Gains

Globe gains momentum on data and video experience improvements, well-ahead of aggressive builds

Globe gains momentum on data and video experience improvements, well-ahead of aggressive builds

Globe has been consistently upgrading its network and accelerating infra builds as part of its efforts to provide better data experience and connectivity to its subscribers. Prior to the pandemic in 2019, Globe spent P51 billion in capex to increase its builds, putting up 139% more cell sites compared to 2018.  As a result, 4G base stations of the company increased, putting up 28% more than 2018, doubling the deployment of massive MIMO (multiple input, multiple output) sites, thus considerably adding more data capacity.

For 2020, the company committed to spend Php 50.3 billion in capex, a large portion of which is allotted for its network upgrade initiatives.  This year there is a lot of optimism to do more infrastructure builds with the implementation of the Joint Memorandum Circular (JMC) No. 01 s. 2020 signed by the Department of Information and Communications Technology, Department of Interior and Local Government, Anti-Red Tape Authority and other government agencies and the recent signing of the Bayanihan 2  We Recover As One Act, which aim to shorten the process of issuing permits to build. For the 2-month period from August to September, Globe was able to secure a total of 715 permits, this would enable builds in areas from Bangued in Northern Luzon to Butuan City in the Caraga Administrative Region in Northeastern Mindanao. Despite the pandemic, Globe’s critical skeletal workforce composed of engineers, installers, repairmen and other personnel has continued to work on network improvements and site builds to ensure unhampered connectivity for subscribers.

For 2021, Globe undertakes an even more aggressive network upgrade and expansion by focusing on 4G/LTE for a

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Lowe’s Gains From Home Improvement Business & Online Sales

Home renovation and maintenance activities have been gaining prominence lately, thanks to increased stay-at-home practices amid the coronavirus pandemic. The trend has been benefiting certain home improvement market players, including Lowe’s Companies, Inc. LOW. This apart, the company’s efforts to expand digital offerings is worth appreciating. These upsides were well-reflected in the company’s second-quarter fiscal 2020 results, with the top and the bottom line improving year on year. Let’s dig deeper.

Bright Prospects in Home Improvements Market

Growing inclination toward home improvement projects is quite visible in Lowe’s second-quarter fiscal 2020 results. Comparable sales (comps) for the company’s U.S. home-improvement business increased 35.1% in the second quarter, following an increase of 12.3% in the first quarter.

In the reported quarter, comps gained from sturdy project demand from DIY and pro customers across channels, product categories and geographies. It saw comps growth of more than 20% across all its merchandising divisions, while all the U.S. geographic regions posted comparable sales increase of at least 30%.

Industry experts point out that that consumer spending on home improvement products are likely to remain favorable in the near term. Safety concerns and continued work-at-home practice amid the pandemic have compelled individuals to stay inside. As a result, DIY projects for remodeling, decorating as well as maintenance of furniture and fixtures are being widely undertaken. We expect Lowe’s to keep gaining from such trends.

Digital Investments are a Key Growth Catalyst

Lowe’s is investing toward boosting its omni-channel operations for a while. When shopping preferences began witnessing a major shift with the onset of the pandemic, Lowe’s accelerated its efforts to expand digital offerings. In this context, the migration of Lowes.com to the cloud as well as the roll out curbside pickup helped the company sustain online growth.

We note that the company has been

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Pinehurst gains much, loses nothing with constant improvements

Give or take a DeChambeau drive, it’s about 3,750 miles from the town of St. Andrews in the Kingdom of Fife to the village of Pinehurst in the sandhills of North Carolina. But what distance separates, golf connects.



a large green field with trees in the background


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St. Andrews and Pinehurst are often mentioned in the same breath as homes of the game in the Old World and the New, respectively, not least because both places don’t just embrace golf but rather seem to have grown organically around its finest canvases.

The village of Pinehurst is dominated by its eponymous resort, which can now boast more golf courses than Elizabeth Taylor could ex-husbands. There are nine standard courses, all numbered, and the most celebrated – the Richard Burton, if you like – is No. 2. It has hosted three U.S. Opens, a U.S. Women’s Open, a U.S. Senior Open, a PGA Championship, a Ryder Cup and three U.S. Amateurs. There isn’t another venue in golf that owns such a glittering resume.

When I first visited No. 2 about 15 years ago, much of its strategic charm was buried beneath sod. Its fairways were wall-to-wall grass, generous enough to land an aircraft without disturbing a pine cone. What little it demanded of players off the tee, it made up for around the famously crowned greens, where someone with a stonemason’s touch might ping-pong hither and yon for some time. To wit: A friend once shot an ignominious round of 121 at No. 2. With one ball! 

A long season of change at Pinehurst began a decade ago, when No. 2 was restored by Bill Coore and Ben Crenshaw. The duo ripped out 35 acres of turf, leaving native areas dotted with grass and scrub that not only returned long-lost playing angles to the old masterpiece but

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Home Depot Looks Overvalued After 80% Gains

After an 80% rise since the March lows of this year, at the current price of around $270 per share, we believe Home Depot’s stock (NYSE: HD) has reached its near term potential. The home improvement retailer has seen its stock outperform through the coronavirus crisis, rising by almost 27% year-to-date (compared to a 2% growth in the S&P), benefiting from the stay-at-home bump. Home Depot’s stock is already about 54% higher than it was at the end of 2017. Our dashboard, What Factors Drove 54% Change in Home Depot Stock Between 2017 and Now?, provides the key numbers behind our thinking, and we explain more below.

Some of this growth over the last few years is justified by the roughly 9% increase in Home Depot’s revenues from $100.9 billion in 2017 to $110.2 billion in 2019. In addition, earnings growth, on a per-share basis, was higher by 40%. This was driven by a 160 bps net margin expansion from 8.6% to 10.2% and a 7% decline in shares outstanding during this period.

Finally, Home Depot’s P/E ratio grew from about 24x at the end of 2017 to 26x currently. The company’s P/E Multiple is yet to see a meaningful decline from the current 26x levels, which still remains 27% higher than the levels of 21x seen in 2019. We believe that the stock could remain rangebound around the current levels in the near term.

So how has Coronavirus impacted the stock?

Home Depot has remained open as an essential retailer during the pandemic restrictions and has benefited from home improvement projects. In

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