Goodwill Savannah GA http://goodwillsavannahga.org/ Sat, 12 Jun 2021 01:13:06 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 http://goodwillsavannahga.org/wp-content/uploads/2021/04/cropped-goodwill-32x32.png Goodwill Savannah GA http://goodwillsavannahga.org/ 32 32 Budget: focus on growth http://goodwillsavannahga.org/budget-focus-on-growth/ Sat, 12 Jun 2021 01:00:00 +0000 http://goodwillsavannahga.org/budget-focus-on-growth/

Announcing this budget in parliament was the easy part, despite the resentment with which the speech must have been delivered. Keeping the promises made there will be the real challenge. The budget is first and foremost aimed at pleasing the business community, with a series of tax and duty cuts so sweeping and sweeping it’s hard to remember when so much was given to the country’s business and industry leaders. . But they are not the only ones. For wage earners in this country, the budget provided much-needed respite by raising the minimum wage equal to nearly 20 percent. Employees can rejoice in the 10% increase in civil servants’ pay, as their own increases often evolve accordingly. Defense spending rose by a meager 6%, with most of the nearly 18% increase in current spending, or 1.18 trillion rupees, going to civilian leaders, though spending by the division of the defense in the development budget almost tripled, reaching nearly 2 rupees. one thousand billion. The grants have also more than tripled from their budgeted amount of Rs 208 billion last year (the actual amount spent in the current fiscal year has climbed to Rs 430 billion). For the next fiscal year, they are programmed at 682 billion rupees, 87% of which is for the electricity sector alone, precisely the area in which the government had committed to the Fund to reduce subsidies.

Having made these commitments with the Pakistani people, the government now faces the challenge of securing the assent of its creditors, primarily the IMF. And the Fund will first of all ask itself how it intends to pay for all this. The budget foresees an increase of nearly Rs.5 trillion in external resource requirements for next year, an increase of more than 20% from revised estimates for the current fiscal year, most of which will come from loans. external whose cost is estimated at more than 1.2 rupees. trillion after repayments. Last year they budgeted for Rs 810 billion in net foreign loans and ended up demanding over Rs 1.3 trillion. Much now depends on their ability to respect their budget or not. In addition, the budget will require Rs866 billion in additional RBF revenue, of which Rs727 billion is expected to come from indirect taxes, mainly sales tax. Beyond taxes, there is an increase in the collection of the oil tax, equal to 160 billion rupees, and a massive increase in the tax on the development of gas infrastructure which goes from 15 billion rupees per year. last at 130 billion rupees next year. The presumed provincial contribution to federal resources has also more than doubled, from Rs 242 billion last year to Rs 570 billion next year.

With a combination of tax cuts and high public spending, the government is now ready to give new impetus to their growth. The task that awaits them now is to convince the IMF that these expenditures are necessary and that they have a credible plan to mobilize the necessary resources for this purpose. The budget deficit target for next year is 6.3% of GDP, higher than the 5.1% committed to the fund, despite the fact that nominal GDP for next year is expected to increase by more than 1,100 billion rupees compared to growth forecasts. by the Fund. The difference between the two projections for the deficit is Rs541 billion, which is not a small sum. Even the overall revenue target is Rs 134 billion lower than the one already committed to the Fund.

The Fund will require two things above all: a credible fiscal plan from which the additional revenues are supposed to come, and a credible plan to curb the accumulation of circulating debt. From the finance minister’s remarks to Parliament, it appears that much of the revenue plan will rely on administrative measures, such as a wide expansion of point-of-sale arrangements to monitor retail cash transactions as well. than to get retailers into the tax net. Such fiscal expansion is absolutely necessary in Pakistan, but it should be borne in mind that our own history teaches us that such measures do not generate much income in the short term. Other than that, there is some confidence in the sales tax, although the quantities are not shown in the budget documents. And some of the natural income growth will come only from growth and inflation.

Given the resources required, this budget can credibly stimulate growth to meet or exceed the government’s target of 4.8%. But without the external support and remittances maintaining at least the levels they hit during this fiscal year, this will likely put pressure on the government to correct the mid-course course by resorting to revenue sources at the bottom. high and rapid returns such as taxes and levies on oil, gas and power, which could in turn dampen growth momentum. The budget envisions a shift in domestic debt from floating debt (maturity of one year or less) to permanent debt (long maturity periods, like Pakistani investment bonds), but this will also be difficult to achieve. if real interest rates remain negative for some time. extended period.

The growth momentum of the economy is expected to continue, and possibly accelerate, in the near future. But by unveiling this budget, the government has made the important bet that the resulting growth will help to finance itself. His predecessors made the same bet. Their bet didn’t pay off, at least not for very long. Now let’s wait and see how it goes this time around.


Source link

]]>
Beijing calls for better control of local government debt http://goodwillsavannahga.org/beijing-calls-for-better-control-of-local-government-debt/ Sat, 12 Jun 2021 00:55:10 +0000 http://goodwillsavannahga.org/beijing-calls-for-better-control-of-local-government-debt/

China’s central government has called for better control of local authorities’ budgets and spending, and tighter debt control after an audit of dozens of local authorities uncovered a series of violations, including tax levies illegal loans, illicit borrowing and mismanagement of special obligations (SPB).

The State Council, the Chinese government, made the recommendations in its annual audit report (link in Chinese) which was presented to lawmakers on Monday. The 25-page document covered a range of issues, including improving the budget system and accountability, poverty reduction spending and carbon neutrality.

Local government debt, especially hidden loans, has risen over the past year and a half as central authorities halt their deleveraging campaign and call for more public spending to tackle the crisis caused by the crisis Covid-19 pandemic. Local governments were allowed to lift billions of yuan through the issuance of SPB to stimulate investment.

As a result, local government debt has skyrocketed and is now back in the sights of policymakers as they refocus on their long-running campaign to tackle mountains of borrowing and hidden financial risks. accumulated over years of capital expenditure. At a meeting of the State Council in March, Premier Li Keqiang said the government leverage ratio should be reduced this year.

Read more

In detail: record local government debt is back in the sights of policy makers

As part of its annual follow-up, the State Council asked the National Audit Office (NAO) to investigate public debt management in 55 tax jurisdictions: 17 provincial-level regions, 17 cities and 21 counties . He revealed that at the end of 2020, they had combined debts of 5.07 trillion yuan ($ 790 billion), although the average debt ratio is 13 percentage points lower than that of the previous year, according to the annual report.

He concluded that the SPBs had been mismanaged and funds used to finance unprofitable projects. Some 41.3 billion, or 3.25%, of the 1.27 trillion yuan of SPB circulating in the 55 locations had not been used for their intended purpose. Five regions invested a total of 20.5 billion yuan in projects with no income or whose annual income was insufficient to pay principal and interest, raising serious concerns about their creditworthiness, according to the report.

SPBs were introduced in 2015 to fund commercially viable infrastructure and public welfare projects. They are supposed to be reimbursed from the income generated by the specific projects they finance, unlike “general obligations”, which can be reimbursed from general tax revenues.

The NAO also audited five centrally managed financial firms and two local banks and found that five of them illegally provided finance to local governments and Local Government Finance Vehicles (LGFVs) for a total of 58 , 1 billion yuan.

The audit also found that 15 provincial-level cities and regions had granted financial incentives amounting to 23.9 billion yuan through tax breaks that they were not allowed to do. Some local governments levied illicit taxes and collected taxes in advance, with 20 regions collecting nearly 3 billion yuan through unnecessary or advance payments from 111 companies and 21 regions obtaining 938 million yuan in advance of 1,081 construction companies.

The Council of State’s activity report offered a series of recommendations to address the problems it uncovered, including strengthening budget management and planning, and cleaning up illegal tax refunds in order to avoid loss of tax revenue that could affect fiscal sustainability. Regarding local government debt, the report says real-time monitoring needs to be strengthened, accountability needs to be improved, and hidden liabilities need to be identified so that implicit debt can be controlled.

Contact publisher Nerys Avery (nerysavery@caixin.com)

Download our app for getting late-breaking alerts and reading news on the go.

Get our free weekly newsletter must read.

You have accessed an article available only to subscribers

SEE OPTIONS


Source link

]]>
Dickson Concepts (International) (HKG: 113) Shareholders will want ROCE to continue http://goodwillsavannahga.org/dickson-concepts-international-hkg-113-shareholders-will-want-roce-to-continue/ Fri, 11 Jun 2021 22:22:54 +0000 http://goodwillsavannahga.org/dickson-concepts-international-hkg-113-shareholders-will-want-roce-to-continue/

Finding a business that has the potential to grow significantly isn’t easy, but it is possible if we take a look at a few key financial metrics. First, we will want to see a return on capital employed (ROCE) which increases and, on the other hand, a based capital employed. Put simply, these types of businesses are dialing machines, which means they continually reinvest their profits at ever higher rates of return. With that in mind, we’ve noticed some promising trends at Dickson Concepts (International) (HKG: 113) so let’s look a little deeper.

Return on capital employed (ROCE): what is it?

For those who don’t know what ROCE is, it measures the amount of pre-tax profit a business can generate from the capital employed in its business. The formula for this calculation on Dickson Concepts (International) is:

Return on capital employed = Profit before interest and taxes (EBIT) ÷ (Total assets – Current liabilities)

0.13 = HK $ 501 million ÷ (HK $ 5.4 billion – HK $ 1.6 billion) (Based on the last twelve months up to March 2021).

Therefore, Dickson Concepts (International) has a ROCE of 13%. In absolute terms, this is a satisfactory performance, but compared to the specialty retail industry average of 9.2%, it is much better.

See our latest review for Dickson Concepts (International)

SEHK: 113 Return on capital employed on June 11, 2021

Although the past is not representative of the future, it can be useful to know the historical performance of a company, which is why we have this graph above. If you want to dig deeper into Dickson Concepts (International) past, check out this free graph of past income, income and cash flow.

What can we say about the ROCE trend of Dickson Concepts (International)?

Dickson Concepts (International) recently broke into profitability, so their past investments appear to be paying off. Shareholders will no doubt be delighted because the company was in deficit five years ago but now generates 13% of its capital. Not only that, but the business is using 84% more capital than before, but that’s to be expected of a business trying to achieve profitability. We like this trend because it tells us that the company has profitable reinvestment opportunities, and if it keeps moving forward it can lead to multi-bagger performance.

What we can learn from Dickson Concepts (International) ROCE

To the delight of most shareholders, Dickson Concepts (International) has now returned to profitability. Given that the stock has returned 132% to shareholders over the past five years, it looks like investors are recognizing these changes. Therefore, we believe it would be worth checking out whether these trends will continue.

One more thing: we have identified 2 warning signs with Dickson Concepts (International) (at least 1 that shouldn’t be ignored), and understanding them would definitely be helpful.

If you want to look for solid businesses with great income, check out this free list of companies with good balance sheets and impressive returns on equity.

Promoted
If you are looking to trade a wide range of investments, open an account with the cheapest platform * approved by professionals, Interactive brokers. Their clients from more than 200 countries and territories trade stocks, options, futures, currencies, bonds and funds around the world from a single integrated account.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


Source link

]]>
Doug Ford and the PCs predict another decade of austerity http://goodwillsavannahga.org/doug-ford-and-the-pcs-predict-another-decade-of-austerity/ Fri, 11 Jun 2021 11:23:13 +0000 http://goodwillsavannahga.org/doug-ford-and-the-pcs-predict-another-decade-of-austerity/

Ontario Financial Accountability Office (FAO) reports that the nominal increases in health care funding planned by the government PC of Doug Ford between 2019-2020 and 2029-30 are well below the nominal increases of the previous nine years (2010-2011 to 2019-2020, the period of public sector austerity that followed the last recession).

Indeed, the increase planned over time (between this year 2021-2022 and 2029-30) being only 2% per year, we are considering a much more severe austerity than the period 2010-11 to 2019-20, when funding increased by 3.2% per year.

As the FAO notes, the health care austerity imposed in 2010-2020 “included a number of significant spending restraint measures, including: freezing core hospital operating funding from 2012-2013 to 2015-2016; reduce physician pay rates in 2013 and 2015; and limit investments in new long-term care beds, with only 611 new beds created between 2011 and 2018. ”

This time around, the plan is to impose tougher austerity in the meantime, the addition of tens of thousands of new and redeveloped LTC beds and the increase in LTC staffing per resident by (approximately) 40%.

Significant drop in real wages

Another aspect of the spending restraint over the period 2010-2020 was a significant reduction in the real wages of hospital workers, with general wage increases lower than inflation. For comparison, this chart also includes annual average wage settlements in the private sector and the broader provincial public sector (i.e. workers in hospitals, schools, colleges, provincial utilities, etc. ).

Even before the pandemic, the government planned (via Bill 124) to further reduce real wages by restricting wage agreements in the broader public sector to below inflation for three years. The proposed funding – if implemented – would necessitate further reductions in real wages throughout the decade.

FAO estimates a gap of $ 5.7 billion between the health sector financing plan and the spending required over the next two years (i.e. 2022-2023 and 2023-24). He notes: “The cumulative spending gap of $ 5.7 billion is not distributed evenly across program areas in the health sector. FAO estimates that a the majority of the spending gap is in the hospitals program area»(Emphasis added).

The FAO notes that if the government implements its plans until 2029-30, “then the actual annual health sector expenditure per capita will have decreased by $ 490 per person (or 10.2%) since 2011-12 “.

Cuts in hospital beds

Reports that the government plans to increase the number of hospital beds in the coming years are inaccurate. FAO notes that with 3,522 extra beds in 2021-2022, we have 38,416 hospital beds. But as the FAO notes, “the ministry’s spending plan for the hospital sector implies that the 3,522 additional hospital beds will not be maintained after the end of the pandemic.” As a result, the planned “addition” of 324 beds per year will only bring us down to 37,321 beds by 2029-30. In other words, the real plan is to reduce existing hospital beds by 1,095 beds.. Yet Ontario already has very low bed capacity, so rollaway beds should not be taken away and we should build capacity from there.

Probably, the bed cuts will be covered, because the bed cut is very unpopular with the public. This is why it is essential to find and identify the cuts when they occur.

The FAO estimates that if hospitals are operating 11% above pre-pandemic volumes for surgeries and 18% above for elective diagnostic procedures, it will take 3.5 years to eliminate the backlog of surgeries that are still running. ‘is produced during the pandemic and more than three years to clear the diagnostic backlog. However, the FAO notes that the government has allocated less than half of the $ 1.3 billion in funding needed to achieve this. The suffering and illness that these delays will impose on the sick will be considerable.

Finally, the FAO reports that in the budget forecasts there is a expected decrease of $ 4.8 billion in the hospital operation transfer payment this year. The government estimates that this will be partially offset by an expected increase of $ 1.0 billion (to be achieved, apparently, through increased private payments to hospitals for things like parking and semi-private housing). These cuts this year are linked to the (hoped for) mitigation of the pandemic and are distinct from the austerity plans for the coming years discussed above. This will have a very negative impact on employment levels in hospitals. What is not clear is what will happen if a fourth wave occurs in the fall.

Doug Ford and the PCs campaigned in the last election on remarkably few promises – but one of them was to end hallway health care. Yet by the onset of the pandemic – nearly two years into their tenure – they had made little progress in improving hospital capacity. Thus, the government responded to the lack of hospital capacity at the start of the pandemic by moving patients out of hospitals and in LTC facilities. However, LTC homes were already overcrowded, exacerbating the COVID crisis in LTC facilities, with tragic results. In addition, LTC residents with COVID were rarely transferred to hospitals for treatment. They died in their LTC beds even though the LTC homes are not treatment facilities.

Even after this experience, instead of addressing the lack of capacity, the plan is a severe austerity. Without a doubt, they will try to cover this up with magic claims about how their reforms will overcome the lack of funding. But the past is a better guide: the latest reforms will meet the same level of success as all of the many previous restructuring cycles – a restructuring that the current government has for the most part rejected and recorded in history.

As with previous governments, austerity is the policy, and restructuring is the excuse the government gives to justify austerity.

Unless we change this plan, austerity will be enforced not only in health care, but also in other sectors – probably harder than in health care, as health care is an area in which even right-wing politicians are afraid to venture out. Notably, the FAO recently reported that another politically popular sector – public schools – would face a deficit of $ 12.3 billion over nine years.

The government is playing with fire: a decade of austerity tests the limits of popular patience. Two decades take it to a whole new level. •

This article first published on the OCHU website.

Doug Allan writes regularly on healthcare, the public sector, the classroom and collective bargaining in Leftwords for the Ontario Council of Hospital Unions / CUPE website and the Defend Healthcare blog. Defend public health.


Source link

]]>
Norwegian company Equinor must lift its climate ambitions, minority investors say http://goodwillsavannahga.org/norwegian-company-equinor-must-lift-its-climate-ambitions-minority-investors-say/ Fri, 11 Jun 2021 09:37:16 +0000 http://goodwillsavannahga.org/norwegian-company-equinor-must-lift-its-climate-ambitions-minority-investors-say/

By Nérijus Adomaitis

OSLO (Reuters) – Norwegian energy giant Equinor must set tighter short-term targets for reducing the company’s climate impact when it presents a new strategy next week, minority shareholders have said.

CEO Anders Opedal, who took the reins late last year with a pledge to accelerate the state-controlled company’s renewable investments, also faces demands for climate action from the share of favorite opposition politicians to win office this year.

The June 15 Strategy Update is the best opportunity for Opedal to leave its mark on a company that, more than anything, has become the symbol of the half-century of oil and gas production that has made Norway one of the richest countries in the world.

The CEO has said he wants to achieve net zero emissions from Equinor’s operations and the end use of its energy by 2050, but the current strategy is still to increase oil and gas production at least until 2026.

“With the urgency we feel and experience on climate-related issues, we expect the strategy to be bold and detailed on how to achieve net zero goals,” Jan Erik Saugestad told Reuters , Head of Storebrand Asset Management.

“We expect them to set short-term (2025), medium-term (2026-2030) and long-term (2030-2050) goals,” he said.

Storebrand funds hold a 0.5% stake in Equinor, according to Refinitiv Eikon.

The pressure on energy companies to accelerate the transition from fossil fuels was highlighted last month when a Dutch court ordered Royal Dutch Shell to reduce its greenhouse gas emissions by 45% by 2030 compared to 2019 levels.

‘RENEWABLE FUTURE’

Norway’s largest pension fund KLP, which owns 0.6% of the capital, said it was important for Equinor to align its investments and activities with the Paris Climate Pact.

Equinor’s carbon neutrality strategy “still has the potential to become more science-based given how the company can achieve net zero by 2050,” KLP said.

Espen Barth Eide, energy policy spokesman for the Norwegian opposition Labor Party who leads the polls ahead of the September vote, said Opedal should show how he plans to transform Equinor.

“The direction of the trip should be towards a renewable future and decent management of the final stages of the fossil age,” he said, adding Labor wanted the government to be at least as active as private investors. on climate issues.

“We don’t want the minister telling the CEO what to do, but we want the state to be clear on its intentions behind its property,” he said.

The Norwegian government’s 67% stake shields Equinor from pressure from activist shareholders, but state-controlled companies must always listen to their owners about the strategy.

Equinor has sold part of its onshore oil and gas business in the United States and may withdraw further from its international upstream fossil fuel business and expand its renewables business overseas, said RBC analyst Biraj Borkhataria.

Equinor was not immediately available for comment.

(Edited by Terje Solsvik, Gwladys Fouché and Edmund Blair)


Source link

]]>
Returns at BayWa (ETR: BYW) are on the rise http://goodwillsavannahga.org/returns-at-baywa-etr-byw-are-on-the-rise/ Fri, 11 Jun 2021 05:03:01 +0000 http://goodwillsavannahga.org/returns-at-baywa-etr-byw-are-on-the-rise/

What are the early trends we should look for to identify a stock that could multiply in value over the long term? First, we will want to see a return on capital employed (ROCE) which increases and, on the other hand, a based capital employed. Basically, this means that a business has profitable initiatives that it can continue to reinvest in, which is a hallmark of a dialing machine. With that in mind, we’ve noticed some promising trends at BayWa (ETR: BYW) so let’s look a little deeper.

Return on capital employed (ROCE): what is it?

Just to clarify if you’re not sure, ROCE is a measure of the pre-tax income (as a percentage) that a business earns on the capital invested in its business. The formula for this calculation on BayWa is:

Return on capital employed = Profit before interest and taxes (EBIT) ÷ (Total assets – Current liabilities)

0.064 = € 315m ÷ (€ 9.9bn – € 5.0bn) (Based on the last twelve months up to March 2021).

So, BayWa has a ROCE of 6.4%. In absolute terms, this is a low return and it is also below the industry average for commercial distributors of 9.6%.

See our latest review for BayWa

XTRA: BYW Review of capital employed on June 11, 2021

Above you can see how BayWa’s current ROCE compares to its previous returns on capital, but there is little you can say about the past. If you are interested, you can view analyst forecasts in our free analyst forecast report for the company.

What can we say about BayWa’s ROCE trend?

Even though the ROCE is still low in absolute terms, it is good to see that it is moving in the right direction. The figures show that over the past five years, the returns generated on capital employed have increased significantly to 6.4%. The amount of capital employed also increased by 49%. This may indicate that there are many opportunities to invest capital internally and at increasingly higher rates, a common combination among multi-baggers.

Another thing to note, BayWa has a high ratio of current liabilities to total assets of 50%. This can lead to certain risks as the business is essentially operating with quite a lot of dependence on its suppliers or other types of short-term creditors. While this isn’t necessarily a bad thing, it can be beneficial if this ratio is lower.

In conclusion…

In summary, it is great to see that BayWa can increase returns by systematically reinvesting capital at increasing rates of return, as these are some of the key ingredients in these highly sought after multi-baggers. And with a respectable 97% attributed to those who held the stock over the past five years, you could argue that these developments are starting to get the attention they deserve. Therefore, we believe it would be worth checking out whether these trends will continue.

If you wish to continue your research on BayWa, you may be interested in knowing the 2 warning signs that our analysis found.

For those who like to invest in solid companies, Check it out free list of companies with strong balance sheets and high returns on equity.

Promoted
If you decide to trade BayWa, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


Source link

]]>
Mendocino County District Attorney Blames Region’s Rise in Violent Crime on Black Market Cannabis Industry – Redheaded Blackbelt http://goodwillsavannahga.org/mendocino-county-district-attorney-blames-regions-rise-in-violent-crime-on-black-market-cannabis-industry-redheaded-blackbelt/ Thu, 10 Jun 2021 17:00:20 +0000 http://goodwillsavannahga.org/mendocino-county-district-attorney-blames-regions-rise-in-violent-crime-on-black-market-cannabis-industry-redheaded-blackbelt/

Military grade tactical equipment and weapons used in the robbery and kidnapping last September. [Picture provided by the Mendocino County Sheriff’s Office]

In a budget presentation to the Mendocino County Board of Supervisors on Wednesday, June 9, District Attorney David Eyster described a 10% increase in violent crime from 2019 to 2020. 3rd District Supervisor John Haschak said asked if this increase was related to the cannabis industry, legal or illegal, and DA Eyster responded,

DA Eyster then recounted two specific crimes from the past year that he said were emblematic of the violence associated with the black market cannabis industry.

First, DA Eyster described the recent double murder that occurred in a Willits cannabis crop. Christopher Wayne Gamble is charged with the murder of two men, Ulises Andrade Ayala and Anwar Ayala, in a crime that Eyster called “heinous”. According to a criminal complaint filed by Mendocino County DA, Gamble is also charged with animal abuse involving injury or death of chickens.

Christopher Wayne Gamble, the Willits Man accused of double homicide at a cannabis farm [Picture from the MCSO Booking Logs]

Christopher Wayne Gamble, the Willits Man accused of double homicide at a cannabis farm [Photo from the MCSO Booking Logs]

The second crime DA Eyster referred to was when three outside men, equipped with tactical gear and military-style weapons, attempted to “impersonate police officers and rip off people who brought money here to buy marijuana, whether it’s legal or illegal.

DA Eyster suggested that not all of the 10% increase can be attributed to the black market in cannabis, but said “much of it is tied to the illegal black market.”

Sheriff Matt Kendall echoed many of DA Eyster’s sentiments in a statement issued in late September to residents of Mendocino County, where he said the violence associated with the black market cannabis industry “has become too much to deal with. wear for our county. Now is the time to stop pretending that the illegal marijuana trade is a good thing.

In his statement, Sheriff Matt Kendall also described the September robbery and kidnapping by the three outside men equipped with “

quality weapons and bulletproof vests.

The three men who are accused of the theft and kidnapping last September while they were equipped with tactical equipment [Left to Right, Nathan Vargas, Roy Ha, Jesus Vargas]

The three men who are accused of the theft and kidnapping last September while they were equipped with tactical equipment [Left to Right, Nathan Vargas, Roy Ha, Jesus Vargas]

Sheriff Kendall, in that statement, also cited reports of illegal cannabis growers intimidating firefighters during the compound fires in August of last year as a source of concern. Firefighters reported that essential water pumps were stolen and lasers were aimed at them as they worked to put out the large-scale blaze last year.

Michael Katz, Executive Director of the Mendocino Cannabis Alliance, said: “We appreciate and share the DA’s concern for the egregious environmental and criminal activity happening in our county around unlicensed cannabis. “

Katz explained that the Mendocino Cannabis Alliance “has always advocated for more resources for the Sheriff’s Office, PBS [Planning and Building Services], and the Cannabis Program to support their important efforts.

Katz does not view these enforcement efforts as antagonistic to legal cannabis growers. He said: “The sheriff has stated on several occasions that the problems he sees in regards to dangerous and illegal behavior are not from the licensed cannabis operators in the county.”

Katz added, “We don’t want licensed operators who have done their best to stay compliant in an ever-changing regulatory system to be falsely demonized because of the bad actions of other people who have no intention. to operate in a compliant manner.

Addressing some of the details of prosecuting cannabis-related crimes, DA Eyster cited water theft as an example of weak laws deterring his office from prosecuting culprits. In the past, DA Eyster has explained, “We have tried to take criminal action against water theft” but “the criminal penalties at the state level are so weak that there is literally no value for money. -price”. He suggested the county “join a lobby effort in Sacramento” to “seek heavier punishment for people who steal water.”

DA Eyster explained that despite efforts to move cannabis growers to the legal market, “the black market is still strong and vibrant in Mendocino County.” He described the review of five search warrants recently associated with “major marijuana operations that were not authorized by the county or state.” He called the cannabis cultivation “big enough that you just don’t understand how someone can set them up and think it would be good.” “

Speaking on how the county can step up efforts to fight cannabis, DA Eyster pleaded for additional funding from the California Department of Fish and Wildlife because “they don’t have enough people to cover all the canyons and inland waterways ”. He also supported additional funding for the Mendocino County Sheriff’s Office in their enforcement efforts.

FacebookTwitterpinterestto post




Source link

]]>
Is Calavo Growers (NASDAQ: CVGW) a risky investment? http://goodwillsavannahga.org/is-calavo-growers-nasdaq-cvgw-a-risky-investment/ Thu, 10 Jun 2021 11:27:22 +0000 http://goodwillsavannahga.org/is-calavo-growers-nasdaq-cvgw-a-risky-investment/

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from risk.” It’s natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when a business collapses. We notice that The producers of Calavo, Inc. (NASDAQ: CVGW) has debt on its balance sheet. But the most important question is: what risk does this debt create?

When is debt a problem?

Debts and other liabilities become risky for a business when it cannot easily meet these obligations, either with free cash flow or by raising capital at an attractive price. If things really go wrong, lenders can take over the business. However, a more common (but still costly) event is when a company has to issue stock at bargain prices, constantly diluting shareholders, just to strengthen its balance sheet. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. When we look at debt levels, we first consider both cash and debt levels.

See our latest review for Calavo growers

How much debt do Calavo producers carry?

As you can see below, Calavo Growers had a debt of US $ 42.3 million in April 2021, up from US $ 45.0 million the year before. However, it has $ 5.58 million in cash offsetting that, which leads to net debt of around $ 36.7 million.

NasdaqGS: CVGW History of debt to equity June 10, 2021

How strong is the balance sheet of Calavo producers?

According to the latest published balance sheet, Calavo Growers had a liability of US $ 95.6 million due within 12 months and a liability of US $ 107.0 million due beyond 12 months. In return, he had $ 5.58 million in cash and $ 92.5 million in receivables due within 12 months. As a result, its liabilities exceed the sum of its cash and (short-term) receivables by $ 104.5 million.

Given that Calavo Growers’ listed shares are worth a total of US $ 1.21 billion, it seems unlikely that this level of liabilities is a major threat. But there are enough liabilities that we would certainly recommend that shareholders continue to monitor the balance sheet going forward.

We use two main ratios to tell us about leverage versus earnings levels. The first is net debt divided by earnings before interest, taxes, depreciation, and amortization (EBITDA), while the second is the number of times its profit before interest and taxes (EBIT) covers its interest expense (or its coverage of interest, for short). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt over EBITDA) and the actual interest charges associated with this debt (with its interest coverage rate). ).

Calavo Growers has a low debt to EBITDA ratio of just 0.67. But what’s really cool is that he managed to earn more interest than he paid in the last year. So there is no doubt that this company can go into debt while still being cool as a cucumber. In contrast, Calavo Growers has seen its EBIT fall by 4.3% over the past twelve months. If profits continue to decline at this rate, the company may find it increasingly difficult to manage debt. When analyzing debt levels, the balance sheet is the obvious starting point. But ultimately, the company’s future profitability will decide whether Calavo Growers can strengthen its balance sheet over time. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

But our last consideration is also important, because a company cannot pay its debts with paper profits; he needs hard cash. It is therefore worth checking to what extent this EBIT is supported by free cash flow. Over the past three years, Calavo Growers has generated strong free cash flow equivalent to 68% of its EBIT, roughly what we expected. This free cash flow puts the business in a good position to repay debt, if any.

Our point of view

Calavo Growers’ interest coverage suggests he can manage his debt as easily as Cristiano Ronaldo could score a goal against an Under-14 keeper. But, on a darker note, we’re a little concerned about its EBIT growth rate. When we consider the range of factors above, it looks like Calavo Growers is being pretty reasonable with its use of debt. This means that they are taking a bit more risk, in the hope of increasing returns for shareholders. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks lie on the balance sheet – far from it. For example, we discovered 2 warning signs for Calavo growers which you should know before investing here.

At the end of the day, it’s often best to focus on businesses with no net debt. You can access our special list of these companies (all with a history of profit growth). It’s free.

Promoted
If you are looking to trade Calavo Producers, open an account with the cheapest * professionally approved platform, Interactive brokers. Their clients from more than 200 countries and territories trade stocks, options, futures, currencies, bonds and funds around the world from a single integrated account.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


Source link

]]>
Lower growth and fewer jobs – Analysis – Eurasia Review http://goodwillsavannahga.org/lower-growth-and-fewer-jobs-analysis-eurasia-review/ Thu, 10 Jun 2021 01:48:22 +0000 http://goodwillsavannahga.org/lower-growth-and-fewer-jobs-analysis-eurasia-review/

By Daniel Lacalle *

The first thing any economist should do when reading a budget proposal is to analyze the basic macroeconomic assumptions and the results presented by the administration. When both are poor, the budget must be criticized. This is the case with the Biden budget plan.

Same growth, a lot more debt and fewer jobs.

According to the administration, the growth impact of this budget will be negligible, as their own estimates – and optimistic ones – see no change in the slowing trend of US economic growth.

The CBO (Congressional Budget Office, in The budget and economic outlook: 2021 to 2031) estimates an average real GDP growth of 1.7% between 2020 and 2030, the same average they forecast for the period 2025-30. This is lower than the potential real GDP growth of the US economy, but driven by much higher debt… with lower employment.

The CBO also expects extremely weak employment growth, with an unemployment rate averaging 4.8% for the period 2020 to 2030, and 4.1% for 2025-30. This means not hitting the 2019 unemployment rate even by 2030 after spending $ 6 trillion.

Even more worrying is the massive deterioration in the financial situation of the United States. The Committee for a Responsible Federal Budget (CFRB) warns that “federal debt held by the public would rise from 100% of GDP by the end of fiscal 2020 and a record 110% of GDP in 2021 to 114% of GDP in 2021. ‘by 2024 and 117% of GDP by the end of 2031. In nominal dollars, debt would increase by $ 17.1 trillion through the end of fiscal 2031, from $ 22.0 trillion today. ‘hui to $ 39.1 trillion in 2031’ (President Biden’s full budget for fiscal year 2022).

This is a concern because history shows us that these estimates tend to err on the side of optimism and that debt is growing faster.

The $ 3.8 trillion in compensation in the budget is extremely optimistic. The Biden administration assumes the tax hikes will have no impact on investment and predicts an overly optimistic revenue collection trend. For example, tax revenue estimates assume growth above GDP and without any collapse over the entire period, which has not happened for decades. Even so, the administration’s estimates will only cover about three-quarters of the cost of new spending, as budget deficits would total $ 14.5 trillion over the next decade. Annual deficits are likely to average $ 1.4 trillion (4.7% of GDP) each year for a decade. There is not a single year in which expenses will be covered by income, even in these bullish estimates of economic growth.

According to the CFRB “rather than putting debt on a stable and then downward trajectory relative to the economy, the president’s budget would surpass the previous record and bring debt levels to 117% of GDP by 2031” .

Spending will increase to 24.5% of GDP over the next decade, according to the CFRB. The Biden administration’s baseline projection is 22.7 percent of GDP, well above the fifty-year averages of 20.6 and 17.3 percent of GDP. The problem is that most of it is spent on current spending with no real economic return and no increase in benefit programs that are likely to affect productivity, employment and investment. Even in the Biden administration’s forecast, annual spending would be 4% of GDP higher than revenue… And these revenue estimates are overly optimistic.

So how does the Biden administration expect to pay for rising deficits and debt? New Keynesian economists say deficits don’t matter and the Federal Reserve can monetize overspending. This raises two questions: if deficits don’t matter, why massively raise taxes? and why not cut taxes instead?

The most dangerous part of the budget is that all of this spending brings no real improvement over the average growth and employment trend while inflating the mandatory spending side of the budget, making it impossible for future administrations to balance the budget.

Mandatory spending increases by $ 1.2 trillion between 2021 and 2030, showing that no current or future income measure can eliminate the deficit or reduce the debt. No realistic estimate of economic growth or a better estimate of tax revenues can offset a $ 14.5 trillion increase in debt over ten years. As mandatory spending increases, the likelihood of improving fiscal challenges for the US economy decreases. A small recession over the next ten years and the debt will grow even faster, well above 120% of GDP. Projections from the CBO and the Biden administration show that tax revenue is growing every year across all categories, and we all know that’s just not possible looking at the history of the past five decades. Moreover, even with the estimates of the CBO or the Biden administration, there is a clear conclusion: the problem of the deficit of the United States is a problem of spending. No realistic measure of revenue will balance the budget.

The question is, what inflation will they generate to dissolve this debt? This is the biggest risk in this budget. The Biden administration is clearly aiming for a massive increase in consumer prices to ease the debt hit in real terms, which means lower real wage growth, lower wage purchasing power and, more importantly. , a destruction of the savings and purchasing power of the United States. dollar.

Many economists point out that the European Union shows that many countries have debt levels above 116% of GDP. True. They also show lower growth, lower employment rates and moderate productivity growth. There is also a lesson there. France, a country that has consistently raised taxes to supposedly fund high public spending, has not had a balanced budget since the late 1970s and the economy has stagnated for decades. Unemployment, even in times of growth, is much higher than in the United States.

When you copy the European Union, you should also know that you will get a lack of growth and job creation the European Union way.

Biden’s budget plan, in his own estimates, does not offer higher growth or better employment levels. Reality will probably show that the results will be even poorer.

* About the author: Daniel Lacalle, PhD, economist and fund manager, is the author of the bestselling books Liberty or equality (2020),Escape the trap of the central bank (2017), The energy world is flat (2015), and Life in the financial markets (2014). He is professor of global economics at IE Business School in Madrid.

Source: This article was published by the MISES Institute


Source link

]]>
Consultation on the exemption of new constructions from the proposed tax rules http://goodwillsavannahga.org/consultation-on-the-exemption-of-new-constructions-from-the-proposed-tax-rules/ Thu, 10 Jun 2021 00:16:00 +0000 http://goodwillsavannahga.org/consultation-on-the-exemption-of-new-constructions-from-the-proposed-tax-rules/

The government confirmed today that new construction will be exempt from the planned changes in the tax treatment of residential investment properties.

Public consultation is now open on the details of the proposals, which end the interest deductions claimed for residential investment property other than new construction.

“The government’s goal is to encourage more sustainable house prices, by curbing investor demand for existing housing stock to improve affordability for first-time home buyers. The proposals we are releasing today will help achieve this goal, ”said Grant Robertson.

“It’s part of the government’s desire to cool the housing market. A more sustainable housing market helps more first-time buyers to move into their own homes, but also protects our recovering economy. So we all benefit from it.

David Parker said: “The proposal to exempt real estate development and new construction should help boost supply by channeling investment towards increasing housing stock and away from direct competition with first-time buyers and owner-occupiers. for the existing housing stock. “

“This consultation is focused on finalizing the detailed rule design. The proposals will not affect the primary residence.

As a general rule, it is proposed that the residential property be considered new construction if it is a self-contained dwelling (with its own kitchen and bathroom, and which has received a certificate of compliance with the code). The government is also examining whether subsequent owners should also be exempt from changes in interest and for how long that exemption could last.

The consultation ends on July 12, 2021. The measures will be presented to Parliament later this year but will apply from October 1, 2021.

Discussion paper Design of the Interest Limitation Rule and Additional Demarcation Rules will be available at
https://taxpolicy.ird.govt.nz/publications/2021/2021-dd-interest-limitation-and-bright-line-rules
and the summary sheets attached to taxpolicy.ird.govt.nz.

© Scoop Media


Source link

]]>