TOP 5 STOCKS TO WATCHOUT AND TRADE TODAY – JANUARY 12, 2022

TOP 5 STOCKS TO WATCHOUT AND TRADE TODAY – JANUARY 12, 2022

1.TOSHIBA:Toshiba  Corp’s proposal to split itself into three companies won’t solve its governance issues and the conglomerate should prioritise an overhaul of its board and management, said a senior executive at one of Japan’s largest pension funds.

Ken Hokugo, corporate governance director at the Pension Fund Association (PFA), said the interests of Toshiba management and shareholders are “not aligned”.

“The most orthodox solution to the discrepancy is to bring onto the board someone who can monitor and discipline management, and to let the revamped board to select the new chief executive,” he said in written responses to Reuters queries.

Hokugo declined to comment on how the PFA, which owns an undisclosed amount of shares in Toshiba, would vote on the conglomerate’s plan to break up into three companies – one for energy and infrastructure, another for electronic devices and a third to house its flash memory chip assets.

Nonetheless, his comments highlight broad shareholder concern about Toshiba, marking a rare public pronouncement from an influential Japanese pension fund, part of an industry that typically stays silent about companies they invest in.

The PFA, which provides benefits to people who have left their employee pension programmes, is one of the country’s largest pension funds with 12.5 trillion yen ($108 billion) in assets.

2.PHILIPS: -Philips shares plunged more than 11% on Wednesday morning after the Dutch health technology company hiked the cost of its massive recall of ventilators and said earnings would take a big hit from global supply chain shortages.

The supplier of hospital equipment and personal health devices said it expected fourth-quarter core profit to drop almost 40% to about 650 million euros ($739 million), as it continued to scramble for memory chips and other parts.

“It’s a difficult situation,” CEO Frans van Houten told reporters. “We had shortages of several components and saw port congestion, sometimes up to 2 or 3 weeks. All of this meant our manufactured goods couldn’t reach customers in time.”

Comparable sales fell 10% on a yearly basis to 4.9 billion euros, Philips said, as hospitals had to postpone the installation of equipment due to a lack of parts.

3.VOLKSWAGEN :-Volkswagen (vehicles deliveries dropped 8.1% in 2021 to just under 4.9 million amid severe supply chain bottlenecks, the carmaker said on Wednesday, adding it expected the situation to remain volatile in the first half of this year.

Deliveries of fully-electric or hybrid vehicles grew 73% compared to 2020 to over 369,000 vehicles, the carmaker said, making up 7.5% of total deliveries globally.

“Under unusually challenging circumstances, Volkswagen reached a satisfying sales result,” sales and marketing chief Klaus Zellmer said. “However, the huge effects of chips on production were not able to be fully compensated.”

4.META: -Citigroup Inc will exit its Citibanamex consumer banking business in Mexico, the bank said on Tuesday ending its 20-year retail presence in the country that was the last of its overseas consumer businesses.

Citigroup’s decision to sell or spin off Citibanamex, Mexico’s third biggest bank by assets as of June, is part of chief executive Jane Fraser’s strategy to bring Citigroup’s profitability and share price performance in line with its peers.

After taking up the top job last year, Fraser pledged to simplify Citigroup by exiting non-core businesses, including consumer franchises in 13 markets in Asia, Europe, the Middle East and Africa. While Citigroup’s Mexican exit was not part of the announced plan it is consistent with that “strategy refresh,” Fraser said on Tuesday.

Citigroup will retain its institutional client business in Mexico, as it has in other overseas markets. It will focus its consumer banking business on a targeted U.S. retail presence, global wealth management, and payments and lending, it said.

5.BMW:-The BMW brand delivered an all-time high of 2.21 million vehicles in 2021, up 9.1% from the previous year, the company said on Wednesday, and more than doubled its sales of fully-electric vehicles globally.

The BMW Group delivered 2.52 million vehicles, an 8.4% increase from last year.

Nearly a quarter of BMW and Mini vehicles sold in Europe (23%) were either hybrid or fully-electric cars, the carmaker said, falling to 13% on a global level.

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