the current one). Even if they leave the crop unpriced on futures and basis and pay commercial storage they are facing an extremely steep hill to overcome. Only a huge rally can beat it, and those are not overly common and they are certainly unpredictable. So, farmers who have unpriced grain stored on the farm aren’t facing this problem?Farmers with on-farm storage and are unpriced at harvest won’t get charged the spread loss by rolling futures forward. That spread loss above is actually the market carry premium that so many in the trade talk about trying to capture. Unfortunately, a farmer will miss out on that carry premium if their grain isn’t sold by December 1st each year after harvestW, but at least its not an expense either. The reason its not an expense yet would be because the basis hasn’t been set. Once the basis is set then the potential for spread loss can occur. So, it’s usually better to sell all of my crop by harvest?With the prolonged sideways market below breakeven price levels, this is hard advice to swallow. But, if you step back and look at historical trends and costs associated with the spread loss, this is really a good rule of thumb. Like many farmers, I didn’t get all of my 2017 or even all of my 2018 corn sold before each harvest either. I did however finish up my 2017 crop before the end of August last year because I feared the type of scenario happening that I described above.While I’m not yet completely done with my 2018 corn sales I have been continuing to try and collect premium by selling calls and straddles on my unsold 2018 corn. The trades I have been doing would limit my upside potential but I have been fearing that the market won’t go up and I would much prefer to be sold and taking advantage of the market carry opportunity. And I’m doing this even though I have 100%+ on-farm storage.Farmers that don’t have on-farm storage have even bigger challenges if they aren’t fully sold before harvest. The odds are stacked against them as they continue to chase extreme rallies to offset their basis/spread losses. Please email jon@superiorfeed.com with any questions or to learn more. Jon grew up raising corn and soybeans on a farm near Beatrice, NE. Upon graduation from The University of Nebraska in Lincoln, he became a grain merchandiser and has been trading corn, soybeans and other grains for the last 18 years, building relationships with end-users in the process. After successfully marketing his father’s grain and getting his MBA, 10 years ago he started helping farmer clients market their grain based upon his principals of farmer education, reducing risk, understanding storage potential and using basis strategy to maximize individual farm operation profits. A big believer in farmer education of futures trading, Jon writes a weekly commentary to farmers interested in learning more and growing their farm operations.Trading of futures, options, swaps and other derivatives is risky and is not suitable for all persons. All of these investment products are leveraged, and you can lose more than your initial deposit. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction. The information provided here should not be relied upon as a substitute for independent research before making your investment decisions. Superior Feed Ingredients, LLC is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision. The contents of this communication and any attachments are for informational purposes only and under no circumstances should they be construed as an offer to buy or sell, or a solicitation to buy or sell any future, option, swap or other derivative. The sources for the information and any opinions in this communication are believed to be reliable, but Superior Feed Ingredients, LLC does not warrant or guarantee the accuracy of such information or opinions. Superior Feed Ingredients, LLC and its principals and employees may take positions different from any positions described in this communication. Past results are not necessarily indicative of future results.last_img read more

first_imgShare Facebook Twitter Google + LinkedIn Pinterest The Ohio Department of Agriculture (ODA) is announcing an additional assistance program for producers in the Western Lake Erie Basin funded by the passage of Ohio Senate Bill 299.The Ohio Working Lands Small Grains Program is a voluntary program that will encourage producers in the Western Lake Erie Basin to plant small grains such as wheat, barley, oats, or cereal rye on eligible cropland. As the “working lands” name implies, participants must plant and harvest small grains, land apply manure, and plant a cover crop to receive a cost-share payment to help offset operating costs. The program benefits the planting of small grains not only for the conservation benefits, but to provide livestock producers with a longer application window to land apply manure and nutrients.“We are committed to working with farmers to achieve shared goals,” Governor Mike DeWine said. “This is a program that both supports farmers and helps protect Lake Erie. Through my H2Ohio initiative, we will continue to invest in Lake Erie and in efforts to improve water quality across Ohio.”Signed in 2018, Ohio Senate Bill 299 provided $23.5 million for soil and water conservation districts (SWCD) located in the Western Lake Erie Basin (WLEB) for nutrient management programs. ODA has already distributed $3.5 million to 24 SWCDs in Northwest Ohio and in February, ODA Director Dorothy Pelanda announced plans for three new assistance programs for the remaining $20 million: the Ohio Working Lands Program, the Voluntary Nutrient Management Plan Development Program, and the Cost Share and Equipment Buy Down Program.“We are very excited to roll out the Small Grains Program as we have already seen great interest from producers for our other assistance programs in the Western Lake Erie Basin,” said Dorothy Pelanda, ODA Director. “ODA looks forward to working with farmers to implement meaningful programs that make progress toward our common goals of soil and water conservation.”The Ohio Working Lands Small Grains Program will fall under the umbrella of the Ohio Working Lands Program. Local soil and water conservation districts (SWCDs) will manage the program sign-up, verification of eligibility, and crop establishment. Soil tests and records of manure analysis and application will be required to be submitted to the SWCD as well. Producers interested in the program should contact their local SWCD to learn how to sign up.“We appreciate Governor DeWine and Director Pelanda recognizing that assistance is needed to solve important issues facing Ohio’s waters,” said Tadd Nicholson, Executive Director of the Ohio Corn & Wheat Growers Association. “We encourage all growers of small grains in northwest Ohio to consider being part of this important program. Farmers look forward to continuing our efforts to protect water quality in Ohio.”Also, as part of the Ohio Working Lands Program, local SWCDs in the Western Lake Erie Basin are still accepting sign-ups for the Ohio Working Lands Hay Buffer program which semi-retires environmentally sensitive areas of a field from annual crop acres to permanent harvestable forage acres. The sign-up deadline for the Working Lands Hay Buffer program is May 1.Producers located in the Western Lake Erie Basin are encouraged to contact their local soil and water conservation district office to learn more and sign up for these new programs.last_img read more

first_imgView comments Spoelstra, 47, and his wife announced earlier Wednesday that they are expecting their first child, a son.Lauri Markkanen scored 25 points and Robin Lopez added 22 for the Bulls, who were 7 for 28 from 3-point range and got five of those makes in the final 2 minutes. Chicago fell to 1-5, matching its worst start since 2007-08.FEATURED STORIESSPORTSWATCH: Drones light up sky in final leg of SEA Games torch runSPORTSSEA Games: Philippines picks up 1st win in men’s water poloSPORTSMalditas save PH from shutoutDion Waiters also scored 13 for the Heat, who were without starting forward James Johnson — a late scratch with right knee tendinitis.Miami was rolling early, up 20-6 after 8 minutes and 35-20 midway through the second quarter. The Bulls started 1 for 10 from the floor, Whiteside had eight rebounds in the game’s first 4:50 and everything was working for Miami. Heat: Whiteside made his 200th appearance with the Heat. … This was one of Miami’s four November home games. The Heat play at home three times in the next four weeks, and have 17 of their next 24 on the road. … Miami hasn’t lost four straight games in the same homestand since March 10-16, 2008. … Justise Winslow made his first shot, giving him seven straight makes over three games.NEW ERAWednesday marked the first time since March 26, 2003 that the Heat and Bulls played and Dwyane Wade wasn’t on either roster. Miami and Chicago played 71 times between 2003-04 and last season; Wade played for Miami in 64 of those games, sat out four and played for Chicago in the three Bulls-Heat matchups last season.SPO STATSAmong the 30 current NBA coaches, only San Antonio’s Gregg Popovich has held his job longer than Spoelstra. But there are only nine coaches who are younger than the Heat sideline boss: Luke Walton, Tyronn Lue, Brad Stevens, Dave Joerger, former Heat assistant David Fizdale, Frank Vogel, Jason Kidd, Michael Malone and Hoiberg. Japan ex-PM Nakasone who boosted ties with US dies at 101 Trending Articles PLAY LIST 00:50Trending Articles00:50Trending Articles00:50Trending Articles01:37Protesters burn down Iran consulate in Najaf01:47Panelo casts doubts on Robredo’s drug war ‘discoveries’01:29Police teams find crossbows, bows in HK university01:35Panelo suggests discounted SEA Games tickets for students02:49Robredo: True leaders perform well despite having ‘uninspiring’ boss02:42PH underwater hockey team aims to make waves in SEA Games That is, until the Bulls started attacking.A 24-10 run by Chicago tied the game late in the half, seven of those field goals by the Bulls coming in close proximity to the rim. Chicago led by as many as six in the third and probably should have been up more, missing five shots at the rim late in the quarter.The Heat reclaimed the lead with a 10-1 run to end the third, Tyler Johnson scoring five of those points and Dragic hitting a late 3 as Miami took a 67-64 lead into the fourth.TIP INSBulls: Chicago tinkered with its starting lineup, adding David Nwaba and having Paul Zipser come off the bench. Bulls coach Fred Hoiberg is exploring certain combinations ahead of the looming return of Bobby Portis (suspension). … The Bulls trailed by as many as 14 in the first quarter, the earliest they’d faced such a deficit so early this season. … Justin Holiday missed 12 of his first 13 shots.ADVERTISEMENT Brace for potentially devastating typhoon approaching PH – NDRRMC Read Next LATEST STORIES Stronger peso trims PH debt value to P7.9 trillion Typhoon Kammuri accelerates, gains strength en route to PH AFPMIAMI — Goran Dragic scored 20 points and Tyler Johnson added 19 as the Miami Heat beat the Chicago Bulls 97-91 on Wednesday (Thursday Manila time) to end a three-game slide.Hassan Whiteside returned from a five-game absence with a bruised knee and scored 13 points and grabbed 14 rebounds for the Heat, who went 3-3 on their six-game homestand and gave coach Erik Spoelstra what has apparently become his annual gift — it was the fourth straight year Miami played and won on his birthday.ADVERTISEMENT Kammuri turning to super typhoon less likely but possible — Pagasa CPP denies ‘Ka Diego’ arrest caused ‘mass panic’ among S. Tagalog NPA Hayward, in blog post, expresses thanks for support QC cops nab robbery gang leader, cohort John Lloyd Cruz a dashing guest at Vhong Navarro’s wedding MOST READ Don’t miss out on the latest news and information. last_img read more

first_imgChot chooses Gilas veterans Don’t miss out on the latest news and information. LATEST STORIES Stronger peso trims PH debt value to P7.9 trillion Cignal will once again parade the core of the Red Lions, fresh from their triumph in NCAA Season 93, with 2017 Aspirants’ Cup Season MVP Robert Bolick and hardworking forward Javee Mocon counted on to provide the leadership.The Hawkeyes edged Racal Motors in three games in the Aspirants’ Cup Finals last season before making it a championship double with a sweep of Centro Escolar University in the Foundation Cup.FEATURED STORIESSPORTSWATCH: Drones light up sky in final leg of SEA Games torch runSPORTSSEA Games: Philippines picks up 1st win in men’s water poloSPORTSMalditas save PH from shutoutAlready the winningest mentor in the developmental ranks, Fernandez pushed his PBA D-League title collection to eight championships.Cignal, however, has lost valuable members of its championship teams with Raymar Jose and Jason Perkins being picked in the top four of the 2017 PBA Rookie Draft and Pamboy Raymundo and Oping Sumalinog joining Tanduay Alab Pilipinas in the ASEAN Basketball League. Photo by Tristan Tamayo/ INQUIRER.netReigning back-to-back titlist Cignal HD-San Beda will be returning to the PBA D-League after all.Coach Boyet Fernandez and his boys are returning to defend the throne for the Hawkeyes as they push the participating teams this upcoming 2018 PBA D-League Aspirants’ Cup to 13 squads.ADVERTISEMENT Japan ex-PM Nakasone who boosted ties with US dies at 101 Kammuri turning to super typhoon less likely but possible — Pagasa Kris Aquino ‘pretty chill about becoming irrelevant’ View commentscenter_img CPP denies ‘Ka Diego’ arrest caused ‘mass panic’ among S. Tagalog NPA Read Next The Hawkeyes’ entry also increased the number of school-based teams to eight this first conference, while also bringing the count of participants to a record-tying 13, the same number of teams which joined the 2011 Foundation Cup.Aside from Cignal, also joining this year are CEU, Tanduay, Marinerong Pilipino, Batangas-EAC, Zark’s Burger-Lyceum, JRU, AMA Online Education, Wangs Basketball, Gamboa Coffee Mix, and newcomers Perpetual, Powerball-St. Benilde, and Mila’s Lechon.The 2018 PBA D-League Aspirants’ Cup tips off on January 18.ADVERTISEMENT MOST READ QC cops nab robbery gang leader, cohort Brace for potentially devastating typhoon approaching PH – NDRRMC Typhoon Kammuri accelerates, gains strength en route to PH Makabayan bloc defends protesting workers, tells Año to ‘shut up’ PLAY LIST 02:11Makabayan bloc defends protesting workers, tells Año to ‘shut up’01:50Palace defends Duterte’s absences from Asean events00:50Trending Articles01:47Panelo casts doubts on Robredo’s drug war ‘discoveries’01:29Police teams find crossbows, bows in HK university01:35Panelo suggests discounted SEA Games tickets for students02:49Robredo: True leaders perform well despite having ‘uninspiring’ boss02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justicelast_img read more

first_imgThe Supreme Court has asked Committee of Administrators (COA) chief Vinod Rai and member Diana Edulji to not go public over their differences. Earlier, Diana Edulji has squashed rumours of a rift between her and chairman Vinod Rai on the issue of Pakistan’s participation in the ICC World Cup.There were reports claiming that Edulji was not in favour of Rai’s decision to ask the Board of Control for Cricket in India (BCCI) CEO Rahul Johri to write a letter to the International Cricket Council urging them to ban Pakistan from the World Cup in May-June.But Edulji cleared the air on this issue stating that, “There are no differences between the COA members on the issue. We will be meeting on Friday after which a collective decision will be taken taking into account all factors.”The apex court, while observing that it was “partially aware” of what was going on in the CoA, said that whosoever is involved in these issues, they should not bring it in public domain.”We have heard in newspaper reports that some sparring is going on between CoA members. We want to know is it correct?” asked a bench comprising Justices S A Bobde and A M Sapre.Senior advocate Parag Tripathi, appearing for the CoA, responded, “Not on core issues.”To this, the bench said, “We have thought to tell the amicus curiae to inform them (CoA members) that whosoever is involved, they should not bring it in public domain. It should not come in public domain”.advertisementIn 2017, the apex court had appointed a four-member CoA, headed by former Comptroller and Auditor General of India (CAG) Vinod Rai, to run the affairs of Board of Control for Cricket in India (BCCI) and implement the court-approved recommendations of the Justice R M Lodha panel on reforms in the cash-rich cricket body.The other three members of the CoA were — former Indian women cricket captain Diana Edulji, famous historian Ramachandra Guha and banker Vikram Limaye.Following the resignations of Guha and Limaye, the CoA presently has only two members — Rai and Edulji.The two-member CoA has been divided on several matters including the recent controversy involving cricketers Hardik Pandya and K L Rahul.Pandya and Rahul had attracted widespread criticism for their alleged misogynistic comments on TV Show ‘Koffee with Karan’.Rai had reportedly recommended a two-match ban on Pandya and Rahul, but Edulji had taken the matter to the BCCI legal cell which refused to call the players’ actions a violation of the code of conduct and recommended the appointment of an ombudsman.The CoA chief and Edulji had also reportedly differed on the controversy relating to exclusion of Indian women cricketer Mithali Raj from the playing 11 in the crucial semi-final match of the recently concluded women’s world cup.During the hearing on Thursday, senior advocate P S Narasimha, assisting the court as an amicus curiae in the BCCI matter, told the court that earlier there were four members in CoA but now there were only two.”We will appoint the members,” the bench said.To this, senior advocate Kapil Sibal, appearing for a state cricket association, said the number of members in CoA should have been odd.Narasimha also said the CoA should comprise of three members.Sibal told the court that CoA would mean that BCCI would be “sidelined completely”.However, the bench said, “We understand that. It (CoA) will be till further orders. Can we do it in-chamber? We have a name in our mind. We will pass an order”.Later, the bench observed that the CoA may also comprise of five members.”We are partially aware of what is going on in CoA,” the bench observed.The counsel appearing for some of the state cricket associations told the court that CoA has not released funds to them.Solicitor General Tushar Mehta, appearing for Maharashtra Cricket Association, said the condition was “precarious” as their stadium has been attached in a court proceeding and they have not been given funds by the CoA.Sibal argued that for the last three years, “not a single penny has been given to the state cricket associations”.Tripathi told the bench that funds were released directly to the respective vendors for the works done by them.”As long as people are playing the game and cricket is going on, we are not concerned,” the bench observed.It asked Narasimha to advise the CoA to release funds to the state cricket associations for cricketing purpose.advertisement”At the moment, let CoA be re-constituted and they can seek advise of P S Narasimha and then release funds. We are not going to loon into the accounts,” the bench said, adding, “We think that CoA is not utilising the services of amicus. Let them do it”.Meanwhile, the apex court issued notice to the CoA on an application of BJP leader Anurag Thakur, who was removed by the top court from the post of BCCI president in 2017 for obstructing its directions for overhauling governance in the cricket body, that he be allowed to contest and get back into the elected body of the BCCI.”My problem is that I am being barred (from BCCI) and have no remedy for the last two years,” senior advocate P S Patwalia, appearing for Thakur, said.Also Read | India should put pressure on ICC to throw Pakistan out of the World Cup: Chetan ChauhanAlso Read | World Cup not more important than the country, say Harbhajan and Azharuddinlast_img read more

first_imgAbout the authorPaul VegasShare the loveHave your say Arsenal boss Emery: Very young Guendouzi offers many thingsby Paul Vegas10 months agoSend to a friendShare the loveArsenal boss Unai Emery is delighted with the impact of Matteo Guendouzi.Guendouzi was booked for the fourth time this season in the feisty 3-1 win over Burnley.That was the 19-year-old’s 15th Premier League appearance of a season which began with him excelling even in defeat to Manchester City and has seen him establish himself as the latest youngster to take Arsenal by storm.“I am very happy with Matteo, he’s improving a lot and helping us,” said Emery. “He gives us a lot of moments in the team with combination and quality, with the possibility to play with our style.“He needs to improve more, to continue his progress with us. He’s very young.” last_img read more

first_imgRoku has started rolling out a software rollout in the UK, adding two new features designed to make it easier to find and follow content – Roku Search and the Roku Feed.  The update will be available on all current generation Roku players and Roku has at the same time this week launched its new, upgraded Roku 2 player in the UK.Roku Search will allow users to search for movies, TV shows, actors and directors, with the results to show the availability and price of this content across different channels.At launch, Netflix, Snagfilms and Popcornflix will support this search functionality in the UK, with more channels expected t be added over time.Roku’s new My Feed function lets users follow upcoming entertainment they want to watch, with an initial focus on  ‘Movies Coming Soon’, which will give reminders on when titles are available to stream, on what channel and at what price.Roku also said that a new version of the Roku Mobile App for Anrdroid and iOS and Android, with support for the new search and discovery features, is available now.Roku first announced the new Roku Search and Roku Feed functionality, and started to roll it out in the US, last month.The new Roku 2 player will be available in the UK starting this week from Argos, Curry’s and Amazon.last_img read more

first_img Gross profit (billions $) 14.7 Other 16.7 Addition of carriers. Currently, Apple has relationships with and supplies about 250 carriers in over 100 countries. However, there is significant potential for growth with telecoms that do not have relationships with Apple. China Mobile – China’s largest telecom with over 700 million subscribers – is a prominent example. We’ve concluded that adding carriers in emerging markets could provide Apple with an incremental 60 million units of iPhone sales annually. However, carrier expansion will likely be pushed out toward the back half of 2013 and into 2014. In the following calculation of gross profit for Apple’s iPhone segment for 2014, we have assumed a unit volume of 185 million. We’ve also modeled the impact that a low-cost phone will have on average sales price and gross margins. High customer satisfaction around other Apple products (iPods, iPhones, and iPads) creates a halo effect, which drives customers to Macs when they are ready to buy a PC. For these reasons, we think Apple’s Mac sales will continue to resist the overall trend, and at worst, remain flat for the next 18 months. We also foresee little change in average sales price and margins. Here’s our resulting forecast for the PC segment: Gross profit % 46 Units (millions) 18.2 The case presented above yielded earnings per share of $50.32 for fiscal year 2014. Currently, Apple’s share price multiple is about 10 times, well below the current market multiple of 18. This may seem too low; however, we think this is a good number to apply to our estimate. Multiples are usually a reflection of anticipated growth. Because Apple faces the law of large numbers, the market is apt to be perpetually nervous about its ability to grow, and therefore will continue to assign it a low earnings multiple. Nevertheless, 10 times our earnings estimate would result in a share price of $503, a return of about 25% in 18 months. This is by no means a spectacular return, but it is based on conservative projections. So it is, in our view, very achievable. What Will Move Apple Just as a stationary ball needs a push to provide it initial momentum, the undervalued stock needs a catalyst to fuel its price move. With Hewlett-Packard, a stock we recommended in the October issue of BIG TECH, one catalyst we foresaw was breakup speculation. Our thinking was that Hewlett-Packard had become so grossly undervalued, that it was only a matter of time before activist investors and Wall Street analysts began calling for a breakup of the company as a way to unlock shareholder value. That’s exactly what happened. We were also helped along by another catalyst: the Dell buyout news. When it was all said and done, our strategy yielded a 50% profit in just shy of five months. Never let it be said value investing is boring. With Apple, there are a handful of short-term catalysts that could send the stock higher. The ones that immediately come to mind are: The successful launch of a new product – such as the long-rumored smart TV and/or the iWatch – that catches fire in the marketplace. A deal to distribute iPhones with China Mobile, China’s largest mobile network provider with over 700 million subscribers. A sizable dividend hike and/or a sizable share buyback. On the flip side, a disappointing earnings report could send shares lower. But that’s probably baked into the cake. And besides, CEO Tim Cook will probably have some good news in his hip pocket (i.e., a big dividend hike) if he thinks earnings will disappoint. Of course, there’s always the possibility of a major market correction. If that happens, almost every stock will get hit. But since Apple is down big over the last few months, it will probably withstand a downturn better than most. Long story short, Apple possesses the characteristics we look for in a stock. Given its future earnings prospects, it looks undervalued, and it has multiple short-term catalysts. For these reasons, it looks like a decent buy at current levels. Bits & Bytes The Alibaba Phenomenon (The Economist) When thinking of e-commerce companies, Alibaba is probably not one of the first names that comes to mind… but that may soon change. Rumor has it that China’s e-commerce king is planning to go public, with valuation estimates ranging from $55 billion to more than $120 billion. That would make it one of the most valuable publicly traded companies in the world. Bitcoin ATMs Coming Soon (CNN Money) Bitcoins are taking a step into the real world, with an entrepreneur planning to introduce ATMs for the virtual currency. The Bitcoin ATMs will accept dollar bills and instantly convert the amount to Bitcoins and deposit the result in your account. Aereo Could Bring Down Broadcast TV (CNN Money) Aereo, an upstart online service which provides low-cost access to broadcast TV over the Internet, could be a huge step toward a future when programming options come à la carte, divorced from the expensive packages assembled by cable and satellite carriers. Tablets The tablet computer – a cross between a laptop, a smartphone, and a personal digital assistant – is not a new concept. Computer scientist Alan Kay began advancing ideas about component miniaturization, touchscreens, and WiFi technology way back in 1968. However, not until 2010 did any version of the tablet meet with meaningful commercial success. That’s the year that Apple launched the iPad. On launch day, 300,000 iPads were sold. Over the next year, more than 15 million were sold. The era of the tablet had arrived. Why did it take so long? Well, there were some attendant and powerful circumstances that prevailed in 2010 that either did not exist or were not sufficiently mature during earlier attempts to market tablets. Though inferior to the PC for content creation, the tablet is ideal for content consumption. Thanks to the advent of the Internet and WiFi and the spawning of thousands of apps, there is now a lot of content to consume. In addition, battery life has been extended from three hours on early versions of the tablet to over 12 hours on some current models, making these devices more portable and, therefore, more appealing to consumers. Those circumstances have driven astonishing adoption rates every year since 2010. In fact, the market for tablets has ramped up faster than any technology in history. 38.7 Personal Computers Much has been written in recent years about the decline in sales of personal computers (desktops and notebooks). As we all know by now, mobile computing devices are the cause. As consumers shift their time away from their PC to tablets and smartphones, they no longer see their PC as a device that they need to replace on a regular basis. According to Gartner, PC shipments peaked in 2011 at 364 million units, a 3.7% increase over the prior year. In 2012, year-over-year shipments decreased by 6.3%, and the slide is expected to continue in 2013 and 2014, with decreases of 7.6% and 4.1% respectively. However, Apple’s Mac division has experienced no such letdown; unit sales of Apple personal computers actually increased by 9% for the 2012 fiscal year. We think Apple is defying the PC trend for two main reasons: Apple serves the high end of the PC market. Because these high-end users are content creators, they are less likely to abandon the Mac for a tablet. Revenue* 108.3 Operating expenses* (Click on image to enlarge) This is not a fad. Rather, it is structural and will prevail for many years. Technology research firm IDC estimates that tablet shipments will reach 191 million units in 2013 and grow at a compounded annual rate of 16.6% for four years thereafter. Upon reinventing the tablet category in 2010, Apple dominated the market with a whopping 70% share. Since then, several formidable competitors have entered the fray, including Samsung, Amazon, and Microsoft. For the fourth quarter of 2012, Apple’s share had dropped to 46%, owing to the increased number of competitors and to Apple’s unwillingness to participate in a race to the bottom on pricing. IDC estimates that by 2017, the company’s share will drop to 43.5%. Conservatively, we have built our projections on the assumption that its share will be 40% for next fiscal year (September 2014). For fiscal year 2012, the average sale price of an iPad was about $531. However, in November 2012, Apple released the iPad Mini with a retail price of $329. Estimates are that the Mini will comprise 40% of total iPad sales. We estimate that that will lower the average sale price to about $450. Gross margin on iPads was 42.7% during fiscal year 2012, but the shift in sales mix to the Mini will put downward pressure on those margins. We estimate margins will fall to 38% for tablets in 2013 and stabilize at that level for 2014. Putting this all together, here is our projection for tablets down to the gross profit line for 2014: PCs Tablets Gross profit % 24.5 Apple units (millions units) 86 Gross profit % 38 When the market turns against a stock, watch out. Just ask Apple investors. From its peak just seven months ago, Apple is down over 40%. That’s an incredible move for a company of Apple’s size. Several factors have contributed to the decline, including: management departures, low-cost competition, and concerns that Apple’s well of innovation may have run dry with the loss of Steve Jobs. Each of these factors is cause for concern. However, healthy skepticism can quickly give way to a herd mentality, causing an overreaction in share price. Could that be what we’re seeing with Apple? To find out, we decided to take a look at the prospects for each of Apple’s major business segments. Smartphones Worldwide shipments of smartphones topped 700 million units in 2012, according to tech research firm IDC, an increase of 46% over 2011. Torrid growth is expected to continue; in 2013, IDC expects a 27% increase in smartphone shipments and another 17% in 2014, lifting sales to over 1 billion units annually. Analysts look for Apple’s smartphone growth to stay pretty much in lockstep with the market: fiscal year 2013 iPhone shipments are estimated to increase by about 25% (from 125 million to 156 million units), while a 19% increase is foreseen for FY 2014 (from 156 million to 185 million units). These estimates look very achievable and possibly even conservative. Here’s why: Introduction of a low-cost phone. In the US, Apple depends heavily upon a carrier-subsidized business model. Under this model, Verizon, AT&T, and other telecoms buy iPhones from Apple, then resell them to consumers well below their costs. In exchange for the discount received on the phone, the consumer signs a long-term contract (typically two years) with the carrier. In many regions outside the US, the subsidy model is not utilized. In order to penetrate the market in those regions, Apple needs a low-cost phone. Speculation has it that such a phone is on the way and will be introduced sometime around mid-year. In addition to driving growth internationally, an iPhone in the $300-$400 price range should help Apple capture share with non-contract (known as prepaid) US carriers. Pre-tax income* Revenue (billions $) 23.2 26.1 Units (millions) 185 Putting It All Together In the table below, we aggregate the information for the segments we discussed above. We add in the combined revenues from the iPod, iTunes, and accessories segments with the assumption that the iPod segment will decline at a 25% annual rate, while iTunes and accessories will increase at about a 12% annual rate. And finally, we assume that operating expenses and income taxes, consistent with the last two years, will be 8.5% of sales and 25% of pre-tax profits, respectively. 39.5 Income tax* Gross profit % 46.0 Refresh of iPhone 5. The iPhone 5 is due for a refresh. One is expected at mid-year, about the same time as the low-cost phone introduction. If that’s the case, it will be just in time for the upgrade cycle, as iPhone 4 customers who bought phones in the fall of 2011 will be coming off their two-year contracts and looking for new subsidized phones. It’s a safe bet that most of these customers will stick with Apple. A recent survey from Morgan Stanley and AlphaWise found that Apple leads the smartphone industry in customer retention. Among those surveyed, 83% of iPhone users said they plan to buy another iPhone. Total 63.8 Average sale price     450 23.2 Revenue (billions $) 108.3 Average sale price 585 Addressable market (millions units) 214 24.5 10.3 14.7 41.0 * Numbers in billions Gross profit (billions $) 5.7 Gross profit* 49.8 Average sale price 1,275 Net income* Revenue (billions $) 38.7 196.3 Smartphones 38.8 5.7 Apple share 40% 80.5 47.8 16.0 Gross profit (billions $) 49.8last_img read more