(Decorated) Home(s) For The Holidays: Contest shows Porterville's holiday spirit
A low doesn’t always mean a stock’s cheap. But I think value investors should take a close look at ( ) shares at a P/E multiple of 8. The company makes money by buying and leasing aircraft. And it looks to me a potentially better pick than either of the . Overview With a few exceptions, airlines typically don’t like owning the aircraft they operate. And the reason’s straightforward – they’re expensive. Buying and maintaining aircraft involves a lot of cash. By contrast, leasing involves a relatively small capital outlay early on and this gives airlines the possibility for rapid profits when demand’s strong. The downside – and the reason I mostly don’t like airlines as investments – is that making ongoing lease payments requires constant cash generation. And in a industry, that’s very risky. Aercap however, has the opposite approach. It used debt to buy aircraft outright and generates income by leasing them to airlines. Valuation At a P/E ratio of around 8, the stock looks cheap, but investors should be careful with jumping to conclusions here. Aercap’s earnings don’t just go down in a cyclical downturn – they go negative. That means investors need to make enough when things are going well to offset the effect of loss-making years. This is why a low P/E ratio doesn’t automatically make the stock a bargain. A better way of assessing the stock from a valuation perspective is the . Unlike the company’s earnings, its book value’s relatively stable through the business cycle. On a P/B basis, the stock‘s towards the higher end of its historic range. Given this, my instinct is to keep the stock on my watchlist for the next downturn, rather than buying it now. Aercap Vs airlines When a downturn comes – and the cyclical nature of air travel means I’m convinced it will come – I’d rather buy shares in Aercap than an airline. I think the risk of bankruptcy’s much lower. They can make big profits during strong periods and I could be wrong, but airlines that have to make lease payments can find themselves in trouble in a downturn. Aercap however, has a collection of assets it can sell if needed. It’s worth noting that the firm‘s been selling its older aircraft at around twice what it carries them on its balance sheet at. And this has allowed it to reduce its share count by almost 25% since 2022. Neither nor has managed to do this. And I see that as a clear reason to prefer Aercap over either of the FTSE 100 airlines. When to buy? I’m usually wary of cyclical stocks trading at historically high multiples. But Aercap shares might be good value right now, even given the threat of a downturn. The company’s managed an average 10% return on equity over the last decade. On top of this, it’s selling aircraft at twice their book value. Given this, a P/B multiple of 1 for the stock doesn’t look high. So there’s a decent case for considering the stock right now.New tax laws won’t affect 95% households: FBR FBR chief says Tax Policy Unit to continue data analysis to review impact of tax rates under broader economic picture ISLAMABAD: The Senate Standing Committee on Finance was Tuesday informed that the recent changes in the tax laws would not affect 95 percent households but the potential tax-dodgers, and the government will fetch additional Rs5 trillion within five years. The committee kick-started deliberations on Tax Laws Amendment Bill 2024 in the absence of the ruling party senators. However, Minister for Finance Mohammad Aurangzeb and Minister of State for Finance Ali Pervez Malik participated in the meeting. Senator Saleem Mandviwalla chaired the committee meeting at the Parliament House. Senator Mohsin Aziz and Shibli Faraz from the PTI participated. The chairman postponed the meeting till the next session of the panel. Briefing the committee, FBR Chairman Rashid Mahmood Langrial said the Tax Policy Unit will continue data analysis to review the impact of tax rates under the broader economic picture of the country. “We are not here to raise taxes or impose new taxes, but to resolve the issue where we were forced to increase the tax rates. The bill would resolve the issue of non-filing or under-filing of returns,” Langrial said. He clarified that 95 percent of the households would be not affected by the Tax Laws (Amendment) Bill, 2024. The finance minister was confident that the bill would play an important role in taking the tax-to-GDP ratio from the existing 10.3 percent to 13 percent in the next five years. The tax-to GDP ratio of our neighboring country stands at 18 percent. There is a tax gap of approximately Rs5 trillion. The sales tax gap was Rs3 trillion during 2023-24 whereas the income tax gap stood at Rs2 trillion during the period, Langrial told the committee. He said out of 62,000 registered entities, only 42,000 were actively paying sales tax. Any failure to pay sales tax is more unethical compared to the income tax-evasion. The proposed amendments seek to improve the sales tax collection mechanisms, he added. Senator Syed Shibli Faraz also inquired about the potential impact of amendments on broadening the tax base. Responding, the FBR chairman predicted that the tax-to-GDP ratio could rise to approximately 13% over the next four to five years, driven by increased revenues from sales tax, income tax, and customs duties. Finance Minister Mohammad Aurangzeb said credibility and trust gap existed which needed to be overcome. Under the FBR’s transformation plan, he said top priority was given to restoring confidence and trust in the tax authority. He said the element of corruption and harassment would abolish, tax base would broaden and revenue leakage as well as under-filing would curtail. “My sympathy is with the salaried class, as I am paying high tax like super tax/CVT on the salaried income,” Aurangzeb said. Rightsizing of all the ministries is also underway, he said. The finance minister said the government had interacted with associations, including retailers and wholesalers, and it was very clear that everyone had to contribute to the economy. “If we fail to collect taxes from the non-compliant sector, then what we will do in next budget? Will we again increase taxes on the already overburdened taxpayers like the manufacturing sector and salaried class?” he asked. Syed Shibli Faraz asked whether the bill should be classified as a money bill or an ordinary bill. Secretary Law and Justice Raja Naeem Akbar clarified that the bill should be treated as a money bill, citing Article 73(2) and Article 75 of the Constitution of Pakistan as the legal basis. Senator Syed Shibli Faraz emphasized the urgent need to restore public confidence in the tax authorities, asserting that no substantial progress could be made without winning the public trust. In response, the minister for finance outlined the government’s commitment to rebuilding this trust through the introduction of “People Process Technology” initiative. He reiterated the government’s empathy towards the salaried class and stressed that efforts were underway to create a fair balance between different socioeconomic classes.JD(U) takes potshot at Tejashwi ahead of CM’s yatra beginning today
There’s been a lot of reporting in recent months around Apple’s efforts to expand its footprint in customers’ homes with in-development products like a wall-mounted smart home hub . According to a new report in Bloomberg , that strategy could also include a smart doorbell. This doorbell would use Apple’s FaceID technology to scan people’s faces as they approach the door, then connect wirelessly to a deadbolt lock and automatically unlock for residents of the home. The doorbell is reportedly in the early stages of development and wouldn’t come to market before the end of 2025 at the earliest. It might work with third-party locks that are compatible with Apple’s HomeKit, or Apple might launch with a specific lock maker. Bloomberg notes that while a smart doorbell with FaceID would allow Apple to compete with products like Amazon Ring, it would also make the brand vulnerable to new risks, particularly if the system was blamed for home break-ins.
