Latest news with #PwC
Globe and Mail
an hour ago
- Business
- Globe and Mail
Prediction: Wall Street's Latest Stock-Split Stock -- Up 60,120% Year-to-Date -- Is Going to Implode... It's Just a Matter of Time
Since the S&P 500 's bull market began in October 2022, no trend has provided a bigger lift to equities than the evolution of artificial intelligence (AI). In Sizing the Prize, the analysts at PwC estimated AI would bolster the worldwide economy to the tune of $15.7 trillion come 2030. However, AI isn't the only reason Wall Street's major indexes keep climbing. In addition to the long-term potential AI brings to the table, investor euphoria surrounding stock splits in high-flying companies has kept the stock market's engine humming along. Stock-split euphoria has helped power the broader market higher A stock split is a mechanism publicly traded companies have at their disposal which allows them to cosmetically alter their share price and outstanding share count by the same magnitude. These adjustments are surface-scratching in the sense that stock splits don't affect a company's market cap or its operating performance. Although splits can increase (reverse split) or decrease (forward split) a company's share price, there's a clear delineation as to which variety of split investors typically gravitate to. Reverse splits that boost a company's share price and concurrently reduce its outstanding share count by the same factor are often avoided by investors. This type of split is usually undertaken by companies that are struggling on an operating basis and completing their split in an effort to avoid delisting from a major U.S. stock exchange. On the other hand, companies that conduct forward splits are generally sought after by investors. If a company has to lower its share price to make its stock more nominally affordable for retail investors who can't purchase fractional shares with their broker, it's often doing something right. This "something" comes in the form of superior operational execution and top-tier innovation. But as you're about to see, not all forward stock-split stocks are necessarily great businesses. Non-tech stock-split stocks have taken center stage in 2025 Last year, more than a dozen prominent stocks announced and completed a forward split, many of which can be traced to the technology sector and the artificial intelligence revolution. This includes the face of the AI movement, Nvidia, as well as one of the newest members of the trillion-dollar club, Broadcom. In 2025, only a small number of high-profile companies have announced and completed stock splits. But the one factor they all have in common is they don't hail from the tech sector. Wholesale industrial and construction supplies company Fastenal (NASDAQ: FAST) was the first to actually complete its split (2-for-1) following the close of trading on May 21. It's the ninth time Fastenal has split its stock over the last 37 years. The reason splits have become part of Fastenal's corporate culture is because its stock, including dividends, has increased in value by more than 210,000% since its initial public offering in 1987. This is a reflection of Fastenal's strong cyclical ties to the U.S. economy, as well as its innovation, which has allowed it to become ingrained in the supply chains of America's leading industrial companies. Following Fastenal's lead was auto parts supplier O'Reilly Automotive (NASDAQ: ORLY), which effected a 15-for-1 forward split following the end of trading on June 9. O'Reilly's split reduced its nominal share price from nearly $1,400 to around $90. On top of having one of Wall Street's most-effective share-repurchase programs -- O'Reilly Automotive has spent $25.9 billion to buy back more than 59% of its outstanding shares since the start of 2011 -- the company is benefiting from the aging of America's cars and light trucks. In the latest annual report from S&P Global Mobility, the average age of cars and light trucks on U.S. roadways hit a record 12.8 years in 2025. As vehicles age, drivers and mechanics are becoming more reliant on auto parts chains like O'Reilly. The other preeminent company that announced and completed a forward split in 2025 is electronic automated brokerage firm Interactive Brokers Group (NASDAQ: IBKR). It effected its first-ever split (4-for-1) after the closing bell on June 17. Interactive Brokers' aggressive investments in technology and automation, coupled with the positive impact long-lasting bull markets have had on investors, have virtually all of its key performance indicators pointing higher by a double-digit percentage. It's enjoying double-digit year-over-year growth in total accounts, equity on its platform, and trading activity. While all three of these businesses have proven their worth to Wall Street, the same can't be said about Wall Street's latest stock-split stock, which is eventually going to implode. Wall Street's newest stock-split stock is chock-full of red flags Following the close of trading on Friday, June 13, clinical-stage traditional Chinese medicine (TCM) company Regencell Bioscience Holdings (NASDAQ: RGC) put a 38-for-1 forward stock split into effect. This split was designed to reduce Regencell's share price from $595 to less than $16 per share, all while increasing its outstanding share count by a factor of 38. The magnitude of this split (38-for-1), coupled with Regencell's year-to-date gain of 60,120% (that's not a typo!), as of the closing bell on June 17, would suggest that it's an operating marvel -- but this couldn't be further from the truth. Since commencing its operations in 2015, Hong-Kong-based Regencell hasn't generated a cent in revenue, nor does it have in any products remotely close to being commercialized, based on its regulatory filings. But this hasn't stopped the company's valuation from soaring to nearly $39 billion. During fiscal 2024, which ended on June 30, Regencell had $4.74 million in operating expenses, no sales, and ultimately reported a comprehensive loss of $4.32 million. It ended its fiscal year with (drum roll) 12 employees, only four of which are involved with research and development and one tied to sales (despite a complete lack of products). Here's a snippet of one of the more pertinent risk factors for the company: Our operations to date have been limited to organizing and staffing our company, partnering with the TCM Practitioner to conduct research studies, identifying potential partnerships and TCM formulae candidates, acquiring TCM raw materials, and conducting research and development activities for our TCM formulae candidates. We have not yet demonstrated the ability to successfully complete large-scale, pivotal research studies. We have also not yet applied for or obtained regulatory approval for, or demonstrated an ability to manufacture or commercialize, any of our TCM formulae candidates. Furthermore, Regencell's risk factors point to there being no guarantees that the company can successfully patent and/or protect its TCM products from third-party claims or even breaches of intellectual property agreements (not covered by patents) with its own employees. But wait -- there's more! With the company extremely early in its development process, sporting no sales, and having no virtually no possibility of sustained positive operating cash flow anytime soon, it also brings a going concern warning to the table. A "going concern warning" effectively means the company's current assets aren't expected to be sufficient to cover its current liabilities over the next 12 months. If you're wondering how a clinical-stage healthcare company with no sales or products skyrockets more than 60,000% in less than six months and executes one of the largest forward splits we've witnessed this decade, your guess is as good as mine. Though borrow rates to short-sell (i.e., bet against) Regencell stock have shot into the stratosphere in recent days, overall short interest has been muted, which removes the notion of this move being propelled by a short squeeze. More than likely, we've witnessed momentum-based risk-takers pile into what had been (prior to its 38-for-1 split) a relatively low-float stock. With more than 494 million shares now outstanding and the company's abysmal fundamental picture in plain sight, it's simply a matter of time before this fairy tale bubble implodes and shares plummet back below $1. Caveat emptor! Should you invest $1,000 in Regencell Bioscience right now? Before you buy stock in Regencell Bioscience, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Regencell Bioscience wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.
The Citizen
an hour ago
- Business
- The Citizen
PwC investigated over Choppies audit in Botswana
Stock exchange suspension led to 75% drop in market value. Botswana's Accounting Oversight Authority has launched an investigation into PwC for its role in the delayed publication of the 2018 audit of Choppies Enterprises that resulted in the company being suspended on the JSE and Botswana Stock Exchange, resulting in a 75% drop in market value. The Botswana regulator received a complaint from Choppies's legal team and Justice Zein Kebonang, citing two serious allegations of professional misconduct and ethical breaches by PwC and its former lead auditor Rudi Binedell. 'Central to the complaint is the claim that PwC weaponised confidential internal company data – obtained during its audit engagement – to litigate and defend its own interests in a manner that Choppies' legal representatives argue amounts to abuse of trust and professional overreach,' says Choppies in a statement. The regulator will launch a probe to determine whether PwC and Binedell violated their statutory, professional, and ethical obligations. If found culpable, the fallout could lead to penalties and reputational damage for PwC. Read more 'Same story year after year': MPs unhappy as Auditor-General reveals local government audit outcomes Moneyweb reached out to PwC for a response but had not received a reply by the time of publication. The case is currently before the court in Botswana, where Choppies's largest shareholders – Ramachandran Ottapathu and Farouk Ismail – are seeking over R653 million (Pula 610 million) in damages, alleging PwC's delay in signing off on the retailer's 2018 financial statements, ostensibly due to audit concerns, caused the company's share price to collapse. ALSO READ: Eskom reaches R43 million settlement with PwC over controversial contract Sour grapes? Choppies alleges that PwC's then lead auditor Binedell delayed the 2018 audit report because a job he had been offered at Choppies had not materialised. Earlier this year, the Botswana High Court dismissed a counter-application by PwC alleging improper conduct by two judges in previous rulings. Choppies has also challenged the legitimacy of a 2023 high court ruling by Justice Boipuso Makhwe, arguing that it was tainted by judicial misconduct. There were claims that the judgment was secretly authored by Makhwe's colleague, Justice Kebonang, who had previously ruled in favour of Choppies in 2021, awarding the retailer over P500 million (R668 million) in damages. 'In a striking counteroffensive, Justice Kebonang has since filed an affidavit accusing PwC of orchestrating a smear campaign, fabricating claims, and manipulating legal proceedings to escape liability,' says Choppies. 'He maintains he had no involvement in drafting the disputed judgment and has demanded that the judiciary investigate the matter further.' ALSO READ: Secret Steinhoff PwC report to be handed over on Wednesday to some media Vindication in sight? The Botswana regulator previously fined Choppies P100 000 (R133 000) for late disclosure of its 2018 financials. The regulator's attention now appears to have shifted to PwC's conduct in the matter. Choppies says the investigation by the regulator is a step toward reputational redemption, while for PwC it poses a threat to its credibility in the region, given its previous citations in scandals involving Eskom, Steinhoff and SAA. PwC sent the following response Moneyweb: 'PwC Botswana takes client confidentiality seriously. However, there are certain circumstances where we are required to disclose confidential information to legal or regulatory authorities. We have complied with our legal and professional obligations in this regard, and we are cooperating with the regulator in its investigation.' This article was republished from Moneyweb. Read the original here.
Yahoo
an hour ago
- Business
- Yahoo
Prediction: Wall Street's Latest Stock-Split Stock -- Up 60,120% Year-to-Date -- Is Going to Implode... It's Just a Matter of Time
Investors often gravitate to companies announcing and completing forward stock splits. In 2025, only a small number of high-profile companies have effected historic splits -- but every one of these businesses has proved their worth to Wall Street. The market's latest stock-split stock, which completed a unique 38-for-1 forward split earlier this week, has no sale or product and is a disaster waiting to happen. 10 stocks we like better than Regencell Bioscience › Since the S&P 500's bull market began in October 2022, no trend has provided a bigger lift to equities than the evolution of artificial intelligence (AI). In Sizing the Prize, the analysts at PwC estimated AI would bolster the worldwide economy to the tune of $15.7 trillion come 2030. However, AI isn't the only reason Wall Street's major indexes keep climbing. In addition to the long-term potential AI brings to the table, investor euphoria surrounding stock splits in high-flying companies has kept the stock market's engine humming along. A stock split is a mechanism publicly traded companies have at their disposal which allows them to cosmetically alter their share price and outstanding share count by the same magnitude. These adjustments are surface-scratching in the sense that stock splits don't affect a company's market cap or its operating performance. Although splits can increase (reverse split) or decrease (forward split) a company's share price, there's a clear delineation as to which variety of split investors typically gravitate to. Reverse splits that boost a company's share price and concurrently reduce its outstanding share count by the same factor are often avoided by investors. This type of split is usually undertaken by companies that are struggling on an operating basis and completing their split in an effort to avoid delisting from a major U.S. stock exchange. On the other hand, companies that conduct forward splits are generally sought after by investors. If a company has to lower its share price to make its stock more nominally affordable for retail investors who can't purchase fractional shares with their broker, it's often doing something right. This "something" comes in the form of superior operational execution and top-tier innovation. But as you're about to see, not all forward stock-split stocks are necessarily great businesses. Last year, more than a dozen prominent stocks announced and completed a forward split, many of which can be traced to the technology sector and the artificial intelligence revolution. This includes the face of the AI movement, Nvidia, as well as one of the newest members of the trillion-dollar club, Broadcom. In 2025, only a small number of high-profile companies have announced and completed stock splits. But the one factor they all have in common is they don't hail from the tech sector. Wholesale industrial and construction supplies company Fastenal (NASDAQ: FAST) was the first to actually complete its split (2-for-1) following the close of trading on May 21. It's the ninth time Fastenal has split its stock over the last 37 years. The reason splits have become part of Fastenal's corporate culture is because its stock, including dividends, has increased in value by more than 210,000% since its initial public offering in 1987. This is a reflection of Fastenal's strong cyclical ties to the U.S. economy, as well as its innovation, which has allowed it to become ingrained in the supply chains of America's leading industrial companies. Following Fastenal's lead was auto parts supplier O'Reilly Automotive (NASDAQ: ORLY), which effected a 15-for-1 forward split following the end of trading on June 9. O'Reilly's split reduced its nominal share price from nearly $1,400 to around $90. On top of having one of Wall Street's most-effective share-repurchase programs -- O'Reilly Automotive has spent $25.9 billion to buy back more than 59% of its outstanding shares since the start of 2011 -- the company is benefiting from the aging of America's cars and light trucks. In the latest annual report from S&P Global Mobility, the average age of cars and light trucks on U.S. roadways hit a record 12.8 years in 2025. As vehicles age, drivers and mechanics are becoming more reliant on auto parts chains like O'Reilly. The other preeminent company that announced and completed a forward split in 2025 is electronic automated brokerage firm Interactive Brokers Group (NASDAQ: IBKR). It effected its first-ever split (4-for-1) after the closing bell on June 17. Interactive Brokers' aggressive investments in technology and automation, coupled with the positive impact long-lasting bull markets have had on investors, have virtually all of its key performance indicators pointing higher by a double-digit percentage. It's enjoying double-digit year-over-year growth in total accounts, equity on its platform, and trading activity. While all three of these businesses have proven their worth to Wall Street, the same can't be said about Wall Street's latest stock-split stock, which is eventually going to implode. Following the close of trading on Friday, June 13, clinical-stage traditional Chinese medicine (TCM) company Regencell Bioscience Holdings (NASDAQ: RGC) put a 38-for-1 forward stock split into effect. This split was designed to reduce Regencell's share price from $595 to less than $16 per share, all while increasing its outstanding share count by a factor of 38. The magnitude of this split (38-for-1), coupled with Regencell's year-to-date gain of 60,120% (that's not a typo!), as of the closing bell on June 17, would suggest that it's an operating marvel -- but this couldn't be further from the truth. Since commencing its operations in 2015, Hong-Kong-based Regencell hasn't generated a cent in revenue, nor does it have in any products remotely close to being commercialized, based on its regulatory filings. But this hasn't stopped the company's valuation from soaring to nearly $39 billion. During fiscal 2024, which ended on June 30, Regencell had $4.74 million in operating expenses, no sales, and ultimately reported a comprehensive loss of $4.32 million. It ended its fiscal year with (drum roll) 12 employees, only four of which are involved with research and development and one tied to sales (despite a complete lack of products). Here's a snippet of one of the more pertinent risk factors for the company: Our operations to date have been limited to organizing and staffing our company, partnering with the TCM Practitioner to conduct research studies, identifying potential partnerships and TCM formulae candidates, acquiring TCM raw materials, and conducting research and development activities for our TCM formulae candidates. We have not yet demonstrated the ability to successfully complete large-scale, pivotal research studies. We have also not yet applied for or obtained regulatory approval for, or demonstrated an ability to manufacture or commercialize, any of our TCM formulae candidates. Furthermore, Regencell's risk factors point to there being no guarantees that the company can successfully patent and/or protect its TCM products from third-party claims or even breaches of intellectual property agreements (not covered by patents) with its own employees. But wait -- there's more! With the company extremely early in its development process, sporting no sales, and having no virtually no possibility of sustained positive operating cash flow anytime soon, it also brings a going concern warning to the table. A "going concern warning" effectively means the company's current assets aren't expected to be sufficient to cover its current liabilities over the next 12 months. If you're wondering how a clinical-stage healthcare company with no sales or products skyrockets more than 60,000% in less than six months and executes one of the largest forward splits we've witnessed this decade, your guess is as good as mine. Though borrow rates to short-sell (i.e., bet against) Regencell stock have shot into the stratosphere in recent days, overall short interest has been muted, which removes the notion of this move being propelled by a short squeeze. More than likely, we've witnessed momentum-based risk-takers pile into what had been (prior to its 38-for-1 split) a relatively low-float stock. With more than 494 million shares now outstanding and the company's abysmal fundamental picture in plain sight, it's simply a matter of time before this fairy tale bubble implodes and shares plummet back below $1. Caveat emptor! Before you buy stock in Regencell Bioscience, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Regencell Bioscience wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. Prediction: Wall Street's Latest Stock-Split Stock -- Up 60,120% Year-to-Date -- Is Going to Implode... It's Just a Matter of Time was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 hours ago
- Business
- Yahoo
Promising policy action brings hope amidst continued economic challenges: PwC's 2025 M&A mid-year update released
Transformative policy actions could boost Canada's role in North American supply chains and stabilize ties with the US. Trend shows decline in inbound and locally sourced deals; overall deals activity comes in at approximately 1000 deals totalling $134B announced since January 2025. Canadian family offices rebound: deal values increased by 16% from 2023 to 2024, signaling renewed momentum. TORONTO, June 18, 2025 /CNW/ - PwC Canada's 2025 mid-year Canadian M&A update highlights a pivotal moment for the Canadian economy. Amidst global uncertainty and a cooling domestic outlook, Canada is pursuing a bold policy agenda aimed at restoring national economic resilience. While these efforts are rooted in domestic priorities, they may also yield a valuable secondary benefit: a more stable and strategically aligned relationship with the United States. "Canada's current policy direction focuses on building a stronger, more self-reliant economy," said Michael Dobner, National Leader of Economics and Policy Practice, PwC Canada. "This approach also helps foster a more constructive and complementary relationship with the US, one based on shared interests rather than dependency." Economic update: Between January and May 2025, Canadian companies announced 996 deals totaling $134 billion. However, the report notes declines in inbound and locally sourced deals in Canada. This reflects a broader climate of caution, as businesses delay investments and expansion plans in response to persistent uncertainty. PwC's baseline projection for Canadian GDP growth in 2025 remains below 1%. Despite these headwinds, Canada's trade position with the United States remains comparatively strong. Canadian exporters are generally benefiting from relatively low tariffs, especially when compared to countries like China, which continue to face significant trade barriers to the United States. This advantage can help some Canadian businesses to maintain or even grow their market share in the US, offering a rare bright spot in an otherwise subdued economic landscape. In this context, "the current negotiations between Canada and the United States, which benefit from Canada's new vision, may further strengthen Canada's relative trade position with the United States," added Dobner. The report outlines a suite of policy priorities shaping Canada's new vision. Key priorities now include streamlining regulations, initiating large-scale infrastructure projects, increasing investment in defence and Arctic development, removing interprovincial trade barriers, fast-tracking the integration of artificial intelligence and changing the immigration system to focus on attracting highly skilled individuals to Canada. These initiatives are designed to address Canada's productivity and competitiveness challenges, and, if successful, will also position the country to play a more active role in North American supply chains and innovation ecosystems. If early policy actions are interpreted by market players as genuine, practical and decisive, PwC Canada suggests that meaningful improvements in Canada's economic outlook could begin as early as 2026. All levels of government have a crucial role in providing these signals over the coming months. While there is good reason for cautious optimism, the report notes that the global environment remains unpredictable. Potential global crises, financial crisis as a result of a loss of trust in the US dollar, or disruption of entire sectors by emerging technology could have significant consequences. Canadian businesses must stay vigilant, closely monitor global developments and adopt flexible, risk-aware strategies to navigate an uncertain future. Opportunities for Canadian family offices: The report also highlights the evolving role of Canadian family offices, which are emerging as increasingly influential players in the investment landscape. After a period of decline beginning in 2021, family office deal activity is rebounding. In Canada, deal values rose by more than 16% from 2023 to 2024. Key trends shaping this evolution: Club deals, where family offices co-invest with peers to access larger opportunities and share risk, are gaining traction globally. While only 23% of Canadian family office investments in 2024 were structured this way, compared to 71% globally in 2022, this gap signals untapped potential. Impact investing is on the rise. In 2024, Canadian family offices surpassed the 50% threshold for allocating capital to investments that generate measurable social or environmental impact alongside financial returns. These investments are increasingly aligned with national priorities such as productivity, innovation, and affordable housing. Direct investments, where family offices invest directly in businesses such as private equity, startups or M&A, have grown to represent 70% of global activity, up from a real estate-heavy focus a decade ago. In contrast, 69% of Canadian family office investments in 2024 remained in real estate, indicating potential opportunities to diversify investment portfolios. For more insights and to access the full report, visit About PwC Canada: At PwC Canada, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We're a tech-forward, people-empowered network with more than 7,000 partners and staff in offices across the country. Across audit and assurance, tax and legal, deals and consulting, we help build, accelerate and sustain momentum. PwC refers to the Canadian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details. Find out more by visiting us at: © 2025 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved. SOURCE PwC Management Services LP View original content to download multimedia:
Yahoo
12 hours ago
- Business
- Yahoo
BBC Breakfast boss takes extended leave after bullying allegations
The editor of BBC Breakfast, Richard Frediani, is taking an extended period of leave after allegations about his behaviour were reported in the media. An HR adviser from consultancy firm PwC is also supporting the corporation as it looks into the culture of the BBC One morning programme. It comes after the Sun and Deadline reported that an internal investigation is being carried out into allegations of bullying. The BBC said it did not comment on individual cases but takes "all complaints about conduct at work extremely seriously and will not tolerate behaviour that is not in line with our values". A BBC statement added: "We have robust processes in place and would encourage any staff with concerns to raise them directly with us so they can be addressed." BBC News has asked Mr Frediani for comment. He has been in charge of the programme, which is broadcast daily from Salford, since 2019, and is also editor of the News at One. Last month, he accepted a Bafta Award when Breakfast won best TV news coverage for a special episode about the Post Office scandal.
