Bad news for New Mexico could be bad news for Virgin Galactic. Sign in Published Date: Nov 27, 2020, Author: bmotrader, Title: 4 Must-Read Tips on How to Reduce Workers’ Compensation Risk Increasing interest in cryptocurrencies in the past few years has led to millions of Americans investing in some type of digital currency. And with that, the IRS is increasing its focus on cryptocurrency.
New cases of coronavirus infections in New Mexico — which had been falling steadily in the week preceding Thanksgiving Day — abruptly reversed course one day after the holiday. On Nov. 27, New Mexico reported 2,076 new cases of COVID-19, a 21.5% jump from the day before, and new cases continued inching up through Saturday.
Virgin Galactic Holdings (NYSE:SPCE) stock is down 2.2% in 11:30 a.m. EST trading on the news.
Image source: Virgin Galactic.
So what do batches of coronavirus statistics from the New Mexico Department of Health have to do with the share price of a space stock?
Everything, it turns out. Virgin Galactic wants to begin flying tourists into space so it can begin collecting revenue from space tourism and stop losing money. The problem is Virgin’s home base, Spaceport America, is located in — you guessed it — New Mexico.
Two weeks ago, New Mexico issued a health order instructing residents to refrain from non-essential activities in an effort to slow the spread of the virus. This health order was supposed to expire today, allowing Virgin Galactic to resume preparations for test flights and progress toward commercial operations. But now that coronavirus infections are rising again, there’s a risk that New Mexico might not lift its health order, and might require Virgin Galactic to remain locked down even longer.
Things might not play out this way. On Sunday, new reported COVID-19 infections reversed course again, plunging to just 1,443 new cases — the lowest level seen in weeks. If it turns out that the weekend’s numbers were just a blip in a bigger trend of lower infections, we could still see New Mexico relent on its health order, and Virgin Galactic resume work on its spacecraft this week.
It’s just that this no longer seems as certain to happen as it did a few days ago — and that makes Virgin Galactic shareholders nervous.
Author: Rich Smith
We Analyzed the Future Direction of Genworth Financial Inc. (GNW), Here is What We Found
Genworth Financial Inc. (NYSE:GNW) went down by -0.95% from its latest closing price compared to the recent 1-year high of $4.93. The company’s stock price has collected -8.99% of loss in the last five trading sessions. Press Release reported on 11/04/20 that Genworth Financial Announces Third Quarter 2020 Results
Genworth Financial Inc. (NYSE:GNW) scored a price-to-earnings ratio above its average ratio, recording 4.55 x from its present earnings ratio. Plus, the 36-month beta value for GNW is at 1.11. Opinions of the stock are interesting as 0 analysts out of 3 who provided ratings for Genworth Financial Inc. declared the stock was a “buy,” while 0 rated the stock as “overweight,” 3 rated it as “hold,” and 0 as “sell.”
The average price from analysts is $3.50, which is -$0.65 below the current price. GNW currently public float of 500.56M and currently shorts hold a 2.38% ratio of that float. Today, the average trading volume of GNW was 5.73M shares.
GNW stocks went down by -8.99% for the week, with a monthly jump of 13.39% and a quarterly performance of 75.11%, while its annual performance rate touched 2.72%. The volatility ratio for the week stands at 10.04% while the volatility levels for the past 30 days are set at 5.52% for Genworth Financial Inc.. The simple moving average for the period of the last 20 days is -4.73% for GNW stocks with a simple moving average of 25.23% for the last 200 days.
Compass Point, on the other hand, stated in their research note that they expect to see GNW reach a price target of $5.25, previously predicting the price at $5.50. The rating they have provided for GNW stocks is “Buy” according to the report published on May 05th, 2016.
Compass Point gave a rating of “Buy” to GNW, setting the target price at $5.50 in the report published on February 08th of the previous year.
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You can see why the world’s most famed tech companies are all signing blockbuster deals with this little-known firm trading for $3.
The company pays a big dividend too… 189% bigger than the S&P 500 average.
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After a stumble in the market that brought GNW to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -15.82% of loss for the given period.
Volatility was left at 5.52%, however, over the last 30 days, the volatility rate increased by 10.04%, as shares surge +1.72% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +34.74% upper at present.
During the last 5 trading sessions, GNW fell by -8.99%, which changed the moving average for the period of 200-days by -3.04% in comparison to the 20-day moving average, which settled at $4.36. In addition, Genworth Financial Inc. saw -5.68% in overturn over a single year, with a tendency to cut further losses.
Current profitability levels for the company are sitting at:
The net margin for Genworth Financial Inc. stands at +4.10. The total capital return value is set at 5.17, while invested capital returns managed to touch 1.94. Equity return is now at value -0.70, with -0.10 for asset returns.
Based on Genworth Financial Inc. (GNW), the company’s capital structure generated 25.68 points at debt to equity in total, while total debt to capital is 20.43. Total debt to assets is 4.32, with long-term debt to equity ratio resting at 22.88. Finally, the long-term debt to capital ratio is 18.21.
When we switch over and look at the enterrpise to sales, we see a ratio of 0.78, with the company’s debt to enterprise value settled at 0.58.
Author: Ethane Eddington
4 Must-Read Tips on How to Reduce Workers’ Compensation Risk
Council Post: Retirement Accounts Offer Tax-Advantaged Investing As IRS Ramps Up Cryptocurrency Tracking
Henry Yoshida is CEO of Rocket Dollar, helping Americans unlock retirement funds with Self-Directed (S-D) IRAs and S-D Solo 401(k) plans.
Increasing interest in cryptocurrencies in the past few years has led to millions of Americans investing in some type of digital currency. (Full disclosure: Author holds investment in bitcoin.) And with that, the IRS is increasing its focus on cryptocurrency.
IRS Adds Cryptocurrency Question To Form 1040
Because of the uncertainty surrounding digital currencies’ taxation, many investors have employed a “hope for the best” strategy. In 2015, only 802 investors reported owning bitcoin to the IRS.
The IRS revealed an updated Form 1040 recently that includes a section asking, “At any time during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?” This new section on Form 1040 makes clear that even small purchases with a virtual currency are taxable events.
Also notable is the prominence of the new field, right below the taxpayer’s personal information. This placement represents an increased focus by the IRS to increase enforcement on folks underrepresenting their virtual currencies or not reporting them altogether.
Not The First Time The IRS Has Cracked Down
This is not the first time the IRS has succeeded in tracking down misrepresented assets. Since 2009, it has raised more than $12 billion from taxpayers after asking the simple question of whether they had an offshore financial account.
The crypto question in the 2020 Form 1040 represents a similar strategy on the IRS’s part to track down the billions of dollars held in crypto assets. As virtual currencies become more popular, it is easy to assume the IRS will continue to track their growth and, more importantly, improve its process to ensure people are paying taxes on their profits.
A Tax-Advantaged Approach To Cryptocurrency Investments
Cryptocurrency investments are taxed as property, as most investments typically are. While long-term investments are not taxed as heavily, short-term investments can be taxed as regular income. The volatility of cryptocurrency means investors might not want to hold on to a crypto investment for more than a year, meaning that if they sell when there’s a big upswing, they will be subject not to capital gains taxes, but rather those gains will be taxed as regular income. So how can investors avoid this potential tax minefield?
The answer might be surprising to some people, but it also is quite simple. Cryptocurrencies do not fall in the list of disallowed investments in retirement accounts set forth by the IRS.
This means that even though you will still need to respond “Yes” to the question on the new Form 1040, you will receive the same tax treatment as other assets held in your retirement accounts. For crypto holdings in a Roth IRA account, that means you will never pay taxes on any of the gains, and in a traditional IRA account, taxes will be deferred until you take a distribution in retirement, not on any of the profits of your crypto.
While many providers do not allow for customers to hold crypto in their retirement accounts, there are providers that specialize in crypto-specific retirement accounts as well as others that allow virtual currency to be among several different assets inside a self-directed retirement account. Determining which option works best for you depends on your individual situation and whether you want to invest in other alternative assets.
The Downsides To Investing In Crypto In A Retirement Account
While it is possible to transact in bitcoin or other virtual currencies if you hold your crypto in a retirement account, you would need to treat your coins as an investment, not as a means of transferring money, as any use of the cryptocurrency for purchase could constitute a taxable event. If you do plan on making purchases with crypto or using it as an alternative to cash, it would be best to hold it outside a retirement account.
Another potential downside to cryptocurrency investing, regardless of whether it’s done in a retirement account or a taxable account, is the inherent risk of cryptocurrency investments. The volatility of the space has created wealth for some investors, but at the same time, it has led to large losses for investors who sell at the wrong time. Cryptocurrency investing is a relatively new space, and investors must be comfortable with high levels of volatility in the course of their investment.
It is safe to say that virtual currencies are here to stay, and whether folks adopt them as a means to transact or primarily as an investment, the excitement around them has caught the attention of the IRS. For those interested in investing in digital coins with tax-advantaged dollars, using retirement funds to make investments could make sense for certain investors and help them avoid a potentially high tax bill.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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Author: Henry Yoshida, CFP