Latest news with #CANADA
Forbes
3 days ago
- Business
- Forbes
ASML Stock: What Are The Latest Developents?
CANADA - 2025/07/17: In this photo illustration, the ASML Holding logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) ASML (NASDAQ:ASML), the prominent Dutch semiconductor equipment manufacturer, has experienced a stock drop of nearly 5% over the past week, remaining down by 11% in the last month due to trade tensions that have prompted the company to issue a softer financial forecast. In its Q2 2025 earnings report, ASML cautioned that it could no longer assure that its revenue would increase in 2026, overshadowing an otherwise strong quarter. Revenue for the third quarter is anticipated to be between 7.4 to 7.9 billion euros, slightly under expectations. The gross margin is estimated to be around 52%, down from a prior estimate of 51% to 53%. This mixed prediction contrasts with the overall semiconductor market, which continues to show resilience. For instance, TSMC, the largest semiconductor fabrication firm in the world, often regarded as a barometer for the chip industry, reported robust quarterly results and raised its sales growth forecast for 2025 to 30% in dollar terms. Notably, ASML is a unique company. It manufactures what is arguably the most advanced piece of manufacturing technology and plays an essential role in producing the state-of-the-art chips that power everything from smartphones to AI data centers. Considering its pivotal position in the semiconductor value chain, could this be a long-term buying opportunity? Trade And Geopolitical Tensions President Donald Trump has threatened to impose 30% tariffs on imports from the EU, which could significantly affect semiconductor equipment manufacturers like ASML. Located in the Netherlands, ASML ships its products worldwide, with key clients such as Intel in the U.S. and Asia's TSMC and Samsung Electronics – both of which also have manufacturing facilities in the United States. The proposed tariffs might increase costs for customers importing ASML's high-value tools into the U.S. For context, ASML's latest generation High-NA EUV machines can cost up to $400 million per unit. Additionally, ASML maintains manufacturing operations in San Diego, which could also be subject to retaliation through EU tariffs on products sent back to Europe. Importantly, if ASML's clients decide to cut back on capital expenditures, ongoing trade conflicts and export control regulations between the U.S. and China could complicate demand forecasting. As a leading entity in advanced chip manufacturing technology, ASML has also found itself a pawn in the growing U.S.-China technological and trade rivalry, prompting U.S. officials to urge the Dutch government to impose tighter export controls. While the company has been prohibited from selling its most advanced EUV equipment to Chinese clients for several years, new regulations imposed the previous year mandate that the company must secure a license to export any immersion DUV or more advanced systems to China. AI Narrative Drives EUV Demand ASML's flagship product is its extreme ultraviolet lithography (EUV) machines, which are vital tools for manufacturing the most advanced chips at process nodes of 5 nanometers and smaller. These machines use ultra-short wavelengths of light to carve out circuit designs, making it possible to produce chips that are smaller, faster, and more efficient. EUV technology is crucial for prolonging Moore's Law, a long-standing industry trend of doubling transistor density roughly every two years, enabling chip manufacturers to continue pushing the boundaries of computing performance and cost-efficiency. The demand for ASML's products has surged as semiconductor chips are integrated into a wide array of devices, from computers to vehicles. AI, in particular, has emerged as a significant driver for ASML recently, as the increase in training and operating complex models necessitates the high-performance semiconductors that its machinery facilitates. The company has indicated that several of its major customers are enhancing their EUV capacity to accommodate the rising demand for AI chips. ASML anticipates that EUV tool deployments will increase by around 30% in 2025, indicating a broader industry transition from older Deep Ultraviolet (DUV) technology toward EUV, which could further enhance its revenues. Is The Stock A Buy? ASML stock is trading at 27 times the estimated earnings for FY2025, which is a reasonable valuation considering ASML's revenues are projected to grow by approximately 14% this year, according to consensus estimates. During the previous quarter, ASML reported net bookings of 5.5 billion euros ($6.4 billion), which is roughly 25% higher than expected, along with a record backlog of 33 billion euros ($38 billion). With lead times of 12 to 18 months for the majority of its products, current orders should genuinely reflect customer confidence into 2026, suggesting strong future revenue growth. Furthermore, the company's dominant position, cutting-edge proprietary technology, and exposure to the generative AI trend could also make the stock appealing. Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (which includes the S&P 500, S&P mid-cap, and Russell 2000), yielding strong returns for investors. Additionally, if you seek upside with a more stable performance than an individual stock like ASML, consider the High Quality portfolio, which has surpassed the S&P and achieved over 91% returns since inception.
National Post
24-07-2025
- National Post
Christopher Dummitt: The drug-addict zombies are coming for your neighbourhood
PETERBOROUGH, ONT. — I've come to think that we Canadians are so polite that even though we now find ourselves living inside a real-life zombie movie, many seem afraid to raise a fuss for fear of offending the zombies. Article content 'Sorry, sir, but I think you're gnawing on my arm.' Article content In our case, the zombie apocalypse is the epidemic of drug addiction that fills our streets with addicts. Contemplating their next fix — or in the temporary delirium granted by the last one — they shuffle in front of our cars, defecate on our sidewalks, and break into our cars and houses. Article content Article content We all have our stories of zombie run-ins. Article content Article content Last week, while visiting my local ER, I met someone I'll call 'Dwight.' I was there to help my child. Dwight was there to get access to drugs. Article content I shouldn't have known Dwight's name — I certainly didn't know the name of any other patient in the small curtained off 'rooms' where we found ourselves. But Dwight was hard to miss. Loud rock music was blaring from his room. It's not normal in an ER but apparently Dwight needed to be calmed down and he had an iPad and this is all the nurses had to work with. Article content It wasn't enough. Soon Dwight was demanding drugs. Like RIGHT NOW. The nurses couldn't help. He'd just been given drugs. Article content That's when he began to smash things. Article content When he smashed the computer next to his bed, the security guards came. But they didn't approach Dwight. As the nurse kept telling him, security was just there to keep everyone else safe. Article content 'Please sit back down Dwight. Go back to your bed Dwight.' Article content Dwight didn't go back to bed. The shouting got worse. So did the swearing and then, randomly, the accusations of racism against the non-white security guards who had just shown up. It wasn't until the police came and restrained Dwight to the gurney that things began to settle down. Though not until they had sedated him. Article content Article content In the meantime, my own child, who was in immense pain, didn't get attention. The nurses and doctors couldn't get near us. Article content Article content But don't worry, Dwight was OK. Article content Over the past year I've almost killed addicts several times. Not that I wanted to. But when you're driving along the street and they randomly walk out in front of your car, it's a little tricky not to become an accidental killer. Article content Recent trips to the library have included such highlights as watching one man defecate beside our car even as, a few feet away, a group of people huddled in a group and injected drugs. Then there was the time I entered the library only to find a couple spreading out their things in the library foyer, including drug paraphernalia and large bottles of booze. Article content If you went by what it is mostly used for, you might think the library toilet in the basement — right next to the children's section — is meant to be a homeless person's French-shower location and possibly a place to shoot up (if the sounds in the stalls are anything to go by). Article content There's nothing like a little drug addiction to go with your Harry Potter. Article content Perhaps the most egregious case is the fate of the Silver Bean café, a charming little gem of a spot housed in a water-side building that was a local millennium project. It's advertised as everyone's 'cottage in the city' and it is genuinely a magical place. Of course, it's also very much a cottage in the city for the region's drug addicts. Article content Do you have to go to the washroom after your latte? You might think you'd go to the purpose-built public toilets only a few feet away from the café. But you'd be wrong, or just stupid. The entrance to the washrooms is a garbage dump continuously occupied by hordes of men and women who are only partly aware of what is happening in the world and who think 9:30 a.m. on a Tuesday is a perfectly good time to enjoy a bit of beer and meth, thank you very much. Article content Article content Instead, the café, which is tiny and has almost no inside space, allows customers to go around back and through its kitchen into a tiny washroom. At least the zombies at the public toilet aren't disturbed. Article content There are more stories — everyone has them. There was the woman who I saw last winter stumbling through downtown without any pants on. Or underwear either. Article content Then there are the women who linger on street corners on the edge of downtown, bedraggled, drug-skinny, and haggard. If only you'll meet their eye as you drive by, they can offer you some sexual services. Article content Peterborough isn't unique. My zombie apocalypse is probably your zombie apocalypse, too. Article content All of this has happened while the so-called 'harm reduction' programs have expanded. And even though the 'housing first' advocates did build a new community of tiny homes for the homeless just a couple of years ago, somehow, for some inexplicable reason, the problem has only gotten worse. Article content I won't pretend to have any elaborate plan or solution. This seems to me to be one of those things that social scientists call a 'wicked problem.' Article content
Forbes
17-07-2025
- Business
- Forbes
Sarepta Therapeutics: What's Happening With SRPT Stock?
CANADA - 2025/06/08: In this photo illustration, the Sarepta Therapeutics logo is seen displayed on ... More a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Sarepta Therapeutics stock (NASDAQ: SRPT) experienced a significant turnaround on Wednesday, with shares rising 33% in after-hours trading following the announcement of an extensive restructuring plan, which involves laying off 500 employees — nearly 40% of its workforce of over 1,300. The company also plans to halt several gene therapy programs, including the majority of its limb-girdle muscular dystrophy initiatives. The job cuts and reductions in research programs are expected to result in over $400 million in annual cost savings for Sarepta by 2026. The favorable market reaction indicates investor relief at management's swift measures to rectify the company's worsening financial situation. With shares down 88% over the past year and trading close to 52-week lows, the $400 million in annual savings will notably enhance Sarepta's previously concerning cash burn rate and should help mitigate its troubling debt-to-equity ratio of 63%. The restructuring presents an exciting turnaround narrative — reorienting Sarepta from a high-spending, pipeline-heavy biotech into a streamlined organization focused on its Duchenne franchise. Nevertheless, this heightened reliance on Elevidys, which accounted for 43% of Sarepta's total revenues, increases risks should any additional safety issues arise. SRPT seems significantly undervalued, currently trading at approximately 1x its trailing revenues, a stark contrast to its three-year average price-to-sales ratio of 9x. Analysts' average price target of $48 indicates almost 2x upside potential from the existing $25, contingent on the effectiveness of cost-cutting measures in restoring profitability and stabilizing the core Duchenne business. However, SRPT represents a high-risk biotech investment characterized by extreme volatility, illustrated by its dramatic price fluctuations from $172 to recent lows around $18. This is further emphasized by its historical underperformance compared to the S&P 500 during significant market declines. For example, during the 2022 Inflation Shock, SRPT plummeted 63.2% (versus the S&P 500's 25.4%) and has not yet bounced back. In the 2020 COVID-19 Pandemic, it fell 54.9% (compared to the S&P 500's 33.9%) but managed to fully recover. Similarly, during the 2008 Global Financial Crisis, SRPT plummeted 85.0% (in contrast to the S&P 500's 56.8%), eventually recovering by 2012. See – Buy or Sell SRPT stock for more details. Now, we apply a risk assessment framework while constructing Trefis High Quality (HQ) Portfolio, which, featuring a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last four-year period. Why is that? In general, HQ Portfolio stocks have yielded superior returns with lower risk compared to the benchmark index; offering less of a roller-coaster experience, as evidenced by HQ Portfolio performance metrics.
Forbes
17-07-2025
- Business
- Forbes
Buy CSX Stock At $35 Amid Acquisition Speculation?
CANADA - 2025/03/14: In this photo illustration, the CSX Corporation logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) CSX (NASDAQ:CSX) stock experienced a 5% increase in after-market hours on July 16, following a Semafor report indicating that Union Pacific (NYSE: UNP) is considering the acquisition of an East Coast railroad. Both CSX and Norfolk Southern (NYSE: NSC) operate in this area, and Union Pacific has supposedly engaged Morgan Stanley (NYSE:MS) for advisory on potential strategies. This development significantly lifted CSX's stock price as investors look forward to a possible acquisition premium. Nonetheless, the ongoing question for investors is: Is CSX a solid buy at its current price of approximately $35, regardless of acquisition rumors? To determine this, we have examined CSX's financial and operational performance. Based on our evaluation of CSX's valuation relative to its recent operational performance and historical financial strength, we believe CSX represents a worthwhile buying opportunity at its current price. Our comprehensive analysis, concentrating on critical factors such as Growth, Profitability, Financial Stability, and Downturn Resilience, shows that CSX currently displays moderate operational performance and financial health. Significantly, this moderate performance coincides with a moderate valuation, rendering it an appealing option, as outlined in the subsequent sections. However, for investors seeking less volatility than individual stocks, the Trefis High Quality portfolio offers an alternative — having outperformed the S&P 500 and achieved returns surpassing 91% since its inception. Additionally, see – D-Wave Quantum: Can QBTS Stock Deliver Another 1,000% Gain? How Is CSX's Valuation Compared to The S&P 500? According to the amount you pay per dollar of sales or profit, CSX stock is now valued comparably to the broader market. How Have CSX's Revenues Increased Over Recent Years? CSX's Revenues have been declining in recent years. How Profitable Is CSX? CSX's profit margins are significantly higher than most companies in the Trefis coverage universe. Is CSX Financially Stable? CSX's balance sheet appears weak. How Resilient Is CSX Stock During a Downturn? CSX stock has performed worse than the benchmark S&P 500 index during certain recent downturns. Concerned about the effects of a market crash on CSX stock? Our dashboard How Low Can CSX Stock Go In A Market Crash provides a detailed examination of the stock's performance during and after previous market crashes. Putting All The Pieces Together: What This Means for CSX Stock In summary, CSX's performance across the parameters mentioned earlier is as follows: Overall, CSX stock currently exhibits neutral performance across our important parameters, aligning with its moderate valuation. Although the company demonstrates robust profitability, its revenue growth has recently suffered due to challenging macroeconomic conditions. However, with inflation now under control and the Federal Reserve expected to lower interest rates sooner rather than later, we foresee an increase in overall economic activity. This is likely to significantly benefit CSX in the coming years. In fact, following a subdued 2025, we anticipate mid-single-digit top-line growth for CSX in the next few years. Taking these factors into account, along with CSX's current moderate valuation, we believe it offers a prime entry point for investors. The additional aspect of being a potential acquisition target further increases its attractiveness, though it is essential to recognize the inherent risks associated with regulatory approvals in such a case. Of course, we could be wrong in our assessment, and investors might hesitate to assign a higher multiple to CSX because of its recent weaker growth. Nevertheless, for long-term investors with a time horizon of 3-5 years, the overall risk-reward profile for CSX seems favorable. While CSX stock appears promising, investing in a single stock can be risky. Conversely, the Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a proven history of comfortably outperforming the S&P 500 over the last four years. What is the reason for this? As a collective, HQ Portfolio stocks have produced better returns with less risk compared to the benchmark index; a smoother ride, as reflected in HQ Portfolio performance metrics.
Forbes
14-07-2025
- Business
- Forbes
Why Did MP Materials Stock Jump 50% In A Single Day?
CANADA - 2025/06/13: In this photo illustration, the MP Materials logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) MP Materials Corp (NYSE:MP) has just experienced a significant breakthrough on Wall Street, and it can be attributed to one word: defense. In a decisive action to bolster the U.S. supply chain for rare earth magnets—essential elements for fighter jets, missiles, and electric vehicles—the Pentagon revealed a $400 million investment in MP Materials. This single move caused MP's stock price to surge by over 50% in a single day, reaching a multi-year maximum. Although MP stock has faced fluctuations, if you are looking for growth with less volatility than single stocks, the Trefis High Quality portfolio provides an alternative – having outperformed the S&P 500 and delivered returns exceeding 91% since its inception. The Department of Defense is currently the largest shareholder of the company, owning approximately 15% of MP's stock through a combination of preferred shares and warrants. This is a robust show of confidence, but it also indicates a clear message: the U.S. is seriously committed to achieving rare earth independence. For MP, this represents more than just financial gain. It's a strategic advantage. The agreement includes a 10-year price floor guarantee and a long-term supply contract—essentially ensuring revenue in a fluctuating market largely controlled by China. The financing will assist MP in completing its new '10X' magnet facility in Texas and increasing production at its Mountain Pass mine in California. Markets reacted swiftly. Investors view this as a pivotal turning point for the company, transforming it from a specialized miner into an essential part of national security. Year-to-date, the stock has risen over 180%, and analysts are quickly adjusting their forecasts. In summary? MP has evolved into more than just a mining enterprise. It has become a significant factor in the U.S. industrial and defense strategy—and the market is taking note. Not pleased by the unpredictable nature of MP stock? The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has demonstrated a history of consistently outperforming the S&P 500 over the last four years. What accounts for this? Collectively, HQ Portfolio stocks have generated superior returns with reduced risk compared to the benchmark index; it's been less of a roller-coaster experience, as shown in HQ Portfolio performance metrics.
