SoftBank Group (OTCMKTS:SFTBY) Stock Price Passes Below Two Hundred Day Moving Average …

SoftBank Group Corp – (OTCMKTS:SFTBY)’s share price crossed below its 200-day moving average during trading on Thursday . The stock has a …

SoftBank Group logoSoftBank Group Corp – (OTCMKTS:SFTBY)’s share price crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $40.75 and traded as low as $21.61. SoftBank Group shares last traded at $21.71, with a volume of 269,834 shares traded.

Separately, ValuEngine lowered shares of SoftBank Group from a “sell” rating to a “strong sell” rating in a research report on Thursday, August 1st.

The firm’s 50-day moving average price is $23.48 and its 200-day moving average price is $40.62. The company has a market cap of $94.87 billion, a price-to-earnings ratio of 7.73 and a beta of 1.68. The company has a debt-to-equity ratio of 1.38, a current ratio of 1.06 and a quick ratio of 1.01.

About SoftBank Group (OTCMKTS:SFTBY)

SoftBank Group Corp., together with its subsidiaries, operates in the information industry in Japan and internationally. The company operates through six segments: Domestic Telecommunications, Sprint, Yahoo Japan, Distribution, ARM, and SoftBank Vision Fund and Delta Fund. The Domestic Telecommunications segment provides mobile communications and broadband services; and telecom services, such as data communications and fixed-line telephone services to corporate customers, as well as sells mobile devices.

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SoftBank Group (OTCMKTS:SFTBY) Share Price Passes Below Two Hundred Day Moving …

SoftBank Group Corp – (OTCMKTS:SFTBY)’s share price passed below its two hundred day moving average during trading on Thursday . The stock …

SoftBank Group logoSoftBank Group Corp – (OTCMKTS:SFTBY)’s share price passed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $40.75 and traded as low as $21.61. SoftBank Group shares last traded at $21.71, with a volume of 269,834 shares.

Separately, ValuEngine lowered shares of SoftBank Group from a “sell” rating to a “strong sell” rating in a research note on Thursday, August 1st.

The company has a market cap of $94.87 billion, a PE ratio of 7.73 and a beta of 1.68. The company has a quick ratio of 1.01, a current ratio of 1.06 and a debt-to-equity ratio of 1.38. The firm’s fifty day simple moving average is $23.48 and its 200-day simple moving average is $40.62.

SoftBank Group Company Profile (OTCMKTS:SFTBY)

SoftBank Group Corp., together with its subsidiaries, operates in the information industry in Japan and internationally. The company operates through six segments: Domestic Telecommunications, Sprint, Yahoo Japan, Distribution, ARM, and SoftBank Vision Fund and Delta Fund. The Domestic Telecommunications segment provides mobile communications and broadband services; and telecom services, such as data communications and fixed-line telephone services to corporate customers, as well as sells mobile devices.

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Yahoo Japan buys the country’s largest fashion e-tailer

Yahoo Japan, which is part of the SoftBank Group, plans to tender an offer to acquire 50.1 percent of Zozo shares and make the company a subsidiary.

New York – Yahoo Japan will soon be the owner of the Nippon country’slargest online fashion retailer, Zozotown, as both companies confirmed in ajoint release on Thursday.

Yahoo Japan, which is part of the SoftBank Group, plans to tender anoffer to acquire 50.1 percent of Zozo shares and make the company asubsidiary.

Yahoo Japan enters the fashion e-commerce race with Zozotown’sacquisition

Per the joint announcement, Yahoo Japan Corp. will make online fashionretailer Zozo Inc. a subsidiary in a friendly takeover.

Although the final price tag remains undisclosed, market sources pointout that, based on Zozo’s market capitalisation by the time theannouncement went public – approximately 675 billion yen – the deal willlikely cost Yahoo Japan hundreds of billions of yen. The deal will be worthup to 400 billion yen (3.7 billion dollars), reports ‘Nikkei Asian Review’.

The operator of the Zozotown clothing store said it has appointed KotaroSawada as chief executive officer to replace Yusaku Maezawa, who currentlyowns more than 30 percent of the retailer’s equity.

Taking control of the fashion retailer will allow Yahoo Japan to bettercompete against e-commerce giants Amazon.com and Rakuten.

Photo:Zozotown official website

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Comparing Sprint (NYSE:S) and CHORUS LTD/S (NYSE:CHRYY)

Sprint (NYSE:S) and CHORUS LTD/S (OTCMKTS:CHRYY) are both computer and technology companies, but which is the better investment? We will …

Sprint (NYSE:S) and CHORUS LTD/S (OTCMKTS:CHRYY) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Sprint and CHORUS LTD/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprint -6.63% -0.84% -0.26%
CHORUS LTD/S N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sprint and CHORUS LTD/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprint 1 4 1 0 2.00
CHORUS LTD/S 0 1 0 0 2.00

Sprint presently has a consensus target price of $6.39, suggesting a potential downside of 7.76%. Given Sprint’s higher possible upside, equities analysts clearly believe Sprint is more favorable than CHORUS LTD/S.

Dividends

CHORUS LTD/S pays an annual dividend of $0.51 per share and has a dividend yield of 3.1%. Sprint does not pay a dividend.

Insider & Institutional Ownership

14.1% of Sprint shares are owned by institutional investors. 0.4% of Sprint shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sprint and CHORUS LTD/S’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sprint $33.60 billion 0.84 -$1.94 billion $0.01 693.00
CHORUS LTD/S $707.55 million 1.98 $60.74 million N/A N/A

CHORUS LTD/S has lower revenue, but higher earnings than Sprint.

Risk & Volatility

Sprint has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, CHORUS LTD/S has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Summary

CHORUS LTD/S beats Sprint on 7 of the 12 factors compared between the two stocks.

Sprint Company Profile

Sprint logoSprint Corporation, together with its subsidiaries, provides various wireless and wireline communications products and services to consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the United States Virgin Islands. It operates in two segments, Wireless and Wireline. The Wireless segment offers wireless data communication services, including mobile productivity applications, such as Internet access, messaging, and email services; wireless photo and video offerings; location-based capabilities comprising asset and fleet management, dispatch services, and navigation tools; and mobile entertainment applications. It also provides wireless voice communications services that include local and long-distance wireless voice services, as well as voicemail, call waiting, three-way calling, caller identification, and call forwarding services. In addition, this segment offers voice and data services internationally through roaming arrangements; and customized wireless services to large companies and government agencies, as well as sells handsets, tablets, and hotspots. The Wireline segment provides wireline voice and data communications, which comprises domestic and international data communications using various protocols, including multiprotocol label switching technologies, Internet protocol (IP), managed network services, Voice over IP, session initiated protocol, and traditional voice services to other communications companies and targeted business subscribers. Sprint Corporation offers its services under the Sprint, Boost Mobile, Virgin Mobile, and Assurance Wireless brands. The company was founded in 1899 and is headquartered in Overland Park, Kansas. Sprint Corporation is a subsidiary of SoftBank Group Corp.

CHORUS LTD/S Company Profile

CHORUS LTD/S logoChorus Limited, together with its subsidiaries, provides fixed line communications infrastructure services in New Zealand. It offers phone and broadband services over copper and fiber networks for residential and business customers; and very high speed digital subscriber line broadband services. The company also provides colocation services. Chorus Limited was founded in 2008 and is based in Wellington, New Zealand.

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SoftBank and WeWork are as bad as each other

[BERLIN] SoftBank Group Corp is having second thoughts about whether WeWork Cos Inc should go public just yet. Having valued the heavily …

[BERLIN] SoftBank Group Corp is having second thoughts about whether WeWork Cos Inc should go public just yet. Having valued the heavily loss-making office space provider at up to US$47 billion, Masayoshi Son’s affiliates are doubtless reluctant to write down their more than US$10 billion investment – something they’d have to consider once there’s an observable price for the shares.

WeWork, though, is apparently determined to press ahead with the listing in defiance of its chief benefactor, Reuters reports. Either way, SoftBank and its US$100 billion Vision Fund will have to face reality one day. By writing an 11-figure chequeto a startup with no discernible path to profitability, Son may turn out to be the Victor Frankenstein of the cheap money era. He’s helped create a monster that could do him serious harm.

Boil things down and WeWork is a leveraged real estate company propped up by a leveraged pool of late-stage venture capital (the Vision Fund), which is in turn controlled by a leveraged telecoms and technology company (SoftBank). And the unfortunate similarities between SoftBank and WeWork go well beyond their fondness for debt: In governance, philosophy and leadership, the two companies are peas in a pod.

WeWork critics chortle at its promise to “elevate the world’s consciousness” but is that really so different from Mr Son’s mission to deliver “happiness for everyone”? Both companies depend on their visionary leaders (something boring auditors call “key person risk”), whose power is all but unconstrained. Adam Neumann’s majority voting rights as founder, chairman and CEO of WeWork give him the freedom to hire and fire board members. The Vision Fund’s investments are chewed over by various staff and committees but ultimately Mr Son’s decision is what counts.

Not content with raising one enormous venture capital fund, Mr Son is raising another of similar size before we know whether the first has been an enduring success. Mr Neumann, for his part, is demanding that IPO investors pony up US$3 billion before his real estate company has been tested by a serious recession. Both men like to make big bets, often with other people’s money.

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There are other echoes between the two on how they report their finances. SoftBank’s earnings might be flattered by so-called “fair value” gains on its investments, even though some of these unrealised paper profits could turn out to be the wishful thinking of bubbly private markets. WeWork doesn’t have any earnings but tries to make it seem like it does by adding back basic expenses to arrive at a so-called “contribution margin”.

WeWork’s byzantine corporate structure is rivaled too by SoftBank’s, something that’s reflected in the often yawning gap between the value the Japanese group ascribes to its various holdings and its market capitalisation. Neumann bought properties and rented them to WeWork, then got his company to pay him for inventing the trademark “We”. SoftBank, for its part, has no qualms about lending up to US$20 billion to senior executives so they can buy into the second Vision Fund. It has also bought assets before shifting them on to the Vision Fund.

In fairness, WeWork only received its first investment from SoftBank in 2017 so Mr Son is hardly to blame for the many peculiarities disclosed in the real estate firm’s prospectus. But, as my colleague Shira Ovide has argued, WeWork is what happens when you take startup and financial mania to extremes. SoftBank has been both its inspiration and chief enabler. The Japanese investor has provided the bulk of WeWork’s growth capital and SoftBank affiliates now own about 29 per cent of the office provider.

WeWork is now faced with a difficult choice: Go ahead with the IPO and disappoint Mr Son potentially, or delay and fill the hole in its finances by other means (including debt tied to the equity increase, the IPO was set to deliver at least US$9 billion in new funding).

There’s another option of course but it probably sounds like heresy to Mr Son and Mr Neumann, who are both about changing the world in a hurry, cash burn be damned. They could scale back the spending spree, focus on profitable growth and adopt governance norms that investors can get comfortable with. Now that would be revolutionary.

BLOOMBERG

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