Cruise operators remain docked, as the CDC has extended its "no sail" orders through Sept. 30. The protracted suspension in the wake of the COVID-19 pandemic has severely impaired the financials of these companies.Despite recent fundraising, the liquidity position in the cruise sector remains precarious.The Cruise Line Analyst: BofA Securities analyst Andrew Didora has Neutral ratings on shares of Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) and Carnival Corp (NYSE: CCL).The analyst reduced his price targets for Norwegian shares from $19 to $17 and for Carnival shares from $17 to $16.Didora has an Underperform on Royal Caribbean Cruises Ltd (NYSE: RCL) with a price target lowered from $40 to $$39. The Cruise Line Thesis: Cruise lines continue to burn cash with operations suspended, Didora said in a Tuesday note. (See his track record here.)The companies face record refunds and minimal new spending on cruises given the global travel restrictions and the rise in U.S. cases, the analyst said. BofA Says Norwegian Has 15 Months Of Liquidity: Norwegian plans to use the $1.4 billion in proceeds from the debt and equity offering it announced last week to pay down its $675-million revolver, Didora said.With beefed-up liquidity of $3 billion, a cash burn rate of $120 million to $160 million per month and an estimated $35 million per month in cash refunds, the analyst said he expects Norwegian's liquidity to last through November 2021.This estimate assumes continued suspension of cruises and no improvement in cash refunds. Carnival's Cash Runway To End In Mid-2021? Carnival's pro forma liquidity position is estimated at $11.6 billion, taking into account the $1.3 billion debt raised this week and the $2.8 billion raised in June.The analyst estimates Carnival's cash burn rate at $900 million per month."At these cash burn rates, we estimate CCL has sufficient liquidity to fund its requirements through July 2021."See more from Benzinga * Square's Cash App Growth Adoption Curve Steepens Amid Improving User Metrics: KeyBanc * Why Nanocap Biotech Immuron's Stock Is On A 2-Day Run * The Daily Biotech Pulse: Opko Wins CDC Contract, Novartis Lowers Guidance, Pieris Study Placed On Partial Clinical Hold(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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(Bloomberg) — Texas Instruments Inc. projected third-quarter revenue that topped analysts’ estimates, indicating the company is seeing increased orders from customers trying to cushion themselves against any supply disruptions as the coronavirus pandemic drags on.Earnings will be $1.14 to $1.34 a share, on revenue of $3.26 billion to $3.54 billion, in the period ending in September, the Dallas-based chipmaker said Tuesday in a statement. On average, analysts predicted profit of 98 cents and sales of $3.07 billion, according to data compiled by Bloomberg.Texas Instruments, which has the broadest customer list and biggest product catalog in the industry, is benefiting from greater-than-anticipated inventory purchasing by its clients, executives said on a conference call. The company is the first major U.S. manufacturer to report earnings. Its reach gives investors a forward look into demand for everything from space hardware to home electronics.“The business has certainly troughed and is starting to show signs of life again,” said Logan Purk, an analyst at Edward Jones. Still, the pandemic and continuing trade strife between the U.S. and China may hurt demand in the near future, he said.Covid-19 illnesses have shut factories and transportation worldwide, placing an unprecedented strain on a global supply chain that provides electronics makers with components only at the moment they need it. Chip consumers — everyone from automakers to Apple Inc. — now want stockpiles to guard against future disruptions and make sure they can keep manufacturing rolling.The chipmaker has said it would keep production running and build its own inventory to make sure it can satisfy the demand.Texas Instruments “did not experience the depths of the downturn we saw in the 2008 downturn,” Dave Pahl, head of investor relations, said on the conference call. Still, “weremain cautious on how the economy might behave for the next few years,” he said.In the second quarter, net income rose to $1.38 billion, or $1.48 per share, from $1.31 billion, or $1.36 per share, a year earlier, the company said. Revenue dropped 12% to $3.24 billion.Shares increased about 1% in extended trading after closing at $135.48 in New York. The stock is has gained 5.6% this year, lagging behind the Philadelphia Stock Exchange Semiconductor Index’s advance of 13%.(Updates with analyst’s comments in the fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Raymond James Washington Policy Analyst Ed Mills joins Yahoo Finance’s Akiko Fujita to discuss the latest developments on another stimulus package in Congress.

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Polen Capital Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. During the second quarter of 2020, the Polen Focus Growth Model Portfolio returned 27.60% gross of fees, while the Russell 1000 Growth Index was up 27.83% and the S&P 500 Index was up 20.54%. You should check […]

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Yahoo Finance’s Emily McCormick discusses why Tesla is getting downgraded at JMP a day before the company’s earnings results with Akiko Fujita.

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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story…

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(Bloomberg) — Seo Jung-jin used to borrow money from loan sharks, pledging his organs to get much needed funds for his upstart drugmaker. Now he’s the second-richest person in South Korea, trailing just Samsung Electronics Co.’s chairman.The Celltrion Inc. founder’s fortune has swelled to $10 billion as shares of his company, which is developing a Covid-19 treatment, almost doubled this year.His rise is extraordinary and represents a shift in the country’s business elite. While family-run conglomerates touch almost every aspect of life in South Korea, more corporate founders making fortunes in non-traditional sectors like Seo have emerged. As the coronavirus pandemic upended people’s lives, the trend has only become more pronounced, with the chaebols losing more of their luster.“Boundaries between industries are getting blurry,” said Park Ju-gun, president of corporate watchdog CEOScore in Seoul. “Those who sit still with traditional businesses don’t cope well with the change. The pandemic has accelerated the trend.”Coal BriquettesBorn to a family who sold coal briquettes, Seo, 62, worked as a taxi driver to get himself through Konkuk University in Seoul. After studying industrial engineering, he rose through the ranks of Daewoo Motor Co., before losing his job when the automaker went bust following the Asian financial crisis. In 2000, he set up a company called Nexol with former Daewoo colleagues to explore business opportunities. It eventually became what is now Celltrion’s global marketing affiliate, Celltrion Healthcare Co.He got interested in biosimilars — medical products similar to drugs that are already approved — in the early 2000s, betting that aging societies will need alternatives to costly medicines. Celltrion, started in 2002, ran into financial trouble in 2004 after the failure of some vaccine clinical trials, prompting Seo to go to loan sharks, according to a Financial Times article in 2012 that a Celltrion spokesman confirmed. The company is now a giant that develops biosimilars such as monoclonal antibody Remsima of Johnson & Johnson’s Remicade.Like in most of the rest of the world, Korean tech and pharma stocks have soared in 2020, with Celltrion up 78%. The stock has risen almost five-fold in the past five years.Seo’s net worth is based on his holdings in Celltrion and Celltrion Healthcare. Shares he pledged as collateral were removed from the calculation. He declined an interview for this story, and a company representative declined to comment on his net worth.Last year, Seo said he would step down from management in 2020, explaining that remaining the chairman beyond retirement age would make the company a “kingdom,” according to an interview with local newspaper Hankyoreh.Not a King“The chairman is a title, not a king,” he said.While South Korea’s wealthiest person remains Samsung Electronics Chairman Lee Kun-hee, the families behind some of the largest conglomerates have dropped from their rankings on the Bloomberg Billionaires Index of the world’s 500 richest people.Hyundai Motor Group’s Mong-Koo Chung and SK Group’s Chey Tae-won, as well as cosmetic maker Amorepacific Group’s Suh Kyung-bae were among the nation’s top five wealthiest people five years ago. They’ve since lost more than $9 billion combined.Newcomers such as Seo and tech entrepreneurs have replaced them.Gamemaker Nexon Co.’s Kim Jung-ju has become Korea’s third-richest person with a $7.8 billion fortune, while Brian Kim, the founder of social-messaging app Kakao Corp., entered the wealth ranking for the first time this year. His company’s businesses encompass ride-hailing and payment services, and its shares have more than doubled since a March low as limited person-to-person interactions during the pandemic have increased demand for its services. He has the nation’s fifth-biggest fortune, $5.1 billion, just after Samsung Electronics’ Lee Jae-yong.It’s only in certain sectors like biopharma and tech that the new rich can flourish as traditional industries require huge capital to break into, according to CEOScore’s Park. That’s why inherited wealth will not go away, he added.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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