London mayor says firms must play by the rules as Uber faces license renewal

LONDON (Reuters) – London’s Mayor Sadiq Khan said everyone must play by the rules when asked on Thursday about taxi app Uber’s (UBER.

FILE PHOTO: A screen displays the company logo for Uber Technologies Inc on the day of its IPO at the New York Stock Exchange (NYSE) in New York, U.S., May 10, 2019. REUTERS/Brendan McDermid/File Photo

LONDON (Reuters) – London’s Mayor Sadiq Khan said everyone must play by the rules when asked on Thursday about taxi app Uber’s (UBER.N) London license, which is due to expire in less than a month’s time.

“It would be inappropriate for me during a time we’re considering the application from any operator to comment on it and give a running commentary,” Khan told LBC radio.

“You will know my track record which is standing up to the big boys, and they are boys, and make sure everyone plays by the rules whether you’re a big business or whether you’re a small business and I don’t care how many lawyers you employ or how big your PR budget.”

Regulator Transport for London decides on licenses and is chaired by Khan.

Reporting by Costas Pitas, Editing by Paul Sandle

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Chase Coleman Buys Uber, Boosts Microsoft

Jim Simons (Trades, Portfolio)’ Renaissance Technologies is another notable guru shareholder with 0.42% of outstanding shares, followed by Steven …

Chase Coleman (Trades, Portfolio), founder of Tiger Global Management, bought shares of the following stocks in the second quarter.

The guru established a position in Uber Technologies Inc. (NYSE:UBER), buying 6.66 million shares. The portfolio was impacted by 1.67%.

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The ride-hailing company has a market cap of $56.83 billion and an enterprise value of $54.96 billion.

GuruFocus gives the company a profitability and growth rating of 2 out of 10. While the return on equity of 218.24% is outperforming the sector, the return on assets of 5.06% is underperforming 65% of companies in the Application Software industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.41 is below the industry median of 2.82.

The largest guru shareholder of the company is Andreas Halvorsen (Trades, Portfolio) with 0.79% of outstanding shares, followed by Philippe Laffont (Trades, Portfolio) with 0.62% and Coleman with 0.39%.

The investor added 14.96% to his Microsoft Corp. (NASDAQ:MSFT) stake. The portfolio was impacted by 1.44%.

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The software company has a market cap of $1.06 trillion and an enterprise value of $1.0 trillion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 42.84% and return on assets of 14.81% are outperforming 81% of companies in the Application Software industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.71 is below the industry median of 2.99.

PRIMECAP Management (Trades, Portfolio) is the company’s largest guru shareholder with 0.46% of outstanding shares, followed by Dodge & Cox with 0.41% and Ken Fisher (Trades, Portfolio) with 0.27%.

Coleman invested in 5.73 million shares of GDS Holdings Ltd. (NASDAQ:GDS), impacting the portfolio by 1.17%.

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The company, which provides colocation and managed services, has a market cap of $5.84 billion and enterprise value of $7.28 billion

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of -7.0% and return on assets of -2.05% are underperforming 100% of companies in the Computer Hardware industry. Its financial strength is rated 4.1 out of 10. The cash-debt ratio of 0.39 is below the industry median of 1.18.

The largest guru shareholder of the company is Coleman with 4.55% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 1.76% and Louis Moore Bacon (Trades, Portfolio) with 0.60%.

The RingCentral Inc. (NYSE:RNG) holding was boosted by 121.58%. The trade had an impact of 1.03% on the portfolio.

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The provider of cloud-based communication solutions has a market cap of $11.87 billion and an enterprise value of $11.72 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of -9.66% and return on assets of -3.40% are underperforming 100% of companies in the Application Software industry. Its financial strength is rated 5.4 out of 10. The cash-debt ratio of 1.37 is below the industry median of 2.82.

Jim Simons (Trades, Portfolio)’ Renaissance Technologies is another notable guru shareholder with 0.42% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.19%.

The guru picked up a position in Zoom Video Communications Inc. (NASDAQ:ZM), buying 1.20 million shares. The portfolio was impacted by 0.58%.

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The company, which provides remote conferencing services, has a market cap of $25.30 billion and an enterprise value of $25.12 billion.

GuruFocus gives the company a profitability and growth rating of 1 out of 10. The return on equity of 10.78% and return on assets of 2.66% are underperforming 68% of companies in the Communication Services industry. Its financial strength is rated 8.2 out of 10 with no debt.

The largest guru shareholder of the company is Frank Sands (Trades, Portfolio) with 0.56% of outstanding shares, followed by Laffont with 0.45% and Pioneer Investments (Trades, Portfolio) with 0.07%.

The guru boosted his Smartsheet Inc. (NYSE:SMAR) stake by 880.43%. The portfolio was impacted by 0.53%.

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The company has a market cap of $5.43 billion and an enterprise value of $5.27 billion.

GuruFocus gives the company a profitability and growth rating of 1 out of 10. The return on equity of -42.47% and return on assets of -21.76% are underperforming 100% of companies in the Application Software industry. Its financial strength is rated 6.2 out of 10. The cash-debt ratio of 4.18 is above the industry median of 2.82.

Laffont is another notable guru shareholder with 1.93% of outstanding shares, followed by Cohen with 1.93%, Richard Pzena (Trades, Portfolio) with 0.68% and Simons’ Renaissance Technologies with 0.59%.

Disclosure: I do not own any stocks mentioned.

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About the author:

Tiziano Frateschi

You can read about me on www.theextraincome.info, which gives suggestions on position trading.

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Can Uber Technologies, Inc. (NYSE:UBER) Return What Investors Are Looking For? ROE Hits …

Placing Uber Technologies, Inc. (NYSE:UBER) shares under the microscope we note that the firm has a current Return on Equity of -0.450948. Simply …

Placing Uber Technologies, Inc. (NYSE:UBER) shares under the microscope we note that the firm has a current Return on Equity of -0.450948. Simply put, this ratio determines how well the firm uses investment funds to generate profit. This ratio is often considered “the mother of all ratios” as it often reveals how well a company is operating.

Investors may already be plotting the course for the next few quarters. Many investing decisions may need to be made after the next round of company earnings reports are released. Studying the numbers can help the investor see whether or not the stock’s prospects look good in the near term as well as the longer term. It remains to be seen whether optimism in the stock market will continue into the next year. Investors will closely be monitoring the major economic data reports over the next couple of months. While nobody can be sure which way the momentum will shift, preparing for multiple market scenarios may greatly help the investor if changes start to occur.

In addition to ROE, investors might also take into consideration some other ratios. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Uber Technologies, Inc. (NYSE:UBER) is . This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

The Return on Invested Capital (aka ROIC) for Uber Technologies, Inc. (NYSE:UBER) is -0.369825. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Uber Technologies, Inc. (NYSE:UBER) is . This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Uber Technologies, Inc. (NYSE:UBER) is .

After a recent scan, we can see that Uber Technologies, Inc. (NYSE:UBER) has a Shareholder Yield of and a Shareholder Yield (Mebane Faber) of . The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Quant Scores

Checking in on some valuation rankings, Uber Technologies, Inc. (NYSE:UBER) has a Value Composite score of 86. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 81.

Investors may be interested in viewing the Gross Margin score on shares of Uber Technologies, Inc. (NYSE:UBER). The name currently has a score of 50.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Investors may already be plotting the course for the next few quarters. Many investing decisions may need to be made after the next round of company earnings reports are released. Studying the numbers can help the investor see whether or not the stock’s prospects look good in the near term as well as the longer term. It remains to be seen whether optimism in the stock market will continue into the next year. Investors will closely be monitoring the major economic data reports over the next couple of months. While nobody can be sure which way the momentum will shift, preparing for multiple market scenarios may greatly help the investor if changes start to occur.

Uber Technologies, Inc. (NYSE:UBER) has a current MF Rank of 15297. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Uber Technologies, Inc. (NYSE:UBER) has a current ERP5 Rank of 18581. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Trying to extract profits from the stock market is not the easiest of tasks. In fact, it can be quite difficult. Amateur traders may be faced with tough challenges right out of the gate. Some traders may experience some crushing blows, and they have to figure out early on how to steady the ship. Completing all the necessary research can help the trader build a solid foundation, but when the rubber hits the road, it may take more than that just to stay afloat. Developing the proper mindset can be one of the biggest contributing factors for success in trading the stock market. This may take some time to achieve, but it may make all the difference when attempting to reach the goal of long lasting success.

Price Index & Volatility

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Uber Technologies, Inc. (NYSE:UBER) is 0.000000. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Uber Technologies, Inc. (NYSE:UBER) is 46.034900. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 0.000000.

We can now take a quick look at some historical stock price index data. Uber Technologies, Inc. (NYSE:UBER) presently has a 10 month price index of 0.74289. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.74289, the 24 month is 0.74289, and the 36 month is 0.74289. Narrowing in a bit closer, the 5 month price index is 0.74289, the 3 month is 0.80535, and the 1 month is currently 0.76394.

Most experienced traders understand how unpredictable the market can be. The market is its own kind of beast that does not care whether the trader makes money or not. Because there are so many different possible trading strategies to use, it can be extremely tough to find one that works. There may be times when traders become overwhelmed with the craziness of daily market action. Wandering through turbulent market climates may require increased discipline and patience. It can be highly tempting for traders to jump into a position based on can’t miss stock tips. Having the patience to make quality, informed trades, may end up helping the trader immensely.

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Uber-Careem pre-merger application: CCP decides to open phase-II review

In a major development in the case of international merger of Uber and Careem, the Competition Commission of Pakistan (CCP) has decided to open …

In a major development in the case of international merger of Uber and Careem, the Competition Commission of Pakistan (CCP) has decided to open the Phase-II review of the proposed merger to address the competition concerns, if any, arising out of the merger. Phase-II is an in-depth analysis of the merger’s effects on competition and requires more time. It is opened when the case cannot be resolved in Phase-I, ie. when the Commission has concerns that the transaction could restrict competition in the relevant market.

According to sources, the CCP is legally empowered to impose conditions before approving the merger to address competition concerns. An order passed by the CCP, a copy of which is available with Business Recorder, states: “The transaction is likely to result in strengthening of dominant position in the relevant market (of Ridesharing) as it meets the presumption of dominance as determined under Section (2) (1) (e) read with Section 3 of the Competition Act,”

The order further states: “In conclusion, the Commission finds that the proposed transaction is likely to substantially lessen competition through the creation or strengthening of a dominant position in the relevant market. Accordingly, a Phase-II is hereby initiated under Section 11 (6) of the Competition Act.”

In a joint pre-merger application submitted with CCP, Uber and Careem had sought merger approval in the first phase on the grounds that ridesharing services are part of the broader local, urban transportation market including all the means of transporting people from A to B including rickshaws, taxis, buses and mini buses. Based on this definition of the relevant market, the applicants submitted that their combined market share never made them dominant in the relevant market.

However, the CCP did not agree with this assessment of Uber and Careem, stating that “ridesharing by reasons of its characteristics, prices, and intended usage is not interchangeable or substitutable with the other modes of transportation as stated above.” Uber Technologies, Inc. is an American multinational transportation network company (TNC) offering services that include peer-to-peer ridesharing, ride service hailing, food delivery, and a bicycle-sharing system.

The company is based in San Francisco and has operations in over 785 metropolitan areas worldwide. Careem is the internet platform for the greater Middle East region. Established in July 2012, Careem operates in 120 cities across 15 countries and has created more than one million economic opportunities in the region.

In March 2019, Uber announced that it has reached an agreement with Careem for Uber to acquire Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash. The acquisition of Careem is subject to applicable regulatory approvals. The transaction is expected to close in Q1 2020.

Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates. Upon closing, Careem will become a wholly-owned subsidiary of Uber, preserving its brand. Careem co-founder and CEO Mudassir Sheikha will lead the Careem business, which will report to its own board made up of three representatives from Uber and two representatives from Careem. Careem and Uber will operate their respective regional services and independent brands.

Pakistani consumers are eyeing on CCP for its decision of this important merger as there are widespread concerns that it might lead to costlier services by eliminating competition. However, sources familiar with the development told Business Recorder that CCP may impose conditions before approving the merger to address competition concerns.

Copyright Business Recorder, 2019

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FDx Advisors Inc. Makes New Investment in Uber Technologies Inc (NYSE:UBER)

FDx Advisors Inc. bought a new position in shares of Uber Technologies Inc (NYSE:UBER) during the second quarter, according to its most recent 13F …

Uber Technologies logoFDx Advisors Inc. bought a new position in shares of Uber Technologies Inc (NYSE:UBER) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 18,992 shares of the ride-sharing company’s stock, valued at approximately $881,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of UBER. Robeco Institutional Asset Management B.V. acquired a new position in shares of Uber Technologies in the second quarter valued at $46,878,000. Zweig DiMenna Associates LLC acquired a new position in shares of Uber Technologies in the second quarter valued at $5,508,000. Fjarde AP Fonden Fourth Swedish National Pension Fund acquired a new position in shares of Uber Technologies in the second quarter valued at $5,501,000. Gulf International Bank UK Ltd acquired a new position in shares of Uber Technologies in the second quarter valued at $2,356,000. Finally, Clear Street Markets LLC acquired a new position in shares of Uber Technologies in the second quarter valued at $2,319,000. Institutional investors and hedge funds own 23.57% of the company’s stock.

NYSE:UBER opened at $33.43 on Monday. The firm’s 50 day moving average price is $40.81. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.57 and a quick ratio of 2.57. Uber Technologies Inc has a fifty-two week low of $32.92 and a fifty-two week high of $47.08.

Uber Technologies (NYSE:UBER) last announced its quarterly earnings data on Thursday, August 8th. The ride-sharing company reported ($4.72) EPS for the quarter, missing the consensus estimate of ($3.33) by ($1.39). The firm had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.39 billion. During the same period last year, the business posted ($2.01) earnings per share. The firm’s revenue for the quarter was up 14.4% on a year-over-year basis. On average, sell-side analysts expect that Uber Technologies Inc will post -7.2 EPS for the current year.

Several research firms have commented on UBER. DA Davidson decreased their price objective on shares of Uber Technologies to $46.00 and set a “buy” rating on the stock in a report on Friday, May 31st. Barclays began coverage on shares of Uber Technologies in a research note on Tuesday, June 4th. They issued an “overweight” rating and a $50.00 price target on the stock. Raymond James upped their price target on shares of Uber Technologies from $50.00 to $54.00 and gave the company an “outperform” rating in a research note on Friday, August 9th. CIBC began coverage on shares of Uber Technologies in a research note on Tuesday, June 4th. They issued an “outperform” rating and a $55.00 price target on the stock. Finally, Morgan Stanley upped their price target on shares of Uber Technologies from $56.00 to $57.00 and gave the company an “overweight” rating in a research note on Friday, August 9th. Nine research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus price target of $53.98.

About Uber Technologies

Uber Technologies, Inc develops and supports proprietary technology applications that enable independent providers of ridesharing, and meal preparation and delivery services to transact with end-users worldwide. The company operates in two segments, Core Platform and Other Bets. Its driver partners provide ridesharing services through a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis, as well as based on the number of riders under the UberBLACK, UberX, UberPOOL, Express POOL, and Uber Bus names; and restaurant and delivery partners provide meal preparation and delivery services under the Uber Eats name.

Further Reading: Using the New Google Finance Tool

Institutional Ownership by Quarter for Uber Technologies (NYSE:UBER)

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