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SoftBank Corp IPO Is A Total Flop

Daniel Chase

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An initial public offering is like a wedding proposal, in that the company planning on going public spends a considerable amount of time courting investment banking institutions and financial experts to find the perfect time to file with the Securities and Exchanges Commission (SEC). After months, perhaps even years, of strategic planning meetings, ring-shopping, and several run-throughs of the proposal to make sure every last bit is perfect, the company in question decides to take a leap of faith and go public. Continuing with this incredibly astute metaphor, on occasion, wedding proposals don’t always go as planned. I’ve heard stories of proposals that ended up with one or both individuals winding up in the hospital due to injuries correlated to the elaborate nature of the proposal. In the case of a company’s IPO, the first day of trading following the announcement is typically a strong indicator of the success of the offering. SoftBank Corp (SFTBF), the subsidiary division of conglomerate SoftBank Group (SFTBY) whose holdings include Sprint and the $100 billion Vision Fund, completely flopped after announcing one of the most highly anticipated initial public offerings in the history of the stock market. 

Early on Wednesday, SoftBank Corp (SFTBF) went public, with the company’s shares opening at 1,463 yen, well below the initial 1,500 yen the company had originally set for its IPO price and closed out the day at 1,282 yen. You don’t have to be a mathematical wunderkind to understand that SoftBank’s (SFTBF) shares tanked nearly 15% on the Tokyo Stock Exchange, representing one of Japan’s worst-ever stock market debuts, according to several sources. SoftBank control’s one-fourth of the Japanese mobile phone market, but recent news has shown that CEO Masayoshi Son is more interested in investing in tech start-ups than flip phones. Despite a rather dismal trading day for the company, SoftBank Corp (SFTBF) managed to raise a total of 2.65 trillion yen (roughly $23.5 billion), making it Japan’s largest IPO and falling just a hair behind Alibaba’s record-setting $25 billion IPO back in 2014. 

Market analysts suggest that several factors in-play may have caused SoftBank Corp’s (SFTBF) public offering to go sour, one of which relates to a decision made earlier in the week regarding the company’s telecommunications framework. According to a Nikkei report released early last week, SoftBank   (SFTBF) decided to stop working with Huawei Technologies for a myriad of reasons, and replace them with hardware manufactured by Ericsson and Nokia. The Nikkei report goes on to explain that SoftBank’s dissolution from Huawei will undoubtedly have its consequences, given the company’s “involvement in China’s business landscape.” SoftBank’s parent company, SoftBank Group (SFTBY), owns 29% of Chinese e-commerce giant Alibaba Group Holding, but “appears to have viewed security concerns and the loss of major clients as greater risks than the potential repercussions for its China operations,” per the Nikkei report. 

In addition to news of SoftBank’s (SFTBF) potential damage felt by ceasing its relationship with Huawei, SoftBank Group’s massive debt may have also contributed to its subsidiary’s poor market response to their initial public offering. According to TechCrunch, SoftBank Group has accumulated a substantial amount of debt following its investment in the Vision Fund, a strategic financial partnership with Saudi Arabia. 

“…The Vision Fund and its affiliate have been borrowing money. They had around $5.6 billion in debt as of the end of September, up 28% in the past six months, according to SoftBank filings. That money has partly been going to pay the returns promised the funds’ investors, the filings say. And SoftBank is planning to have the Vision Fund borrow an additional $9 billion or so to boost the fund’s returns further and make more investments…”

Mayumi Negishi, The Wall Street Journal 

To put it nicely, news surrounding SoftBank (SFTBF) recently has been negative, and I can imagine the fact that when the company’s CEO decided that SoftBank Group would continue its partnership with Saudi Arabia despite reports surrounding the killing of Saudi journalist Jamal Khashoggi wasn’t well-received either. 

“It was beyond our expectations that the shares would fall that much.”

Anonymous Senior Executive from one of SoftBank Corp’s domestic lead underwriters 

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Stock Price Newsletter – September 20, 2019

Joe Samuel

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defense stocks to watch

Microsoft (MSFT) Stock Price Jumps On Increased Dividend and Buyback Announcement

On Wednesday Microsoft Corporation (NASDAQ: MSFT) shares gained 1% in extended trading after the company announced that it was raising its quarterly dividend by $0.05. But there’s more to this story than meets the eye.

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Multi-Billion Dollar Markets Are Ready For A Shake-Up; 1 Biotech Stock Could Hold The Key

There’s no denying that biotechnology is one of the hottest markets in the world. Right now a multi-billion-dollar segment is ready for a shakeup and one biotech stock could hold the secret to doing just that!

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Top 4 Penny Stocks To Watch Right Now

Penny stocks are some of the most active and volatile types of stocks in the stock market today. But what everyone knows about these is that they can break out in a big way. That’s why so many continue to look for the best penny stocks to buy.

See For Yourself

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Microsoft (MSFT) Stock Price Jumps On Increased Dividend and Buyback Announcement

Joe Samuel

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On Wednesday Microsoft Corporation (NASDAQ: MSFT) shares gained 1% in extended trading after the company announced that it was raising its quarterly dividend by $0.05.

Share Repurchase Program

The company has also authorized a $40 billion stock buyback. Under the leadership of CEO Satya Nadella, the company has been buying back its shares. In the fiscal year ended June 30, Microsoft bought back it’s a stock worth around $19.54 billion. The year before stock buybacks were around $10.72 billion. In the last five years under the tenure of Nadella, the company has seen it’s stock almost quadruple and exceed a trillion-dollar market cap.

The company has aggressively been repurchasing its stock and at the current rate, they are likely to use all the $40 billion in the latest repurchase program within two years. The new share repurchase program does not have an expiration period but the company could choose to terminate it any time.

Growing Dividends

The company is increasing its dividends by 5 cents barely a year after increased them. The board of directors approved a $0.51 quarterly dividend which reflects an 11% increase over the quarter before. This translates to $2.04 annually. Microsoft has been paying dividends to stockholders since 2003 and it has been pumping up its quarterly dividend each year.

Microsoft has indicated that it will pay shareholders of record on November 21 a dividend of $0.51 on December 12. The 11% increase is an improvement from last year’s dividend increase of 9.5%. The increase is slightly more than the company’s average dividend growth percentage of around 10.4%.

The share repurchase program and dividend increase are a no brainer for Microsoft. In 2019 the company brought around $38.3 billion in free cash flow of which $13.8 billion was given to shareholders in the form of dividends. The company returned around $33 billion to shareholders this is inclusive of the cash spent on stock repurchases.

Considering how trivial the company’s dividends are relative to its free cash flow, it appears like Microsoft will keep increasing its dividends each year.

A Clear Focus On Groundbreaking Technology

Global spending on security solutions is projected to reach $7.4 billion in 2019 and increase to over $11.3 billion by 2025 with a CAGR of 8.2%.  The urban Security explosives and Weapons Detection market is slated to grow to nearly $7.5 billion by 2025 and is forecast to see consistent growth for the next several years [2].

What does this mean? Well, for investors it could signal big opportunities but with so many large companies targeting surveillance systems and weapon detection devices as a “go-to,” is there anything that could truly disrupt this market?

In short, yes

Liberty Defense (SCAN.V) (LDDFF) Is Positioning To Change The Face Of Threat Detection For Good

The truth of the matter is that mass shootings now happen more than once a day in the US and as we’ve come to find, there’s no real way to stop these attacks after an attacker enters a space. This is where the real opportunity is: stopping an attack before someone even enters a vulnerable space.

Liberty Defense (TSX: SCAN.V) (OTC: LDDFF) plans to do that using HEXWAVE, a next-generation high-tech security scanning system that will use advanced, low-power radar, 3D-imaging, and Artificial Intelligence (AI) to screen people at public gatherings such as sports games, unobtrusively.

Liberty Defense (SCAN.V) (LDDFF) Is Positioning To Change The Face Of Threat Detection For Good

The truth of the matter is that mass shootings now happen more than once a day in the US and as we’ve come to find, there’s no real way to stop these attacks after an attacker enters a space. This is where the real opportunity is: stopping an attack before someone even enters a vulnerable space.

Liberty Defense (TSX: SCAN.V) (OTC: LDDFF) plans to do that using HEXWAVE, a next-generation high-tech security scanning system that will use advanced, low-power radar, 3D-imaging, and Artificial Intelligence (AI) to screen people at public gatherings such as sports games, unobtrusively.

Liberty Defense WSJ

The advanced attack prevention system can detect if someone is armed before they enter a building using radar energy and Artificial Intelligence (AI) to detect weapons and explosives in real-time. You may be thinking that the processes and screening technology that you see in airports can achieve the same thing in our communities.  

Urban Threat Detection

But we’re talking about urban detection; where high people traffic flow and attempts to provide airport-like screening processes can be extremely disruptive to business activity because of security entry delays. 

As important to providing a higher rate of threat screening is that there also needs to be a way to detect other potential mass attack weapons including explosives, pyrotechnics and other non-metallic threats.

Utilizing a new disruptive technology under an exclusive global license from MIT (Massachusetts Institute of Technology), Liberty Defense (TSX: SCAN.V) (OTC: LDDFF) is developing HEXWAVE.

Liberty Defense WSJ

The advanced attack prevention system can detect if someone is armed before they enter a building using radar energy and Artificial Intelligence (AI) to detect weapons and explosives in real-time. You may be thinking that the processes and screening technology that you see in airports can achieve the same thing in our communities.  But we’re talking about urban detection; where high people traffic flow and attempts to provide airport-like screening processes can be extremely disruptive to business activity because of security entry delays. 

As important to providing a higher rate of threat screening is that there also needs to be a way to detect other potential mass attack weapons including explosives, pyrotechnics and other non-metallic threats.

Utilizing a new disruptive technology under an exclusive global license from MIT (Massachusetts Institute of Technology), Liberty Defense (TSX: SCAN.V) (OTC: LDDFF) is developing HEXWAVE.

Click Here To Learn More About Liberty Defense and its HEXWAVE

defense stocks weapons detection
Disclaimer: Pursuant to an agreement between MIDAM VENTURES, LLC and Liberty Defense Holdings Inc. Midam was hired for a period from 06/1/2019 – 9/30/2019 to publicly disseminate information about Liberty Defense Holdings Inc. including on the Website and other media including Facebook and Twitter. We were paid $250,000 (CASH) for & were paid “0” shares of restricted common shares. We may buy or sell additional shares of Liberty Defense Holdings Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. For previous compensation see our FULL DISCLAIMER HERE

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Stock Price Newsletter – September 19, 2019

Joe Samuel

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top biotech stocks to watch

Acadia (ACAD) Stock Price is up 60% This Month; Bullish Signal For Biotechs?

ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) had been one of the better-known strugglers in the industry. That was reflected in the stock price as well. But recent developments have breathed new life in the stock, which could be an indicator for the biotech industry at large.

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Advanced Micro Devices (AMD) Stock Price Consolidates After the Recent Rally: What Next?

The Advanced Micro Devices, Inc. (NASDAQ:AMD) stock has now reached such a stage according to keen observers and hence the stock is now trading within a very narrow range as the squeeze continues. In such a situation, it is only natural for investors to wonder which way this whole thing is going to go in the short term.

See For Yourself


Multi-Billion Dollar Markets Are Ready For A Shake-Up; 1 Biotech Stock Could Hold The Key

There’s no denying that biotechnology is one of the hottest markets in the world. Right now a multi-billion-dollar segment is ready for a shakeup and one biotech stock could hold the secret to doing just that!

Read More

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