IPOs are red hot, doubling the return of the market, as Levi Strauss kicks off wave of offerings

Renaissance Capital, which tracks the IPO market, counts 37 companies in registration targeting $10 billion of proceeds. “We are concerned about how the public markets will absorb all this issuance,” Kathleen Smith from Renaissance Capital told CNBC. Her point is that the market is very different than it was 20 years ago. These financial advisors often aren’t even stock pickers and don’t follow the IPO market. “The era when your broker called you up and said, ‘We’ve got a hot deal for you,’ is m


Renaissance Capital, which tracks the IPO market, counts 37 companies in registration targeting $10 billion of proceeds. “We are concerned about how the public markets will absorb all this issuance,” Kathleen Smith from Renaissance Capital told CNBC. Her point is that the market is very different than it was 20 years ago. These financial advisors often aren’t even stock pickers and don’t follow the IPO market. “The era when your broker called you up and said, ‘We’ve got a hot deal for you,’ is m
IPOs are red hot, doubling the return of the market, as Levi Strauss kicks off wave of offerings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-21  Authors: bob pisani
Keywords: news, cnbc, companies, ipo, proceeds, strauss, record, return, smith, ipos, offerings, market, financial, billion, red, wave, levi, hot, dont, kicks, renaissance, targeting


IPOs are red hot, doubling the return of the market, as Levi Strauss kicks off wave of offerings

Renaissance Capital, which tracks the IPO market, counts 37 companies in registration targeting $10 billion of proceeds. But that’s just the beginning: Renaissance has 234 companies targeting 2019 IPOs with valuations of nearly $700 billion, with a strong possibility that 2019 will be a record $100 billion year for IPO proceeds, passing the 2000 record of $96 billion.

It all sounds terrific, but there’s a simple problem: Who’s going to buy all this stuff?

“We are concerned about how the public markets will absorb all this issuance,” Kathleen Smith from Renaissance Capital told CNBC.

Her point is that the market is very different than it was 20 years ago. There are fewer individual investors. Many don’t even have brokerage accounts. They have financial advisors who do asset allocation using index investing and ETFs. These financial advisors often aren’t even stock pickers and don’t follow the IPO market. They are asset allocators.

“The era when your broker called you up and said, ‘We’ve got a hot deal for you,’ is mostly over,” Smith said.


Company: cnbc, Activity: cnbc, Date: 2019-03-21  Authors: bob pisani
Keywords: news, cnbc, companies, ipo, proceeds, strauss, record, return, smith, ipos, offerings, market, financial, billion, red, wave, levi, hot, dont, kicks, renaissance, targeting


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A giant IPO wave is coming as ‘unicorns’ whet investor appetite

IPO observers are optimistic, and with some justification: There is an outside chance 2019 could be an all-time record for initial public offerings, passing even the legendary 1999 and 2000 years. How big is the IPO market in 2019? Assuming the companies float 15 percent of their value, you get over $100 billion in IPO offerings ($697 billion x 15 percent = $104.55 billion). There were $93 billion of IPOs in 1999 and $97 billion in 2000, according to Renaissance Capital. In 2014, the total value


IPO observers are optimistic, and with some justification: There is an outside chance 2019 could be an all-time record for initial public offerings, passing even the legendary 1999 and 2000 years. How big is the IPO market in 2019? Assuming the companies float 15 percent of their value, you get over $100 billion in IPO offerings ($697 billion x 15 percent = $104.55 billion). There were $93 billion of IPOs in 1999 and $97 billion in 2000, according to Renaissance Capital. In 2014, the total value
A giant IPO wave is coming as ‘unicorns’ whet investor appetite Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: bob pisani, source
Keywords: news, cnbc, companies, ipos, unicorns, appetite, whet, offerings, renaissance, ipo, market, investor, wave, giant, 2019, value, coming, companies, public, billion


A giant IPO wave is coming as 'unicorns' whet investor appetite

There’s a ‘large backlog’ of IPOs in the US: Renaissance Capital 2:32 AM ET Tue, 29 Jan 2019 | 03:05

Now that the IPO market has reopened, traders are hopeful that an enormous pile of new stock offerings can be pushed through the door in 2019.

IPO observers are optimistic, and with some justification: There is an outside chance 2019 could be an all-time record for initial public offerings, passing even the legendary 1999 and 2000 years.

But for that to happen, a lot of things need to go almost perfectly. There can’t be any more government shutdowns, market conditions have to exhibit low volatility and — most importantly — the public needs to have an appetite to buy very large IPOs at (potentially) very inflated prices.

That’s a very tall order.

How big is the IPO market in 2019? Really big.

Renaissance Capital, which advises institutional buyers on IPOs and maintains the IPO ETF, a basket of roughly the last 60 large IPOs, has a watch list of 226 private companies that are planning to go public in 2019. These companies represent a value of $697 billion.

Assuming the companies float 15 percent of their value, you get over $100 billion in IPO offerings ($697 billion x 15 percent = $104.55 billion).

“That will break any record we have ever seen in terms of dollar volume,” Kathleen Smith of Renaissance tells CNBC. It would be bigger than 1999 and 2000, the years that represented the height of the dot-com IPO boom. There were $93 billion of IPOs in 1999 and $97 billion in 2000, according to Renaissance Capital.

The market has never gotten close to $100 billion in capital raised in a single year since then. In 2014, the total value raised was $85 billion, but $22 billion of that was for Alibaba, the Chinese e-commerce giant.

In terms of deals lined up for this year, of the 226 companies set to launch there are 119 companies that would be classified as “unicorns,” or private companies with valuations over $1 billion. This group includes well-known names like Uber, WeWork and Lyft.


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: bob pisani, source
Keywords: news, cnbc, companies, ipos, unicorns, appetite, whet, offerings, renaissance, ipo, market, investor, wave, giant, 2019, value, coming, companies, public, billion


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Cracks appearing for leveraged loans that helped cause financial crisis

That would be a massive drop-off from 2018, which saw $274 billion in issuance during the first half alone, according to LeveragedLoan.com. The key risk point for the industry is securitization, or the bundling of the loans into offerings such as collateralized loan obligations. Yellen mentioned that danger specifically, saying the CLO industry for leveraged loans looked a lot like the subprime mortgage offerings that led up to the financial crisis. Wall Street sells CLOs to investors looking fo


That would be a massive drop-off from 2018, which saw $274 billion in issuance during the first half alone, according to LeveragedLoan.com. The key risk point for the industry is securitization, or the bundling of the loans into offerings such as collateralized loan obligations. Yellen mentioned that danger specifically, saying the CLO industry for leveraged loans looked a lot like the subprime mortgage offerings that led up to the financial crisis. Wall Street sells CLOs to investors looking fo
Cracks appearing for leveraged loans that helped cause financial crisis Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: jeff cox, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, crisis, appearing, industry, investors, saw, helped, market, loans, billion, securitization, offerings, cracks, issuance, financial, cause, looking, refinitiv, leveraged


Cracks appearing for leveraged loans that helped cause financial crisis

As the warnings were being issued, both investors and companies looking for funding left the market.

Mutual fund outflows in December alone hit $15.4 billion in December, according to Refinitiv. The firm’s LPC group surveyed market participants and found they expect issuance to be weak this year, with most looking for it to be in a range of $90 billion to $110 billion. That would be a massive drop-off from 2018, which saw $274 billion in issuance during the first half alone, according to LeveragedLoan.com.

The key risk point for the industry is securitization, or the bundling of the loans into offerings such as collateralized loan obligations.

Yellen mentioned that danger specifically, saying the CLO industry for leveraged loans looked a lot like the subprime mortgage offerings that led up to the financial crisis. Wall Street sells CLOs to investors looking for yield; during the crisis, the securities became so opaque that investors had a hard time deciphering what they even held. The issues over securitization helped spark a lack of confidence that led to liquidity drying up in financial markets.

Refinitiv said CLO issuance hit a record $128 billion last year, though December saw the market sink to a two-year low.

One final issue hitting the industry has been the Federal Reserve.

Higher interest rates make the products more attractive, but central bank officials in recent days have become more tepid about the pace of increases. The possibility that the Fed may enact any hikes this year is another problem for the industry, Refinitiv LPC said.

The firm said the appetite for issuance to Athenahealth and Dun & Bradstreet, which launched earlier this week, will provide signals for this year’s market.

WATCH: Have companies taken on too much debt?


Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: jeff cox, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, crisis, appearing, industry, investors, saw, helped, market, loans, billion, securitization, offerings, cracks, issuance, financial, cause, looking, refinitiv, leveraged


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Cramer’s favorite ways to invest in the rise of streaming services

Investors looking to seize on the rise of over-the-top streaming services and increased cord-cutting should look no further than a few key stocks, CNBC’s Jim Cramer said Friday on “Mad Money.” While the devices and ecosystems that enable streaming — think Apple, Amazon, Alphabet and Comcast, as well as smaller players like Roku — are worth considering for some exposure, the streaming service providers are the real long-term winners, he said. Cramer’s favorite pick in the streaming space might co


Investors looking to seize on the rise of over-the-top streaming services and increased cord-cutting should look no further than a few key stocks, CNBC’s Jim Cramer said Friday on “Mad Money.” While the devices and ecosystems that enable streaming — think Apple, Amazon, Alphabet and Comcast, as well as smaller players like Roku — are worth considering for some exposure, the streaming service providers are the real long-term winners, he said. Cramer’s favorite pick in the streaming space might co
Cramer’s favorite ways to invest in the rise of streaming services Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, streaming, overthetop, services, offerings, disney, ways, think, stock, invest, content, stocks, disneys, rise, service, cramers, favorite


Cramer's favorite ways to invest in the rise of streaming services

Investors looking to seize on the rise of over-the-top streaming services and increased cord-cutting should look no further than a few key stocks, CNBC’s Jim Cramer said Friday on “Mad Money.”

While the devices and ecosystems that enable streaming — think Apple, Amazon, Alphabet and Comcast, as well as smaller players like Roku — are worth considering for some exposure, the streaming service providers are the real long-term winners, he said.

That’s because, when it comes to over-the-top entertainment, the hardware is “not where the big money is,” the longtime stock-picker explained.

“In this business, content is king,” he said.

Cramer’s favorite pick in the streaming space might come as a surprise: The Walt Disney Company.

In 2017, Disney became something of a “poster child for the pain of cord-cutting” as Wall Street fretted about the company’s subscriber losses at its sports network, ESPN, quarter after quarter.

Since then, Disney CEO Bob Iger has been at work reshaping Disney’s offerings, introducing ESPN+, an over-the-top streaming service with live sports and exclusive content, for $4.99 a month, last April. Still on the horizon for the company, which owns a stake in Hulu, is the launch of its own streaming service, Disney+.

“And, remember, thanks to Disney’s acquisition of Twenty-First Century Fox’s entertainment assets, the combined company’s going to have perhaps the best library of content in the world,” Cramer said.

“In the end, when it comes to streaming platforms, I believe the best content will win, and Disney’s got amazing content,” he continued. “The stock actually remains cheap; it sells for 15 times earnings. […] I think it’s a buy ahead of what I believe will be a very compelling April analyst meeting.”

The “Mad Money” host couldn’t address streaming without considering the stock of Netflix, one of the pioneers of over-the-top offerings. But while he liked Netflix’s long-term prospects, he worried about the stock’s surge in recent weeks.

“Call me a believer, but understand that if you buy the stock here, you are chasing, and I am a no-chaser guy,” he said.

Cramer acknowledged that some investors might want to play it safer and invest in Apple, Amazon or Alphabet, whose streaming offerings are generally “too small to move the needle,” but remain solid lines of business. Some stock-pickers might want to speculate on a riskier play like Roku, or a “dark horse” like Comcast, which just began offering a new over-the-top interface, he said.

But his favorites remain the stocks of Disney and, in the case of a pullback, the original streamer, Netflix.

“You’ve seen the rise of all these streaming services, so if you want to invest in the over-the-top renaissance, I say wait for a pullback in Netflix or pick up some Disney ahead of that all-important April analyst meeting,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, streaming, overthetop, services, offerings, disney, ways, think, stock, invest, content, stocks, disneys, rise, service, cramers, favorite


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Vietnam unseats Singapore as largest IPO fundraiser in Southeast Asia

Singapore, a major international financial hub, lost its crown as Southeast Asia’s top grossing market for initial public offerings in 2018. It was brought down by Vietnam, which is often not top of mind for stock investors. In fact, the communist country is still considered a frontier market by major index providers, meaning it’s thought to be less established and riskier than even emerging markets. Singapore, meanwhile, is classified as a developed market. But Singapore’s fall this year had li


Singapore, a major international financial hub, lost its crown as Southeast Asia’s top grossing market for initial public offerings in 2018. It was brought down by Vietnam, which is often not top of mind for stock investors. In fact, the communist country is still considered a frontier market by major index providers, meaning it’s thought to be less established and riskier than even emerging markets. Singapore, meanwhile, is classified as a developed market. But Singapore’s fall this year had li
Vietnam unseats Singapore as largest IPO fundraiser in Southeast Asia Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-27  Authors: yen nee lee, hoang dinh nam, afp, getty images
Keywords: news, cnbc, companies, asia, singapores, global, offerings, international, fundraiser, unseats, vietnam, southeast, markets, major, listing, market, ipo, singapore, largest


Vietnam unseats Singapore as largest IPO fundraiser in Southeast Asia

Singapore, a major international financial hub, lost its crown as Southeast Asia’s top grossing market for initial public offerings in 2018.

It was brought down by Vietnam, which is often not top of mind for stock investors. In fact, the communist country is still considered a frontier market by major index providers, meaning it’s thought to be less established and riskier than even emerging markets. Singapore, meanwhile, is classified as a developed market.

But Singapore’s fall this year had little to do with Vietnam’s rise, experts noted. Instead, they said, the wealthy city-state’s open economy means it’s more affected by global developments and there were plenty of reasons for companies to hold back their listing plans in 2018.

“In the second half of 2018, global trade wars, political tensions and volatile markets have inadvertently impacted economic sentiments, causing delays in the listing timeline of some IPO aspirants,” Tay Hwee Ling, Deloitte Southeast Asia and Singapore’s global International Financial Reporting Standards and offerings services leader, told CNBC in an email.


Company: cnbc, Activity: cnbc, Date: 2018-12-27  Authors: yen nee lee, hoang dinh nam, afp, getty images
Keywords: news, cnbc, companies, asia, singapores, global, offerings, international, fundraiser, unseats, vietnam, southeast, markets, major, listing, market, ipo, singapore, largest


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Bitcoin crashes 37 percent in November, wiping $70 billion off of cryptocurrencies’ market value

Bitcoin hit a low of $3,878.66 Friday after starting November above the $6,300 mark. The market capitalization of all major cryptocurrencies took a $70 billion hit for the month, according to CoinMarketCap.com. That digital currency split into two versions: “Bitcoin ABC” or “Bitcoin SV,” short for “Satoshi’s Vision” in mid-November. “While the split occurred on a different blockchain, there were still spill-over effects on other cryptos, including bitcoin,” Moro said. Regulators stepped up enfor


Bitcoin hit a low of $3,878.66 Friday after starting November above the $6,300 mark. The market capitalization of all major cryptocurrencies took a $70 billion hit for the month, according to CoinMarketCap.com. That digital currency split into two versions: “Bitcoin ABC” or “Bitcoin SV,” short for “Satoshi’s Vision” in mid-November. “While the split occurred on a different blockchain, there were still spill-over effects on other cryptos, including bitcoin,” Moro said. Regulators stepped up enfor
Bitcoin crashes 37 percent in November, wiping $70 billion off of cryptocurrencies’ market value Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: kate rooney, yu chun christopher wong, getty images
Keywords: news, cnbc, companies, digital, ceo, worlds, moro, billion, value, crashes, hit, wiping, bitcoin, exchange, 37, market, 70, coin, offerings, cryptocurrencies, cryptocurrency


Bitcoin crashes 37 percent in November, wiping $70 billion off of cryptocurrencies' market value

November will be a month to remember for bitcoin investors.

The world’s largest cryptocurrency ended November down 37 percent, its worst drop since April 2011 when the cryptocurrency fell about 39 percent, according to data from CoinDesk.

Bitcoin hit a low of $3,878.66 Friday after starting November above the $6,300 mark. The digital currency is now down more than 70 percent since the start of 2018 and 80 percent from its all-time high hit late last year.

The market capitalization of all major cryptocurrencies took a $70 billion hit for the month, according to CoinMarketCap.com. XRP, the world’s second largest cryptocurrency, dropped 18 percent in November while ether fell 43 percent in the same time period.

For bitcoin, this month’s price performance was a stark turnaround from its relatively stable October. The cryptocurrency traded near $6,400 without much volatility as global markets fell.

Michael Moro, CEO of Genesis Global Trading, said “it didn’t take much for the price to break down” after bitcoin failed to stay above the key support level of $5,850.

“It’s unclear if this is a ‘bottom’ or a brief period of consolidation before next move down, but buyers are still maintaining some cash on the sidelines in case it does go lower,” Moro said.

There was a spike in short interest in bitcoin as momentum traders piled on, he said. But still, Moro said Genesis is seeing a decent level of buy-side interest at the $4,000 level.

The CEO also pointed to a “messy” fork on the bitcoin cash network. That digital currency split into two versions: “Bitcoin ABC” or “Bitcoin SV,” short for “Satoshi’s Vision” in mid-November.

“While the split occurred on a different blockchain, there were still spill-over effects on other cryptos, including bitcoin,” Moro said.

Still, there were some bright spots for crypto bulls this month.

Digital currencies got the backing of a key figurehead on Wall Street — Jeff Sprecher, chairman of the New York Stock Exchange and CEO of its parent company ICE. Despite headlines of cryptocurrencies flopping, Sprecher said they have a future in regulated markets.

The Intercontinental Exchange is backing a version of bitcoin futures through a start-up called Bakkt that goes live in January. Nasdaq and VanEck also confirmed they are planning to launch multiple cryptocurrency products, which include bitcoin futures in the first quarter of next year.

Regulators stepped up enforcement of initial coin offerings in November.

The Securities Exchange Commission announced its first civil penalties against founders who did not register new coin offerings, adding to its crackdown aimed at abuses and outright fraud in the growing digital industry. This week, the agency settled with pro boxer Floyd Mayweather and music producer DJ Khaled, who the SEC said pumped up initial coin offerings without telling investors they were getting paid a promotional fee.


Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: kate rooney, yu chun christopher wong, getty images
Keywords: news, cnbc, companies, digital, ceo, worlds, moro, billion, value, crashes, hit, wiping, bitcoin, exchange, 37, market, 70, coin, offerings, cryptocurrencies, cryptocurrency


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In bigger crackdown of crypto abuses, SEC goes after unregistered coin offerings

The Securities and Exchange Commission announced its first civil penalties on Friday against crypto founders who failed to register new coin offerings, part of a bigger regulatory and legal crackdown aimed at abuses and outright fraud in the growing digital currency industry. The SEC said it settled separate cases with start-ups companies Airfox and Paragon, which raised more than $10 million each in initial coin offerings that weren’t registered. The settlement comes a week after the agency not


The Securities and Exchange Commission announced its first civil penalties on Friday against crypto founders who failed to register new coin offerings, part of a bigger regulatory and legal crackdown aimed at abuses and outright fraud in the growing digital currency industry. The SEC said it settled separate cases with start-ups companies Airfox and Paragon, which raised more than $10 million each in initial coin offerings that weren’t registered. The settlement comes a week after the agency not
In bigger crackdown of crypto abuses, SEC goes after unregistered coin offerings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: kate rooney, adam jeffery
Keywords: news, cnbc, companies, judge, goes, statement, fraud, zaslavskiy, abuses, crypto, digital, crackdown, securities, investors, coin, bigger, unregistered, offerings, sec


In bigger crackdown of crypto abuses, SEC goes after unregistered coin offerings

The Securities and Exchange Commission announced its first civil penalties on Friday against crypto founders who failed to register new coin offerings, part of a bigger regulatory and legal crackdown aimed at abuses and outright fraud in the growing digital currency industry.

The SEC said it settled separate cases with start-ups companies Airfox and Paragon, which raised more than $10 million each in initial coin offerings that weren’t registered. They have agreed to pay penalties, register their tokens as securities, file periodic reports with the agency and return funds to any harmed investors, according to the SEC.

The settlement comes a week after the agency notched another “first,” setting charges that a crypto firm called EtherDelta was operating as an unregistered exchange.

The cases underscore the SEC’s insistence that the relatively new digital financial products must follow traditional securities rules.

“We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities,” Stephanie Avakian, the SEC’s co-director of enforcement, said in a statement. “These cases tell those who are considering taking similar actions that we continue to be on the lookout for violations of the federal securities laws with respect to digital assets.”

On Thursday, federal prosecutors in New York announced a guilty plea by a man who defrauded investors with two cryptocurrencies he founded during the initial coin offering boom.

Maksim Zaslavkiy, pleaded guilty to conspiracy to commit securities fraud after raising money for two virtual currencies known as “REcoin” and “Diamond.” Zaslavskiy admitted to tricking investors into buying the digital tokens by claiming they were backed by real estate and diamonds.

In reality, the certificates he sent to investors were not backed by blockchain technology. Zaslavskiy also had none of the promised jewels or land to back those investments, according a statement from the Department of Justice.

Thirty nine-year-old Zaslavkiy tried earlier this year to dismiss the case against him by arguing that cryptocurrencies he created were not securities for the purpose of criminal law. That was shot down by a judge in Brooklyn in September.

A key part of Zaslavkiy’s argument at the time was that current laws around crypto are “unconstitutionally vague.” U.S. district judge Raymond Dearie disagreed. The judge stopped short of defining RECoin and Diamond as securities, but Dearie did say the jury should be able to assess them using existing laws.

“The calculated lies of Zaslavskiy and others led unsuspecting investors who thought they were purchasing cryptocurrency securities to buy worthless certificates,” United States Attorney for the Eastern District of New York, Richard P. Donoghue said in a statement. “This Office will continue to aggressively prosecute those who exploit and defraud investors, whether through traditional means of securities fraud, or new forms – such as the use of purported cryptocurrency offerings and blockchain technology.”


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: kate rooney, adam jeffery
Keywords: news, cnbc, companies, judge, goes, statement, fraud, zaslavskiy, abuses, crypto, digital, crackdown, securities, investors, coin, bigger, unregistered, offerings, sec


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Chipotle shares rise after RBC upgrades the stock and predicts 20% rally

“After a 19 percent retreat from recent highs, we believe Chipotle shares offer a compelling risk/reward heading into 2019 and 2020,” David Palmer wrote in a note. In addition to the stock upgrade, the analyst raised his 12-month price target on Chipotle shares to $510 from $450, representing 19 percent upside from Friday’s close. Shares of Chipotle rose 1.7 percent in premarket trading following the RBC upgrade. Niccol joined Chipotle following a successful track record at Taco Bell. “We’re not


“After a 19 percent retreat from recent highs, we believe Chipotle shares offer a compelling risk/reward heading into 2019 and 2020,” David Palmer wrote in a note. In addition to the stock upgrade, the analyst raised his 12-month price target on Chipotle shares to $510 from $450, representing 19 percent upside from Friday’s close. Shares of Chipotle rose 1.7 percent in premarket trading following the RBC upgrade. Niccol joined Chipotle following a successful track record at Taco Bell. “We’re not
Chipotle shares rise after RBC upgrades the stock and predicts 20% rally Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: thomas franck, getty images, source, chipotle mexican grill
Keywords: news, cnbc, companies, digital, shares, investors, 20, predicts, following, chipotle, food, stock, safety, upgrades, rbc, restaurant, offerings, rise, rally


Chipotle shares rise after RBC upgrades the stock and predicts 20% rally

New management at Chipotle Mexican Grill will grow sales at the burrito chain through an improved menu, digital and delivery offerings and other marketing successes, according to RBC Capital Markets, which upgraded shares to outperform.

But investors may need to wait until next year before they see the actual results in the chain, which has been trying to emerge from a series of health scares.

“After a 19 percent retreat from recent highs, we believe Chipotle shares offer a compelling risk/reward heading into 2019 and 2020,” David Palmer wrote in a note. “We believe there is a favorable stock set-up into 2019 given menu innovation, digital initiatives, and a focus on improving restaurant margins.”

Third-quarter results are expected to be just “lackluster,” the analyst said in a note to clients Monday, but sales should improve next year under CEO Brian Niccol’s push for food innovation and customers remain loyal despite prior food safety concerns.

In addition to the stock upgrade, the analyst raised his 12-month price target on Chipotle shares to $510 from $450, representing 19 percent upside from Friday’s close. Shares of Chipotle rose 1.7 percent in premarket trading following the RBC upgrade.

Much of Palmer’s newfound conviction on Chipotle shares came from a new RBC survey in which more than 1,000 respondents answered questions about their recent visits, or lack thereof, to a CMG restaurant.

Source: RBC Capital Markets

The analyst said the survey resulted in four key findings: Chipotle remains in the top three favorite chains of all quick-service restaurants, there’s a sizable opportunity to increase awareness of its digital capabilities, existing and lapsed customers are willing to try new offerings and food safety is only a small reason why customers do not eat at Chipotle.

“What has sometimes been lost upon investors over the last three years has been that Chipotle continues to have one of the most loyal followings across all consumer brands,” Palmer said. “Chipotle ranks behind only Chick-Fil-A and Panera Bread in restaurant popularity among all respondents of the survey.”

Any progress is likely welcome news to investors including Pershing Square activist Bill Ackman, who has leveraged his stake in the company to promote ideas like drive-thrus and breakfast offerings following a pullback in shares in the wake of the food safety incidents.

Ackman applauded the appointment of Niccol as chief executive officer earlier this year. Niccol joined Chipotle following a successful track record at Taco Bell.

“We’re not just betting on a recovery from the food safety issue,” Ackman told CNBC in November. “This is one of the least optimized of the quick-service restaurants.”

Shares of the casual Mexican restaurant are up 48 percent since January.


Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: thomas franck, getty images, source, chipotle mexican grill
Keywords: news, cnbc, companies, digital, shares, investors, 20, predicts, following, chipotle, food, stock, safety, upgrades, rbc, restaurant, offerings, rise, rally


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Square expands its bank-like offerings, letting sellers charge customers in installments

Payments start-up Square is encroaching on even more of traditional banks’ territory. The San Francisco-based tech company announced Thursday it will let businesses using Square’s payment network give customers the option to break big payments into smaller, fixed monthly ones. Payment installments, which Reses likened to a “super power” for small retailers, are otherwise offered through a larger bank or third party. This type of loan is typically reserved for retailers who bring in more than $1


Payments start-up Square is encroaching on even more of traditional banks’ territory. The San Francisco-based tech company announced Thursday it will let businesses using Square’s payment network give customers the option to break big payments into smaller, fixed monthly ones. Payment installments, which Reses likened to a “super power” for small retailers, are otherwise offered through a larger bank or third party. This type of loan is typically reserved for retailers who bring in more than $1
Square expands its bank-like offerings, letting sellers charge customers in installments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-04  Authors: kate rooney, source
Keywords: news, cnbc, companies, retailers, way, banklike, customers, sellers, offerings, larger, walk, expands, charge, million, able, square, installments, payments, letting, reses


Square expands its bank-like offerings, letting sellers charge customers in installments

Payments start-up Square is encroaching on even more of traditional banks’ territory.

The San Francisco-based tech company announced Thursday it will let businesses using Square’s payment network give customers the option to break big payments into smaller, fixed monthly ones.

“It’s a seamless and transparent way to offer installment payments to customers who might otherwise walk away, or might not be able to buy something in that particular moment,” Square Capital chief Jacqueline Reses told CNBC in a phone interview.

Payment installments, which Reses likened to a “super power” for small retailers, are otherwise offered through a larger bank or third party. This type of loan is typically reserved for retailers who bring in more than $1 million in revenue, and requires a lot of paperwork.

Square used proprietary data to see if there was demand. In an August survey, Square found that 84 percent of participants “appreciate the flexibility of being able to pay for large purchases over time” and 77 percent believe “financing options help them to effectively manage their budget.” Square has had more than 36 million high-ticket transactions larger than $250 in the past year.


Company: cnbc, Activity: cnbc, Date: 2018-10-04  Authors: kate rooney, source
Keywords: news, cnbc, companies, retailers, way, banklike, customers, sellers, offerings, larger, walk, expands, charge, million, able, square, installments, payments, letting, reses


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State regulators expand ‘Operation Cryptosweep’ to 200 initial coin offerings

A group of state and provincial regulators could put a big dent in the cryptocurrency fundraising boom. The North American Securities Administrators Association said Tuesday it had expanded the number of investigations into initial coin offerings to 200 after starting “Operation Cryptosweep” in May with 70 active cases. Much of that total came from retail investors. Financial watchdogs and some cryptocurrency advocates are split on how initial coin offerings should be regulated, and the NASAA in


A group of state and provincial regulators could put a big dent in the cryptocurrency fundraising boom. The North American Securities Administrators Association said Tuesday it had expanded the number of investigations into initial coin offerings to 200 after starting “Operation Cryptosweep” in May with 70 active cases. Much of that total came from retail investors. Financial watchdogs and some cryptocurrency advocates are split on how initial coin offerings should be regulated, and the NASAA in
State regulators expand ‘Operation Cryptosweep’ to 200 initial coin offerings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-28  Authors: kate rooney, chris ratcliffe, bloomberg, getty images
Keywords: news, cnbc, companies, initial, icos, expand, 200, ico, regulators, investors, securities, coin, state, sec, products, cryptosweep, retail, provincial, offerings, operation


State regulators expand 'Operation Cryptosweep' to 200 initial coin offerings

A group of state and provincial regulators could put a big dent in the cryptocurrency fundraising boom.

The North American Securities Administrators Association said Tuesday it had expanded the number of investigations into initial coin offerings to 200 after starting “Operation Cryptosweep” in May with 70 active cases.

In an ICO, coins or tokens are put up for sale as a form of crowdfunding. But they’re often backed by an abstract idea or nothing at all. And some high-profile frauds have been unveiled.

The fundraising method has raised $12 billion this year alone, compared with $7.4 billion in all of 2017, according to research firm Autonomous Next. Much of that total came from retail investors.

Financial watchdogs and some cryptocurrency advocates are split on how initial coin offerings should be regulated, and the NASAA investigation was developed as an effort to protect retail investors.

“A strong culture of compliance should be in place before, not after, these products are marketed to investors,” NASAA President and Alabama Securities Commission Director Joseph P. Borg said in a statement. “While not every ICO or cryptocurrency-related investment is a fraud, it is important for individuals and firms selling these products to be mindful that they are not doing so in a vacuum; state and provincial laws or regulations may apply, especially securities laws.”

Backers of some ICOs argue that, unlike stocks, certain cryptocurrencies offer a “utility” or future access to a product or service and should therefore be exempt from Securities and Exchange Commission laws.

The SEC said in June that while bitcoin and ether are not securities, many ICOs are. SEC Chairman Jay Clayton has also made it clear that all ICOs constitute securities, and in a recent CNBC interview said, “If it’s a security, we’re regulating it.”

The SEC launched a fake ICO website called HoweyCoins.com to show investors how to avoid scams.

NASAA is the oldest international organization devoted to investor protection. It’s a voluntary association composed of 67 states, provinces and territories across the U.S., Mexico and Canada.

Since its inception, Operation Cryptosweep has resulted in 46 enforcement actions involving ICOs or cryptocurrency-related products with agencies “committing significant regulatory resources” to the crackdowns, the agency said.

NASAA’s president highlighted the need for ICOs to register with appropriate agencies, or at least contact regulators to see if they qualify for an exemption. He also warned investors against dealing with ICO promoters who claim their product is exempt from securities registration.

“Do your homework and contact your state or provincial securities regulator with any concerns before parting with your hard-earned money — afterwards may be too late,” Borg said.


Company: cnbc, Activity: cnbc, Date: 2018-08-28  Authors: kate rooney, chris ratcliffe, bloomberg, getty images
Keywords: news, cnbc, companies, initial, icos, expand, 200, ico, regulators, investors, securities, coin, state, sec, products, cryptosweep, retail, provincial, offerings, operation


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