Bhavik Narsana & Ashraya Rao
For foreign investors looking to invest under the foreign direct investment (FDI) route in India, many questions persist. A significant amount of advice is sought on the nature of the investment instrument through which they should invest. Since the Consolidated FDI Policy (FDI Policy) and Schedule I of the Foreign Exchange Management (Transfer of Security by a Person Resident outside India) Regulations 1999 (FEMA 20) permit only a few investment instruments (being equity shares, compulsorily convertible preference shares (CCPS), warrants and compulsorily convertible debentures (CCDs)) under the FDI route, it becomes important to analyse the benefits of each instrument for the nature of investment sought. The benefits and shortfalls of each of these instruments have to be understood from a corporate and taxation perspective, such that the commercial teams of the foreign investor are duly prepared when sharing their proposal with Indian counterparts. Private limited companies offer more flexibility to structure the investment instruments as compared to public limited companies. Between equity shares and CCPS in private limited companies, financial investors tend to prefer the latter for the flexibility it offers, especially with respect to terms and adjustments for future events, priority for dividends and liquidation events.
Dividends, being freely repatriable, form a significant source of revenue for foreign investors. This article seeks to set out few suggestions with respect to dividends sought by foreign investors from private limited companies while highlighting key issues from a corporate law and foreign exchange law perspective.
Best Dividend Stocks To Watch For 2018: NovoCure Limited(NVCR)
- [By Lisa Levin]
Novocure Ltd (NASDAQ: NVCR) shares shot up 22 percent to $7.27 after the company posted a narrower-than-expected Q3 loss.
Shares of TriNet Group Inc (NYSE: TNET) got a boost, shooting up 15 percent to $20.43. TriNet reported Q3 earnings of $0.29 per share on revenue of $770.5 million.
Best Dividend Stocks To Watch For 2018: Google Inc.(GOOG)
- [By Lisa Levin]
Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) reported stronger-than-expected results for its fourth quarter on Monday.
Alphabet reported a huge Q4 earnings beat of $8.67; consensus estimate called for earnings of $8.10 per share. The company also beat on revenue, coming in at $21.34 billion versus $20.76 billion estimates.
- [By Ben Levisohn]
Yes, Chipotle is having a great run. It’s gained 27% so far this year, and traded a new 52-week high today. But Chipotle is also expensive–so expensive that the market appears to be treating it like another Amazon.com (AMZN), Tesla (TSLA), Apple (AAPL), or Alphabet (GOOG), Moas wrote in his downgrade today. He explains:
- [By Shudeep Chandrasekhar]
Of the top four tech companies in the world (by market cap), Apple sells the most, earns the most and has the highest operating margins of them all, yet still trades extremely close to Amazon.com (NSDQ:AMZN), the retail giant that operates with wafer thin margins, in terms of price to sales ratio. Even from a price to earnings multiple point of view, Apple commands a much lower valuation than Alphabet Inc(NSDQ:GOOG). What is really surprising is that the company is selling at half the P/S of Microsoft (NSDQ:MSFT), a company that is still on a recovery path. (See also:Apple Inc. Cuts iPhone Production, Time To Sell AAPL Stock?)
- [By Adam Levine-Weinberg]
Last week, Brand Finance came out with its annual listing of brand valuations. In a somewhat shocking finding, the consulting group declared that Apple (NASDAQ:AAPL) had lost its supremacy to Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary Google.
- [By Elizabeth Balboa]
Discontent to serve terrorist agenda as propaganda and recruitment platforms, Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)’s YouTube, Facebook Inc (NASDAQ: FB) and other online communications companies have committed to heightened site censorship. Over the last two months alone, Facebook reportedly deleted about 66,000 posts flagged as hate speech each week.
Best Dividend Stocks To Watch For 2018: Wendy’s/Arby’s Group Inc.(WEN)
- [By Jim Jubak, Senior Markets Editor, MoneyShow.com]
It’s hard for any company to raise prices in the current non-inflationary environment. But it’s especially hard right now for operators of fast food restaurants, given the intense price competition in a very crowded marketplace. McDonald’s sales growth in recent quarters has been driven by the success of its Dollar Menu, so raising prices in that segment are a big deal for the company. In addition, pushback from franchisees who say they can’t afford to refurbish their stores, given higher charges from McDonald’s hits at one of McDonald’s key advantages in its market—it’s ability to refresh stores more frequently than competitors. A McDonald’s refresh at $600,000 on average, according to the company, costs substantially more than a remodel at Burger King (BKW) at $300,000 or Wendy’s (WEN) at $375,000 for the least expensive version. McDonald’s restaurants average $2.5 million in annual sales.
- [By Stark Merrifield]
Bill Ackman: Fifty-year-old Ackmans career began in 1992 when he and fellow Harvard graduate David P. Berkowtiz founded the investment firm Gotham Partners. The firms high-profile bid for Rockefeller Center in New York caused investors to flock to the firm, growing it to $500 million in assets. Then in 2004, with $54 million in personal funding, Ackman started Pershing Square Capital Management. Through Pershing, Ackman bought significant shares in companies like Wendys Co. (Nasdaq: WEN), Target Corp. (NYSE: TGT), Chipotle Mexican Grill Inc. (NYSE: CMG), and Valeant Pharmaceuticals International Inc. (NYSE: VRX). Today, Ackman is worth $1.4 billion and is No. 256 on the Forbes 400.
- [By Michael Flannelly]
KeyBanc analysts upgraded fast food restaurant operator The Wendy’s Co (WEN) on Friday, noting that the company has a number of positive developments that could provide a floor for the stock.
The analysts upgraded WEN from “Underweight” to “Hold.”
KeyBanc analyst Christopher O’Cull said, “We are raising our rating for The Wendy’s Company to HOLD as we believe: 1) Wendy’s SRS performance will diverge from the industry for the foreseeable future as new products are supported by more effective use of marketing dollars; 2) better menu and promotional management will lead to improved franchisee profitability (a focus of the new CFO Todd Penegor); and 3) the opportunity to extend the re-franchising program will provide a floor on the stock.”
Wendy’s shares were up 7 cents, or 0.81%, during pre-market trading on Friday. The stock is up 57.01% year-to-date.
- [By Michael Flannelly]
Argus Research upgraded fast food restaurant operator The Wendy’s Co (WEN) on Thursday, noting that the company’s store remodeling and new menus should help drive higher sales.
The analysts upgraded WEN from “Hold” to “Buy” and see shares reaching $10. This price target suggests a 21% upside to the stock’s Wednesday closing price of $8.25.
Wendy’s shares were up 24 cents, or 2.91%, during early morning trading on Thursday. The stock is up 54.19% year-to-date.