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GMS INC

GMS Inc is a distributor of specialty building products including wallboard, suspended ceiling systems, ceilings, steel framing, and other complementary building products. The company serves its products to commercial new construction, commercial repair and remodel, residential new construction, and residential repair and remodel (R&R). Its geographical segment is Central, Midwest, New York, Northeast, Southern, Southeast, Southwest, Western and Canada, and Ames. The company generates maximum revenue from Wallboard products.

AerovironmentRichmond,,Virginia,,Usa,-,8,May,2019:,Illustrative,Editorial,Of

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Tre azioni sottovalutate nel settore manifatturiero: l&#39;RSI basso segnala un&#39;imminente inversione di tendenza? La guida completa.

3 titoli industriali pronti ad esplodere dopo gli ultimi deludenti risultati

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AREB

American Rebel Shares Halted On Circuit Breaker To The Upside, Stock Now Up 47.1%

Stifel analyst Jim Duffy maintains Clarus (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLAR#NASDAQ">CLAR</a>) with a Buy and lowers the price target from $8 to $7.

Price Target

Analyst Ratings

CLAR

Stifel Maintains Buy on Clarus, Lowers Price Target to $7

JMP Securities analyst David Turkaly reiterates Steris (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STE#NYSE">STE</a>) with a Market Outperform and maintains $265 price target.

Reiteration

JMP Securities Reiterates Market Outperform on Steris, Maintains $265 Price Target

Stifel analyst Jim Duffy maintains Birkenstock Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIRK#NYSE">BIRK</a>) with a Buy and lowers the price target from $70 to $62.

BIRK

Stifel Maintains Buy on Birkenstock Holding, Lowers Price Target to $62

JMP Securities analyst Steven Delaney reiterates Seven Hills Realty Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEVN#NASDAQ">SEVN</a>) with a Market Outperform and maintains $14.5 price target.

SEVN

JMP Securities Reiterates Market Outperform on Seven Hills Realty Trust, Maintains $14.5 Price Target

Stifel analyst Jeffrey Stantial maintains Churchill Downs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHDN#NASDAQ">CHDN</a>) with a Buy and lowers the price target from $161 to $142.

CHDN

Stifel Maintains Buy on Churchill Downs, Lowers Price Target to $142

NEW YORK and TOKYO, April&nbsp;10, 2025 /PRNewswire/ -- TNL Mediagene (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TNMG#NASDAQ">TNMG</a>), a leading media and technology company&nbsp;in Asia, today announced its preliminary unaudited financial results highlights for the year ended December 31, 2024, and provided an outlook for 2025.
2024 Unaudited Preliminary Highlights
<ol>
<li>Pro-Forma Revenue Growth: TNL Mediagene achieved a revenue increase of more than 30% year-over-year. This growth was driven by revenue diversification into more tech and data powered products, like establishing retail media networks, new strategic data partnerships, and innovative content, resulting in increased user engagement, especially in short-form video formats.</li>
<li>Pro-Forma EBITDA: On a normalized basis excluding extraordinary items, including one-time DeSPAC and IPO expenses, and currency fluctuations, adjusted EBITDA is expected to be near profitability.</li>
</ol>
Management Commentary
"Despite the one-time DeSPAC and IPO fees and time and resource consuming process, 2024 was a very successful year for us," said Joey Chung, CEO of TNL Mediagene. "Our revenue grew considerably, and EBITDA margins improved substantially as well, especially when excluding foreign exchange adjustments, which would show even larger numbers. We achieved significant synergies across our operations in Japan and Taiwan, and aim to continue to greatly diversify our media, revenue and products across different languages, and include more data analytics, content commerce and AI services. We are confident that 2025 will also be a year of growth for us. Importantly, we are one of the few media/tech/data/e-commerce companies that are close to achieving operational profitability, while still in its growth stage. Furthermore, the recently proposed U.S. government tariff rules are not expected to impact TNMG's operations or this year's business performance forecasts."
"Looking ahead to 2025, we are focused on diversifying our media multilingualization and revenue sources, enhancing content commerce and brand performance advertising, and strengthening video and video commerce for monetization. By leveraging technology and data, we aim to capture retail media ad budgets and support our corporate commerce business. Additionally, we will continue to improve operational efficiency and reduce costs using AI technology to automate content creation, martech products, translation, and other tasks."
"We believe TNL Mediagene is currently undervalued and trading at an attractive level, with a price-to-sales (P/S) ratio of around 0.5x and a price-to-book (P/B) ratio of around 0.4x, while the media, martech and data analytics industries trade well above those ranges. &nbsp;Across the board, we are working to improve our overall profitability structure, EBITDA margin and seize growing opportunities to build value for our stakeholders. Together we believe our efforts can result in continued revenue growth and EBITDA improvement for 2025."

TNMG

TNL Mediagene Reports FY24 Preliminary Revenue Growth Of Over 30% Y-o-Y

JMP Securities analyst David Scharf reiterates Remitly Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELY#NASDAQ">RELY</a>) with a Market Outperform and maintains $32 price target.

RELY

JMP Securities Reiterates Market Outperform on Remitly Global, Maintains $32 Price Target

Scotiabank analyst Jonathan Goldman maintains TerraVest Industries (TSX:<a class="ticker" href="https://www.benzinga.com/stock/TVK#TSX">TVK</a>) with a Sector Outperform and raises the price target from C$140 to C$141.

TSX:TVK

Scotiabank Maintains Sector Outperform on TerraVest Industries, Raises Price Target to C$141

Billionaire investor Mark Cuban had high praise for Elon Musk last week, calling him possibly the greatest builder in modern manufacturing, while also challenging Musk&#8217;s stance on tariffs.
In a <a href="https://x.com/mcuban/status/1907801276714275045">post</a> on X, Cuban addressed Musk directly, writing: &#8220;Hey @elonmusk, you may be the greatest manufacturing builder of all time. Did you need protective tariffs in order to manufacture in the USA? Or were private capital, your investment, and local and federal government incentives the difference?&#8221;
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He added, &#8220;What I respect most about you is that you go all in with your own money for your startups. Most people don't have the balls to do it.&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Hey <a href="https://twitter.com/elonmusk?ref_src=twsrc%5Etfw">@elonmusk</a> , you may be the greatest manufacturing builder of all time. Did you need protective tariffs in order to manufacture in the USA ? Or were private capital , your investment, and local and federal government incentives the difference ? BTW, what I respect most…
&mdash; Mark Cuban (@mcuban) <a href="https://twitter.com/mcuban/status/1907801276714275045?ref_src=twsrc%5Etfw">April 3, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h2 class="wp-block-heading">Free Trade vs. Full Tariffs</h2>
Cuban&#8217;s comments came as the debate between free trade and protectionism heats up again. President Donald Trump recently announced <a href="https://www.benzinga.com/markets/equities/25/04/44620423/trumps-sweeping-tariffs-could-cost-us-20-trillion-crash-markets-warn-economists-monstrously-destructive">sweeping new tariffs</a>, including a 20% tax on imports from the European Union. The move rattled financial markets, sending stocks from <a href="https://www.benzinga.com/25/04/44642269/top-analyst-cautions-economic-armageddon-for-tech-sector-if-current-tariffs-stay-this-is-as-nervous-as-ive-seen-investors-since-covid">major tech companies into a tailspin</a>. Tesla (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), one of Musk&#8217;s companies, saw a <a href="https://www.benzinga.com/markets/25/04/44657033/elon-musk-loses-11-billion-as-tesla-stock-plummets-in-wake-of-new-trump-tariffs">double-digit drop</a>.
Musk responded publicly by advocating for zero tariffs and promoting the idea of a free trade zone between Europe and North America. <a href="https://x.com/america/status/1908561612631335214">Speaking</a> at The League Congress hosted by Italian Deputy Prime Minister Matteo Salvini, Musk said such policies would benefit consumers and global markets.
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Cuban acknowledged the benefits of Musk&#8217;s approach. &#8220;0 tariffs (free trade as Elon proposes) makes it cheaper to make overseas than it was under Biden,&#8221; he <a href="https://x.com/mcuban/status/1908905713809883398">wrote</a>. &#8220;Which is great for consumers.&#8221;
But Cuban also warned about the consequences of going too far with protectionist policies. In a follow-up post, he explained that if Trump's main goal is to reduce the deficit, heavy tariffs and spending cuts could be the easiest path. The idea is that this economic pressure might force the Federal Reserve to lower interest rates.
&#8220;The problem with the strategy is that tariffs at this level are incredibly inflationary,&#8221; Cuban said. &#8220;So the Fed can't just cut rates, it would make inflation worse. And slow the economy down even further.&#8221;
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<h2 class="wp-block-heading">Who&#8217;s Going To Win?</h2>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Free Trade <a href="https://twitter.com/elonmusk?ref_src=twsrc%5Etfw">@elonmusk</a> vs Full Tariff <a href="https://twitter.com/realDonaldTrump?ref_src=twsrc%5Etfw">@realDonaldTrump</a> and <a href="https://twitter.com/howardlutnick?ref_src=twsrc%5Etfw">@howardlutnick</a> is going to be fascinating to watch. They are the exact opposite sides of each other. 0 tariffs (free trade as Elon proposes ) makes it cheaper to make overseas than it was under Biden. Which is great for…
&mdash; Mark Cuban (@mcuban) <a href="https://twitter.com/mcuban/status/1908905713809883398?ref_src=twsrc%5Etfw">April 6, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Despite the turmoil, Cuban sees Trump's plan as likely to win out. &#8220;Free Trade @elonmusk vs Full Tariff @realDonaldTrump and @howardlutnick is going to be fascinating to watch. They are the exact opposite sides of each other,&#8221; he posted. &#8220;My money is on @realDonaldTrump winning.&#8221;
While Musk pushes for open global markets, Trump remains firm on his belief that tariffs are necessary to protect American industry. He called the policy shift an <a href="https://www.benzinga.com/markets/25/04/44660007/mark-cuban-says-between-free-trade-elon-musk-and-full-tariff-trump-it-is-the-president-who-will-win-as-stocks-futures-tank">&#8220;economic revolution&#8221; </a>on Truth Social and encouraged Americans to &#8220;hang tough&#8221; despite market volatility.
Answering to someone asking what the real strategy was, Cuban closed the loop by posing a hypothetical: What if China and other nations offered zero tariffs on U.S. goods, with no manipulation or tricks, if the U.S. did the same? &#8220;I'll ask you,&#8221; he wrote. &#8220;Should he say yes?&#8221;
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TSLA

'Most People Don't Have The Balls To Do It,' Says Mark Cuban, Praising Musk For Going 'All In' With His Own Money For His Startups

Stifel analyst Adam Borg maintains Autodesk (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>) with a Buy and lowers the price target from $350 to $310.

ADSK

Stifel Maintains Buy on Autodesk, Lowers Price Target to $310

<a href="https://news.bloomberglaw.com/banking-law/block-to-pay-40-million-in-new-york-settlement-dow-jones-says">Block to Pay $40 Million in New York Settlement, Dow Jones Says</a>

General

'New York Regulator Secures $40M Settlement With Block For Inadequate Anti-Money Laundering Program And Virtual Currency Compliance Failures On Cash App Platform' - Bloomberg Law

JMP Securities analyst Jonathan Wolleben initiates coverage on MBX Biosciences (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBX#NASDAQ">MBX</a>) with a Market Outperform rating and announces Price Target of $38.

Initiation

JMP Securities Initiates Coverage On MBX Biosciences with Market Outperform Rating, Announces Price Target of $38

JP Morgan analyst Jessica Fye maintains NovoCure (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVCR#NASDAQ">NVCR</a>) with a Neutral and lowers the price target from $29 to $28.

NVCR

JP Morgan Maintains Neutral on NovoCure, Lowers Price Target to $28

The U.S. Energy Information Administration (EIA) in its most recent <a href="https://www.iea.org/reports/oil-market-report-march-2025">March report</a> has raised its forecast for U.S. oil production in 2025 and forecasts that global oil demand growth this year will accelerate to just over 1 mb/d, up from 830 kb/d in 2024, for a total of 103.9 mb/d, with almost 60% of the gains concentrated in Asia, led by China. The world oil supply climbed by 240 kb/d in February to 103.3 mb/d, while global crude runs fell by 570 kb/d MoM to 82.8 mb/d in February, further extending their decline from the five-year high of 84.3 mb/d, on planned and unplanned outages. What can we expect from the energy market in 2025, and will the world face oversupply?
<h3 class="wp-block-heading">Oil Production and Demand</h3>
Oil, in addition to being known as a key energy commodity, also, in the contemporary turbulent economic environment, acts as a stabilizer of the world financial system, and this key functionality, although arguably diminishing, will be significant for another 10-15 years. Due to the current oil surplus in the world economy, the oil price will lag behind expected global inflation. This will affect the profits of oil-producing companies and, as a result, the trade incomes of the oil-producing countries. This notable global trend has been constantly outlined since 2010 and even strengthened in this decade. This should be considered important when forming long-term portfolios, as it increases the risks of greater volatility in the oil price and the risks of countries with oil-dependent budgets.
Given the ongoing widespread economic hardships connected to the recently imposed trade tariffs by the U.S. Administration, the IEA has also revised its global oil demand outlook downward for 2025, projecting growth of only 1.05 million barrels per day, reflecting concerns over weak pricing support and ongoing supply tightness.
Despite the surplus forecasted for 2025, the IEA suggests that global oil inventories could fall by 0.5 million barrels per day in the first quarter of 2025, indicating a complex balance between supply and demand.
<h3 class="wp-block-heading">OPEC+ and Geopolitical Impact</h3>
OPEC+ countries agreed to increase oil supplies in May more than expected. This decision is certainly negative for oil prices, and it also amplifies the plethora of fallouts caused by Donald Trump&#8217;s tariff action.
The oil cartel promised to add 411,000 bpd to the market starting next month, equivalent to three monthly increases from the previous production recovery plan. As a result, crude prices fell below $69 for the first time since March 11. This comes against a backdrop of the Trump administration&#8217;s sanctions against Venezuela earlier in March. They have forced major oil companies, including Global Oil, to cease operations in the country, potentially disrupting oil supply chains. Global Oil&#8217;s exit from Venezuela and Chevron&#8217;s previous departure have left Venezuela with fewer international partners, raising questions about the long-term sustainability of its oil sector.
The sanctions and tariffs, balancing the OPEC+&#8217;s action, are contributing to volatility in the oil market, as evidenced by Brent crude oil prices, which have fluctuated between $68.30 and $73 per barrel.&nbsp;
<h3 class="wp-block-heading">Market Volatility and Price Movements</h3>
Before even OPEC+ had voiced its impactful decision, crude oil prices have been somewhat softer after reports of inventory builds for the third consecutive week, suggesting potential oversupply concerns. Previously, however, new, more stringent sanctions on Russian oil imposed by EU, improved demand outlook, and falling U.S. stockpiles have contributed to price increases, with Brent oil rising over 9% in January 2025. Oil majors are adjusting their strategies in response to market trends and geopolitical pressures. For instance, TotalEnergies SE has reported a sensitivity analysis showing potential impacts on cash flow and income from operations due to fluctuating oil prices.&nbsp;
<h3 class="wp-block-heading">Key Deals and Transactions in Q1 2025</h3>
The global oil market dynamics in Q1 2025, with its increased production forecasts and downward revisions in demand growth, could be characterized as complex. Geopolitical factors — particularly the mentioned above sanctions and production cuts — significantly influenced market trends. Despite volatility, strategic investments and market adjustments continued to shape the oil industry&#8217;s landscape.
All in all, the amount and severity of global geopolitical conflictness have not only diminished but also multiplied against the backdrop of Trump&#8217;s trade tariffs. As a consequence, current official forecasts, which were previously based on the consensus that energy prices would <a href="https://www.eia.gov/pressroom/releases/press566.php">remain low</a> this year, may prove to be wrong.
In general, there is an ongoing global-scale shift in investment activity towards alternative (renewable) energy. We see the unabated intention of the many world&#8217;s economic powers to become carbon neutral. With respect to the current events, we tend to anticipate a slow decline in new introductions in the oil sector. The costs of geological exploration and exploratory drilling have been slowly decreasing, while environmental regulations and financial costs of maintaining the oil sector competitive will increase. Even the continuing shale revolution cannot deliver any comparable cost cuts or the availability of resources as we are observing nowadays in the development efforts favoring other energy types. As a result, this fact increases such industries' investment attractiveness, so we expect funds previously earmarked for the development of the classic oil sector to be streamlined into the development of the alternative energy sector.
During the period of tariff confrontation, oil will decline because the ultimate end-commodity is precisely the "king of all commodities", oil, which has an enhanced capacity to absorb the tariffs, so we will see its decline. Other commodities' groups' market compensation will preemptively occur at the expense of the tariff absorbent quality of oil, where the surplus value is high and there is room to fall with the cost of production at the average wellhead of 15 dollars per barrel.
<h3 class="wp-block-heading">Russia's Role in the Oil Price Formula</h3>
In fact, the well-known sanctions against Russian energy exports (oil, gas and coal) remain in place for the time being, and there is nothing to indicate that this will be resolved anytime soon. Market participants have well-founded fears that the main part of foreign sanctions, which is the most painful for the Russian oil and gas sector, will remain in place at least until the end of 2025. This reinforces the new energy world order with its destroyed traditional energy supply chains.
The Central Bank of Russia has warned the Kremlin of the risk of a prolonged oil price decline similar to the one that preceded the collapse of the USSR. The Central Bank&#8217;s analysis notes significant production growth in the U.S. and outside OPEC, as well as record OPEC excess capacity (currently around 10 mb/d), comparable to the volume of all Russian oil exports.
But, according to more precise calculations, with all the cumulative capacity — OPEC and non-OPEC — the unutilized capacity could be up to 15 mb/d, given that it can be commissioned within 6 months and the infrastructure is in place.&nbsp;
<h3 class="wp-block-heading">Energy Security Problems in Europe and Their Main Fallout</h3>
EU countries have continued their efforts to diversify their energy sources away from Russian supplies, but it is now clear that the burden of these politically motivated efforts is being placed on the shoulders of end consumers, who are feeling the increasing pressure of inflation, further reinforced by the current tariff exchange.
Speaking of natural gas, the level of natural gas in storage in Europe, particularly in the UK, <a href="https://jkempenergy.com/2025/03/05/best-in-energy-5-march-2025/">fell significantly</a> last winter. Gas withdrawals increased sharply due to seasonal cold weather and the absence of a Russian pipeline flow. Thus, between April 1 and June 30, 2025, the electricity price for a typical British household using electricity and gas and pays on a direct consumption basis is forecast to rise by <a href="https://www.ofgem.gov.uk/news/changes-energy-price-cap-between-1-april-and-30-june-2025#:~:text=Every%203%20months%20we%20review,to%20%C2%A31%2C849%20per%20year.">6% to £1,849 a year</a>. 
Europe remains the world&#8217;s third largest energy consumer and importer, after the US and China. Among traditional sources of electricity in the EU, nuclear power still ranks first (23.7%), followed by gas (15.7%) &#8211; now predominantly in the form of highly expensive LNG, coal (9.8%) and other fossil fuels (3.4%).
The role of gas storage in ensuring Europe&#8217;s energy security is greater than ever before, becoming a key factor in balancing supply and demand, especially during peak consumption periods. As summer approaches, the storage filling season will be critical for building reserves to meet the European Commission&#8217;s 90% storage fill target by November 1. This increases potential and actual LNG demand from the US, Qatar, and other producers. This will likely not be fully realized due to the beginning of tariff wars and their likely retaliatory effects on Europe.
Ongoing and deepening geopolitical conflicts further undermine European energy infrastructure (pipelines, refineries), leading to more frequent supply disruptions and, consequently, price hikes.

Equities

Commodities

Global

Opinion

Tariffs And Trade Wars: How Will Energy Investment Strategies Change In 2025?

JP Morgan analyst Ken Goldman maintains Freshpet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRPT#NASDAQ">FRPT</a>) with a Neutral and lowers the price target from $102 to $91.

FRPT

JP Morgan Maintains Neutral on Freshpet, Lowers Price Target to $91

JP Morgan analyst Anthony Paolone maintains Cushman &amp; Wakefield (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CWK#NYSE">CWK</a>) with a Neutral and lowers the price target from $17 to $14.

JP Morgan Maintains Neutral on Cushman & Wakefield, Lowers Price Target to $14

<ul>
<li>TSLA</li>
<li>NVDA</li>
<li>AAPL</li>
<li>DJT</li>
<li>QQQ</li>
<li>GLD</li>
<li>AMZN</li>
<li>MAGA</li>
<li>T</li>
<li>COAL</li>
</ul>
Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a>
&nbsp;

AAPL

AMZN

COAL

MAGA

NVDA

Top 10 Trending Stocks On WallStreetBets As Of April 10, 2025 (Via Swaggy Stocks)

Ordinarily, during a market decline like the one we have seen since the tariff announcements on Wednesday afternoon—where the market has dropped ten percent in just a couple of days and opened significantly lower on Monday—we would expect to see a wave of insider buying.
A selloff of this magnitude would typically be a siren call for executives and directors to bring out the checkbooks. However, that has not happened. Not even close.
When you stop and think about it, the lack of insider buying is not all that surprising. The market, even after the hit, still is not cheap, not by any meaningful valuation or earnings metric.
On a trailing twelve-month basis, we are trading at 24 times earnings. Yes, that is off the recent high of almost 30 but it is still well above historical norms. Even when examining projected earnings, valuations remain elevated.
The Shiller CAPE ratio, the inflation-adjusted ten-year earnings metric that is one of the best long-term valuation tools available, is sitting at 31. That figure is down from a recent peak near 35, yet it remains significantly higher than the long-run average.
The market is not cheap.
It is certainly not inexpensive enough to inspire the kind of aggressive insider buying we usually observe when stocks experience a sharp decline. However, the situation extends beyond high price-to-earnings ratios.
The real concern here is uncertainty. Massive, unquantifiable, policy-driven uncertainty.
This is not a typical earnings miss, or a selloff triggered by a surprise from the Federal Reserve. This is a geopolitical disruption, triggered by the Trump administration&#8217;s implementation of punitive tariffs, a policy that is not being welcomed by global markets.
Rhetoric continues to escalate. Both sides keep increasing the stakes, threatening a full-blown trade war with no clear resolution in sight.
Executives who are seeing their stock prices fall ten, fifteen, or even twenty percent year-to-date would normally feel the urge to start buying. However, that instinct is being overridden by fear.
Will there be a recession? Will inflation take hold? Could we face both? Might stagflation emerge? Could the tariff tit-for-tat spiral into a scenario as damaging as the 1930 Smoot-Hawley debacle, which severely disrupted global trade and exacerbated the Great Depression?
There are no clear answers. When clarity is absent, insiders hesitate. They are not making purchases because they simply lack visibility. There is no certainty about how this situation will impact their businesses or the broader economy. As a result, they wait.
There is one segment of the market that is showing a different trend over the past few days: the closed-end fund market.
I have had a deep appreciation for this space since the late 1980s, when we were dealing with the aftermath of Drexel Burnham and the collapse of the junk bond market.
Junk bonds rose to prominence in the 1980s, driven by Michael Milken and his team at Drexel. These instruments funded takeovers, corporate expansions, and startups such as MCI. Even the infamous RJR Nabisco deal was partially financed by junk bonds. Eventually, the market collapsed. Many of these bonds suffered significant losses.
By the late 1980s, it became evident that many of these so-called junk bonds were still performing well—generating yields of ten, eleven, twelve, thirteen, even fourteen percent. That level of income caught investors&#8217; attention. Major investment firms such as Putnam, Dean Witter, Pioneer, and others began launching closed-end funds comprised of these bonds.
Closed-end funds are well-suited for environments like this. Unlike traditional mutual funds, they do not issue or redeem shares daily. An IPO raises the capital, and that is it. Shares trade on an exchange, and the number of shares remains fixed.
Closed-end funds are subject to the same psychological swings as the rest of the market. Popular funds will trade for more than the value of the stocks and bonds owned by the funds. Unpopular or neglected funds will often trade at a discount to the value of their holdings.
When the junk bond markets collapsed, we were buying funds at 20% less than the market value of the bonds they owned and yielding north of 15%.
I have been a buyer of discounted closed-end funds ever since with outstanding results. Discounts tend to revert to the mean over time.
The CEO of one closed-end fund decided that he would add to his stake in the fund he helps oversee during last week&#8217;s carnage.
The Kayne Anderson MLP/Midstream Fund (Ticker: KYN) invests in energy infrastructure assets. Most MLPs own what are known as midstream infrastructure assets. This includes things like pipelines, gathering facilities, and shipping terminals.
The Kayne Anderson MLP fund owns almost all the major players in the North American midstream market. When you own this fund, you own almost every asset involved in moving oil and gas from the field to the refinery to the end destination.
The fund is currently trading at a discount to the value of its assets of about 12.5% and yielding north of 8%.
James Baker, the president and CEO of the fund, likes what he sees. Last week as all things energy were being sold, he stepped up and bought $479,000 worth of shares.
In spite of the green energy pipe dreams, oil and gas demand is still growing and will continue to do so.
As it moves from here to there, we will collect a fee that is paid out as a dividend.
Over time we should see the value of the assets we own increase, giving us a huge total return.

Alpha Buying: This 8% Yield Fund Just Got a CEO-Sized Endorsement

JP Morgan analyst Anthony Paolone maintains Colliers International Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIGI#NASDAQ">CIGI</a>) with a Neutral and lowers the price target from $167 to $142.

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