Ethereum is close to becoming the first blockchain to process $1 trillion this year ETH price is trading 8.7% in the green as buyers work to secure the highest weekly close since August A pullback to $395 would offer a chance to buy ETH at a solid risk-reward level Ethereum (ETH) price is on its way to secure the biggest weekly gains in over 2 months after the world’s second largest digital asset broke above the intraweekly resistance line. Fundamental analysis: The first blockchain to process $1 trillion this year Ethereum is close to becoming the first blockchain to process $1 trillion this year, recording a twice higher transaction volume than Bitcoin. The transaction volume’s 30-day rolling daily average is currently sitting at around $7 billion, substantially higher than Bitcoin’s $3 billion, according to the crypto data provider Messari. Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today. If it manages to maintain this rate, Ethereum is likely to become the first blockchain to process $1 trillion in transactions this year, Messari said. Bitcoin is expected to settle around $800 million this year, its best performance after 2018. Apart from this year,
Retail monthly sales in the country advanced for the fourth consecutive month in August
Spain is set to approve the extension of furlough scheme until January 31
Inditex and Telefonica seem well-positioned to outperform the rest of the market in the short-term
After logging the lowest levels recorded since 2003, the Spanish benchmark index IBEX35 recovered nearly 40% of losses in June. However, the rebound has proved to be unsustainable so far, with IBEX35 rotating lower again on slower-than-planned recovery.
Fundamental analysis: Slower recovery
EU-harmonised consumer prices in Spain slipped by 0.6% year-over-year in September, according to flash data provided by the National Statistics Institute (INE) on Tuesday, recording the same drop of 0.6% from last month.
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Data also showed that Spanish national consumer price index dropped by 0.4% this month on a yearly basis, as opposed to a 0.5% drop in August. Retail monthly sales in the country advanced for the fourth consecutive month in August, the INE announced, but still down from its pre-lockdown figures.
In August, retail sales jumped by 1.8% month-over-month, following a 1.2% surge in July and a strong rebound in May in June after Spain eased its lockdown measures. However, calendar-adjusted sales were 2.4% down compared to year-ago levels, up from a 3.9% fall recorded in July and far better than the double-digit drops registered between March and May.
Sales at major chain retailers advanced 2.3% year-on-year, while other shopping areas stayed in the red. Consumer sales recorded a sharp rebound since April, when the Spanish government imposed one of the most rigorous lockdowns in Europe, resulting in a 31.6% year-over-year decline in retail sales.
Still, the recovery results were different from region to region. Regions that mostly rely on tourism including the Balearic and Canary Islands continued to strive, recording year-on-year retail sales slumps of 15.3% and 14.2%, respectively, the INE reported.
In August, demand within all product sectors including furniture and appliances, marked the best recovery results, with sales in that month climbing by 5.9% compared to July levels. Furniture makers saw a particularly sharp rise in demand after the lockdown in June.
Spain is set to reiterate its outlook for economic contraction in 2020 in the range of 10% and 11%, compared to a previous forecast of 9.2% released in May, newswire Europa Press reported Sunday, according to sources from the government.
Spain will provide an updated GDP forecast in 2020 in early October and is also expected to widen its budget deficit target, compared to the 10.3% of GDP target announced in May, the newspaper said.
The country’s economy shrank by a record 17.8% in Q2 in comparison with the previous quarter and 21.5% down compared with the same quarter a year ago.
Furlough scheme to be extended
Spain is expected to approve the extension of furlough scheme that helps hundreds of thousands of Spanish workers until January 31.
As a fresh surge in coronavirus cases continues to batter the Spanish economy, the government has struck a deal with labour unions for an extension of the ERTE scheme, however, it still needs more support from representatives of businesses, the sources said.
Although the top businessman organization in Spain, CEOE, still hasn’t approved the agreement, the cabinet is expected to authorize the extension of the scheme that will expire on Wednesday.
The ERTE scheme has been supporting millions of Spaniards since mid-March, when the government enforced the lockdown to fight the coronavirus-induced crisis.
2 attractive stocks to buy in October
Given the scale of the pandemic-fueled recession, it is advised to focus on the bigger companies as they are usually better equipped to withstand the financial pressure. To this end, we present 2 stocks that are good investment options at the current valuation levels. Learn more about how to choose winning stocks.
Telefonica (BME: TEF) seems like a good pick on the back of the 5G network rollout. The telecommunications giant noted it expects around three-quarters of the total population to have access to its next-gen mobile internet before the start of the next year.
Telefonica stock monthly chart (TradingView)
“Spain will reap great benefits. 5G constitutes not only a new generation of mobile telephony, but it’s also a revolution in terms of its practical applications for all the sectors, and because it allows the extension of ultra-broadband coverage to rural areas, many of them depopulated,” said the President of Telefonica Maria Alvarez-Pallete.
The company has a strong balance sheet after it sold its British unit O2 Telecom to Hutchinson-owned Three UK in May for £9.40 billion. In Germany, its Telefonica Deutschland signed an agreement with Telxius worth nearly £1.3 billion.
Telefonica stock price hit an all-time low at €2.85 per share this week. The stock is well-positioned to gain immensely once a more meaningful recovery takes place. The buyers will target €6.60 as a key target on the upside. This translates into an upside of over 130% from the current levels.
Inditex (BME: ITX), the Zara-owner and one of the world’s largest fashion retail companies, has enjoyed a great second half of the year so far. Nearly all stores (98%) had reopened following the lockdown, enough to report a second-quarter net profit of €214 million.
Inditex stock daily chart (TradingView)
It is worth noting that the company spent over €308 million to integrate its stores and online platforms. This will make the retail giant better prepared for the transformation towards e-commerce and digital sales.
Inditex share price trades over 25% lower since the beginning of the year. A return to 200-MMA at €26.47 signals an upside of nearly 12%. Levels above the €30 mark remain a key target for the bulls.
Retail monthly sales in Spain climbed for the four month in a row, but still shy from its pre-lockdown figures. Still, the recovery is taking place and Inditex and Telefonica seem well-positioned to outperform the rest of the market in the short-term.
PICO Holdings, Inc. (NASDAQ:PICO) reported results for the second quarter ended June 30, 2020. Our reported shareholders’ equity was $172.3 million ($9.06 per share) at June 30, 2020, compared to $178.3 million ($9.01 per share) at December 31, 2019.
Second Quarter Results of Operations
Our second quarter results of operations were as follows (in thousands):
Three Months Ended June 30,
Total cost and expenses
Net income (loss) attributable to Pico Holdings, Inc.
Net income (loss) per share
Six Months Results of Operations
Our six months results of operations were as follows (in thousands):
Six Months Ended June 30,
Total cost and expenses
Net income attributable to PICO Holdings, Inc.
Net income per share
PICO’s Chief Executive Officer, Dorothy Timian-Palmer, commented:
"Our reported results of net income of $1.9 million for the second quarter ended June 30, 2020 reflects the sale of 470 acre-feet of groundwater rights in Dodge Flat, Nevada for sale proceeds of $3.1 million in May, 2020. We did not generate any other significant water resource asset sale transactions in the period or in the first quarter of 2020 and, as a result, our reported net income of $53,000 was virtually break-even for the six months ended June 30, 2020.
"Effective July 24, 2020, the Board adopted a new tax benefits preservation plan (the ‘Plan’) designed to preserve the Company’s ability to utilize its net operating losses (‘NOLs’). As of December 31, 2019, the Company had approximately $156.5 million (pre-tax) federal NOLs. Information with respect to these NOLs is contained in our Annual Report on Form 10-K for the year ended December 31, 2019 that we filed with the Securities and Exchange Commission. We believe these NOLs are a valuable asset to the Company and our shareholders, as they may potentially shelter all or part of any future taxable gains arising as we monetize our assets. The Company will seek shareholder ratification of the Plan at PICO’s 2021 Annual Meeting. The Plan is similar to the Company's previous tax benefits preservation plan, which expired on July 24, 2020.
"We continue to carefully monitor our liquidity and working capital requirements during these uncertain times. We believe our cash resources of $11.3 million as of June 30, 2020, provides us sufficient liquidity for our ongoing operations and share repurchase program. The Board continues to believe that at current and recent market prices, our stock is undervalued from our estimate of its intrinsic value, and we continued to repurchase our common stock through open market purchases throughout the second quarter of 2020 and year to date. In 2020, we have to date repurchased a total of approximately 838,000 shares for approximately $7.2 million. We will continue to monitor our liquidity and forecast cash generation very carefully; depending on the price of our shares, our cash position, and our cash flow outlook, we will continue to evaluate our capital allocation with respect to our share repurchase plan.”
About PICO Holdings, Inc.
As of June 30, 2020, our primary holding was Vidler Water Company, Inc. ("Vidler”), a water resource and water storage business, with assets and operations primarily in the Southwestern U.S.
Currently, we believe the highest potential return to shareholders is from a return of capital. As we monetize assets, rather than reinvest the proceeds, we intend to return capital to shareholders through a stock repurchase program or by other means such as special dividends. Nonetheless, we may, from time to time, reinvest a portion of proceeds from asset monetizations in further development of existing assets, if we believe the returns on such reinvestment outweigh the benefits of a return of capital.
At June 30, 2020, we had a market capitalization of $160.4 million, and 19,027,285 shares outstanding.
We remind all of our stockholders that questions regarding our operations may be submitted to email@example.com, and, if appropriate, we will post on our website responses to these questions.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains statements that may constitute forward-looking statements, which are based on information currently available, usually identified by words such as "anticipates," "believes," "estimates," "plans,'' "projects," "expects," "hopes," "intends," "strategy," ''focus," "outlook," "will," "could," "should," "may," "continue," or similar expressions, which speak only as of the date the statement was made. Such statements are forward-looking statements and are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including without limitation statements regarding our business objectives, our ability to monetize our water resources, the future demand for our water resources, our ability to reduce net operating cash use, our ability to preserve and utilize NOLs to offset taxable income and reduce our federal income liability, and our ability to monetize assets and return capital to shareholders through stock repurchases or through other means. The forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties.
A number of other factors may cause actual results to differ materially from our expectations, such as: any slow down or downturn in the housing or in the real estate markets in which Vidler operates; fluctuations in the prices of water and water rights; physical, governmental and legal restrictions on water and water rights; a downturn in some sectors of the stock market; general economic conditions; the impacts of the COVID-19 global pandemic on the demand for real estate, real estate development, and demand for water resources to support residential and commercial real estate development; prolonged weakness in the overall U.S. and global economies; the performance of the businesses in which Vidler operates; the continued service and availability of key management personnel; and potential capital requirements and financing alternatives.
For further information regarding risks and uncertainties associated with our business, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations” and "Risk Factors” sections of our SEC filings, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, copies of which may be obtained by contacting us at (775) 885-5000 x200 or at https://picoholdings.com.
We undertake no obligation to (and we expressly disclaim any obligation to) update our forward-looking statements, whether as a result of new information, subsequent events, or otherwise, in order to reflect any event or circumstance which may arise after the date of this press release, except as may otherwise be required by law. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
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