Foreign Investors Sold Japan Stocks for First Time in 12 Weeks
They sold a net ¥524.3 billion ($3.62 billion) of the shares in the period ended June 20, the data showed. In the 11 weeks prior to that, the investors bought ¥7.236 trillion of Japanese stocks in total despite concerns about US tariffs.
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12 minutes ago
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What's going on with the Card Factory share price?
On several occasions, I've suggested that the Card Factory (LSE:CARD) share price was depressed or beaten down because the market didn't like its limited online presence. However, that's now changing with the acquisition of Funky Pigeon from WH Smith. The £24m purchase marks a major strategic shift, addressing long-standing concerns over its minimal online presence. Funky Pigeon will deliver a mature digital platform, experienced technology teams, and established direct-to-recipient gifting capabilities, enhancing Card Factory's digital proposition. The former WH Smith brand has been operating a successful business with average annual revenues around £32m and EBITDA of around £5m over the last two years. Cross-selling opportunities, operational efficiencies, and access to richer customer data should follow. Ultimately, this move positions Card Factory to become a top omni-channel player, uniting over 1,000 stores with a competitive online offer. Shares surge The share price surged after the acquisition was announced. Clearly, investors were happy to see the business make more progress in expanding its digital presence. However, the stock's valuation certainly isn't too demanding. The company's now trading at 6.1 times forward earnings and it's expected to have a net debt position of around £116m by the end of the year. This forward price-to-earnings (P/E) ratio's expected to fall to 5.4 times by 2027. In fact, earnings may even accelerate faster than this, given the Funky Pigeon takeover. Remember, analysts don't always update their forecasts immediately. The dividend yield remains sizeable despite the rise — share prices and dividend yields are inversely correlated. The forward yield currently sits at 6% and is expected to rise to around 7% by 2027. That's based on today's share price and the dividend forecast. It's also worth noting that dividend coverage is strong at almost three times. This suggests the payments are sustainable even if the business falls on hard times. The bottom line Card Factory, for now, remains a traditional retailer with a distinct brand and deep ties to celebrations and everyday moments. This is a quality that helps it weather shifts in consumer sentiment. The business has shown agility, adapting products and store formats to remain relevant on high streets across the UK. Seemingly, customer loyalty remains strong due to its value proposition and broad selection. While the acquisition of Funky Pigeon offers new digital potential, Card Factory's core challenge remains revitalising its high street presence and ensuring that physical stores complement, rather than compete with, its growing online channels. After all, it's not easy to get excited about a company that sells relatively-low-cost products from 1,000 expensive locations around the country. I say that noting the increasing cost of energy and hiring staff, especially under the current administration. However, with solid brand equity and strong valuation, Card Factory's one I'm watching closely. I believe it deserves attention from investors. The post What's going on with the Card Factory share price? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has no position in any of the shares mentioned. The Motley Fool UK has recommended WH Smith. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
19 minutes ago
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New Tariffs Threaten American Battery Production
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Yahoo
19 minutes ago
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Tariff pain has returned for the stock market
After weeks of cheering progress on trade, investors are dismayed by what August 1 has brought. Trump signed a list of updated tariffs on Thursday and said it was "too late" for nations to avoid the duties. Major indexes dropped on Friday, while Treasury yields dropped. President Donald Trump's "GREAT DAY" for America is finally here — but markets aren't cheering the latest news on the trade war. Following weeks of encouraging updates on trade deals with major partners, US stocks dropped Friday after the president signaled he would stick to his August 1 deadline for tariff negotiations and signed an executive order that included an updated slate of taxes on imports. The sell-off gained steam as investors took in a weaker-than-expected US jobs report. The economy added 73,000 jobs in July, according to the Bureau of Labor Statistics, lower than the 100,000 payrolls economists expected. Treasury yields tumbled after the report, with the 10-year bond yield falling 10 basis points to 4.25%. The jobs data recalibrated expectations for rate cuts in September for the second time this week. After the odds of a cut at the next meeting dwindled following Jerome Powell's cautious tone on the economy midweek, markets again revised the outlook. According to the CME FedWatch Tool, traders now see a 67% chance of a 25-basis-point cut in September, up from less than 50% on Wednesday. Here's where US indexes stood around 10:30 a.m ET. on Friday: S&P 500: 6,256.82, down 1.77% Dow Jones Industrial Average: 43,629, down 1.16% (-512.98 points) Nasdaq composite: 20,783.88, down 1.61% A "GREAT DAY" for America Trump's update to tariffs, which were announced in an executive order Trump signed Thursday evening, imposed import duties ranging from 10%-41%. The order added that goods that are transhipped in a bid to avoid tariffs — swapping hands between other nations before coming to the US — will also be subject to a 40% tariff. Some nations saw their updated tariff rates lowered from what Trump initially proposed, despite not yet coming to a trade agreement with the US. Taiwan, India, and Malaysia were among those that saw a slight tariff reduction. Some countries, like Brazil and Switzerland, saw their tariff rate increase. Speaking to NBC News late Thursday, Trump said it was "too late" for nations to avoid the tariffs, but suggested that the door remained open to trade deals down the road. The updates are set to swing into effect on August 7, instead of the August 1 deadline Trump initially proposed and promoted as a "GREAT DAY FOR AMERICA" in a post on Truth Social earlier this week "It doesn't mean that somebody doesn't come along in four weeks and say we can make some kind of a deal," he told NBC in a phone interview. 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"We remind investors that short-term swings can create good entry points for long-term investors." Job market buckles Tariff woes were compounded by a weak nonfarm payrolls report. Employers added 73,000 jobs in July, below estimates of 100,000. But even more troubling were the revisions for May and June, which saw their figures revised lower by a combined 258,000. The unemployment rate edged up to 4.2%. "Today's Jobs report is unambiguously soft and a reflection of the trade and tariff impact on economic growth," Art Hogan, the chief market strategist at B. Riley Wealth, wrote in a note. "Both the actual report and the big negative revisions are more evidence that the trade policy will slow growth," he added. The downward revisions reveal "cracks" in the labor market, Jeffrey Roach, chief economist at LPL Financial, said. It's also causing more investors to expect a rate cut in September, he said, despite Fed Chair Powell striking a hawkish tone earlier in the week, Roach said. "The stock market will probably move past this particular report and keep climbing this month, but today could be an ugly day in the market given the confluence of new tariff announcements and more evidence that the job market is slowing," Chris Zaccarelli, the chief investment officer at Northlight Asset Management, said in a note. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
