Resource KT http://resourcekt.co.uk/ Wed, 18 May 2022 21:05:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://resourcekt.co.uk/wp-content/uploads/2021/03/cropped-icon-32x32.png Resource KT http://resourcekt.co.uk/ 32 32 Tax relief is suddenly top of the agenda in New Jersey as money pours in like never before https://resourcekt.co.uk/tax-relief-is-suddenly-top-of-the-agenda-in-new-jersey-as-money-pours-in-like-never-before/ Wed, 18 May 2022 21:05:00 +0000 https://resourcekt.co.uk/tax-relief-is-suddenly-top-of-the-agenda-in-new-jersey-as-money-pours-in-like-never-before/

New Jersey has more money than it knows what to do with, and tax relief is now a top priority in Trenton.

New Jersey’s nonpartisan Legislative Services Office told lawmakers this week that the state will collect nearly $51 billion in tax revenue this fiscal year, which ends June 30. State Treasury Department estimates are even higher.

State Treasurer Elizabeth Muoio, who appeared before lawmakers on Wednesday for the first time since testing positive for COVID-19, said the Murphy administration now expects to raise $51.4 billion. dollars by the end of June.

Both of these updated projections are more than $8 billion higher than Governor Phil Murphy’s certified revenue at the start of the fiscal year last July. Tax revenues jumped by a remarkable $13.4 billion in just two years, more than 35% more than the $38 billion collected in 2020.

“The rapid recovery in revenue last year, followed by the continued rise in revenue this year, is unprecedented in modern New Jersey fiscal history,” Muoio said in his opening remarks Wednesday.

Shortly after budget analysts unveiled the historic revenue update on Monday, New Jersey’s top legislator in the state Assembly, Speaker Craig Coughlin, D-Woodbridge, issued a statement calling for a unprecedented tax relief program in the state’s history.

“We have extra money this year, and New Jersey needs tax relief now,” Coughlin said. “In this year’s budget, I will emphasize the largest tax relief program in state history. I look forward to working with legislative leaders and the Governor over the coming weeks to craft this proposal and deliver on this promise for the people of New Jersey.

Coughlin didn’t provide any details on what that might look like, and he’s catching up with Republican state lawmakers, who for months have been calling for substantial tax relief amid rising incomes.

Already expecting tax revenue to be higher than previous estimates, Republican members of the Senate Budget Committee last week called on Murphy to expand the tax relief in his budget proposal. In a statement, they highlighted their “Give it Back” initiative and a package of bills introduced in early March that seek to return $4.5 billion to New Jersey taxpayers through direct rebates of $1,000 and $500. dollars.

Under their initiative’s lead bill, taxpayers with gross incomes of $500,000 or less would receive a $1,000 credit if they are married and filing jointly, and individuals would receive a $500 credit. A second bill, the “Gasoline Price and Inflation Tax Credit Act,” would provide an additional $500 refundable tax credit to families with incomes below $250,000. .

“My fellow Republicans and I cannot support a budget unless four million families receive $1,500 in direct assistance this spring to help with the pain caused by overtaxation, soaring gas prices and inflation,” Sen. Declan O’Scanlon, R-Monmouth, the house’s Republican budget director, said in a statement released Wednesday.

But a growing list of experts, including the administration’s own treasurer Murphy, are warning lawmakers to avoid the temptation to overflow coffers and exercise caution when negotiating state budgets in the weeks to come. to come.

“The rich had a very good year thanks to soaring corporate profits across the world last year, and that is reflected in our tax revenues,” Muoio said in his opening remarks. “On the other side of the coin, we have seen an increase in requests for assistance from our most vulnerable.”

She said lawmakers should seek to prepare the state for an economic downturn and noted that even a moderate reversal could result in an annual revenue shortfall of at least 10%, or about $5 billion for a year or 10. billion dollars for two years.

Muoio said the administration wanted to increase the state’s surplus beyond the $6 billion cushion suggested by Senate Budget Chairman Paul Sarlo, D-Bergen, but did not provide an amount. precise. She said the administration would also like to use additional revenue to further reduce the state’s debt burden.

“We are in a very good position today, better than anyone could have hoped for 24 months ago,” Muoio said. “It’s a good problem to have, but it will clearly serve as a temptation. We have to be aware of the economic news that comes in daily.”

Wednesday’s revenue update caps a series of ministerial budget hearings held in recent weeks and marks the start of negotiations on Murphy’s spending proposal, which must be approved by the Legislature and signed by the governor before start of the new fiscal year on July 1.

Our journalism needs your support. Please subscribe today to NJ.com.

Derek Room can be attached to dhall@njadvancemedia.com. Follow him on Twitter @dereknhall.

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“I partially support my partner for 12 years because his business is unfortunately failing: I’m 33 and have $300,000 in stock. Should I sell these shares to pay off my debt of $56,000? https://resourcekt.co.uk/i-partially-support-my-partner-for-12-years-because-his-business-is-unfortunately-failing-im-33-and-have-300000-in-stock-should-i-sell-these-shares-to-pay-off-my-debt-of-56000/ Wed, 18 May 2022 04:47:00 +0000 https://resourcekt.co.uk/i-partially-support-my-partner-for-12-years-because-his-business-is-unfortunately-failing-im-33-and-have-300000-in-stock-should-i-sell-these-shares-to-pay-off-my-debt-of-56000/ I’m 33, currently earning just over $120,000 a year including annual bonus, and my company has offered me about $300,000 of equity in the business, although our stock is brand new, they therefore constantly oscillate from top to bottom. . I put about 6% towards a 401(k) and another 4% towards personal savings, investments and emergency cash.

As for debt, I have about $35,000 in student loans, $5,000 in credit card debt, and $16,000 in personal loans. I have no car payment. I am partially helping to support my partner for 12 years as his business is unfortunately struggling, but he won’t let go of the business. So part of my income goes to help him cover his bills and expenses.

The big question is, should I sell my company’s equity to pay off my debt? Or should I continue to pay off my debt and allow my stock to grow? I realize that I would have to pay quite a lot of taxes because of the stock gains, so I have to factor that into the sale as well. Thank you very much for your contribution and thank you for your column.

Debt with equity

Dear indebted,

You have come a long way in a very short time. The median salary in the United States for someone your age (25-34) hovers around $50,000 a year, so you’re punching above your weight professionally and with a 12-year relationship under your belt, you are also ahead of the game personally, and clearly living your best life. You don’t have a car payment which is also a plus. So far, so good.

Before we weigh in on your answer, I’m going to offer the first of two unsolicited tips and emphasize the importance of living within your means. If only we could all take this advice to heart! We are all guilty of splurging – sometimes responsibly – from time to time. Your student loan debt was clearly money well spent, and your personal and credit card debt make up a smaller proportion of your overall debt.

That said, it’s important to clear your credit card debt every month and, if possible, avoid paying interest rates on a personal loan. There is no point in paying off your debts if you accumulate a similar amount in the future. This should be the biggest lesson to be learned rather than using your monthly income versus your stock options to go back into the black.

Your student loan debt was clearly money well spent, and your personal and credit card debt make up a smaller proportion of your overall debt.

Before selling shares, it would not be imprudent to consult a tax adviser. For what it’s worth, stock-based compensation awards for services are generally subject to ordinary income tax at the time they acquire or take possession of the stock, says Timothy P. Speiss, tax partner at the firm of equity advisers. personal wealth at Eisner Advisory Group LLC.

“If you acquired the award in 2022, a combined federal and state graduated rate could be approximately 40% (or more) before local tax, employment tax, and additional considerations and other facts. You need confirmation and you should monitor whether you have to pay large enough taxes due to potential gains on the current or future sale of the stock,” he says.

“Your debt level of $56,000 is manageable given your gross income and the value of your assets; however, you should review loan interest rates and consider repaying these amounts, particularly when the interest rate – and interest charges do not appear to be tax deductible – exceeds the return on your investment. assets,” he says. .

Continue to show yourself the same compassion you show your partner and their business, but bring the same critical eye to every effort. It will help you both in the long run.

And now for my second unsolicited tip: Talk to your partner about their plan for the business. You want to balance your support of his dreams with the cold reality of business viability. You may need to hire an independent third-party consultant to help you navigate your partner’s approach to their business. You want to help her make the right decision.

Sometimes it’s hard to let go. But it could mean selling the business, hiring a new business partner, co-investor or even starting a new venture, adds Speiss. “In considering these suggestions, preserving your own income and assets is essential. If the business were to cease, you could still help cover its bills and expenses.

The good news: your debts are manageable and don’t require you to sell your company’s shares, which you may regret later, and you also have other issues to deal with that are just as urgent, namely the business of your partner and your commitment to avoid accumulating even small debts if you don’t have enough money set aside to pay them.

Continue to show yourself the same compassion you show your partner and their business, but bring the same critical eye to every effort. It will help you both in the long run. Sometimes it’s the things you leave on the editing room floor – in which case what questions did you ask do not ask in your letter – it may provide the clearest perspective and ultimately be the most enlightening.

To verify the private Facebook Moneyist group, where we seek answers to life’s trickiest money problems. Readers write to me with all sorts of dilemmas. Ask your questions, tell me what you want to know more or weigh in on the latest Moneyist columns.

The Moneyist regrets not being able to answer the questions individually.

By emailing your questions, you agree to have them published anonymously on MarketWatch. By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties..

Read also :

“At our age, should we do this? We’re retired, have $5 million in savings, and make $7,000 a month. Should we spend over $2.1 million to build our dream home?

​​“We have no children”: My family owns land that has belonged to our family for 100 years. I would like to leave this land to my wife. What if she remarries?

“How can I be fair to both? : I spent $20,000 more on my daughter’s education than on my son’s. Should I level the playing field and invest $20,000 in stocks for my son’s retirement?

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Carlyle Group: Serious Potential – Stick to “Buy” (NASDAQ:CG) https://resourcekt.co.uk/carlyle-group-serious-potential-stick-to-buy-nasdaqcg/ Tue, 17 May 2022 04:24:00 +0000 https://resourcekt.co.uk/carlyle-group-serious-potential-stick-to-buy-nasdaqcg/

tdub303/E+ via Getty Images

I wrote about the private equity firm Carlyle Group (NASDAQ:CG) at the end of 2021, calling it neutral before considering it a “PURCHASE”. Certain developments, namely the war between Ukraine and Russia, made negative developments more significant for Carlyle, and the company is now is expected to post negative results for the full year in terms of earnings.

However, at worst, I consider it a momentary speed bump. Carlyle Group, despite having no credit rating, is one of the best and safest private equity firms. With a rising yield and a double-digit rise, I consider CG a “BUY” – and I think it’s time to think about it more seriously soon.

Let me show you why.

Carlyle Group – Exceeding my expectations

Let me start by saying that the decline in the company’s share price has little to do with the actual long-term overall impacts on the company’s bottom line. The company actually released 1Q22 results not too long ago, and while there are near-term challenges due to the invasion of Ukraine, rising interest rates and to macro uncertainty, the foundation of this company’s positive thesis is entirely intact.

Introducing Carlyle

Introducing Carlyle (Carlyle IR)

The company’s ERF is up 40% year-on-year, and the company is responding to the macro by focusing on its diversification, with more than 65% of its assets under management not focused on corporate stocks at all . One would expect that a company that has fallen 20% in a short period of time would have significant exposure to Russia or Ukraine, but that is not the case.

CG has very minimal exposure not only to Russia, but also to Belarus and Ukraine. The company saw only a very minimal business impact from all of these issues.

You might expect a company with a negative performance of 20% since my last article to have seen significant impacts on its portfolio with impairments. The opposite is true. CG’s overall investment portfolio appreciated 5%, with global equities up 7%, while public markets, for comparison, fell by the same amount.

Carlyle Performance

Carlyle Performance (Carlyle IR)

Real estate did what it does during inflation – it appreciated about 10%, and the company’s infrastructure/natural resources platform rose about 19%. This was all part of the company’s accumulated performance revenue balance which reached $4.3 billion, which is a record high for the company.

The lending business is performing well, yielding just north of 9%, and the company’s market-leading CLO business has a default rate well below the industry average, somewhat confirming the rise and fall. overall stability here.

The company continues to focus on growing its global credit platform with accredited mergers and acquisitions, such as the recent iStar and CBAM transactions. Fundraising continues to not be a problem for the company even in this environment, and the company managed to raise approximately $9 billion in funds during the quarter.

Overall, these trends have really accelerated the company’s FRE. For comparison, in 2017 the company generated just over $170 million in fee-related revenue. That number has now reached $600 million in 2021 alone, meaning CG has managed to triple it in 4 years – and the company continues to expect FRE to increase to over $850 million this year. , which puts 40% year-over-year growth for 1Q22 as the target for the full year. If achieved, this is 4X FRE growth in 5 years, demonstrating significant value creation on the CG side.

The end goal is to transform Carlyle into a more diversified global private equity/investment company, trying to seize opportunities in attractive areas such as global credit, infrastructure, renewable investments, insurance and other areas.

Carlyle Financial Model

Carlyle Financial Model (Carlyle IR)

On the one hand, CG is a major player in investments in Energy and the energy transition. The company is already preparing for investments in this sector, but legacy carbon investments with an ESG footprint, as well as renewable/new investments with the right return profile. There are changing dynamics in the PE segment. With the record number of funds reaching the market, there will be a longer time frame for traditional PE fundraising – but CG is no longer a company that only has (large) exposure to PE fundraising , but fundraising options across the spectrum.

Carlyle’s concern seems to be that the company won’t be able to perform well now that the trends are turning more negative. Indeed, if we look at the company’s earnings models, we see incredible years followed by lean years with EPS declines of between 20 and 40%.

However, this was partly due to the company’s poor FRE until 2017 – that has changed today. I think the portfolio changes and the fundamental restructuring of the company have transformed CG into a more resilient, less cyclical company that will likely see fewer dips and more stability going forward.

Also keep in mind that an early investment in CG in 2012 actually outperformed the market by a decent amount with an annual RoR of almost 9.5%. If you apply any valuation consideration to this and buy the business at a low price, that RoR can easily go up to 20% per year, bought in 2014-2016.

The company’s FRE for 2022E is unchanged. Guidance remains 40% higher than 2021, and CG expects continued strong performance, and the company is on track to meet all of its stated targets.

Carlyle's Goals

Carlyle’s Goals (CGIR)

While I am aware that some might expect the company to perform poorly here, I am clear that these expectations are not based on company forecasts or expectations, but perhaps more on the story.

Let’s get to the evaluation.

Carlyle Group – Valuation

Remember that this company is now the largest CLO manager in the world. And the company is trading at what can only be described as very poor valuations of nearly 8x the average P/E, compared to a 5-year average P/E valuation of 13.5x.

CG valuation

CG valuation (CGIR)

You will never find me investing in high yield CLO funds or products with 9-15% yields. It’s not my style of investing. Even when exposed to risks like this, I always try to maintain my conservative approach. In this case, that includes CG’s 3.45% return, invested in a multiple of 8X.

Even in the unlikely scenario of the company’s EPS halving in 2022, the company would still be able to cover its current, as well as the expected increase in dividends payable to shareholders. I think due to the current global situation, CG will drop in EPS, but I don’t see a 30-40% drop here. I also consider it likely, given the growing diversification and international appeal of the business, that it will be able to leverage this to increase EPS in 2023 and 2024, essentially remaining at a level of 3.8 to 4.8 dollars for the entire next 2 to 3 years.

This has the very real potential for valuation outperformance – partly due to valuation multiples reversing towards a fairer 10-13X P/E, but also due to EPS growth. I consider the likely upside for CG to be at least 25% per year in the long term, with a 2024E RoR of 81%, making it a great potential investment.

It may not be as safe as some of my other investments with similar benefits – referring to the company’s lack of credit rating. The key to understanding a private equity firm like CG is understanding the intricacies of its business and its approaches – and CG has proven that despite volatility, the firm is able to leverage various global situations to advantage and produce positive results for its shareholders.

With forecast accuracy being poor, I would caution investors against going too far into CG here. S&P Global analysts are calling CG a “BUY” with an absolutely massive rise in 67.7%, with 10 out of 13 analysts calling it either a “BUY” or an “Outperform”. This is the highest undervaluation CG has seen in some time, and I can only agree with this assessment, even if I disagree with the price target exact current for the company.

At most, to stay conservative, I’ll stick with an 11X 2024E PT which works out to around $55/share, as I said in my previous article. But due to the company’s performance and direction for 2022, I’m sticking to that goal and view the CG as more supportive now than I did in my last post.

Thesis

My thesis for Carlyle is as follows:

  • Carlyle Group delivered superb 2021 results that provide a great low-end EPS scenario for a good 2022. I think management’s confidence is warranted here despite (and also because) a volatile market, and I’m shifting my focus .
  • The company’s long-term returns appear supportive of this valuation, with the market outperforming annualized RoR even with conservative valuations and expectations. below some EPS analyst forecasts.
  • Even the conflicts and macro-economy in Ukraine offer only a few risks to this company – but none are really enough to offset the long-term upside of the company.
  • CG is a “BUY” here. A target price that I would consider attractive for an investment based on my goals would be around $55/share – although each investor, of course, should consider their own goals, objectives and strategies. I would also always consult a financial professional before making investment decisions like this.

Remember, I’m all about:

  • Buy undervalued companies – even if that undervaluation is slight and not incredibly massive – at a discount, allowing them to normalize over time and reap capital gains and dividends in the meantime.
  • If the company goes well beyond normalization and enters overvalued, I reap gains and rotate my position to other undervalued stocks, repeating #1.
  • If the company does not go into overvaluation but is at fair value, or goes back down to undervaluation, I buy more if time permits.
  • I reinvest the proceeds of dividends, labor savings or other cash inflows as specified in point 1.

This company meets many of my investment criteria and is worth watching.

  • This company is overall qualitative.
  • This company is fundamentally safe/conservative and well managed (in this case for a private equity/investment company).
  • This company pays a well-covered dividend.
  • This company has a realistic advantage based on earnings growth or multiple expansion/reversion.

Thanks for the reading.

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Global Massive MIMO (multiple-input and multiple-output) Market Report 2022-2026: Beamforming and Massive MIMO https://resourcekt.co.uk/global-massive-mimo-multiple-input-and-multiple-output-market-report-2022-2026-beamforming-and-massive-mimo/ Mon, 16 May 2022 18:15:00 +0000 https://resourcekt.co.uk/global-massive-mimo-multiple-input-and-multiple-output-market-report-2022-2026-beamforming-and-massive-mimo/

DUBLIN, May 16, 2022 /PRNewswire/ — The “Massive MIMO – Global Market Trajectory & Analytics” report has been added to from ResearchAndMarkets.com offer.

Research and Markets Logo

Massive global MIMO market to reach $14.6 billion by 2026

The global Massive MIMO market estimated at US$1.6 billion in 2020, is expected to reach a revised size of US$14.6 billion by 2026, growing at a CAGR of 44.8% over the analysis period.

Over the years, MIMO has evolved into an integral aspect of wireless communication standards, including IEEE 802.11ac (Wi-Fi), IEEE 802.11n (Wi-Fi), WiMAX, HSPA+ (3G) and 4G Long Term Evolution (4G LTE). MIMO is also applied to powerline communication for 3-wire deployments, as part of the HomePlug AV2 specification and the ITU G.hn standard.

Massive MIMO, considered an extension of the MIMO technique, promises better spectral efficiency as well as increased throughput by bringing the receive and transmit antennas closer together. Massive MIMO technology thus offers several antennas, useful for mobile devices and base stations. Massive MIMO antennas are capable of increasing system capacity, improving throughput, improving spectral efficiency, increasing resistance and reducing fading.

LTE Advanced, one of the segments analyzed in the report, is expected to register a CAGR of 37.5% and reach US$9.2 billion at the end of the analysis period. After a thorough analysis of the business implications of the pandemic and the induced economic crisis, the growth of the LTE Advanced Pro segment is readjusted to a revised CAGR of 47.1% for the next 7-year period.

The US market is estimated at $597.1 million in 2021, when China is expected to reach $3.3 billion by 2026

The Massive MIMO market in the United States is estimated at US$597.1 million in the year 2021. Chinathe second largest economy in the world, is expected to reach a projected market size of US$3.3 billion by 2026 with a CAGR of 54.8% over the analysis period.

Other notable geographic markets include Japan and Canada, each predicting growth of 31.2% and 38.2% respectively over the analysis period. In Europe, Germany is expected to grow at approximately 36.9% CAGR.

Rapid demand for high-speed Internet services from the residential and business sectors and strong growth in data volumes are a major driver of the massive MIMO market. Over the years, the Internet has established itself as a powerful platform transforming the way businesses operate and users communicate.

As the world’s preferred medium of communication, the Internet has played a vital role in creating a globalized world and has become the universal source of information for people and businesses around the world. The internet is constantly evolving, with mobile technology and social media being among the most recent evolutionary changes in the internet world.

The demand for the internet has grown at a steady pace over the years, driven by advancements in the digital infrastructure and services space. The demand for Internet services is particularly high in developing economies where Internet service penetration is relatively low compared to mature markets.

The rise of Internet-based applications for business and personal users contributes to the ever-increasing demand for Internet services. The growing proliferation of Internet-enabled devices is emerging as one of the main growth drivers for high-speed Internet services. Equipped with the ability to provide connectivity to the Internet, these smart devices are capable of providing users with connectivity to desired information or content.

The convergence of conventional data and voice communications with Internet Protocol-based content delivery networks is generating new services in several markets. Internet-enabled devices are poised for explosive growth in volume shipments, driven by strong growth in mobile professionals, platinum travelers and data-centric consumers to connect, share and have fun.

5G segment to be reached $2 billion by 2026

5G networks are expected to offer the highest growth opportunities in the future. Massive MIMO should attract particular attention in the 5G era due to its many advantages. Multi-antenna technology is an advanced version of standard MIMO that uses up to 8 x 8 antennas.

Current research efforts are focused on increasing the number of antennas to 100 or more using GHz frequencies and antennas with small apertures. Massive MIMO has the potential to transform wireless communications by improving data rates and link reliability while reducing error rates and costs. In addition to improving spectrum efficiency by exploiting the spatial domain, massive MIMO introduces more antennas to enable scalable use of low-cost, low-power components.

Massive MIMO is a promising option for 5G which uses higher radio spectrums compared to 2G/3G/4G, such as centimeter and millimeter waves. In the global 5G segment, UNITED STATES, Canada, Japan, China and Europe will drive the CAGR of 82.3% estimated for this segment. These regional markets represented a combined market size of 35 million US dollars in the year 2020.

China will remain among the most dynamic in this group of regional markets. Led by countries such as Australia, Indiaand South Koreathe market of Asia Pacific should reach US$606.1 million by 2026.

Main topics covered:

I. METHODOLOGY

II. ABSTRACT

1. MARKET OVERVIEW

  • Overview of the influencer market

  • Global Market Trajectories

  • Telecommunications industry faces pressure amid COVID-19 outbreak

  • Telecom sector: an essential support system for the management of the COVID-19 crisis

  • The COVID-19 crisis is having a negative impact on the evolution of 5G

  • Demand for 5G smartphones is expected to be reduced in 2020

  • Growing focus on connectivity heralds a bright long-term future for the telecom industry

  • An introduction to Massive MIMO

  • Advantages and disadvantages of massive MIMO

  • Massive Increase in Data Consumption Propels Massive Global MIMO Market

  • Massive MIMO to make massive gains in the 5G era

  • Competition

  • Number of Massive MIMO products offered by major vendors

  • A look at some innovations

  • Global brands

  • Recent market activity

2. FOCUS ON CERTAIN PLAYERS (Total 35 Featured)

  • China United Network Communications Group Co., Ltd.

  • Ericsson

  • Huawei Technologies Co., Ltd.

  • Nokia Company

  • Samsung Electronics Co., Ltd.

  • Xilinx, Inc.

  • ZTE Company

3. MARKET TRENDS AND DRIVERS

  • Attributes such as high signal-to-noise ratio and link reliability make massive MIMO a preferred technology

  • Rising need for high-speed internet and growing data volumes on handheld devices are fueling the massive growth of the MIMO market

  • Increasing smartphone proliferation and growing demand for high-speed data communications present growth potential

  • Base station antennas play a vital role for mobile telecommunications companies

  • Massive MIMO is finding immense use in the mobile communications market for software implementation: a growth indicator

  • Disruptive Popularity of 802.11ac Wave 2 Accelerates Growth in Massive MIMO Market

  • Massive MIMO: a boon for next-generation mobile networks

  • Advances in 4G LTE and 4.5G data models drive rapid demand for Massive MIMO

  • Transition to high-speed 5G networks to boost massive MIMO implementations

  • mmWave band for 5G network

  • Using 5G chipsets for mmWave

  • Fully programmable RFSoCs to manage system complexity

  • Key Deployment Challenges for Massive MIMO in 5G Networks

  • Use of Massive MIMO in high-speed, long-range applications continues to grow

  • Beamforming and Massive MIMO: the basis of signal processing in 5G networks

  • The combined capabilities of the mmWave bands and massive MIMO offer significant potential for next-generation wireless communication systems

  • Growing pressure on wireless networks reinforces the importance of advanced base station antennas

  • FDD solutions are essential to enable massive MIMO

  • Key research areas in the Massive MIMO technology space

  • Key Challenges Facing the Massive MIMO Market

  • Massive MIMO brings more complexity

  • Need accurate channel modeling to understand complexity

  • Need for new modeling techniques

  • Hybrid Operator Eye Approach to Overcoming Typical Massive MIMO Concerns

4. GLOBAL MARKET OUTLOOK

III. REGIONAL MARKET ANALYSIS

IV. COMPETITION

For more information about this report visit https://www.researchandmarkets.com/r/17e3h3

Media Contact:

Research and Markets
Laura Woodsenior
press@researchandmarkets.com

For EST office hours, call +1-917-300-0470
For USA/CAN call toll free +1-800-526-8630
For GMT office hours call +353-1-416-8900

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SOURCE Research and Markets

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Fourth of AmpliTech Group Reports – GuruFocus.com https://resourcekt.co.uk/fourth-of-amplitech-group-reports-gurufocus-com/ Mon, 16 May 2022 13:32:46 +0000 https://resourcekt.co.uk/fourth-of-amplitech-group-reports-gurufocus-com/

Hauppauge, New York, May 16, 2022 (GLOBE NEWSWIRE) — AmpliTech Group, Inc. ( AMPG), a designer, developer and manufacturer of advanced signal processing components for satellite, 5G and other communications networks and a global distributor of packages and covers for the assembly of integrated circuits, said a figure of business of $5,099,520 for its first quarter, which ended March 31, 2022, matching nearly all of the revenue earned in its fiscal year 2021. AmpliTech Group will host an investor call over the next month and announce these details once confirmed.

First Quarter 2022 Highlights

  • Q1’22 revenue increased 978.2% to a record $5,099,520 in Q1’22 from $472,974 in Q1’21
  • Q1’22 revenue of $5,099,520 almost matches full year 2021 revenue of $5,275,434
  • Q1’22 gross profit improved to $2,323,598 (45.6% gross profit margin) from Q1’21 gross profit $54,981 (11.6% gross profit margin). Core LNA revenue doubled year-over-year from $472,000 in Q1 2021 to $1.07M in Q1 2022
  • Positive EBITDA of $140,169 realized during Q1’22.
  • Realized net profit in Q1 22 of $3,625 compared to a net loss of $879,931 in Q1 21
  • Year-end cash and cash equivalents were $16.0 million, providing AmpliTech with sufficient capital to fund its long-term growth initiatives.

Q2 2022 Update

  • AmpliTech currently expects revenue of at least $4.0 million in Q2’22 to Q2’22. This includes expected quarter-over-quarter base LNA sales growth
  • AmpliTech’s current backlog is $10.2 million, representing contract materials and engineering services expected to be delivered in approximately eight months
  • AmpliTech will continue R&D to design antennas and subsystems to increase throughput and connectivity in 5G systems
  • Selection of a comprehensive Enterprise Resource Planning (ERP) system, to be implemented in the second quarter of 2022, to maximize production efficiency and support increased new orders
  • Implementation of Customer Relationship Management (CRM) in Q1 22, which will help drive new sales activity
  • Company reiterates goal of achieving profitability for fiscal 2022

CEO Commentary
Fawad Maqbool, CEO, commented, “AmpliTech’s progress since our NASDAQ listing in February 2021 to date is nothing short of spectacular and none of this would have been possible without the brilliant execution of the team. AmplifierTech. The Spectrum, AGMDC, Specialty Microwave and AmpliTech Inc divisions work in perfect synergy with remarkable synergy.

“Since our inception, we have focused on observing the challenges facing high-tech industries and developing products that bridge the technology gap. We are proud to fulfill our mission to enable wireless connectivity like never before. “

“Our LNA technology enables lower noise with lower power dissipation, making next-generation communication networks more efficient and reliable. Our Spectrum division has supplied semiconductor packaging to customers in various automotive, scientific research and IT industries. The AmpliTech MMIC Design Center (AGMDC) team is up and running developing MMIC chips that capture AmpliTech’s industry-leading efficiency, enabling more power-efficient communications systems, without sacrificing performance. “

“We are proud of the progress we have made this quarter. Although we recorded one-time expenditures during this quarter on R&D, including enterprise expenditures, we delivered a profitable quarter and reiterate our objective to have a profitable 2022 financial year. Additionally, Mr. Maqbool said, “We remain very active in building and strengthening customer relationships, researching new products, expanding production, implementing new ERP systems and CRM and the recording of an almost tenfold growth of our revenues. There are many gaps in the performance of communications systems today, and we are determined to overcome them with the introduction of new product offerings. We look forward to continuing our transformative 2022 fiscal year. »

About AmpliTech Group
AmpliTech Group, Inc. designs, develops, manufactures and distributes state-of-the-art radio frequency (RF) microwave components for the global satellite communications, telecommunications (5G and IoT), space, defense and quantum computing, as well as system and component design consulting services. In December 2021, AmpliTech completed the purchase of the assets and business of Spectrum Semiconductor Materials Inc., a San Jose, California-based specialty global distributor of semiconductor components. AmpliTech has over 13 years of experience developing high performance custom solutions to meet the unique needs of some of the largest companies in the global industries we serve. We offer superior solutions, faster time to market, competitive pricing and excellent customer satisfaction for recurring business.

Safe Harbor Statement

This press release contains statements that constitute forward-looking statements. These statements appear at several places in this press release and include all statements that are not statements of historical fact regarding the current intention, belief or expectations of the Company, its directors or its officers regarding, among other things: (i) the ability to execute its business plan as planned; (ii) trends affecting the financial condition or results of operations of the Company; (iii) the Company’s growth strategy and operational strategy. The words “could” “would” “will” “expect” “estimate” “anticipate” “believe” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the statements. prospective because of various factors. Other risks are identified and described in more detail in the “Risk Factors” section of the Company’s filings with the SEC, which are available on our website. We undertake no obligation to update, and we do not have a policy of, updating or revising these forward-looking statements, except as required by applicable law.

Non-GAAP financial information
This press release includes a statement regarding the Company’s backlog. Backlog represents the dollar amount of net sales we expect to accrue in the future from customer orders received from customers in the normal course of business. The Company considers order backlog as a relevant and preferred additional measure to understand the Company’s financial and market condition. However, these measures have inherent limitations, should not necessarily be applied or audited uniformly, and other companies may use methodologies to calculate similar measures that are not comparable. Readers should be aware of these limitations and should exercise caution in their use of such measures.

Enterprise social media
Twitter: @AmpliTechAMPG
Instagram: @AmpliTechampg
Facebook: AmpliTech Inc.

Investor social media
Twitter: @AMPG_IR
StockTwits: @AMPG_IR

Company Contact:
Shan Sawant, Director of Communications
AmpliTech Group, Inc.
[email protected]
646-546-7128

Amplitech-Group-Inc-.png ]]> Build a customer experience that keeps them coming back for more https://resourcekt.co.uk/build-a-customer-experience-that-keeps-them-coming-back-for-more/ Mon, 16 May 2022 05:30:20 +0000 https://resourcekt.co.uk/build-a-customer-experience-that-keeps-them-coming-back-for-more/

Customer loyalty has totally changed in a different way, previously it was mainly based on price, product or brand, but now with the digital revolution, customers are looking for an overall good experience. Businesses today have realized that customer experience (CX) is critical to business. To execute new CX technologies, brands are introducing customer relationship management (CRM) solutions, enterprise resource planning (ERP) solutions, contact center and point-of-sale platform systems. (POS), data warehouse systems and many other modes to provide an experience to its customers.

The season’s panelists included:

  • Aashish Batra, co-founder, myPAPERCLIP
  • Abhijeet Gaur, Product Manager – Blaze | GM – E-Commerce, Office, Inc.
  • Akanksha Tandon, Founder, A Little Mistake
  • Amritha Gaddam, Founder and CEO, The Tribe Concepts
  • Anuva Kakkar, founder of Tiggle
  • Kanishk Arya, COO, SleepyCat
  • Saumya Kabra, Founder and CEO, Confetti Gifts
  • Sreejith Moolayil, co-founder, True Elements
  • And the session was moderated by Soumitra Dhankar, Solution Consulting Lead, Adobe India

Talking Points:

  • Content that drives purchases
  • Management of customer expectations
  • Data management techniques to respond to customer requests
  • Key drivers of repeat purchases
  • Involvement of technology in content creation

The different variety of content on the internet creates an urge in the minds of customers to try a product/service. Companies seek to create awareness so that they can consider the product and lead them to the decision stage. Aashish Batra, co-founder of myPAPERCLIP said here: “The word experience is extremely important. Like our brand, which is in notebooks and stationery, it’s important to provide the right form of content. We are a brand mainly present on four channels. The experience specifically dedicated to the D2C space starts by generating advertisements to create impulses on Facebook, Instagram, etc. In this, we are basically trying to market our product. In this stage, we create an experience, not by using marketing on the product, but by creating content around its lifestyle. It’s more related to the user of the product. We try to create content with more relatability that can relate to our experience. There are a bunch of brands like those in the skincare category that can map the customer journey and translate content into commerce. Creating a WOW factor is really difficult for brands and varies depending on the category it exists in, as the experience the consumer demands changes every day.

Kanishk Arya, COO, Sleepycat commented on this and added, “When I look at the experience, it should be purchasable. I would consider this in a way that the interaction can add value for the customer and also give the brand an opportunity to make a sale to the customer. For our D2C brand, I’ve broken this down for our business into four levels. »

The levels are given below:

Discover the content – We should discover content for the brand. A lot of people go to YouTube and Google and search “what kind of mattress should I sleep on?” “. Thanks to this, we can introduce our brand to customers.

Educate the consumer – The mattress has been around for thousands of years in one way or another. But problems like this exist that people don’t know how to use. Through this, we can educate the customer and give them the opportunity to choose a product that can solve the problem and thus create a shopping experience for customers.

Advertisement – This is the process that is performed by almost all brands.

Post-Purchase Conversation – Once the purchase is made, every conversation with the consumer should be about the product and also followed by the use of the product.

He added to this and emphasized, “All products provide a shopping experience because we expose them and make them useful based on the information we have. The other thing that can be extremely helpful for the brand is to provide a shopping experience perspective, through which the customer can talk about their experience of the products and tag the brand in question, so that new customers can discover the brand and its user experience. also.”

Content creation for clients

A brand needs to create content strategically to make the experience more buyable. And technology plays a vital role in making it work. Anuva Kakkar, Founder of Tiggle, shared how technology helps with content creation and added, “As far as our brand is concerned, ‘Tiggle’ technology plays an important role in creating WOW moments. From simple things like email marketing to placing orders, everything requires technology. But engaging with the customer until the moment they receive the order is the hardest thing where technology can act as a good trigger.

She gave us an example of how the brand interacts with its customer: “When the customer’s order is picked up by the delivery agent. At this time, the right trigger or message is needed, which can keep customer interest growing, which in our case is our brand story. When the customer is about to receive the order in two hours, we will send them the recipes on “how to make the best hot chocolate”. At the same time, we have created a platform vote.tiggle.com in which there is a community where all customers can meet. It will never have scaled without the help of technology.


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ViewRay: Insider buying in this stock at $3 (NASDAQ: VRAY) https://resourcekt.co.uk/viewray-insider-buying-in-this-stock-at-3-nasdaq-vray/ Sun, 15 May 2022 12:51:00 +0000 https://resourcekt.co.uk/viewray-insider-buying-in-this-stock-at-3-nasdaq-vray/

Nirian/E+ via Getty Images

“The best work anyone has ever written is the one that is about to embarrass them, always.“-Arthur Miller

The last time we took an in-depth look at the ViewRay radiotherapy problem (NASDAQ: VRAY) was back in early 2019 when we concluded it was an interesting small cap name, but it was bleeding too much money for anything other than a very small ‘watch the article‘ position. We also said that we may revisit the company at some point in the future. Given some recent large insider buying, it seems like the time is right to ‘return circle‘ on this concern. An analysis follows below.

VRAY Stock Chart

Looking for Alpha

Company presentation:

ViewRay is based just outside of Cleveland, OH. The company designs and markets magnetic resonance imaging or MRI-guided radiation therapy systems to image and treat cancer patients. Its main product is called MRIdian, which is an MRI-guided radiation therapy system that treats beam distortion, skin toxicity and other problems. Each system costs approximately $6 million and generates an equal amount in recurring/lifetime support revenue.

Viewray Estimated Revenues by System

May Company presentation

The stock currently trades at just over three dollars per share and has an approximate market capitalization of $540 million.

First quarter results:

On May 5, ViewRay released first quarter numbers. The company posted a loss of 14 cents per share on a GAAP basis, slightly worse than expected. Revenue rose nearly 22% year-over-year to just south of $19 million, well above consensus.

Viewray Q1 Highlights

May Company presentation

The company received seven new orders for MRIdian systems totaling nearly $41 million. Backlog now stands at nearly $331 million, up significantly from just under $265 million a year ago. Management reissued guidance calling for revenue of between $84 million and $104 million for fiscal 2022.

Analysts’ comments and review:

Analysts are largely optimistic about the company’s prospects. Earlier this year, B. Riley Financial and Stifel Nicolaus upgraded or floated the stock for a buy. Both with identical price targets of $7. So far in May, BTIG ($9 price target) and Piper Sandler ($7 price target) have reissued buy ratings on the stock while Morgan Stanley ($4 price target) maintained its holding rating.

Several insiders also stepped in in May, racking up nearly $5 million in total stock, including the CEO and CFO. Approximately six percent of the overall stock float is currently held short. The company ended the first quarter of this year with about $183 million in cash and marketable securities on its balance sheet after posting a net loss of $25.6 million in the quarter.

The company used just over $35 million in cash in the first quarter, which tends to be a cash-heavy quarter seasonally. Management expects to use between $68 million and $83 million of cash to support all operations in fiscal year 2022. Management also said it has the liquidity to achieve break-even cash flow. .

Verdict:

The current analyst consensus has the company losing about 60 cents per share in fiscal 2022 as revenue grows just over 35% to just over $95 million.

Viewray MRidian Outlook

May Company presentation

The MRIdian system appears to be gaining more market acceptance and the company has a large and growing order book. The challenge for the company appears to be to quickly convert backlog into installed sales, which will generate their own recurring revenue and improve margins. Gross margins for 1Q 2021 were down from a year ago and cash usage also increased by approximately $7 million in the quarter. Management is focused on driving a 750 basis point to 1,000 basis point improvement in gross margins in fiscal year 2022.

Viewray MRIdian Orders and Backlog

May Company presentation

Even with the stock’s decline over the past six months, equities are nearly six times forward sales. ViewRay is an interesting name to watch and recent insider buying is encouraging. However, until margins improve and cash burn dissipates, except for a small ‘watch the article‘ Reserved for long-term investors, we have no investment recommendation for the stock at this time.

“The attempt to escape pain is what creates more pain.“- Gabor Mate

Bret Jensen is the founder and author of articles for the Biotech Forum, the Busted IPO Forum and the Insiders Forum

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What is the Generative Insertion Transformer? https://resourcekt.co.uk/what-is-the-generative-insertion-transformer/ Sat, 14 May 2022 04:36:58 +0000 https://resourcekt.co.uk/what-is-the-generative-insertion-transformer/

Continuous annotation of user data is a challenge when deploying large-scale NLU techniques in commercial applications. Models need to be re-trained and updated to keep performance at peak levels. However, the process is expensive, labor intensive and time consuming. Additionally, with growing privacy concerns, manual review of user data needed for annotation is not ideal.

Researchers from Amazon and the University of Massachusetts Lowell have proposed a generative model to produce labeled synthetic data. The idea is to improve the robustness and performance of the model by generating synthetic statements and augmenting the original training data.

Synthetic augmentation with GIT

The Generative Insertion Transformer (GIT) is based on a non-autoregressive Insertion Transformer model that extends the idea of ​​solving the inverse NLU problem by producing a valid labeled data statement that matches the annotation with a given pattern .

Source: amazon.science

In this generative model, the decoder generates a sequence by inserting tokens between previously generated tokens. Carrier tokens are inserted between labels in the model iteratively. The insertion process at each position of the utterance is independent of all other positions and stops when the EOS token is generated at all positions, resulting in a fully annotated synthetic utterance that can be directly populated with data real ones for model building purposes.

The process can be divided into three sections:

Pre-training: GIT is pre-trained using the BERT encoder and the KERMIT goal on an unsupervised LM task: given a sentence with hidden tokens, GIT is trained to insert the hidden tokens. Two tests are configured on this model:

  1. Pre-training using only English Wikipedia
  2. Pre-training using an internal corpus of 800 million unlabeled utterances randomly sampled from anonymized Alexa queries, using pre-trained English Wikipedia models as initialization.

Fine adjustment: The pre-trained GIT model is then refined for each domain using annotated real data. A template is provided as template input for each utterance and the complete utterance as output. During training, at each insertion slot, there are multiple candidate tokens from the ground truth, unlike autoregressive generation, which involves a single token per generation step. The ground truth distribution sets the non-candidate token probabilities to 0 and weights all candidate token probabilities evenly.

Generation: To generate synthetic data for NLU, a model is constructed that contains the desired intent, location types, and location values ​​for the synthetic example. This seed sequence is provided as input to the decoder, which inserts carrier tokens iteratively to form a coherent utterance. The generation process addresses both the challenges of label projection and entity control. The models used in the inference are built from the reduced real data.

Performance

To study the efficiency of synthetically generated data, the performance of the NLU model was evaluated in a reduced data regime. For each domain, several IC-NER models are built using all real data, a reduced set of real data and a combination of real and synthetic data. All models in a domain share the same training hyper-parameters, including architecture and encoder. They differ only in the composition of the training data.

Conclusion

Researchers demonstrated that DA uses GIT as a feasible data generation technique to mitigate reduced annotation volumes for IC and NER tasks. NLU models trained on 33% real and synthetic data performed on par with models trained on full real data. Additionally, on domains with the highest SemER regressions, the quality of synthetic data was improved by filtering them with model confidence scores. Among the domains that benefit from synthetic data, the insertion of appropriate support token improved the semantics of utterances and their value as training samples. The future represents data generation with entities replaced by knowledge base sampling. Such finer-grained control over entities supports the expansion of new features and improves customer privacy.

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Liberal ESG rules distort markets, hurt Utah and gas prices | Opinion https://resourcekt.co.uk/liberal-esg-rules-distort-markets-hurt-utah-and-gas-prices-opinion/ Fri, 13 May 2022 20:22:00 +0000 https://resourcekt.co.uk/liberal-esg-rules-distort-markets-hurt-utah-and-gas-prices-opinion/

Why is gas so expensive?

The answer is complicated, but one factor has received little attention: ESG. That could change before the November election.

ESG stands for environment, social and governance, three factors that many on the left, including the Biden administration, are pushing as new signals to guide investors.

To put it in simple terms, this is a movement to move capital away from the production of fossil fuels and other things considered bad for the environment and towards low carbon and environmentally friendly options. climate.

While that’s not necessarily a bad thing – renewable energy and electric cars are in our future, after all – the world isn’t there yet. “So finally,” Forbes energy contributor Jude Clemente wrote this week“This western anti-oil push only hands an ever-growing oil demand market to OPEC and Russia.”

Just because fossil fuels are unpopular doesn’t mean we no longer need them to live. The Ministry of Transport says less than 3% of carson the road today are electric. But ESG prevents US oil producers from receiving the investments they need to increase production.

Quoting a character from Pensions & Investments magazine, Utah Treasurer Marlo Oaks told the Deseret News/KSL editorial board that the number of oil and gas funds has grown from 59 funds in 2015, worth $46.6 billion, to 11 funds in 2021, worth $4.6 billion.

However, concerns about ESG run much deeper, according to top Utah politicians. It’s a threat to the credit ratings of booming and healthy states that might not have the “right” political views.

Last month, virtually every senior Utah official, from Governor Spencer Cox to State Treasurer Oaks and the entire state congressional delegation signed a letter to the President and CEO of Standard & Poor’s Global Ratings, Douglas L. Petersonprotesting S&P’s decision to use ESG credit metrics to rate states and their subdivisions.

Utah ranks well in many rankings that judge states based on their economic performance, the American Legislative Exchange Council has ranked it as the state with the #1 economic outlook for 15 consecutive years, the rate of unemployment is 2% and Utah was cited as the state with the smallest wealth gap, but its ESG shortcomings, according to S&P, earned it a moderately negative score.

Oaks said such ratings could one day affect Utah’s triple-A bond rating, making it more expensive for the state, and ultimately its taxpayers, to borrow money.

This, he said, is “very important to us as a state”.

“Once you introduce ESG, you draw attention to factors that aren’t really financially relevant,” Oaks said. In the letter to S&P, Utah executives said, “Investors or organizations like S&P Global may decide that we’re extracting ‘too much’ oil, or that our gun laws are ‘too loose.’ , or that we are “too resistant” to sexual instruction in kindergarten.

Factors such as these, Oaks said, “destroy free market capitalism.” Investors traditionally send money to areas where the needs are evident. If the nation needs more oil production, for example, investors profit by helping oil companies drill more, which lowers costs for consumers. Forcing the markets elsewhere causes money to be misallocated and leads to higher prices.

Utah leaders are not fighting alone. The New York Times’ Newsletter DealBook says Republicans on the House Financial Services Committee in Washington have opposed new rules proposed by the Securities and Exchange Commission to include climate change disclosure requirements for publicly traded companies.

DealBook said conservative investors were fighting back, forming a financial firm called “Strive”, to “urge companies not to get involved in social, political or environmental issues”.

In the meantime, however, the Department of Labor has proposed rules which it says will remove barriers to ESG considerations in pension funds.

If someone manages to condense all of this into a sticker slogan, it could become a volatile campaign issue.

Proponents of ESG investing argue that the impact of companies on the environment is indeed an important economic factor. “Businesses today increasingly realize that such ‘costs’ – typically damage to the environment, society, or both – are…deeply integral to the survival of the business itself. same,” said Michael Chavez of Duke University. written for Forbes.

Oaks would counter that the production of fossil fuels in the United States is much cleaner than that of other countries, so the planet is not helped by forcing capital to invest abroad.

“I don’t know anybody who wants dirty air,” Oaks said. “It’s not necessarily about that.”

Certainly, the world needs cleaner and more sustainable sources of energy. Governments can do a lot, from incentivizing companies to build the infrastructure needed to maintain and charge electric vehicles, to granting credits to those who buy cleaner vehicles. However, artificially distancing investors from current market needs will not do the job.

Nobel Prize in Economics Milton Friedman said, “The business of business is business”, or in other words, companies exist to maximize profits. This does not mean that investors cannot apply their own sense of ethics. Many people avoid funds that include tobacco companies or gambling businesses, for example.

But when governments, rating agencies and powerful investment managers start imposing ideological standards on investors, that’s a whole other thing, especially when vibrant and successful states are downgraded and gas prices are pushed on the rise.

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Triton International Preferred – Consider for 7.5% Qualified Yield (NYSE: TRTN) https://resourcekt.co.uk/triton-international-preferred-consider-for-7-5-qualified-yield-nyse-trtn/ Fri, 13 May 2022 03:53:00 +0000 https://resourcekt.co.uk/triton-international-preferred-consider-for-7-5-qualified-yield-nyse-trtn/

xavierarnau/E+ via Getty Images

Introduction

With markets down sharply and fixed income stocks posting the worst start to a year in history, plenty of bargains are sure to be available. Even with rising rates and inflation, the decline in fixed income, especially lower duration issues, is overdone in our view and in many cases, “throwing the baby out with the bathwater”. We have seen these fixed income panic declines many times over the past few years, providing windows of opportunity to secure excellent returns.

An opportunity has come to our attention which we believe offers a very attractive risk/reward ratio, with high return and a lower level of risk as an investment grade company. The issues in mind are the preferred stock issues of Triton International Limited (NYSE: TRTN), the Series A and Series B show.

Company presentation

Triton, founded in 1980, is the world’s largest freight container lessor with a market capitalization of nearly $4 billion. Their owned fleet consists of over 7 million twenty-foot equivalent containers and the company is a major supplier to all major container shipping lines in the world. The Company also purchases containers from container manufacturers, shipping line customers and other sellers, and resells these containers to container retailers and users.

We invite readers to view the company’s first quarter presentation for further details on the company, financial performance and industry. The company delivered record first quarter results and the outlook for 2022 remains strong. The company’s strong position has been reflected in its share price this year. Even though the market is in bearish territory, Triton stock has remained stable since the start of the year.

Chart
Data by YCharts

Another key aspect to consider is Triton’s investment grade corporate rating, a reflection of the company’s superior credit quality, which was granted by S&P in March 2021 with a BBB- rating. This rating was confirmed by S&P in October 2021 and was followed by an Investment Grade rating by Fitch the same month. Fitch offered this comment:

Triton’s ratings continue to reflect its well-established market position as the world’s largest shipping container lessor, experienced management team, strong track record of operating through various cycles, predictable cash flow generated primarily through longer term leases, strong risk controls and lease terms, the standardized nature and relatively long useful life of containers that moderate residual value risk, adequate liquidity and appropriate leverage .

Overview of Preferred Shares

Triton offers four series of preferred shares, A, B, C and D, but the ones we discuss for review are series A and B. Triton preferred dividends are qualified, which means they are more attractive in accounts taxable. It should also be noted that, by rating convention, the preferred issue itself is rated two notches below the corporate rating of BBB-, thus the preferred issues themselves are rated BB.

TRTN Series A: 8.50% cumulative dividend yield, redeemable at par on 03/15/2024. Series A is trading in the high $25 range and, at the time of this writing, has a bid/ask of $25.70-$26.00. Dividends are paid quarterly on 3/15, 6/15, 9/15 and 12/15.

At a price of $26.00, the current yield is around 8.2%. Importantly in this case, the yield to call is around 7.05%. With a high dividend yield of 8.5%, it is highly likely that the company will redeem the Series A issue when it is redeemable in March 2024 at par $25.00 and investors should assume that will be the case. Here is the price chart for 2022. At the end of 2021, TRTN-A was trading at around $27.40.

Price table TRTN-A

Price table TRTN-A (Brokerage screenshot)

B-Series TRTN: Cumulative dividend yield of 8.50%, redeemable at par on 09/15/2024. Series B is trading in the middle $25 range and, at the time of this writing, has a bid/ask of $25.35 to $25.45. Dividends are paid quarterly on 3/15, 6/15, 9/15 and 12/15.

At a price of $25.45, the current yield is around 7.9%. The call yield is approximately 7.85%. As with Series A, it is highly likely that the company will redeem the Series B issue when it is redeemable in September 2024 at par $25.00, but with a lower dividend rate at a lower chance than that of A. Here is the price chart for 2022. At the end of 2021, TRTN-A was trading at around $27.31.

Price table TRNT-B

Price table TRNT-B (Brokerage screenshot)

Will Triton redeem these favorite numbers? There is no way to know for sure and it certainly depends on market conditions in 2024. However, for a top quality company, paying returns above 8% for preferred shares is very high and remains a burden. financial high for the company. In January 2020, well before it achieved its investment grade rating, the company issued Series D Preferred Shares at a yield of 6.875% which now trades at approximately $24.00 per share for a current yield about 7.2%. So even in today’s depressed market, Triton’s preferred yield clearing rate is well below the 8% level. Series A is certainly much more likely to be called given its higher rate and status as the first issue to be called.

Assuming Triton redeems Series A and B, an investor can therefore view an investment in A as a tax return of 7.05% over a holding period of less than 2 years for a high quality issuer. An investment in B offers a tax return of 7.85% for approximately 2.5 years to a high quality issuer. In our opinion, holder A offers a lower return to follow due to the higher possibility of being followed, while holder B assumes that he is less likely to be followed.

What happens if A and B are not tracked in 2024? Thereafter, the investor continues to benefit from a tax yield of approximately 8%. At any time after 2024, the company can still call the preferred issue. Given the issuer’s quality rating, this is an attractive return, even over the longer term. It is clear that a fixed maturity date would reduce the duration risk, but if that were the case, the yield would be far from 8%. If investors are more interested in a shorter term holding, then A is a better choice because it is more likely to be followed.

Conclusion

In the current sinking fixed income market, there are plenty of bargains to choose from. One of our goals is to increase yield as well as credit quality, as these opportunities do not arise often. We believe that at some point this year, investors will suddenly notice these very high returns for companies that are doing very well and prices will rise again. Triton’s Preferred Series A and B offer high yield that is particularly attractive in taxable accounts, with limited credit risk in our view.

Please note that Downtown Investment Advisory currently holds TRTN A&B in client and personal accounts, and may have added/will add positions at any time before or after the publication of this article.

It is important to note that fixed income investments such as high yield bonds, BBs and lower preferred shares and baby bonds are by definition not “investment grade” and therefore only suitable for investors willing to accept a higher fixed income risk profile. High yield fixed income investments may not be suitable for all portfolios. Therefore, consider these investments only as part of a broader investment portfolio allocation to various assets of all risk profiles.

Please see Downtown Investment Notice profile page for important disclaimer language, which is an integral part of this article.

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