Risk free rate – Freedominst http://freedominst.org/ Thu, 21 Oct 2021 15:30:23 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://freedominst.org/wp-content/uploads/2021/03/cropped-favicon-32x32.png Risk free rate – Freedominst http://freedominst.org/ 32 32 Is there an opportunity with The Coca-Cola Company’s 32% undervaluation (NYSE: KO)? http://freedominst.org/is-there-an-opportunity-with-the-coca-cola-companys-32-undervaluation-nyse-ko/ http://freedominst.org/is-there-an-opportunity-with-the-coca-cola-companys-32-undervaluation-nyse-ko/#respond Thu, 21 Oct 2021 15:21:31 +0000 http://freedominst.org/is-there-an-opportunity-with-the-coca-cola-companys-32-undervaluation-nyse-ko/

In this article, we’ll estimate the intrinsic value of The Coca-Cola Company (NYSE: KO) by taking the company’s future cash flow forecasts and discounting them to today’s value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it’s not too hard to follow, as you will see in our example!

We draw your attention to the fact that there are many ways to assess a business and, like DCF, each technique has advantages and disadvantages in certain scenarios. If you want to know more about discounted cash flow, the rationale for this calculation can be read in detail in the Simply Wall St.

See our latest analysis for Coca-Cola

The method

We use what is called a two-step model, which simply means that we have two different periods of growth rate for the cash flow of the business. Usually, the first stage is higher growth, and the second stage is a lower growth stage. In the first step, we need to estimate the cash flow of the business over the next ten years. Where possible, we use analyst estimates, but when these are not available, we extrapolate the previous free cash flow (FCF) from the last estimate or stated value. We assume that companies with decreasing free cash flow will slow their rate of contraction, and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow down more in the early years than in subsequent years.

A DCF is based on the idea that a dollar in the future is worth less than a dollar today, so we need to discount the sum of these future cash flows to arrive at an estimate of the present value:

10-year free cash flow (FCF) forecast

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Leverage FCF ($, Millions) US $ 9.84 billion US $ 10.6 billion US $ 11.7 billion US $ 12.5 billion US $ 13.2 billion US $ 13.7 billion US $ 14.2 billion US $ 14.6 billion US $ 15.0 billion US $ 15.4 billion
Source of estimated growth rate Analyst x8 Analyst x6 Analyst x1 Analyst x1 Is 5.03% Est @ 4.11% East @ 3.47% East @ 3.01% Is 2.7% East @ 2.48%
Present value (in millions of dollars) discounted at 5.6% US $ 9.3k $ 9.5,000 $ 9.9,000 US $ 10.1k US $ 10,000 $ 9.9,000 US $ 9.7k $ 9.5,000 US $ 9.2,000 $ 8.9,000

(“East” = FCF growth rate estimated by Simply Wall St)
10-year present value of cash flows (PVCF) = US $ 96 billion

It is now a matter of calculating the Terminal Value, which takes into account all future cash flows after this ten-year period. The Gordon growth formula is used to calculate the terminal value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to their present value at a cost of equity of 5.6%.

Terminal value (TV)= FCF2031 × (1 + g) ÷ (r – g) = US $ 15B × (1 + 2.0%) ÷ (5.6% – 2.0%) = US $ 433B

Present value of terminal value (PVTV)= TV / (1 + r)ten= US $ 433 billion ÷ (1 + 5.6%)ten= US $ 251 billion

The total value is the sum of the cash flows for the next ten years plus the final present value, which gives the total value of equity, which in this case is US $ 347 billion. In the last step, we divide the equity value by the number of shares outstanding. Compared to the current share price of US $ 54.6, the company looks fairly good value with a 32% discount from the current share price. Ratings are imprecise instruments, however, much like a telescope – move a few degrees and end up in another galaxy. Keep this in mind.

NYSE: KO Discounted Cash Flow October 21, 2021

Important assumptions

The above calculation is very dependent on two assumptions. One is the discount rate and the other is cash flow. You don’t have to agree with these entries, I recommend that you redo the calculations yourself and play with them. The DCF also does not take into account the possible cyclicality of an industry or the future capital needs of a company, so it does not give a full picture of a company’s potential performance. Since we view Coca-Cola as a potential shareholder, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes into account debt. In this calculation, we used 5.6%, which is based on a leveraged beta of 0.828. Beta is a measure of the volatility of a stock relative to the market as a whole. We get our average beta from the industry beta of comparable companies globally, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

Looking forward:

Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a business. DCF models are not the alpha and omega of investment valuation. Preferably, you would apply different cases and assumptions and see their impact on the valuation of the business. For example, changes in the company’s cost of equity or the risk-free rate can have a significant impact on valuation. Can we understand why the company trades at a discount to its intrinsic value? For Coca-Cola, we’ve put together three relevant factors you should explore:

  1. Risks: Be aware that Coca-Cola displays 2 warning signs in our investment analysis , you must know…
  2. Management: Have insiders increased their stocks to take advantage of market sentiment about KO’s future prospects? Check out our management and board analysis with information on CEO compensation and governance factors.
  3. Other high quality alternatives: Do you like a good all-rounder? Explore our interactive list of high-quality stocks to get a feel for what else you might be missing!

PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock just search here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. 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 the mentioned stocks.

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.

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A look at the intrinsic value of Ashiana Housing Limited (NSE: ASHIANA) http://freedominst.org/a-look-at-the-intrinsic-value-of-ashiana-housing-limited-nse-ashiana/ http://freedominst.org/a-look-at-the-intrinsic-value-of-ashiana-housing-limited-nse-ashiana/#respond Wed, 20 Oct 2021 01:02:39 +0000 http://freedominst.org/a-look-at-the-intrinsic-value-of-ashiana-housing-limited-nse-ashiana/

Does the October share price for Ashiana Housing Limited (NSE: ASHIANA) reflect what it is really worth? Today, we’re going to estimate the intrinsic value of the stock by estimating the company’s future cash flows and discounting them to their present value. To this end, we will take advantage of the Discounted Cash Flow (DCF) model. Believe it or not, it’s not too hard to follow, as you will see in our example!

We draw your attention to the fact that there are many ways to assess a business and, like DCF, each technique has advantages and disadvantages in certain scenarios. For those who are passionate about equity analysis, the Simply Wall St analysis template here may be something of interest to you.

See our latest analysis for Ashiana Housing

Step by step in the calculation

We use the 2-step growth model, which simply means that we take into account two stages of business growth. In the initial period, the business can have a higher growth rate, and the second stage is usually assumed to have a stable growth rate. To begin with, we need to estimate the next ten years of cash flow. Since no free cash flow analyst estimate is available, we have extrapolated the previous free cash flow (FCF) from the last reported value of the company. We assume that companies with decreasing free cash flow will slow their rate of contraction, and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow down more in the early years than in subsequent years.

A DCF is based on the idea that a dollar in the future is worth less than a dollar today, and therefore the sum of those future cash flows is then discounted to today’s value. :

10-year free cash flow (FCF) forecast

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Leverage FCF (₹, Millions) 1.26b 1.39b 1.51b 1.63b 1.76b 1.89b 2.03b ₹ 2.17b ₹ 2.33b ₹ 2.49b
Source of estimated growth rate Est @ 11.04% East @ 9.75% Est @ 8.85% East @ 8.22% Est @ 7.77% Est @ 7.46% Est @ 7.25% Est @ 7.09% Is 6.99% Est @ 6.91%
Present value (₹, millions) discounted at 14% 1.1k ₹ 1.1k 1.0k ₹ 963 909 ₹ 856 ₹ 804 ₹ 755 ₹ 708 ₹ 663

(“East” = FCF growth rate estimated by Simply Wall St)
10-year present value of cash flows (PVCF) = ₹ 8.8b

The second stage is also known as terminal value, this is the cash flow of the business after the first stage. For a number of reasons, a very conservative growth rate is used that cannot exceed that of a country’s GDP growth. In this case, we used the 5-year average of the 10-year government bond yield (6.7%) to estimate future growth. Similar to the 10-year “growth” period, we discount future cash flows to their present value, using a cost of equity of 14%.

Terminal value (TV)= FCF2031 × (1 + g) ÷ (r – g) = ₹ 2.5b × (1 + 6.7%) ÷ (14% – 6.7%) = ₹ 36b

Present value of terminal value (PVTV)= TV / (1 + r)ten= ₹ 36b ÷ (1 + 14%)ten= 9.6b

The total value is the sum of the cash flows for the next ten years plus the present terminal value, which gives the total value of equity, which in this case is ₹ 18b. In the last step, we divide the equity value by the number of shares outstanding. Compared to the current share price of 177, the company is shown at fair value at a discount of 1.4% from the current share price. Remember, however, that this is only a rough estimate, and like any complex formula – trash in, trash out.

NSEI Discounted Cash Flows: ASHIANA October 20, 2021

The hypotheses

We draw your attention to the fact that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don’t have to agree with these entries, I recommend that you redo the calculations yourself and play with them. The DCF also does not take into account the possible cyclicality of an industry or the future capital needs of a company, so it does not give a full picture of a company’s potential performance. Since we consider Ashiana Housing to be potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes into account debt. In this calculation, we used 14%, which is based on a leveraged beta of 1.187. Beta is a measure of the volatility of a stock relative to the market as a whole. We get our beta from the industry average beta from globally comparable companies, with a limit imposed between 0.8 and 2.0, which is a reasonable range for a stable business.

To move on :

While important, calculating DCF is just one of the many factors you need to assess for a business. It is not possible to achieve a rock-solid valuation with a DCF model. Rather, it should be seen as a guide to “what assumptions must be true for this stock to be under / overvalued?” If a business grows at a different rate, or if its cost of equity or risk-free rate changes sharply, output can be very different. For Ashiana Housing, we have compiled three important things you need to assess:

  1. Risks: Take risks, for example – Ashiana Housing a 1 warning sign we think you should be aware.
  2. Other strong companies: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid trading fundamentals to see if there are other companies you may not have considered!
  3. Other environmentally friendly companies: Are you concerned about the environment and think that consumers will buy more and more environmentally friendly products? Browse our interactive list of companies thinking about a greener future to discover stocks you may not have thought of!

PS. The Simply Wall St app performs a daily discounted cash flow assessment for each NSEI share. If you want to find the calculation for other actions, just search here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. 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.

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.

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International trade in birds and mammals at risk of future pandemics http://freedominst.org/international-trade-in-birds-and-mammals-at-risk-of-future-pandemics/ http://freedominst.org/international-trade-in-birds-and-mammals-at-risk-of-future-pandemics/#respond Mon, 18 Oct 2021 14:54:23 +0000 http://freedominst.org/international-trade-in-birds-and-mammals-at-risk-of-future-pandemics/

Blue and gold macaw

Credit: Matts Lindh / Creative Commons

Protecting Americans from future pandemics does not threaten hunting traditions

Earlier this year, the NRDC sent a petition to the US Fish and Wildlife Service (FWS) asking them to ban US imports and exports of wild mammals and birds to help prevent future zoonotic pandemics like COVID-19 . Since then, several hunting organizations have expressed concerns that the NRDC seeks to undermine hunting traditions by calling for a ban on the movement of game across state borders. This is not the case. The NRDC’s petition is focused on stopping the risky movement of wild mammals and birds between countries – not the kind of traditional hunting some Americans enjoy. Here’s why.

International trade in birds and mammals poses an unacceptable risk

It is estimated that the legal and illegal trade in wildlife affects 1 in 4 species of mammals and birds worldwide. This level of trade is bad news for human health, as birds and mammals pose the greatest risk of spreading disease from animals to humans. Birds and mammals are common hosts for viruses. For example, the report of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) workshop on pandemics estimated that mammals harbor 320,000 different types of viruses. Because birds and mammals are genetically closer to humans than other animals and are highly marketed, they are the most likely hosts of zoonotic diseases.

We can examine our own history to see how zoonotic pandemics of birds and mammals have plagued humans in recent years, such as HIV, Ebola, avian and swine flu, SARS, and COVID-19. Given trends in human-wildlife interactions that result from land use changes, agricultural expansion, and wildlife trade and consumption, pandemics are expected to become even more common. In fact, some scientists even considered it ‘the era of pandemics’, explaining that’ pandemics will appear more often, spread faster, kill more people and affect the global economy with a more devastating impact. never before ”.

Although there is a lack of solid data on the value of the international trade in wild birds and mammals, researchers have estimated the global value of the trade in ornamental fish, mammals, amphibians and birds at around $ 5.25 billion. In contrast, last year the International Monetary Fund estimated that COVID-19 would cost the world $ 28 trillion in lost production. And, far greater than all the dollars lost, is the global loss of life which is estimated at more than 4.5 million people (2021). From all angles, the international trade in birds and mammals poses an unacceptable risk.

Biden administration should stop risky import and export of wild birds and mammals

Given the risk associated with the trade in wild birds and mammals, the NRDC petition calls on the Biden administration to do two things:

  1. First, we want the US Fish and Wildlife Service (FWS) to use its authority under the Lacey Act to find that the trade in wild birds and mammals is harmful to people and wildlife, and in doing so, institutes import and export bans. Banning the import and export of wild birds and mammals will help prevent future zoonotic pandemics by limiting the movement of risky wildlife through the supply chain, where direct contact occurs with many people and creates opportunities for zoonotic diseases to spread.
  1. Second, we want the FWS to update its existing regulatory system to comprehensively track wildlife imports and exports. Monitoring wildlife trade is an important mechanism to improve the ability of the United States to establish the origin and respond to the emergence and re-emergence of zoonotic diseases. The more we know about the origins of any disease that occurs, the better equipped we will be to respond.

NRDC not asking FWS to ban interstate movement of birds and mammals

The NRDC petition does not ask the FWS to ban the movement of wild birds and mammals between states. Instead, he asks FWS to expand the scope of wildlife already subject to import bans to include all wild birds and mammals. As reservoirs of potentially dangerous viruses, it is too risky to allow wild birds and mammals from other countries to enter the United States and maintain the United States’ demand for products that produce dangerous interactions between humans and animals. wildlife abroad. Likewise, to set a good example and prevent the spread of our own wildlife viruses, we should stop exporting wild birds and mammals from the United States to other countries.

Not only has the NRDC failed to ask the FWS to ban the interstate transport of wild birds and mammals, the legal authority on which the NRDC has based its request — the Lacey Act — does not give FWS the power. prohibit the interstate transport of wild birds and mammals. The United States Court of Appeals for the District of Columbia Circuit made this clear when it ruled on this same issue in 2017, finding that the provision of the Lacey Act under which we filed an application did not extend to interstate transportation (with the exception of Hawaii, which the Lacey Act treats differently given its unique island status). If a family from Idaho goes on a hunting trip to Montana or Wisconsin, the petition (if granted) will not prevent the return of a killed animal or part of it to the Idaho.

Since the NRDC’s petition focuses on the US border, it could (if granted) limit the ability of people traveling overseas to bring wildlife back to the United States. Specifically, such a regulation would prohibit wild birds or mammals obtained as pets or trophies from entering the United States. And, while FWS may designate exceptions to a ban through an authorization process, it should not do so unless it can prove to the public that an authorized import is safe. This is an important step in maximizing our ability to limit the threat of future pandemics.

Status quo means more pandemics

The COVID-19 pandemic underscores the threat posed by nature that is deteriorating around the world at a rate and scale unprecedented in human history. If we continue as usual, neglecting to reverse the engines of nature’s decline, we risk losing the natural life-sustaining systems on which we depend for life as we know it, things like the clean air, clean water, food security and flood control. . And, we will have more pandemics. But if we reduce or remove high disease risk species from the wildlife trade, such as birds and wild mammals, we can reduce the threat of future pandemics.

This is what the NRDC petition seeks to do and this is what we expect the Biden administration to act on if it is serious about proactively protecting human health.

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An intrinsic calculation for Alma Media Oyj (HEL: ALMA) suggests it is 32% undervalued http://freedominst.org/an-intrinsic-calculation-for-alma-media-oyj-hel-alma-suggests-it-is-32-undervalued/ http://freedominst.org/an-intrinsic-calculation-for-alma-media-oyj-hel-alma-suggests-it-is-32-undervalued/#respond Sun, 17 Oct 2021 05:02:24 +0000 http://freedominst.org/an-intrinsic-calculation-for-alma-media-oyj-hel-alma-suggests-it-is-32-undervalued/

Today we’re going to go over one way to estimate the intrinsic value of Alma Media Oyj (HEL: ALMA) by projecting its future cash flows and then discounting them to today’s value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Patterns like these may seem beyond a layman’s comprehension, but they are fairly easy to follow.

We generally think of a business’s value as the present value of all the cash it will generate in the future. However, a DCF is only one evaluation measure among many, and it is not without its flaws. If you still have burning questions about this type of valuation, take a look at the Simply Wall St.

Discover our latest analysis for Alma Media Oyj

Crunch the numbers

We are going to use a two-step DCF model, which, as the name suggests, takes into account two stages of growth. The first stage is usually a period of higher growth which stabilizes towards the terminal value, captured in the second period of “steady growth”. To begin with, we need to get cash flow estimates for the next ten years. Where possible, we use analyst estimates, but when these are not available, we extrapolate the previous free cash flow (FCF) from the last estimate or stated value. We assume that companies with decreasing free cash flow will slow their rate of contraction, and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow down more in the early years than in subsequent years.

In general, we assume that a dollar today is worth more than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today’s dollars:

10-year Free Cash Flow (FCF) estimate

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Leverage FCF (€, Millions) € 61.7m € 64.9m € 62.2m € 65.4m € 66.0m € 66.5m € 66.9m € 67.2m 67.5 million euros € 67.7m
Source of estimated growth rate Analyst x3 Analyst x3 Analyst x1 Analyst x1 Est @ 0.98% East @ 0.74% Is @ 0.58% Is @ 0.46% East @ 0.38% Is @ 0.32%
Present value (€, Millions) discounted at 4.9% € 58.8 € 59.0 € 53.9 € 54.0 € 52.0 € 50.0 € 47.9 € 45.9 € 43.9 € 42.0

(“East” = FCF growth rate estimated by Simply Wall St)
10-year present value of cash flows (PVCF) = 507 M €

The second stage is also known as terminal value, this is the cash flow of the business after the first stage. For a number of reasons, a very conservative growth rate is used that cannot exceed that of a country’s GDP growth. In this case, we used the 5-year average of the 10-year government bond yield (0.2%) to estimate future growth. Similar to the 10-year “growth” period, we discount future cash flows to their present value, using a cost of equity of 4.9%.

Terminal value (TV)= FCF2031 × (1 + g) ÷ (r – g) = € 68m × (1 + 0.2%) ÷ (4.9% – 0.2%) = € 1.4bn

Present value of terminal value (PVTV)= TV / (1 + r)ten= € 1.4bn ÷ (1 + 4.9%)ten= 895 M €

The total value, or equity value, is then the sum of the present value of future cash flows, which in this case is € 1.4 billion. The last step is then to divide the equity value by the number of shares outstanding. Compared to the current share price of € 11.6, the company appears to be fairly good value with a 32% discount from the current share price. Remember, however, that this is only a rough estimate, and like any complex formula – trash in, trash out.

HLSE: Discounted cash flow ALMA October 17, 2021

Important assumptions

We draw your attention to the fact that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don’t have to agree with these entries, I recommend that you redo the calculations yourself and play with them. The DCF also does not take into account the possible cyclicality of an industry or the future capital needs of a company, so it does not give a full picture of a company’s potential performance. Since we view Alma Media Oyj as a potential shareholder, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes debt into account. In this calculation, we used 4.9%, which is based on a leveraged beta of 0.998. Beta is a measure of the volatility of a stock relative to the market as a whole. We get our average beta from the industry beta of comparable companies globally, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

Looking forward:

Valuation is only one side of the coin in terms of building your investment thesis, and it’s just one of the many factors you need to evaluate for a business. The DCF model is not a perfect equity valuation tool. Rather, it should be seen as a guide to “what assumptions must be true for this stock to be under / overvalued?” For example, changes in the company’s cost of equity or the risk-free rate can have a significant impact on valuation. Can we understand why the company trades at a discount to its intrinsic value? For Alma Media Oyj, you need to explore three other aspects:

  1. Risks: To do this, you need to know the 2 warning signs we spotted with Alma Media Oyj.
  2. Future benefits: How does ALMA’s growth rate compare to that of its peers and the broader market? Dig deeper into the analyst consensus count for years to come by interacting with our free analyst growth expectations chart.
  3. Other strong companies: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid trading fundamentals to see if there are other companies you might not have considered!

PS. Simply Wall St updates its DCF calculation for every Finnish stock every day, so if you want to find the intrinsic value of any other stock just search here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. 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 the mentioned stocks.

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.

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Walz discusses hospital capacity and expansion options for rapid COVID-19 testing http://freedominst.org/walz-discusses-hospital-capacity-and-expansion-options-for-rapid-covid-19-testing/ http://freedominst.org/walz-discusses-hospital-capacity-and-expansion-options-for-rapid-covid-19-testing/#respond Fri, 15 Oct 2021 16:28:23 +0000 http://freedominst.org/walz-discusses-hospital-capacity-and-expansion-options-for-rapid-covid-19-testing/

“The numbers we are seeing are really concerning,” Kris Ehresmann, director of infectious diseases at the Minnesota Department of Health (MDH) said this week.

MDH reported that the weekly positivity rate jumped to over 8%, the highest since last year around the same time before the vaccines were even rolled out; 10% is considered a high risk category where widespread transmission of COVID-19 occurs.

Hospitals in Minnesota are reinstating COVID-19 visiting protocols that were in place last year as beds and intensive care units fill up. Hospital administrators report that many of their beds are occupied by Minnesotans who should be treated in long-term care facilities but cannot do so due to a lack of staff and beds.

The Governor will do the following in response to these updates:

  • Put the National Guard on high alert to provide personnel support at long-term state facilities;
  • Expand access to the COVID-19 emergency staff pool, which allows long-term care facilities to request short-term emergency temporary staff if they experience a staff shortage due to an outbreak of COVID-19 in their establishment; and
  • Request the Department of Social Services to free up capacity at long-term state facilities.

“The increase in COVID-19 cases has left our hospitals too overcrowded and we need to act now,” Walz said. “This is why I am putting the National Guard on alert and taking critical action to help free up hospital beds and ensure the Minnesotans can continue to receive the care they need.”

The governor made the announcement during a visit to North Memorial Health Hospital in Robbinsdale on Friday.

Free rapid tests will be available from next week at community sites in Stillwater, Hutchinson and Crookston, and at least three more sites will be added the following week. These sites will allow Minnesotans with symptoms of COVID-19 to take an antigen test and receive the results within minutes. In addition to this, 16 local public health agencies across the state are deploying rapid tests provided by MDH, some of which will be used in community testing clinics, while others will be used for targeted testing efforts. Participating agencies will announce their testing plans and nomination processes in the coming days.

Walz’s announcement follows his remarks that lawmakers failed to do what he asked for earlier this month. On October 5, Walz sent a letter urging lawmakers to take action to help hospitals cope with an influx of cases of COVID-19 and other illnesses. Among these requests, it was to consider temporary exemptions for health professionals to address staff shortages and temporarily reinstate the exemptions from the moratorium on hospital beds.

At that point, Walz said he was ready to call a special session, which he again offered.

“We need to be back in special session not just to take care of essential workers, which is absolutely essential,” Walz said. “We have to do these things that hospitals ask for. I want to be very clear. The list of things I sent to the Legislature was from long-term care facilities, hospitals, and school administrators. they were asking us to do. I don’t have the capacity to move on these things anymore. We should have moved three weeks ago and we wouldn’t have that many people in the hospital today.

For more information on how to get a free COVID-19 test, click here.

Stay with 5 EYEWITNESS NEWS and KSTP.com for updates.

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LIBOR transition: the drama continues for BSBY http://freedominst.org/libor-transition-the-drama-continues-for-bsby/ http://freedominst.org/libor-transition-the-drama-continues-for-bsby/#respond Thu, 14 Oct 2021 04:07:42 +0000 http://freedominst.org/libor-transition-the-drama-continues-for-bsby/

As Bloomberg and banks like Bank of America in the United States and DBS Bank in Singapore continue to move forward with BSBY, IOSCO shaken its saber last month with a statement on credit-sensitive rates, highlighting the importance of choosing alternative financial benchmarks that comply with the IOSCO Principles. The latest volley in the continued back-and-forth between regulators and supporters of new credit-sensitive rates came in July, when Bloomberg attempted to address some of the volume and manipulation concerns raised by the President of the SEC Gary Gensler and others with BSBY.

The IOSCO statement retorts that by clarifying that IOSCO compliance is not a one-time test, and even if the transaction volumes are sufficient for the current loan volumes in these benchmarks, the loan volume is not should not be allowed to increase if it exceeds the increases in the underlying transactions. volumes and are unable to be resilient. BSBY is not mentioned by name, but it has been the main subject of attention.

Two weeks after the publication of his warning by IOSCO, Gensler spoke at ARRC’s fifth session of the SOFR Symposium: The Final Year, in response to Bloomberg’s July report that he “ could not address the main concern that the rate is built in too small a market. . “Gensler reiterated that he “did not believe that BSBY was, as the FSB requested,” particularly robust “”, adding that “I do not think it meets the 2013 IOSCO standards”.

Unless regulators back their words up with action, this drama is mostly noise and lenders are free to continue giving BSBY loans. Their success will depend in part on whether borrowers perceive BSBY as a better deal. For legacy LIBOR loans, the spread adjustment added to the interest rate for the transition to SOFR was fixed by market agreement: around 11.5 basis points for a period of 1 month, 26 basis points for 3 months and 43 basis points for 6 months. This adjustment reflects that LIBOR is an unsecured rate sensitive to fluctuations in credit risk while SOFR is a secure and relatively stable “risk-free” rate. Since BSBY is also based on insecure transactions, it should not be necessary to add much, if any, of spread adjustment to move from LIBOR to BSBY. This lower spread could be attractive to borrowers if they believe that over time BSBY’s variable credit sensitivity will not increase the rate, relative to SOFR, more than the SOFR fixed spread adjustment. .

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49ers vs Cardinals predictions: expert picks and betting offers – Week 5 http://freedominst.org/49ers-vs-cardinals-predictions-expert-picks-and-betting-offers-week-5/ http://freedominst.org/49ers-vs-cardinals-predictions-expert-picks-and-betting-offers-week-5/#respond Sun, 10 Oct 2021 17:00:00 +0000 http://freedominst.org/49ers-vs-cardinals-predictions-expert-picks-and-betting-offers-week-5/
October 3, 2021; Santa Clara, California, United States; San Francisco 49ers quarterback Trey Lance (5) plays football against the Seattle Seahawks in the third quarter at Levi’s Stadium. Mandatory Credit: Kyle Terada-USA TODAY Sports

Our NFL betting expert brings his best picks and predictions for the Week 5 game featuring the San Francisco 49ers at the Arizona Cardinals Sunday at 4:25 p.m. ET on FOX.

Trey Lance could start his 15 minutes of fame on Sunday. He will receive the call because Jimmy Garoppolo is absent due to an injury. Whether this is good news for the San Francisco 49ers remains to be seen.

There are no questions about the quarterback on the field where Kyler Murray leads the Arizona Cardinals to the top of the division standings with MVP-caliber play.

49ers vs Cardinals predictions

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49ers vs Cardinals Picks: The Analysis

Rookie Trey Lance rolls in the sights of the Cardinals

No.3 overall pick Trey Lance starts off with injured Jimmy Garoppolo, but the 49ers have been disarticulated offensively regardless of which quarterback is on the pitch.

Lance has run 11 times for 44 yards and one touchdown in three games played, but his limited pocket experience has led to some degree of mystery as the Cardinals prepare for what’s to come Sunday.

They know the 49ers are not complete. Tight end George Kittle is also skeptical.

While San Francisco’s defense – namely the passing rush and overall play of the first seven – are able to keep Kyler Murray under wraps for extended periods of time, falling behind could be fatal in Lance’s first start.

It is not yet equipped to deliver a double-digit rally on the road with limited armament.

-110

Cardinals to cover -5

Squeeze Lance – a lot

49ers coach Kyle Shanahan said the goal with Lance was to put him at ease and avoid playing a ‘backyard ball’ style. The 49ers have back-to-back wins in Arizona.

Cardinals quarterback Kyler Murray’s 109 yards and three touchdowns in 23 carries in Arizona’s unbeaten start. He totaled 1,273 yards and nine touchdowns, with a 76.1% completion rate, the best in the NFL.

Arizona is spreading the ball and can find weak spots in most defenses.

+165

Cardinals to cover the alternating gap -8.5

Kyler Murray extends MVP mixtape

In Murray’s last nine home games, he has totaled 28 touchdowns and has one rushing touchdown in two of the last three meetings with the 49ers.

A plan to slow Murray down is one thing. Doing it in the red zone, where his speed and agility make him a concern in all directions, is another.

+110

Cardinals QB Kyler Murray to score TD

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Is it worth it for retirees to get a mortgage? http://freedominst.org/is-it-worth-it-for-retirees-to-get-a-mortgage/ http://freedominst.org/is-it-worth-it-for-retirees-to-get-a-mortgage/#respond Sat, 09 Oct 2021 10:00:49 +0000 http://freedominst.org/is-it-worth-it-for-retirees-to-get-a-mortgage/

Many people aim to retire without a mortgage. In fact, some borrowers speed up their repayment period for the express purpose of being able to start their old age without a mortgage.

Retirees generally live on a fixed income which largely consists of social security. And for this reason, many aim to avoid going into debt as much as possible. This way, they won’t have to worry about nagging payments as they try to stretch their limited income as much as possible.

But in some cases, getting a mortgage during retirement might make sense. Here’s what you need to know if you’re considering applying for a home loan during your retirement.

6 simple tips to get a 1.75% mortgage rate

Secure access to The Ascent’s free guide that reveals how to get the lowest mortgage rate on your new home purchase or when refinancing. Rates are still at their lowest for decades, so act today to avoid missing out.

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The benefits of getting a mortgage in retirement

Perhaps you have spent the latter part of your career renting a home and are now looking to own one in retirement. Or maybe you actually made pay off your house in time for retirement, but now you want to downsize and are considering taking out a mortgage even if you can afford a smaller house.

In these situations, it may be worth getting a mortgage for several reasons. First, borrowing is extremely cheap right now. As of this writing, the 30-year average mortgage is around 3.1%, while the 15-year average is less than 2.4%.

Of course, the mortgage rate you qualify for will depend on a variety of factors, including your credit rating and how much debt you have relative to your income. But if you are able to get a competitive interest rate on a mortgage, you may decide that you would rather borrow money for a house and make monthly payments during retirement, while still leaving yourself with more. money in the bank in an emergency.

In addition, it might be wise to detail your retirement income tax return. And if you’re going to itemize rather than claim the standard deduction, the ability to deduct the interest you pay on your mortgage could result in higher tax relief.

Which is the right choice for you?

When you take out a mortgage, you take on debt. He might be a healthy guy to have, but it’s still debt. And if you fall behind on that debt, it could damage your credit score and cause you a world of financial stress. Plus, a late mortgage payment could put you at risk of losing your home.

Also, for some people, the idea of ​​being in debt is unattractive. And this could be especially true for you in retirement, especially if you will be living primarily on a limited source of income like Social Security.

But if you’re comfortable with having a mortgage to cover and can afford to make those payments, then getting a home loan during retirement is an idea worth considering. Getting a mortgage could save you the hassle of emptying your bank account to buy a home. And you can even get a good tax break as part of the deal.

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It’s the $ 800 mattress that one of America’s top spine surgeons sleeps on itself, along with 7 other popular mattresses currently on sale. http://freedominst.org/its-the-800-mattress-that-one-of-americas-top-spine-surgeons-sleeps-on-itself-along-with-7-other-popular-mattresses-currently-on-sale/ http://freedominst.org/its-the-800-mattress-that-one-of-americas-top-spine-surgeons-sleeps-on-itself-along-with-7-other-popular-mattresses-currently-on-sale/#respond Thu, 07 Oct 2021 14:35:00 +0000 http://freedominst.org/its-the-800-mattress-that-one-of-americas-top-spine-surgeons-sleeps-on-itself-along-with-7-other-popular-mattresses-currently-on-sale/

MarketWatch has promoted these products and services because we believe readers will find them useful. We may earn a commission if you purchase products through our links, but our recommendations are independent of any compensation we may receive.

Holiday weekends tend to be a good time to buy a mattress, as mattress sales abound. So we’ve rounded up some of the best-selling mattresses we’re seeing right now. But you have to be careful when shopping – mattresses don’t come cheap and you have to choose the right mattress for you (read our buying guide here). Make sure the mattress meets your needs (some are better suited for different types of sleepers, for example) and that you get one with a free trial period (after all, the only way to really know if you like one. mattress is to try one; all mattresses listed below have a free trial period). Here are a few that you might want to consider:

Sealy Chill Cocoon Memory Foam Mattress, 35% reduction + free pillow and sheet pack ($ 799 for a queen)

Spine surgeon and orthopedic surgeon Dr Gbolahan Okubadejo told MarketWatch’s MarketPlace that he personally sleeps on this mattress and provides stability to his back when he sleeps, but also allows him to rest. sink lightly into bed for a comfortable night’s sleep. “Even if you don’t have back pain now, using an appropriate mattress can prevent chronic back pain in the future,” says the Johns Hopkins-trained surgeon. Cocoon by Sealy includes a 100 night trial, free shipping, and free pickup if you decide to return it.
Learn more: Sealy Chill Cocoon Memory Foam Mattress, 35% reduction + free pillow and sheet pack ($ 799 for a queen)

Saatva Classic mattress, 10% discount ($ 1,416 for a queen)

According to Wirecutter, this mattress sets itself apart from its innerspring competitors because of pocket coils that provide noticeable bounce and a plush top that makes it soft in all the right places. Saatva includes free delivery and installation of white gloves in addition to a 180-night home trial.
Learn more: Saatva Classic mattress, 10% discount ($ 1,416 for a queen)

Green avocado, $ 100 off with the code AUTUMN ($ 1,499 for a queen)

This mattress was hailed as the best overall mattress by US News, and it achieved the highest score of any Consumer Reports mattress reviewed in 2021, with the publication writing: On Almost Every Point. You also get a one-year free trial and free shipping.
Learn more: Green avocado, $ 100 off with the code AUTUMN ($ 1,499 for a queen)

Leesa hybrid mattress, up to $ 300 off ($ 1,549 for a queen)

Wirecutter’s choice for the best memory foam mattress is on sale now. The queen mattress currently costs $ 1,549 and includes free contactless shipping and a 100-night trial.
Learn more: Leesa hybrid mattress, up to $ 300 off + two free down alternative pillows ($ 1,549 for a queen)

Casper Wave Hybrid Mattress, 15% reduction ($ 2,290 for a queen)

The Sleep Foundation notes that this mid-firm hybrid mattress is ideal for side and back sleepers weighing less than 230 pounds, people who wake up easily when their partner gets into bed, and people who tend to sleep. warm. Casper offers free shipping and returns and a 100-night risk-free trial.
Learn more: Casper Wave Hybrid Mattress, 15% reduction ($ 2,290 for a queen)

DreamCloud Premier, up to $ 599 in savings ($ 1,399 for a queen)

Sleepopolis rates this mattress 4.8 out of 5 stars and says it is very luxurious and provides firm support and gentle pressure relief. DreamCloud offers a 365-night trial as well as free shipping and returns.
Learn more: DreamCloud Premier, savings of up to $ 599 ($ 1,399 for a queen)

WinkBed (Luxury Firm), $ 300 off and $ 399 in free accessories ($ 1,499 for a queen)

Wirecutter calls it a top choice among innerspring mattresses because of its quilted top, pocket springs and dense foam. WinkBed includes a 120-night free trial in addition to free shipping and returns.
Learn more: WinkBed (Luxury Firm), $ 300 off and $ 399 in free accessories ($ 1,499 for a queen)

Sleep Number 360 p6 smart bed, $ 500 off ($ 2,499 for a queen)

Couples with different sleep preferences may like this mattress which, according to Consumer Reports, is its top-rated adjustable air mattress due to the independent bed halves that can be adjusted separately. However, delivery, installation and removal incur a flat rate of $ 199.
Learn more: Sleep Number 360 p6 smart bed, $ 500 off ($ 2,499 for a queen)

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The role that the composition of Nifty must play http://freedominst.org/the-role-that-the-composition-of-nifty-must-play/ http://freedominst.org/the-role-that-the-composition-of-nifty-must-play/#respond Thu, 07 Oct 2021 03:38:11 +0000 http://freedominst.org/the-role-that-the-composition-of-nifty-must-play/

With the Indian stock market hitting new highs every month, market practitioners who follow fundamental analysis before investing are confused. In this calendar year, 46 trading days were marked by new market highs, but there was no significant market correction (over 5%) despite high sliding price / earnings multiples and poor returns on equity.

However, fundamental valuation is only one piece of the market puzzle followed by smart money. What are the other parts that solve the valuation conundrum for market participants? To begin with, the composition of the index is a key matrix that is keenly observed by market participants.

In India, there are two stock indexes, the Nifty and the Sensex. The Nifty Index is made up of 50 stocks, while the Sensex has 30. To understand the performance of the stock market, a look at the index itself can be helpful.

Over the past 15 years, the composition of Nifty has changed dramatically and this has a significant impact on the valuation of the index. In 2005-06, most of the index’s value came from older, capital-intensive, highly leveraged economy companies. Today, tangible assets have taken a back seat, and data-driven, consumer-centric financial and information technology companies with intangibles such as human resources and patented technologies are in the foreground. foreground of the index.

In 2005, the energy sector (with a weighting of 25.1%) was the main component of Nifty, while financials (with a weighting of 14.7%) were the third. In 2021, the two sectors exchanged positions. Financials (with a 37.7% weighting) are now the largest component, while energy (11.9%) is the third largest component of Nifty.

The valuation of the same index produced with different compositions during two different periods is not comparable. Each sector behaves differently as fundamental valuation metrics, such as return on equity (RoE), debt-to-equity ratio, earnings multiples and cash flow, vary wildly from sector to sector. . So any historical comparison of Nifty on PE, RoE and other fundamental valuation metrics would not explain the reasons for its phenomenal growth.

Talk with Outlook MoneyAshutosh Bhargava, fund manager and head of equity research, Nippon India Mutual Fund, says the performance of the index could not be properly explained if you ignore the composition.

“For a better understanding of the market valuation and the resulting index performance, you need to take into account the composition effect of Nifty, as the sector mix can significantly alter the valuations of the index”, adds Bhargava.

Bhargava is right because sectors such as energy, capital goods and infrastructure which had a high weight in the index in 2005 were all cyclical companies. Even financial institutions, predominantly public sector banks and to some extent private banks like ICICI Bank and Axis Bank, mostly derived value from corporate loans.

But now, most of the market value of financial services comes not from cyclical lending activity, but from non-lending activities such as insurance, mutual funds and credit cards. Even the asset profile (loan book) of banks is now more oriented towards retail, which is less cyclical in nature. So the financials, which are a big part of Nifty, get higher earnings multiples, increasing the index in return.

Reliance Industries is another example where cyclical petrochemicals have taken a back seat and consumer-focused telecommunications and retail operations derive significant share price value. The share has almost quadrupled over the past five years.

So, are stocks about to fall after such a stunning rally? Maybe not, because stocks aren’t as expensive as bond yields. In the United States, 10-year bonds yield 1.5 to 1.55% per annum, while in India, 10-year G-sec (government securities) yield 6.3%. . On the other hand, the Nifty has grown over 51 percent in the past year and over 11 percent in the past three months (one quarter). Thus, the low return provided by fixed income instruments also maintains the dynamism of stock markets globally.

But how long will the party last? Naturally, until the moment when other asset classes begin to offer significant returns to investors. “The opportunity cost of investing money in stocks is favorable with a low risk-free rate in developed economies, but once the risk-free rate or the discount rate starts to rise, both based on fundamentals and flows, stocks may become less attractive, ”Bhargava mentioned.

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