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What I Look For in Startup Deals

When I evaluate startup investment opportunities, I usually don’t pay too much attention to what industry the startup is in. Great startups can come from any industry. So the first thing I look at is traction. Traction usually means there’s some revenue coming in. But in some cases, it can mean other things.
When evaluating social media companies, for example, there usually isn’t much revenue at first. Most social media startups focus on getting as many users as possible during their early years. In cases like these, it’s important to look at active users, rather than total users.
My point is, the …read more […]

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Roku Turns Lower as Outlook Overshadows Active Account Beat

(Bloomberg) — Roku Inc. shares fell on Friday, erasing an initial rally that came in the wake of its better-than-expected fourth-quarter results.Analysts were broadly positive on the quarter, the latest to show strong momentum at the video-streaming platform as consumers cut the cord on traditional cable services and move toward services like Netflix or Disney+However, the adjusted loss per share beat expectations by a smaller degree than is typical for the company. In addition, some firms expressed concern over the stock’s valuation following a recent surge, and said the Ebitda guidance looked light.Shares fell 7.8% after earlier spiking as much …read more […]

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A Microcap Stock Play With MoneyGram

One of our favorite stocks came into range last week…
War Room members have played MoneyGram (Nasdaq: MGI) before and made money doing it.
This time I recommended a special strategy that has the potential to bring members even more profits in the days and weeks ahead.
Most of our recommendations in The War Room are options trades. But in this case, I recommended a stock play because the options prices were just too expensive.
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A note to the wise…
When you are dealing with penny stocks, it’s usually best to buy the shares since they don’t expire!
The first time MoneyGram came to my attention …read more […]

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Coronavirus concerns loom over cruise industry

NEW YORK/BENGALURU (Reuters) – The rapid spread of the coronavirus disease is taking a toll on the $46 billion global ocean cruise industry. Dominated by three U.S.-listed companies, Carnival Corp, Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings, the industry is under sharp scrutiny following the virus outbreak that has left one ship quarantined in Asia. Many see Asia as a potential growth area for cruise tourism: 39 cruise brands were active in Asian waters last year, deploying a total of 79 ships, according to trade group Cruise Lines International Association. …read more […]

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Amazon Ends Ties to Delivery Partner, Erasing Hundreds of Jobs

(Bloomberg) — An Illinois company that rapidly expanded over the past two years to deliver packages for Amazon.com Inc. is shuttering operations in five states and letting go hundreds of drivers after failing to meet the e-commerce giant’s standards.The shuttering of Bear Down Logistics underscores the challenges Amazon faces outsourcing deliveries to new, untested companies instead of traditional partners such as United Parcel Service Inc. and FedEx Corp. It also serves as a warning to Amazon delivery partners that the company is an exacting client willing to cut them off.Bear Down Logistics notified Ohio, Virginia, Minnesota and Illinois that it …read more […]

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The Coronavirus Correction… and Its Aftermath

The stock market took a hit when news of the coronavirus first spread. But now it’s right back up again.
Today, Alexander Green’s market analysis reveals why investors are choosing to look beyond the negative effects of the outbreak.

On January 30, I wrote a column called “How to Play the Novel Coronavirus.”
In that piece, I pointed out that the virus was spreading rapidly and had already crippled China’s land, rail and air transport.
I noted that its spread would hurt retail sales, curtail tourism, diminish global GDP growth and disrupt the intricate cross-border supply lines of thousands of multinational corporations.
Yet I implored …read more […]

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Health Secretary Alex Azar says China’s coronavirus response must be ‘transparent and vigorous’

Health and Human Services Secretary Alex Azar discusses the impact of the coronavirus, and why he says China’s response must be “transparent and vigorous”. Yahoo Finance’s Anjalee Khemlani joins the On the Move panel to discuss the interview. …read more […]

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U.S.-based Inovio Pharmaceuticals says it has discovered coronavirus vaccine

A U.S. biotech company says it has created a coronavirus vaccine. Pennsylvania-based Inovio Pharmaceuticals’ San Diego lab made the discovery reportedly just hours after getting access to the virus’ genetic sequence last month. Inovio Pharmaceuticals CEO Dr. J Joseph Kim joins Yahoo Finance’s On the Move to discuss. …read more […]

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Kraft Heinz Junk Downgrade Reawakens Corporate Bond Market Fear

(Bloomberg) — Kraft Heinz Co., the iconic food giant created in a merger five years ago, was downgraded to junk by Fitch Ratings, raising fresh worries among investors that a slowing economy could threaten the broader corporate bond market. The packaged-food company was cut one level to BB+, its first high-yield rating. Similar action from S&P Global Ratings or Moody’s Investors Service would officially dub Kraft Heinz as a fallen angel, taking it out of investment-grade indexes. Though Kraft Heinz, with just under $30 billion of debt, is a relatively small investment-grade issuer, it would become one of the top …read more […]

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Kraft Heinz's credit rating cut to 'junk' by Fitch

Shares of Kraft Heinz, in which billionaire Warren Buffett’s Berkshire Hathaway Inc and Brazilian private equity firm 3G own major stakes, fell about 4%. Chicago-based Kraft Heinz, which last year took a $15.4 billion writedown of key brands including Oscar Mayer hot dogs, has been struggling to grow sales as consumers shift to healthier options and private-label brands. “Following Kraft’s commentary around 2020 operating headwinds and its commitment to maintain its dividend, Fitch estimates the company may need to divest up to 20% of its projected 2020 EBITDA to support debt reduction,” the agency said. …read more […]