/PRNewswire/ — U.S. audit, tax and advisory firm KPMG LLP has announced plans for its 30th Annual Accounting & Financial Reporting Symposium to help corporate… Luckily, the impact was short-lived. Home services franchisors are well positioned to not only weather an economic downturn, but come out on top. Before you load up on it, know what you’re getting into. Digirad (DRAD) news for Wednesday includes the sale of part of its business for $18.75 million pushing DRAD stock higher. U.S. stocks climbed sharply as trading closed on the New York Stock Exchange on Wednesday, as votes continued to be counted in the presidential election.
NEW YORK, Nov. 4, 2020 /PRNewswire/ — U.S. audit, tax and advisory firm KPMG LLP has announced plans for its 30th Annual Accounting & Financial Reporting Symposium to help corporate financial executives understand the financial reporting and management issues impacting their organizations post-election and in the next year. KPMG’s popular CPE-eligible program celebrates its 30th anniversary this year and will be held virtually for the first time.
“The pandemic forced many corporate financial executives to adapt to disruption in order to accomplish their responsibilities in a way that wasn’t done in the industry before,” said Bill Tomazin, KPMG’s National Managing Partner – Audit Operations and Execution. “This year’s Symposium will be a great opportunity for professionals to learn how current events, such as the state of the economy and election results, may further affect the industry.”
The Symposium features prominent KPMG professionals and executives who offer insights on critical issues and developments, including an economic update, federal tax update, and recent guidance from the FASB and SEC. This year’s external keynote speakers include Katty Kay, notable anchor of BBC World News America, and Theresa Payton, one of the nation’s leading cybersecurity experts. Kay will cover timely post-election politics, global affairs, and the impact of the pandemic. Payton will provide critical information about complex security issues and help companies understand how to protect their privacy and the privacy of their customers.
Breakout session options include both public and private company accounting updates, accounting for the effects of COVID-19, and industry-specific trends in the current environment. Topics such as leases, revenue recognition, impairment, going concern, emerging technology, and leading in a virtual environment will be offered.
“This year’s event celebrates a milestone of providing financial executives with the latest and most relevant information on technical, regulatory and compliance topics for the past 30 years,” said Tricia Maslov, Managing Director, KPMG Executive Education. “As in previous years, participants will obtain in-depth knowledge on new accounting standards and leadership insights that they can apply in their financial reporting roles.”
Visit KPMG Executive Education’s Symposium website to learn more about the content and to register.
KPMG LLP’s 30th Annual Accounting & Financial Reporting Symposium
Nov. 18 – 20, 2020
Visit KPMG’s Symposium website to learn more and to register
About KPMG Executive Education
From basic and advanced technical accounting courses and seminars for CPE credit to in-depth conferences, KPMG Executive Education provides a range of effective continuing-education learning experiences for corporate executives and their staffs in the accounting, finance and business management professions. To learn more, and find registration information for the Annual Accounting & Financial Reporting Symposium, go to www.execed.kpmg.com.
About KPMG LLP
KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity, and eradicating childhood illiteracy. Learn more at www.kpmg.com/us.
SOURCE KPMG LLP
Author: KPMG LLP
The 2000 Election Wasn’t Decided Until December After A Recount–Here’s What Happened To The Stock Market
The Trump campaign on Wednesday vowed to demand a recount in the critical battleground state of Wisconsin, confirming Wall Street’s contested election warnings that have drawn comparisons to the 2000 Bush-Gore presidential race, when results were decided by the Supreme Court in December of that year; here’s how that delay tanked markets.
George W. Bush and his wife Laura make an appearance during the primary election. Bush won the 2000 … [+] Presidential Election against Vice President Al Gore after a controversial vote recount in Florida.
On Wednesday, President Donald Trump’s campaign manager, Bill Stepien, issued a statement saying the president plans to “immediately” request a recount in the state of Wisconsin, where state officials have said they’re virtually done counting ballots as Joe Biden maintains a lead of less than 1%.
Wall Street experts have been analyzing Election Day, November 7, 2000, when a slew of television networks called the state of Florida–which accounted for enough electoral votes to effectively decide the election–for then-Vice President Al Gore, a decision that unraveled in the following hours as votes counted increasingly showed the winner to be then-governor of Texas, George W. Bush.
A weeks-long vote recount hinged on technicalities created a swath of uncertainty and tanked stocks as much as 8.5% before the Supreme Court named Bush the victor on December 12–a full five weeks after Election Day, notes Morgan Stanley Investment Management’s Andrew Slimmon.
The VIX, however, which tracks volatility expectations, peaked in November before the election actually took place, and it didn’t peak again until weeks later as a result of the ongoing dot-com crash–long after the Supreme Court announced Bush the winner.
The stock-market uncertainty tied to election results ultimately only lasted about three weeks; by December 4, the S&P 500 had returned to pre-election levels, and some sectors, such as defense and consumer staples, even saw a boost from the prospects of a Bush victory despite the broader rout.
That three-week timeline is roughly in line with analyst estimates regarding the possibility of a similarly contested election outcome this time around; Marc Chaikin of Philadelphia-based quant investment firm Chaikin Analytics, for example, foresees a volatile downward market for one to two weeks in the event of such post-election angst.
Markets hate uncertainty, and Wall Street spectators have been saying for weeks that if a dispute is escalated to the point of triggering a legislative or judicial battle, stocks could tank 10% or more in a worst-case scenario for markets. A surge in mail-in ballots rolling into state Board of Elections offices through Election Day–and even beyond–compounded doubts that results would be known by the end of Tuesday, and many experts were ultimately correct in predicting a delay.
Not everyone’s as optimistic about this year’s election. “In 2000, there wasn’t widespread unrest in the country. This time, there is a risk that protests could get out of control,” Greg Valliere, a chief U.S. policy strategist at AGF Investments told CNN. “Trump has made it clear that he would challenge any result that he disagrees with… Gore conceded because that was the right thing to do. If it’s shown that Donald Trump actually lost, I’m not persuaded he would be a good loser.”
In the event of a contested election that escalates beyond a one-to-two week delay in results, there are two key dates earmarked for a resolution: U.S. Electoral College electors formally cast their votes on December 14, and on January 6, 2021, Congress meets to officially count electoral votes. “Any uncertainty at these points would almost certainly create a legally contested election that’s more serious than a recount,” reported LPL Financial in a note to clients earlier this month.
Trump Vows Wisconsin Recount As Biden Appears To Finish With Slim Lead (Forbes)
Here Are 3 Ways A Contested Election Could Play Out–And What Each Means For The Market (Forbes)
When We’ll Know What On Election Day: A Guide To Poll Closing Times, Vote-Counting Procedures, And The States To Watch (Forbes)
The 2000 recount was a mess. A contested election now would be much scarier for Wall Street (CNN)
The Florida Recount Of 2000: A Nightmare That Goes On Haunting (NPR)
Author: Jonathan Ponciano
Council Post: Why Home Services Franchises Show Investment Promise Now And In The Future
Patrick Galleher is the CEO of Boxwood Partners, an investment bank in Richmond, Virginia, where he leads sell-side transactions.
Even in difficult times, it’s important to continue to move forward and believe there is something better on the horizon. For entrepreneurs and investors, this means finding the silver lining in any situation and making the best of it.
As we place our focus on the future, one thing my peers and colleagues frequently ask me is which investments show promise right now. I serve as managing partner for a middle-market investment bank, and I’ve learned a thing or two about what to look for when considering potential investments.
When asked about where I’m looking to invest, I tell them about home services franchises, which focus on home improvements, repair and care. Without the need to rely on tangible goods, home services franchisors are well positioned to not only weather an economic downturn, but come out on top.
These are a few of the reasons I’ve noticed when it comes to why home services franchise investments may make sense both now and in the future.
Home Services Are Not As Impacted By The Economy
One of the biggest advantages of the home services industry is its necessity. With the essential nature of many home services, these businesses don’t find themselves as beholden to the state of the economy as some of their peers.
Much of this is because many services are still required whether the economy is doing great or not. Floors still need to be repaired, and the plumbing isn’t going to take care of itself. The same is true of yardwork.
In fact, I recently worked closely on the sale of a leading tree care franchisor to a parent company specializing in home services franchises. If the sale has shown me anything, it’s that necessity positions these types of businesses to flourish while other franchisors flounder.
Success Is Dependent On Demand
However, home services franchises are not immune to marketplace fluctuations. The success of these businesses hinges on demand for their services. This is especially true depending on whether a franchise uses recurring revenue compared to per-project billing.
Businesses using recurring revenue can rely on consistent monthly billing cycles to help keep things afloat, even when times are tough. That’s not to say companies using recurring billing don’t feel the pinch during a recession. However, the regular monthly income often means they have budgets and plans in place to tough things out.
By comparison, businesses that rely on project billing may or may not have room to maneuver if an expected windfall ends up falling through. Some franchises may have the wherewithal to ride it out, while others may find themselves in dire straits.
This is why it’s so important to thoroughly vet any investment. That means reviewing at least three to five years of financial reports and carefully analyzing the business model and how it’s expected to perform in a variety of scenarios, both good and bad.
A Booming Housing Market Creates Even More Demand
Against all odds, the housing market is booming in 2020. Much of this is due to the incredibly low mortgage rates meant to buttress the industry against the pandemic. Now, the Fed has announced that low mortgage rates are here for the long haul. When you couple this with the trend of people leaving big cities, it’s reasonable to expect the rates of homeownership to continue to increase for the millennial generation.
They say that a rising tide lifts all boats, and reports show the strong housing market having a ripple effect that is spreading to other industries. Sales at home improvement retailers are up, and those who are not do-it-yourselfers will likely hire a pro for their next home improvement project.
Remote Work Is Here To Stay
There are many businesses already looking at how to safely return to work. There are also just as many that don’t expect employees back in the office until 2021, if at all. This is what Google and Twitter have done.
Continued remote work means even more time at home for a large portion of the workforce. Once you work from home full time, you realize that a laptop at the kitchen table isn’t going to cut it. This is sure to lead to an increased need for functional home offices.
With so much time at home, it makes sense to make that space as nice as possible. Whether it’s a much-needed repair or a long-overdue upgrade, more people are willing to spend on home improvement services.
And it’s more than repairs and renovations being made to homes. Cleaning services have also been in high demand in a trend that is likely to continue as cleanliness and sanitation become an ever-growing part of people’s lives.
Valuation Can Be In The Eye Of The Beholder
As with anything, it’s important to remember that home services franchises are not without their caveats. For one thing, unlike other investments, it can be trickier to provide an accurate valuation. This is because assets in a service-based business tend to be less tangible than other industries.
You’re providing a service, not a product. This means there’s no inventory to hang a valuation on. Instead, you’ll need to rely on something like EBITDA as a valuation metric to give you a better idea of an investment’s worth.
In Good Times And Bad, Home Services Show Promise
This is all to say that while home services were vital to people’s lives before, their necessity has only grown in 2020. No one is sure what things will look like when the country returns to the “new normal.”
Even so, the ongoing need for home services is something that will remain a constant. While I’m confident the world will return stronger than ever, I’m also betting that home services are an investment that will make sense both today and tomorrow.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Author: Patrick Galleher
This Popular Investment Has 2 Major Flaws
Investing your money is a good way to grow wealth, and in that regard, you have choices. You can buy individual stocks for your portfolio, or you can load up on index funds.
Index funds are funds that track the performance of a specific index. S&P 500 index funds, for example, are pretty popular because the S&P 500 itself is comprised of the largest publicly trading companies on the market. Of course, you don’t have to buy S&P 500 index funds. Rather, you can buy shares of a bond fund, or a fund that focuses on a specific market sector.
There are plenty of benefits to choosing index funds. For one thing, they charge extremely low fees — much lower than what you’ll pay for actively managed mutual funds. They also save you the legwork of having to research individual companies. And, adding index funds to your portfolio is a good way to diversify. If you buy shares of an S&P 500 index fund, you’ll gain exposure to 500 distinct companies in one fell swoop, and it really doesn’t get easier than that.
Image source: Getty Images.
But while index funds are a suitable investment for a lot of people, and they’re an easy way to build a portfolio, they also have a couple of key drawbacks. And it’s important that you know what those are, especially if you’re planning to develop an investing strategy around them.
The goal of index funds is to match the performance of the indexes they’re tied to. But if you want to beat the broader market, you’ll need to hand-pick stocks on your own or otherwise put money into an actively managed mutual fund that will charge you higher fees. Some investors don’t care about beating the market as long as their portfolios do well, but if that’s not you, and you want to beat the S&P 500, then an S&P 500 index fund won’t cut it.
Hand-picking stocks lets you choose where your money goes. If there’s a company you feel has great growth potential, or puts out a product you believe in, then you get to make the choice to add it to your portfolio. With index funds, you don’t get a say in which stocks (or bonds) make the fund. Rather, you’re effectively signing up for whatever bucket that index entails. This means that if you’re not a fan of a particular company, you may get stuck with it anyway.
For many people, they do. In fact, investing legend Warren Buffett is a firm believer that index funds are a great choice for the average investor.
But maybe you’re not the typical investor. Maybe you’re someone with lofty goals — beating the market and assembling a mix of stocks you vet carefully. If that’s the case, then don’t buy index funds, or don’t go heavy on them. There’s certainly nothing wrong with buying index funds and simplifying the investment process, but if the above flaws don’t sit well with you, don’t hesitate to put your money elsewhere.
Author: Maurie Backman
Digirad News: Why DRAD Stock Is Soaring 28% Today
Digirad (NASDAQ:DRAD) news for Wednesday includes the sale of part of its business pushing DRAD stock higher.
According to a Digirad news release, the company is selling its DMS Health Technologies business for $18.75 million. This is the mobile division of the company’s healthcare business. It includes contract diagnostic imaging via a variety of options.
Digirad notes that the sale of DMS Health Technologies is taking place in the form of a Stock Purchase Agreement. It also mentions that it’s set to close in January 2021 after completing customary closing conditions.
The Digirad news release notes that the selling of DMS Health Technologies will allow the company to better focus its healthcare business. That includes selling and serving its solid-state imaging cameras, as well as offering on-site imaging services to hospitals and physicians.
Jeff Eberwein, chairman of Digirad, said the following about the news.
“As previously announced, we have been exploring the potential divestiture of assets in addition to pursuing our HoldCo growth strategy. The sale of DMS Health will substantially improve our balance sheet and better position us to fund high-return organic growth investments and to pursue acquisitions. Potential acquisitions could be bolt-ons in Healthcare or Building & Construction or entry into an entirely new business sector.”
Digirad is a holding company that operates in three divisions. That includes the already-mentioned healthcare business. The other two divisions are its building and construction business, and its real estate & investments business.
DRAD stock was up 28.3% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
William White, InvestorPlace Writer
Dow climbs 367 points as vote count continues in presidential race
Nov. 4 (UPI) — U.S. stocks maintained their rally in the days surrounding the presidential election Wednesday, as votes continued to be counted.
The election remained too close to call in many states, with neither GOP President Donald Trump nor his Democratic challenger, former Vice President Joe Biden, garnering enough electoral votes for a victory by Wednesday morning.
“The big news for the markets right now, at least as it looks preliminary, is that there’s not going to be a blue wave, which is generally supportive for markets,” Mike Lewis, managing director of U.S. equity cash trading at Barclays, said. “The outlook going forward for markets is this is going to be more about policy and the Fed than it’s going to be about politics, which is a good thing for markets.”
Tech stocks rose broadly as Facebook stock surged 8.32%, Amazon increased by 6.32%, Google’s parent company, Alphabet, gained 6.09%, Microsoft climbed 4.82% and Apple grew 4.08%.
The Federal Reserve began its two-day policy meeting on Wednesday.
Strategists do not expect the Fed will address the election as Chairman Jerome Powell is likely to face questions regarding another round of COVID-19 stimulus.