Discussing which Steelers players or positions are trending up, trending down, or simply treading water. Tortoise told us Hyliion would be a lot like Nikola. Now it seems they were right. Financière de l’Odet PRESS RELEASE 20 October 2020 Group activities show strong resilience in third quarter 2020 despite 3% decline in revenue … Shares of the specialty paper products company surged, but it wasn’t anything it did. Here’s what it takes to justify the current valuation.
Welcome to the latest edition of the Steelers Stock Report of the 2020 NFL season: Cleveland Browns edition. I have been granted the distinguished opportunity to attempt to determine which direction individual players, or units, are trending after each weekly matchup, to the best of my ability.
I will attempt to make each determination without the use of my Black-and-Gold glasses, but admittedly I can make no promises.
Let’s get started…
What a dominant performance by the Steelers in their destruction of the still not ready for primetime Cleveland Browns on Sunday. It was truly a total team effort, so much so that it felt almost rather mundane if we are being honest.
In a game that many Browns fans were touting the most important game in decades, the true nature of both franchises were revealed. For the Steelers, a franchise steeped in tradition and an established winning culture, it looked like just another day at the office. The Steelers were ultra focused and surprisingly calm, considering all the potential distractions for both teams covered tirelessly by the media all week leading up to the game. The Steelers have been in plenty of identify confirming games over the years, and it showed bigtime on Sunday.
The Cleveland Browns are still in the process of establishing their identity, or at least moving far away from their hapless reputation as laughingstock of the NFL since they were reestablished in 1999 as an expansion team. Regrettably for the Browns, their reputation as the Mistake by the Lake still haunts the franchise. This Browns team has proven this season that they have plenty of athletic talent to be successful, but they are still lacking the heart and leadership of a contending team. When your star receiver takes his cleats off halfway through the fourth quarter and spends the rest of the game bickering with fans in the stands, you definitely have a leadership problem. No player is bigger than the team, and a trade maybe the only answer for that problem.
As for the game itself, it was incredibly difficult to identify who’s stock is rising when the whole team’s performance was outstanding. The offense was solid, if not spectacular, in all phases. It must be concerning for future Steelers opponents how effective they have been already considering they are nowhere close to firing on all cylinders as of yet this season.
In a league where the defensive bar has been set ridiculously low, the Steelers truly stand out. They manhandled the Browns offensive line, whose reputation coming in far exceeded their performance in Sunday’s game. The Steelers defense was excellent at all three levels, but the big boys along the defensive line really stood out to me. The starting three are approaching elite status.
Cameron Heyward may just be the most powerful defensive lineman in the NFL. The Browns talented rookie LT Jedrick Wills Jr. will never forget his first encounter with Ironhead’s baby boy. Heyward went basically wherever he wanted to during the game, and took his blocker along for the ride.
Stephon Tuitt abused former Steeler Chris Hubbard, making his first start at RG due to injury, throughout the afternoon. I wrote an article a couple weeks back about how Tuitt’s play was being overlooked early in the season. Now Tuitt has four sacks on the season, to go along with his always tough run defense.
Tyson Alualu has proven his early season success was far from a flash in the pan. He has found the sweet spot of effectiveness and stability in his career.
This selection is rather obvious, after such a brilliant all around team performance. Bush’s season ending knee injury is devastating, not only for the young man, but for the Steelers chances of becoming the best defense in the business.
Bush had shown real improvement in his sophomore season, even if it hadn’t shown up yet in splash plays and stuffing the stat sheet.
He had a strong grasp of the defensive playbook and had done an excellent job communicating with his teammates while calling out alignments. His running back coverage was superior, and his tight end coverage was showing improvement. I have complete confidence he will return better than ever due to his strong work ethic, but he will be sorely missed for the remainder of this season.
Quality depth is at a premium during the salary cap era of professional football. That doesn’t mean it has to be high priced depth, just quality. Some teams are better than others at identifying and developing quality depth from late round and undrafted free agents. The Steelers are one of the best at doing just that.
The Steelers invested a small fortune to acquire Devin Bush, reflecting his importance to the defense, teaming him with veteran run stuffing specialist Vince Williams. Many fans expressed their concern during the off season with the Steelers unproven depth of sixth round selection Ulysees Gilbert lll and UDFA Robert Spillane, but I had complete confidence in the position coaches ability to get both young men ready to play when called upon. Everything was going according to plan coming out of training camp, then things got very confusing.
Both men made the roster, but Gilbert has only been active one game, where he only received special teams snaps. Bush never came off the field on defense, regularly playing 100% of the snaps. As great as T.J. Watt and Bud Dupree have been, the coaches regularly substitute for them every couple of series to give them a breather and keep them fresh for the fourth quarter.
This strategy also has another positive effect, giving depth players invaluable experience in live action, particularly important considering the lack of any preseason games this season. That way they are not still wet behind the ears when thrust into action after a starter goes down to injury.
The Steelers are now faced with just such a situation, and only Spillane has saw action on defense. Definitely not an optimal situation, but the Steelers have no choice but to make the best of a bad situation.
The Steelers still have talent at the inside linebacker position on the roster, but precious little experience amongst the bunch. It will be up to the Steelers coaches to help the young men meet the standard already set as they gain some valuable experience.
Author: Shannon White
Why Hyliion Holdings Stock Tanked 9% Today
Shares of Hyliion Holdings (NYSE:HYLN), the maker of electrified powertrain solutions for Class 8 commercial vehicles that began trading Oct. 1, suffered a steep sell-off Tuesday, closing the day down 9.2%.
Image source: Getty Images.
Hyliion became public after its reverse-merger IPO into an already-listed special purpose acquisition company (SPAC), Tortoise Acquisition. But there was no news about the company today aside from a report in Barron’s saying that more EV companies similar to Hyliion are coming to market soon.
But even that modest observation may have been enough to spark a sell-off, as investors worry that a new crop of bright, shiny objects may distract investors from Hyliion stock. It is already up more than 150% from what shares of its acquirer, Tortoise, cost a year ago, and it may have run out of room to run higher.
The Barron’s article didn’t speak of these EV SPACs in particularly glowing terms, observing that “none of them have any real revenue.” (Hyliion’s own trailing-12-month revenue, according to S&P Global Market Intelligence, is zero, with a $17.2 million net loss.)
For that matter, even Tortoise, the company that bought Hyliion, may have spoken presciently. When that deal was announced back in June, Tortoise representatives boasted that their new prize was “directly comparable to” EV stock Nikola (NASDAQ:NKLA).
And that might be what investors are afraid of. Since topping out near $80 a share in June, Nikola stock has lost 74% of its market value. Hyliion shares are down only 58% from their own peak, hit in September, and they could still have further to fall.
Author: Rich Smith
Financière de l’Odet : Financial information for the third quarter 2020
Financière de l’Odet
Group activities show strong resilience in third quarter 2020
despite 3% decline in revenue
- Revenue in the third quarter 2020: €5,915 million
- -3% at constant scope and exchange rates
- -4% as reported
- Revenue at the end of September 2020: €17,527 million
- -4% at constant scope and exchange rates
- -2% as reported
- a 2% increase in the transportation and logistics business driven by freight forwarding, mainly due to exceptional air freight operations, despite the contraction in logistics activities in Africa and the impact of the end of the Douala terminal (DIT) concession in Cameroon;
- the decline in oil logistics (-38%) primarily attributable to the fall in oil product prices and volumes;
- the growth in the communications business (+1%), attributable to Vivendi which benefited from growth at UMG (+6%), the Canal+ group (+1%) and Editis (+10%);
- Transportation & Logistics, Oil Logistics:
- Revenue for the Transportation and Logistics business was down 1%, primarily due to the reduction in logistics and handling in Africa and the termination of the DIT port concession in Douala (Cameroon) at the end of 2019, partly offset by excellent performances at port terminals, in particular Abidjan Terminal in the Republic of Côte d’Ivoire, Freetown Terminal in Sierra Leone, Owendo Terminal in Gabon and Conakry Terminal in Guinea.
Conversely, international freight forwarding revenue was up sharply due to continuing sustained growth in air freight largely offsetting the decline in sea freight.
Lastly, rail activity was down following a landslide which halted traffic and the suspension of hydrocarbon transportation between the Republic of Côte d’Ivoire and Burkina Faso lasting over a month.
v Revenue for Oil Logistics was down 25% in view of the fall in the price of oil products and, to a lesser extent, volumes over the first nine months of 2020.
§ Communications (Vivendi): Revenue amounted to €11,595 million, down 1% at constant scope and exchange rates and up 2.4% as reported compared to the same period in 2019. It benefited from growth in revenue from UMG, driven by music streaming platforms, Canal+ group, through significant international development, and Editis, which confirmed the rebound that began at the end of lockdown. However, this growth was offset by the decline in Havas Group and Vivendi Village revenue, impacted by the fallout of the Covid-19 pandemic.
§ Electricity Storage and Systems: Revenue from industrial activities (electricity storage, plastic films, dedicated terminals and systems) was down 8% compared to the first nine months of 2019. These business activities were impacted by the health crisis, due to plant closures in particular as well as the decline in the air freight sector, a key market for IER. Conversely, sales of batteries were up sharply, driven by the contract with Daimler, while the Bluebus order book stood at 111 12-meter buses at the end of September.
Third quarter highlights and recent events:
§ Opening of UMG’s share capital
Vivendi successfully completed the first phase of the opening of UMG’s share capital. On March 31, 2020, the Group finalized the sale of 10% of the share capital of UMG to a Tencent-led consortium based on an enterprise value of €30 billion for 100% of UMG.
The consortium, which is led by Tencent and includes Tencent Music Entertainment and other financial co-investors, has the option to acquire, on the same valuation basis, up to an additional 10% of the share capital of UMG until January 15, 2021.
This transaction is complemented by a separate agreement allowing Tencent Music Entertainment to acquire a minority stake in the capital of the UMG subsidiary owning its Greater China operations.
Following the success of this significant strategic transaction, Vivendi is pursuing its plan to sell additional minority interests in UMG with the assistance of several mandated banks. An IPO is planned for 2022.
The cash generated by these transactions may be used by Vivendi to reduce its financial debt and to finance a significant share buyback program and acquisitions.
§ Lagardère SCA
At October 19, 2020, Vivendi holds 28.3% of the share capital and 21,5% of the voting rights of Lagardère SCA.
Following the disappointing results announced by Lagardère SCA, on August 10, 2020 Amber Capital and Vivendi signed a shareholder agreement, despite their differences. As such, they launched an initiative to guarantee each party minority representation on the Lagardère SCA Supervisory Board, i.e. three members for Amber Capital and one member for Vivendi. They also sought to stabilize their shareholding base by granting each other a right of first offer and a right of first refusal for a five-year period.
As the Lagardère SCA Supervisory Board and management refused the proposals of its largest and second largest shareholders respectively, Amber Capital and Vivendi, in early September 2020 the said companies brought a request before the Paris Commercial Court to convene a General Meeting.
On October 14, 2020, the Court decided not to uphold the request. Vivendi, which remains confident in the merits of its approach, will appeal this decision.
§ MultiChoice Group Ltd
On September 29, 2020, the Canal+ group exceeded the 5% threshold of the share capital of MultiChoice Group Ltd, Africa’s leading pay-TV provider based in South Africa. This acquisition, a long-term financial investment, is testament to the confidence that the Canal+ group and its shareholder Vivendi have in the outlook for MultiChoice and Africa as a whole, a continent to which they are deeply committed.
§ Vivendi share repurchase program
Since January 1, 2020, Vivendi has acquired 58,37 million of its own shares (4.92% of its share capital), representing an amount of €1,368 million, including 23,02 million shares under the previous share repurchase program and 35,35 million shares under the current one.
As of October 19, 2020, Vivendi held 62.3 million treasury shares representing 5.25% of the share capital, including 46.2 million shares to be canceled, 7.5 million to cover performance share plans, and 8.6 million to cover disposals to employees or corporate officers (employee shareholding transactions).
§ Tender offer on Blue Solutions by Bolloré
The tender offer on Blue Solutions at a price of €17 per share, which took place between May 29 and July 8, 2020, was finalized. Following the mandatory squeeze-out that took place on July 15, 2020, Bolloré now holds 100% of the share capital of Blue Solutions. The value of the securities acquired represent an amount of €110 million.
§ Sale of BluePointLondon Ltd
In September 2020, IER entered into an agreement to sell to Total its subsidiary BluePointLondon Ltd, which has developed and operates a network of 1,600 electric vehicle charging stations in London. This sale should be completed in the next few months.
§ Impact of the health crisis
Although the impact is more severe for certain countries and business lines than for others, the Group has shown resilience and adaptability in continuing to serve its customers to the best of its ability whilst lowering costs to preserve its margins. Transportation and Logistics business continues to benefit from exceptionally high freight transport rates, which partly offset the slowdown in the usual flows. Communications activities have shown good resilience, particularly music and pay-TV. However, other activities have been impacted by the health crisis as anticipated.
The Group is conducting a careful assessment of the current and potential consequences of the crisis. At this stage it is difficult to determine the impact of the crisis on full-year results. The advertising and live performance sectors are particularly likely to suffer long-term impacts. However, the Group remains confident in the resilience of its main business lines. It is doing everything possible to ensure the continuity of its activities and to serve and entertain customers and audiences as well as possible, while following instructions from the authorities of each country where it is established.
§ Group liquidity
As of September 30, 2020, the Group’s liquidity position, including undrawn confirmed lines and liquid investments, represented €2.9 billion for Financière de l’Odet and €8.6 billion including Vivendi, up slightly from June 30, 2020.
Change in revenue per quarter
(1) At constant scope and exchange rates
All amounts are expressed in millions of euros and rounded to the nearest decimal.
As a result, the sum of the rounded amounts may differ slightly from the reported total.
Author: FINANCIERE DE L’ODET
Why Rayonier Advanced Materials Stock Jumped 11% at the Open Today
Shares of Rayonier Advanced Materials (NYSE:RYAM), which makes high-purity cellulose specialty products, rose an impressive 11.7% in the first half hour of trading on Oct. 20. By 10 a.m. EDT, however, the price had pulled back to around 6.5%. There were no material updates from the company, but one Wall Street investment house revised its view of the stock.
RBC Capital Markets upped Rayonier from sector perform, which is basically a hold rating, to outperform. As investors often do, they took that research house update as a reason to buy the stock. The problem here is that the company isn’t exactly hitting on all cylinders.
Image source: Getty Images.
For example, when it reported second-quarter earnings in August, Rayonier lost $0.20 per share. While an improvement over the loss of $0.38 per share in the same prior-year period, it was still not a great number. Management highlighted COVID-19 as a headwind, but the truth is Rayonier has posted red ink in five of the last six quarters. While the pandemic is an issue, there’s more going on here. Notably, management highlighted reworking its bank debt covenants in the 2Q earnings release. That’s usually not something a company looks to do unless there’s a problem.
Long-term investors may, indeed, like the outlook for Rayonier, which has a unique focus on wood products used across many industries (cellulose is basically just fluffed-up wood). However, the company’s recent financial performance shows that investors need to dig into the story behind Wall Street upgrades and downgrades before making an investment decision. In fact, by 10:30 a.m., the initial excitement appeared to have played out, with the stock basically flat for the day.
Author: Reuben Gregg Brewer
Is Moderna Stock a Buy at This Price?
Moderna’s (NASDAQ:MRNA) market cap has more than quadrupled since the beginning of this year on hopes that its coronavirus vaccine will protect people from COVID-19. In this Fool Live video, Healthcare and Cannabis Bureau Chief Corinne Cardina and longtime Motley Fool contributor Brian Orelli discuss what it takes to justify the current valuation. Ultimately, it may come down to how often we need to take the vaccine.
Corinne Cardina: TradeSeeker would like to know if Moderna is on our list. Moderna’s not on our treatment list but Moderna will be on our COVID-19 vaccine candidate list. Brian, do you have any thoughts on Moderna?
Brian Orelli: I think it’s overpriced, but I also thought it was overpriced half a market cap ago. So don’t necessarily look at me. Don’t go selling because I said so because I was wrong all this time.
Again, I think that whether it’s valued properly right now is going to mostly depend on whether you have to be retreated with their vaccine. They have other treatments too but I think those are longer-term plays.
The issue is going to be, is the company going to make $5 billion, $10 billion, and then stop selling the thing? If that’s the case, it’s hard to justify their market cap. I don’t know what it’s at right now. The ticker there is MRNA in case anybody wants to know. It’s $28 billion market cap right now.
At a five price-to-sales ratio, then that’s justifying $6 billion in sales. But the five price-to-sales ratio — we would want to see that $6 billion going on forever. So that five is a good number for a non-growing biotech company or pharmaceutical company. That’s basically justifying $6 billion in sales forever. They could do $10 billion and then not have sales for quite a few years as they build the rest of their pipeline, which is all early stage vaccines.
Corinne Cardina: Yeah, great point.
Author: Brian Orelli, PhD
Revenue for the third quarter 2020
At constant scope and exchange rates, the Group’s revenue for the third quarter 2020 was down 3% to €5,915 million. This change mainly includes:
Revenue as reported was down 4% compared to the third quarter of 2019, due to a €132 million negative foreign exchange impact related to the strengthening of the euro (particularly versus the US dollar in the third quarter), which absorbed the positive changes in scope related primarily to the consolidation of M7 at the Canal+ group.
Revenue at the end of September 2020
At constant scope and exchange rates, revenue at the end of September 2020 fell 4% to €17,527 million.
Reported revenue was down 2%, including €340 million from changes in consolidation scope (consolidation of Editis and M7 at Vivendi and deconsolidation of Bolloré Ports France and Wifirst) and a €95 million negative foreign exchange impact (reflecting a general but contrasting increase in value of the euro).
Change in revenue by business
At constant scope and exchange rates, compared to the first nine months of 2019, the main sectors changed as follows: