DVMT

We’ve Dropped Coverage of the Business Services Industry

by

Image Source: Franz Conde Structure of the Business Services Industry Firms in the business services space primarily focus on management consulting, technology/data-integration services/software and outsourcing solutions. Participants generate high returns on invested capital, but the business services marketplace is very competitive, and firms can often face pressure from off-shore service providers in lower-cost locations (India, Philippines and China). Such competition may inhibit firms’ ability to obtain sufficient pricing for services, and economic conditions may hinder the capability of clients to pay for such services. Still, we’re generally neutral on the group. We’ve dropped coverage of the Business Services industry.

In the News: General Mills, Realty Income, Energy Transfer

by

General Mills makes a big deal, Realty Income delivers, while Energy Transfer tries to battle back to even. By Kris Rosemann US Secretary of Defense Jim Mattis came out in support of recommendations from the Commerce Department for targeted tariffs on steel and aluminum. While the Defense Department recognizes that imports of low-cost steel (SLX) and aluminum resulting from unfair trading practices undermine national security, it also warns that more broad action could irritate allies. President Trump has until April to decide whether or not to take action on the recommendations from the Commerce Department for tariffs up to 24% and 7.7% on foreign steel and aluminum, respectively. Consumer food product giant General Mills (GIS) made a splash before the … Read more