The Caribbean islands of Great St. James and Little St. James have been sold to US investor Stephen Deckoff for $60m. Once owned by disgraced financier, Jeffrey Epstein, it is believed that many of his crimes took place on the islands. The sale is expected to benefit tourism and create jobs, with a resort set to open on the islands in 2025. Epstein, who had faced federal sex trafficking charges, died by suicide in 2019 before his trial could take place.
The islands were originally put up for sale for around $55m each. Little St. James, which was nicknamed “Pedophile Island,” has a helipad, three beaches, a gas station, and over 70 acres of land. Great St. James has more than 160 acres of land and three beaches. The sale of these islands to Deckoff is expected to bring an abundance of opportunities to the Caribbean islands, which have seen their tourism industry suffer over the past year.
Zacks Rating System Boosts Royal Caribbean Outlook
The Zacks rating system, which tracks EPS estimates from sell-side analysts through a consensus measure called the Zacks Consensus Estimate, has upgraded Royal Caribbean to a Zacks Rank #2, positioning it in the top 20% of the Zacks-covered stocks in terms of estimate revisions. This could lead to buying pressure and an increase in its stock price.
Earnings estimate revisions have been identified as one of the most powerful forces impacting stock prices. The Zacks rating system, which uses four factors related to earnings estimates, has a tried-and-tested way to harness the power of earnings estimate revisions.
Retail and Institutional Investors: What’s the Difference?
Retail investors are individuals who buy and sell securities through brokerage firms or retirement accounts for personal gain and invest smaller amounts, less frequently than institutional investors. Institutional investors are entities such as pension funds, mutual fund companies, and investment banks that invest on behalf of others and account for 80% of the New York Stock Exchange’s trades.
While institutional investors have more purchasing power, can negotiate better fees associated with investments, and have access to investment opportunities with large minimum buy-ins that normal investors don’t, retail investors have access to substantial amounts of high-quality investing and trading research for informed investment decisions. The Securities and Exchange Commission (SEC) considers retail investors to be less experienced and potentially unsophisticated investors, providing more protective regulations to retail investors than to institutional investors.
WPP: A Company to Watch for Value Investors
Zacks Investment Research has identified WPP as a company worth watching for value investors. The company’s current P/E ratio of 9.34 is below the industry average of 11, while its P/B ratio is 2.50 against an industry average of 5.61. Valuation metrics suggest that the firm is “undervalued currently” and has one of the market’s strongest forward earnings outlooks.
Oil Stocks Struggling to Meet Global Demand
According to a report released by Zacks, companies in the oil sector are struggling to keep up with global demand for oil despite prices falling from recent highs. The report suggests that “black gold” suppliers are set for “big profits”, singling out four providers with potential for gains in the coming weeks and months.
Investing as a Risk-Averse Investor
Risk-averse investors prioritize keeping their money safe and then try to grow it as best they can. This typically means avoiding high-volatility, high-uncertainty products in favor of income-based assets and well-diversified portfolios. Risk aversion is a strategy where you emphasize preventing loss over making gains, often referred to in terms of alpha and beta: alpha measures an asset or portfolio’s performance relative to the market at large, while beta measures an asset’s sensitivity to the market at large, reflecting how volatile it is relative to comparable assets.
Risk-averse investors will generally invest to avoid volatile assets and instead will seek steadier and more stable ones. Risk-averse investors typically will avoid speculative, more uncertain products such as individual stocks, real estate, and commodities/futures, and instead look to products such as treasury and corporate debt, banking products, annuities, and ETFs or mutual funds.
Conclusion
Investing can be a complicated and risky endeavor, and the decisions that investors make can have a significant impact on their financial future. Whether looking to buy a Caribbean island, invest in “black gold” or make more conservative investments, it’s essential for investors to carefully consider their options and risk tolerance, and seek the advice of a financial advisor if needed.
