Latest news with #dilution
Irish Times
19 hours ago
- General
- Irish Times
Should I add water to my wine? Perhaps just a teaspoon
Adding water to wine does not always go down well with the purists, but it has been done for centuries, as far back as Ancient Greece and Rome. Not only is it acceptable, but in some cases, adding a drop or two of water can actually improve your wine. Wine is about 85 per cent water. The rest is alcohol, but also small amounts of acid, phenolics and minerals that add the all-important flavours that make wine taste so nice. You may already be drinking diluted wine, as spritzers and wine coolers are simply a mix of sparkling water and wine, sometimes with other fruit flavours added. On a hot sunny day, adding a little sparkling water or a few cubes of ice can make it so much more refreshing. In Ancient Rome and Greece, wine was usually watered down to avoid drunkenness, while also making the water safe to drink. The Greeks, apparently, added seawater – not something I've ever tried but it doesn't sound great. They also flavoured wine with herbs, spices and honey, probably to make old, oxidised wine more palatable. At home, I tend to avoid the big, powerful alcoholic reds, partly because I don't want to ingest too much alcohol, but often because I don't like the flavours. My job obliges me to taste them, but not necessarily to drink them. Over the last few decades, wine has become more alcoholic. For instance, most Bordeaux was once 12.5-13 per cent. These days, it is more likely to be 14-14.5 per cent and even 15 per cent sometimes. Full-bodied red wines can be very extracted and overwhelm the senses rather than refresh the palate. A while ago, I began adding a teaspoonful or two of water to my glass of big red and found that it transformed the wine. It became much more aromatic and fruitier, turning those jammy prunes and sweet dark cassis into fresh blackcurrants and summer fruits. According to food writer and scientist Harold McGee, alcohol binds to flavour compounds in a wine, masking the flavours a little, and adding water helps release those flavours. READ MORE Now I am not suggesting that you start adding large quantities of water to your finest wines. Adding water also seems to change the tannic structure of a wine and can make it taste a little dry and hollow, so I never add too much, usually a teaspoon or two, and I do not add it to my best bottles. However, on a warm sunny day a few cubes of ice in a fruity white wine will make all the difference. It is one thing to add water to wine; but so far I have failed to turn my water into wine.
Yahoo
24-05-2025
- Business
- Yahoo
Earnings Troubles May Signal Larger Issues for Collins Property Group (JSE:CPP) Shareholders
Last week's earnings announcement from Collins Property Group Limited (JSE:CPP) was disappointing to investors, with a sluggish profit figure. We did some further digging and think they have a few more reasons to be concerned beyond the statutory profit. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To understand the value of a company's earnings growth, it is imperative to consider any dilution of shareholders' interests. In fact, Collins Property Group increased the number of shares on issue by 28% over the last twelve months by issuing new shares. Therefore, each share now receives a smaller portion of profit. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. Check out Collins Property Group's historical EPS growth by clicking on this link. As you can see above, Collins Property Group has been growing its net income over the last few years, with an annualized gain of 66% over three years. But EPS was only up 29% per year, in the exact same period. Net profit actually dropped by 51% in the last year. Unfortunately for shareholders, though, the earnings per share result was even worse, declining 60%. And so, you can see quite clearly that dilution is having a rather significant impact on shareholders. If Collins Property Group's EPS can grow over time then that drastically improves the chances of the share price moving in the same direction. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Collins Property Group. Finally, we should also consider the fact that unusual items boosted Collins Property Group's net profit by R208m over the last year. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is). In its last report Collins Property Group benefitted from unusual items which boosted its profit, which could make the profit seem better than it really is on a sustainable basis. And furthermore, it went and issued plenty of new shares, ensuring that each shareholder (who did not tip more money in) now owns a smaller proportion of the company. For the reasons mentioned above, we think that a perfunctory glance at Collins Property Group's statutory profits might make it look better than it really is on an underlying level. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. When we did our research, we found 5 warning signs for Collins Property Group (1 doesn't sit too well with us!) that we believe deserve your full attention. Our examination of Collins Property Group has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
17-05-2025
- Business
- Yahoo
Weak Statutory Earnings May Not Tell The Whole Story For InPlay Oil (TSE:IPO)
Despite InPlay Oil Corp.'s (TSE:IPO) recent earnings report having lackluster headline numbers, the market responded positively. We think that shareholders might be missing some concerning factors that our analysis found. Our free stock report includes 4 warning signs investors should be aware of before investing in InPlay Oil. Read for free now. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. In fact, InPlay Oil increased the number of shares on issue by 86% over the last twelve months by issuing new shares. That means its earnings are split among a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. You can see a chart of InPlay Oil's EPS by clicking here. Unfortunately, InPlay Oil's profit is down 97% per year over three years. Even looking at the last year, profit was still down 80%. Sadly, earnings per share fell further, down a full 81% in that time. And so, you can see quite clearly that dilution is having a rather significant impact on shareholders. If InPlay Oil's EPS can grow over time then that drastically improves the chances of the share price moving in the same direction. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. InPlay Oil issued shares during the year, and that means its EPS performance lags its net income growth. As a result, we think it may well be the case that InPlay Oil's underlying earnings power is lower than its statutory profit. In further bad news, its earnings per share decreased in the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about InPlay Oil as a business, it's important to be aware of any risks it's facing. To help with this, we've discovered 4 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in InPlay Oil. This note has only looked at a single factor that sheds light on the nature of InPlay Oil's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
11-05-2025
- Business
- Yahoo
JAKS Resources Berhad (KLSE:JAKS) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of
Unsurprisingly, JAKS Resources Berhad's (KLSE:JAKS) stock price was strong on the back of its healthy earnings report. We did some analysis and think that investors are missing some details hidden beneath the profit numbers. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. As it happens, JAKS Resources Berhad issued 11% more new shares over the last year. That means its earnings are split among a greater number of shares. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. Check out JAKS Resources Berhad's historical EPS growth by clicking on this link. As you can see above, JAKS Resources Berhad has been growing its net income over the last few years, with an annualized gain of 10% over three years. But on the other hand, earnings per share actually fell by 17% per year. And at a glance the 241% gain in profit over the last year impresses. But in comparison, EPS only increased by 202% over the same period. So you can see that the dilution has had a bit of an impact on shareholders. In the long term, earnings per share growth should beget share price growth. So it will certainly be a positive for shareholders if JAKS Resources Berhad can grow EPS persistently. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of JAKS Resources Berhad. JAKS Resources Berhad shareholders should keep in mind how many new shares it is issuing, because, dilution clearly has the power to severely impact shareholder returns. Because of this, we think that it may be that JAKS Resources Berhad's statutory profits are better than its underlying earnings power. The silver lining is that its EPS growth over the last year has been really wonderful, even if it's not a perfect measure. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about JAKS Resources Berhad as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 3 warning signs for JAKS Resources Berhad and we think they deserve your attention. Today we've zoomed in on a single data point to better understand the nature of JAKS Resources Berhad's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
10-05-2025
- Business
- Yahoo
There Are Some Holes In Mudajaya Group Berhad's (KLSE:MUDAJYA) Solid Earnings Release
Shareholders were pleased with the recent earnings report from Mudajaya Group Berhad (KLSE:MUDAJYA). Despite this, we feel that there are some reasons to be cautious with these earnings. We've discovered 5 warning signs about Mudajaya Group Berhad. View them for free. One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. In fact, Mudajaya Group Berhad increased the number of shares on issue by 42% over the last twelve months by issuing new shares. Therefore, each share now receives a smaller portion of profit. Per share metrics like EPS help us understand how much actual shareholders are benefitting from the company's profits, while the net income level gives us a better view of the company's absolute size. You can see a chart of Mudajaya Group Berhad's EPS by clicking here. We don't have any data on the company's profits from three years ago. Zooming in to the last year, we still can't talk about growth rates coherently, since it made a loss last year. But mathematics aside, it is always good to see when a formerly unprofitable business come good (though we accept profit would have been higher if dilution had not been required). And so, you can see quite clearly that dilution is having a rather significant impact on shareholders. If Mudajaya Group Berhad's EPS can grow over time then that drastically improves the chances of the share price moving in the same direction. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Mudajaya Group Berhad. Finally, we should also consider the fact that unusual items boosted Mudajaya Group Berhad's net profit by RM123m over the last year. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. Which is hardly surprising, given the name. Mudajaya Group Berhad had a rather significant contribution from unusual items relative to its profit to December 2024. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. To sum it all up, Mudajaya Group Berhad got a nice boost to profit from unusual items; without that, its statutory results would have looked worse. On top of that, the dilution means that its earnings per share performance is worse than its profit performance. For the reasons mentioned above, we think that a perfunctory glance at Mudajaya Group Berhad's statutory profits might make it look better than it really is on an underlying level. If you'd like to know more about Mudajaya Group Berhad as a business, it's important to be aware of any risks it's facing. To help with this, we've discovered 5 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Mudajaya Group Berhad. Our examination of Mudajaya Group Berhad has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
