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How Much Did T2 Biosystems'(NASDAQ:TTOO) Shareholders Earn From Share Price Movements Over The Last Five Years?

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Long term investing works well, but it doesn’t always work for each individual stock. It hits us in the gut when we see fellow investors suffer a loss. Anyone who held T2 Biosystems, Inc. (NASDAQ:TTOO) for five years would be nursing their metaphorical wounds since the share price dropped 89% in that time. And it’s not just long term holders hurting, because the stock is down 50% in the last year. Even worse, it’s down 16% in about a month, which isn’t fun at all.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don’t have to lose the lesson.

See our latest analysis for T2 Biosystems

Because T2 Biosystems made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last half decade, T2 Biosystems saw its revenue increase by 29% per year. That’s better than most loss-making companies. So it’s not at all clear to us why the share price sunk 14% throughout that time. You’d have to assume the market is worried that profits won’t come soon enough. While there might be an opportunity here, you’d want to take a close look at the balance sheet strength.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth

This free interactive report on T2 Biosystems’ balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

T2 Biosystems shareholders are down 50% for the year, but the market itself is up 16%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year’s performance may indicate unresolved challenges, given that it was worse than the annualised loss of 14% over the last half decade. We realise that Baron Rothschild has said investors should “buy when there is blood on the streets”, but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we’ve discovered 4 warning signs for T2 Biosystems (2 are concerning!) that you should be aware of before investing here.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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evidence shows huge mail slowdowns after Trump ally took over

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evidence shows huge mail slowdowns after Trump ally took over
Photograph: Reuters

The United States Postal Service (USPS) saw a severe decline in the rate of on-time delivery of first-class mail after Louis DeJoy took over as postmaster general, according to new data obtained by the Guardian that provides some of the most detailed insight yet into widespread mail delays this summer.

Related: Trump doesn’t seem to understand how voting works. Here’s what you need to know

Shortly after taking the helm, DeJoy – a major Republican donor with no prior USPS experience – implemented operational changes he said were intended to make the financially beleaguered agency more efficient. Those changes included an effort to get USPS trucks to run on time and limiting extra trips to transport late mail, with the result that mail was often left behind.

Many critics have noted that DeJoy chose to make these changes at the worst possible time, in the midst of a pandemic and months ahead of a presidential election in which a record number of people are expected to vote by mail.

In late August, DeJoy announced he was putting the changes on hold until after the election, and last week a federal judge in Washington blocked USPS from implementing them. The changes were clearly aimed at “voter disenfranchisement”, given the increased role USPS will play in this year’s presidential election, the US district judge Stanley Bastian wrote in his ruling.

“It is easy to conclude that the recent Postal Services’ changes is an intentional effort on the part the current Administration to disrupt and challenge the legitimacy of upcoming local, state, and federal elections,” Bastian wrote.

Map of USPS first-class on-time delivery rates dropping just weeks after DeJoy was appointed.

Describing the data, Philip Rubio, a history professor at North Carolina A&T university who is also a former postal worker, said: “This is a remarkable graphic illustration that reveals the decline of on-time first-class mail from the very first day after Postmaster General DeJoy’s policies were announced and implemented.”

“Not only do we see the national picture for first-class mail delivery worsening over time after DeJoy’s policies become effective, but we also see locally conditions varying and even emerging for the worse.”

Of note, some areas in key swing states saw significant declines in on-time delivery rates of first-class mail. In the postal district for northern Ohio, on-time delivery rates dropped as low as 63.60% in mid August. In the Detroit postal district, on-time delivery fell to 61.01% the same month.

USPS has pledged to facilitate timely delivery of mail-in ballots for the election and work closely with election officials to ensure that happens. But the relationship has been rocky recently; some election officials fumed when the agency sent out a mailing to every household with information about mail-in voting without thoroughly consulting with them. The generalized mailer was misleading for voters in the handful of US states that automatically mail all registered voters a ballot.

Although DeJoy’s changes have been paused until after the election, the new data shows that first class mail continued to be delivered late across the country after his reversal. In the Baltimore postal district, for example, the on-time delivery rate remained at less than 60% at the end of August.

“Unfortunately, even though on-time performance improved after those changes were put on pause, delivery speed is still well below normal and far below the postal service’s own targets,” said Steve Hutkins, a professor at New York University who runs Save The Post Office, a blog that monitors the agency.

“The harms that were done have not yet been undone.”

David Partenheimer, a USPS spokesman, declined to comment specifically on the data, citing ongoing litigation. USPS released a statement on Friday saying that on-time delivery for first class mail continued to improve in September and that on time departures for trucks continued to improve.

“The improvements are a result of the Postmaster General’s commitment to drive operational discipline and improve efficiencies across processing, transportation and delivery,” the agency said in its statement.

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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Emmy Awards Drop to New Low in Early Numbers

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Emmy Awards Drop to New Low in Early Numbers

They Emmys are in line for their lowest ever viewership once again.

According to early numbers, last night’s show, hosted by Jimmy Kimmel, scored a 1.0 rating among adults 18-49 and drew only 5.1 million total viewers. While those numbers will increase later in the day as more accurate information comes in, they still represent roughly a 14% dip in total audience from last time around.

Last year marked a historic low for TV’s top awards shows, as a host-less ceremony on Fox delivered a massive 33% decline from the year before, scoring a 1.6 rating and drawing only 6.9 million viewers. For comparison, the previous four ceremonies before that were watched by 10.2 million viewers, 11.4 million viewers (in both 2017 and 2016) and 11.9 million viewers. That 6.9 million figure was roughly one third of the total pairs of eyeballs the Emmys drew as recently as 2013.

Sunday night’s ceremony could have been a flaming disaster, but by and large Kimmel managed to keep things together (especially considering he was leading proceedings from an empty Staples Center) and ABC produced a coherent show despite all kinds of COVID-19 related barriers.

It has to be noted that the Emmys faced even stiffer competition than usual on Sunday night, as the show aired against both NBC’s “Sunday Night Football” and the NBA Playoffs on the East Coast in the primetime window for the first time.

There was also no red carpet lead-in this year to get the audience excited for the show due to COVID-19, which likely played some part in producing these low numbers. The previous two Emmys on ABC both had “Emmys Red Carpet Live” as their lead-in.

The biggest winner on Sunday night was undoubtedly “Schitt’s Creek,” which swept all of the major comedy categories, including outstanding series. HBO triumphed over Netflix in the overall tally, thanks primarily to “Watchmen,” which landed a whopping 11 total awards. One of the biggest surprises of the night came in the lead actress drama category, where Zendaya broke through for her “Euphoria” performance, beating out previous winner Jodie Comer and Oscar-winner Olivia Colman.

Elsewhere on the Sunday, a thrilling NFL game between the Seattle Seahawks and the New England Patriots delivered 12.2 million viewers and a 3.5 rating in the early goings. While that obviously dwarfs the Emmys and pretty much everything else on Sunday night, it does in fact represent around a 17% drip from last weekend’s “SNF” opener.

CBS’ reality offerings were shifted by NFL overruns, as “Big Brother” scored a 1.2 rating inn the key demo and 3.5 million viewers, followed by “Love Island” with a 0.9 and 1.7 million viewers. The season premiere of “60 Minutes” drew 7.5 million viewers.

More to come…

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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Is Now The Time To Put Lockheed Martin (NYSE:LMT) On Your Watchlist?

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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Warren Buffett has mused, ‘If you’ve been playing poker for half an hour and you still don’t know who the patsy is, you’re the patsy.’ When they buy such story stocks, investors are all too often the patsy.

In contrast to all that, I prefer to spend time on companies like Lockheed Martin (NYSE:LMT), which has not only revenues, but also profits. Now, I’m not saying that the stock is necessarily undervalued today; but I can’t shake an appreciation for the profitability of the business itself. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.

Check out our latest analysis for Lockheed Martin

Lockheed Martin’s Earnings Per Share Are Growing.

If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. It certainly is nice to see that Lockheed Martin has managed to grow EPS by 21% per year over three years. As a general rule, we’d say that if a company can keep up that sort of growth, shareholders will be smiling.

I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company’s growth. Lockheed Martin maintained stable EBIT margins over the last year, all while growing revenue 9.5% to US$63b. That’s a real positive.

You can take a look at the company’s revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

earnings-and-revenue-history

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Lockheed Martin’s forecast profits?

Are Lockheed Martin Insiders Aligned With All Shareholders?

Since Lockheed Martin has a market capitalization of US$110b, we wouldn’t expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. Given insiders own a small fortune of shares, currently valued at US$99m, they have plenty of motivation to push the business to succeed. That’s certainly enough to make me think that management will be very focussed on long term growth.

It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. Well, based on the CEO pay, I’d say they are indeed. I discovered that the median total compensation for the CEOs of companies like Lockheed Martin, with market caps over US$8.0b, is about US$11m.

The CEO of Lockheed Martin only received US$310k in total compensation for the year ending . That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I’d also argue reasonable pay levels attest to good decision making more generally.

Should You Add Lockheed Martin To Your Watchlist?

Given my belief that share price follows earnings per share you can easily imagine how I feel about Lockheed Martin’s strong EPS growth. If that’s not enough, consider also that the CEO pay is quite reasonable, and insiders are well-invested alongside other shareholders. Each to their own, but I think all this makes Lockheed Martin look rather interesting indeed. Before you take the next step you should know about the 1 warning sign for Lockheed Martin that we have uncovered.

You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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