In the latest trading session, Canadian Imperial Bank (CM) closed at $42.38, marking a -0.66% move from the previous day. This change lagged the S&P 500’s 0.09% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Coming into today, shares of the bank and financial services company had gained 3.24% in the past month. In that same time, the Finance sector gained 3.03%, while the S&P 500 gained 3.31%.
Wall Street will be looking for positivity from Canadian Imperial Bank as it approaches its next earnings report date. In that report, analysts expect Canadian Imperial Bank to post earnings of $1.34 per share. This would mark a year-over-year decline of 4.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, down 3.93% from the year-ago period.
CM’s full-year Zacks Consensus Estimates are calling for earnings of $5.63 per share and revenue of $17.32 billion. These results would represent year-over-year changes of +1.62% and +1.11%, respectively.
Investors might also notice recent changes to analyst estimates for Canadian Imperial Bank. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Canadian Imperial Bank is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Canadian Imperial Bank currently has a Forward P/E ratio of 7.58. This valuation marks a premium compared to its industry’s average Forward P/E of 7.5.
Meanwhile, CM’s PEG ratio is currently 2.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Banks – Foreign stocks are, on average, holding a PEG ratio of 0.92 based on yesterday’s closing prices.
The Banks – Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
CALGARY and PHOENIX, April 25, 2023 /PRNewswire/ – Canadian Pacific Kansas City (TSX:CP.TO) (NYSE:CP) (CPKC) and Knight-Swift Transportation Holdings Inc. (NYSE:KNX) announced today a new multi-year agreement to provide truckload intermodal transportation service on CPKC’s new single-line north-south corridor connecting Mexico, the United States and Canada. Knight-Swift is one of North America’s largest and most diversified freight transportation companies, providing multiple truckload transportation and logistics services.
Glencore’s ambition to take over Teck Resources has morphed into a protracted industry saga, and the Swiss commodities giant is now scrambling to win over the Canadian miner’s shareholders with promises of a third bid for the company.
Its initial two offerings for Teck – the first totalling £19bn and the second including a £6.6bn cash sweetener – were knocked back by the miner’s senior leadership, including top shareholder Norman Keevil. Now, Glencore has gone to extreme measures, urging Teck shareholders in a public letter to reject the company’s own plans to spin off its critical minerals business from its coal operations at a crunch demerger vote this week.
The FTSE 100 company’s offer for Teck, which represented a 20 per cent premium on both its share classes, would have seen the both parties merge their minerals businesses and separately spin off their combined coal assets into a new listed company.
Glencore’s shareholders would own 76 per cent of the combined entity whereas Teck incumbent investors would hold the remaining 24 per cent.
Theoretically, Glencore is the perfect suitor for Teck.
It’s takeover attempt is a cool, rational attempt to diversify its business and shift towards future-facing minerals, which will be in high demand for wind turbines, solar panels and electric vehicle batteries as the world moves towards a greener future.
As Teck has vast copper resources and zinc deposits in the Americas, it’s a credible target for Glencore – and its bid follows rival BHP Group’s imminent £5.2bn takeover of Aussie copper producer Oz Minerals.
Meanwhile, Teck could benefit from Glencore’s sheer size and leading position in the commodities market.
Last year, Teck made £3.92bn earnings with shareholders clawing back £3.28bn.
By contrast, Glencore posted pre-tax profits of £28bn over the same period, and handed almost £6bn to shareholders amid widespread volatility in the economy and soaring fossil fuel prices.
However, Teck has proposals of its own to turn its business into two publicly listed companies.
This would include Teck Metals, focused on metals production, and Elk Valley Resources, built around its steelmaking coal assets.
Teck predicts its proposals could see its shares trade at a 55 per cent premium on its latest closing price. Yet, the debate is not solely around contrasting valuations – a matter that would typically come to a resolution, with Glencore’s bigger size and revenue streams enabling it to present a figure that would finally appeal to Teck’s shareholders.
Instead, investors are highly divided over the proposed deal, because the true nature of the impasse is not finances, but coal.
Coal’s role causes shareholders headaches
Climate conscious Legal and General Investment Management (LGIM) has lent its support to Teck’s proposals, alongside Bluebell Capital Partners and Norway’s sovereign wealth fund.
Meanwhile, Glass Lewis has urged shareholders to support Glencore’s bid, and ISS has raised concerns over Teck’s break-up plans but stopped short of backing the Swiss firm’s proposed takeover.
Coal giants raked in massive profits last year, with the world’s top 20 companies raking in £77.8bn of collective earnings – but there are concerns with the long-term sustainability of such bumper numbers.
After all, this was an outcome driven by the pandemic and Russia’s invasion of Ukraine, with the International Energy Agency still expecting coal consumption to plateau around 2025.
Coal is also the world’s dirtiest fossil fuel, and with companies looking to divest to achieve net zero targets, it appears Teck’s board and many of its shareholders have seen the scale of Glencore’s large thermal coal business and oil trading businesses and opted against any negotiations.
Glencore has pledged to shift away from coal but its massive earnings last year included £7.6bn from its coal producing units – with the company mining 103.3m tons of coal through its industrial business.
The company faces scrutiny not just from Teck shareholders, but also its own investors over its climate ambitions.
Shareholders will vote at Glencore’s annual meeting next month on a resolution urging the company to explain how its thermal coal business aligns with efforts to limit the increase in global temperatures to 1.5 degrees Celsius, in line with the Paris Agreement.
HSBC Asset Management and LGIM are among signatories to the document.
While the company has previously pledged to cap coal production at 2019 levels and reach net zero emissions by 2050, banking group Credit Suisse does not expect a material decrease in Glencore’s coal production until 2036.
Coal is not the only headwind Glencore has to navigate in its bid to buy Teck.
The Canadian miner maintains a byzantine dual-shareholder structure – dominated by its A-shareholders.
This means Glencore will also have to coax the Keevil family, the company’s primary A-shareholders, into changing their mind over a deal.
With their dominant position in Teck’s corporate composition, doing this may be enough to push through a deal for Glencore.
However, with increasingly climate conscious B-shareholders, Glencore is going to need to resolve investor concerns over coal, unless it wants every push for growth to be a painful battle.
Falcon Premium Intermodal Service Will Offer the Best Transit Times and Reliability
MONTREAL, April 24, 2023 /PRNewswire/ — CN (TSX:CNR.TO) (NYSE:CNI), Union Pacific Railroad (NYSE:UNP) and GMXT (BMV:GMXT) proudly announced today the creation of Falcon Premium intermodal service, a best-in-class Mexico-US-Canada service with a seamless rail connection in Chicago, Illinois. It will directly connect all CN origin points within Canada and Detroit, Michigan to GMXT terminals in Mexico: Monterrey, Nuevo Leon, and Silao, Guanajuato. This service will directly benefit intermodal customers shipping automotive parts, food, FAK (freight all kinds), home appliances, and temperature-controlled products. READ BELOW
The Canadian Press – Canadian Press – Mon Apr 24, 3:33PM CDT
MONTREAL — Canadian National Railway Co. says it reaped record first-quarter revenues due to a bumper grain crop and higher oil prices.
CN is reporting revenues of $4.31 billion for the quarter ended March 31, a 16 per cent boost from $3.71 billion a year earlier.
The Montreal-based company says net income jumped to $1.22 billion in its first quarter from $918 million in the same period last year.
On an adjusted basis, diluted earnings increased 38 per cent to $1.82 from $1.32 a year ago, beating analyst expectations of $1.72 per share, according to financial data firm Refinitiv.
CN is also boosting its forecast for the year, predicting adjusted diluted earnings per share growth in the mid-single digits compared with 2022, up from a low single-digit target set in January.
The company says its board approved a second-quarter dividend of 79 cents per common share, to be paid after markets close on June 30.
This report by The Canadian Press was first published April 24, 2023.
U.S. consumer confidence fell to a nine-month low in April led by a darkening outlook that augers a recession beginning in the near future, a survey showed on Tuesday.
The Conference Board said its consumer confidence index fell to 101.3 – the lowest since July 2022 – from a revised 104.0 in March. Economists polled by Reuters had expected the index to be unchanged from March at 104.0.
“While consumers’ relatively favorable assessment of the current business environment improved somewhat in April, their expectations fell and remain below the level which often signals a recession looming in the short-term,” said Ataman Ozyildirim, senior director of Economics at The Conference Board.
The share of consumers viewing jobs as “plentiful” ticked up to 48.4 per cent from a downwardly revised 47.9 per cent a month earlier, and the share of those describing them as “hard to get” edged down 11.1 per cent from an upwardly revised 11.4 per cent in March.
Consumers’ 12-month inflation expectations slipped to 6.2 per cent from 6.3 per cent last month.
Thirteen billion dollars in government subsidies are going to Volkswagen to build an electric vehicle battery plant in Ontario. That’s what the Liberal government calls a “business case.” Thirteen billion dollars to build a $7-billion factory. Of course such a massive payout — bribe? — would only be provided for a “green” business case.
More and more countries — from Brazil to Southeast Asian nations — are calling for trade to be carried out in other currencies besides the U.S. dollar.
To be clear, the U.S. dollar remains dominant in global forex reserves even though its share in central banks’ foreign exchange reserves has dropped from more than 70% in 1999, IMF data shows.
Geopolitical risks and economic dynamics have accelerated the trend to move away from the U.S. dollar.
Calls to move away from relying on the U.S. dollar for trade are growing.
More and more countries — from Brazil to Southeast Asian nations — are calling for trade to be carried out in other currencies besides the U.S. dollar.
The U.S. dollar has been king in global trade for decades — not just because the U.S. is the world’s largest economy, but also because oil, a key commodity needed by all economies big and small, is priced in the greenback. Most commodities are also priced and traded in U.S. dollars.
But since the Federal Reserve embarked on a journey of aggressive rate hikes to fight domestic inflation, many central banks around the world have raised interest rates to stem capital outflows and a sharp depreciation of their own currencies.
WATCH NOW
VIDEO08:47
Why a strong U.S. dollar is bad for ‘the rest of the world’
“By diversifying their holdings reserves into a more multi-currency sort of portfolio, perhaps they can reduce that pressure on their external sectors,” said Cedric Chehab from Fitch Solutions.
To be clear, the U.S. dollar remains dominant in global forex reserves even though its share in central banks’ foreign exchange reserves has dropped from more than 70% in 1999, IMF data shows.
The U.S. dollar accounted for 58.36% of global foreign exchange reserves in the fourth quarter last year, according to data from the IMF’s Currency Composition of Foreign Exchange Reserves (COFER). Comparatively, the euro is a distant second, accounting for about 20.5% of global forex reserves while the Chinese yuan accounted for just 2.7% in the same period.
Based on CNBC’s calculation of IMF’s data on 2022 direction of trade, mainland China was the largest trading partner to 61 countries when combining both imports and exports. In comparison, the U.S. was the largest trading partner to 30 countries.
“As China’s economic might continues to rise, that means that it’ll exert more influence in global financial institutions and trade etc,” Chehab told CNBC last week.
WATCH NOW
VIDEO03:18
Loss of U.S. dollar dominance would be a ‘slow erosion’: Fitch Solutions
China — long among the top 2 foreign holders of U.S. Treasurys — has been steadily reducing its holdings of U.S. Treasury securities.
In early April, Indian media widely reported that theMinistry of External Affairs (MEA) had announced that India and Malaysia were starting to settle their trade in the Indian rupee.
Economic benefits
Analysts say changing global economic dynamics are driving the co-called de-dollarization trend which can benefit local economies in a number of ways.
Trading in local currencies “allow exporters and importers to balance risks, have more options to invest, to have more certainty about the revenues and sales,” former Brazilian ambassador to China, Marcos Caramuru, told CNBC last week.
Another benefit for countries moving away from using the dollar as the middle man in bilateral trade, is to “help them move up the value chain,” said Mark Tinker from ToscaFund Hong Kong told CNBC “Street Signs Asia” early April.
“It isn’t about selling cheap stuff to Walmart, keeping down the prices for American consumers in order to earn dollars to buy its energy. This is now about actually a completely bilateral trade bloc,” Tinker said.
WATCH NOW
VIDEO04:22
De-dollarization shows that U.S. growth is no longer the only story that matters
Meanwhile, growth of non-U.S. economic blocs also encourage these economies to push for wider use of their currencies. The IMF estimates that Asia could contribute more than 70% to global growth this year.
“U.S. growth might slow, but U.S. growth isn’t what it’s all about anymore. There is a whole non-U.S. block that’s growing,” said Tinker. “I think there is going to be a re-internationalization of flows.”
Geopolitical concerns
Geopolitical risks have also accelerated the trend to move away from U.S. dollar.
“Political risk is really helping introduce a lot of uncertainty and variability around how much of a safe haven that U.S. dollar really is,” said Galvin Chia from NatWest Markets told “Street Signs Asia” earlier.
Tinker said what accelerated the calls for de-dollarization was the U.S. decision to freeze Russia’s foreign currency reserves after Moscow invaded Ukraine in February 2022.
The yuan has reportedly replaced the U.S. dollar as the most traded currency in Russia, according to Bloomberg.
So far, the U.S. and its western allies have frozen more than $300 billion of Russia’s foreign currency reserves and slapped multiple rounds of sanctions on Moscow and the country’s oligarchs. This forced Russia to switch trade toother currencies and increase gold in its reserves.
Although analysts don’t anticipate a complete break away from dollar-denominated oil trade over the short-term, “I think what they’re saying more is, well, there’s another player in town, and we want to look at how we trade with them on a bilateral basis using yuan,” said Chehab.
Dollar is still king
Despite the slow erosion of its hegemony, analysts say the U.S. dollar is not expected be dethroned in the near future — simply because there aren’t any alternatives right now.
“Euro is somewhat an imperfect fiscal and monetary union, the Japanese yen, which is another reserve currency, has all sorts of structural challenges in terms of the high debt loads,” Chehab told CNBC.
The Chinese yuan also falls short, Chehab said.
“If you look at the yuan reserves as a share of total reserves, it’s only about 2.5% of total reserves, and China still has current account restrictions,” Chehab said. “That means that it’s going to take a long time for any other currency, any single currency to really usurp the dollar from that perspective.”
Data from IMF shows that as of the fourth quarter of 2022, more than 58% of global reserves are held in U.S. dollar — that’s more than double the share of the euro, the second most-held currency in the world.
The international reserve system “is still a U.S.-reserve dominated system,” said NatWest’s Chia.
“So long as that commands the majority, so long as you don’t have another currency system or economy that’s willing to step up to that international reach, convertibility and free floating and the responsibility of a reserve currency, it’s hard to say dollar will be displaced over the next 3 to 5 years. unless someone steps up.”
— CNBC’s Joanna Tan and Monica Pitrelli contributed to this report.
On today’s TSX Breakouts report, there are 15 stocks on the positive breakouts list (stocks with positive price momentum), and 12 stocks are on the negative breakouts list (stocks with negative price momentum).
Discussed today is stock that may surface on the positive breakouts list later this year – Saputo Inc. (SAP-T +1.03%increase). For the stock to breakout of its current trading range, investors will be waiting to see continued earnings improvement and margin expansion. Consequently, the stock is best suited for consideration by patient investors.
A brief outline on Saputo is provided below that may serve as a springboard for further fundamental research when conducting your own due diligence.
The company
Quebec-based Saputo produces and distributes dairy products under several brands, including Saputo, Dairyland, Neilson, Armstrong. With 67 plants worldwide, the company’s products are sold in over 60 countries.
The company has four main reporting segments. In fiscal 2022, 43 per cent of company’s revenue and 25 per cent of adjusted EBITDA stemmed from the U.S., 28 per cent and 41 per cent from Canada, 23 per cent and 22 per cent was from its international sector (Argentina and Australia), and 6 per cent and 12 per cent from its Europe sector (the U.K).
In fiscal 2022, 46 per cent of revenue stemmed from cheese, 28 per cent from dairy products, 12 per cent from milk, 8 per cent from by-products and ingredients and 6 per cent from non-dairy products.
The company serves three main markets. In 2022, retail represented 50 per cent of revenue, foodservice accounted for 30 per cent of revenue and industrial represented 20 per cent of revenue.
SAPUTO INC
35.47+1.95 (5.82%)
YEAR TO DATE
JAN. 17, 2023
DEC. 29, 2022
33.52
APRIL 21, 2023
35.47
SOURCE: BARCHART
Investment thesis
Seasoned management. Focused on prudent, disciplined growth and execution on its Global Strategic Plan. On the last earnings call, management indicated that in the near-term it remains focused on cost savings given high inflationary pressures across its supply chain as well as on wages.
Market leadership. The company is one of the top 10 dairy processors worldwide. In the U.S., the company is one of the top three cheese producers.
Healthy balance sheet to fund its growth. Net debt-to-adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) stood at 2.74 as of Dec. 31. Management targets a long-term leverage ratio of 2.25 times.
Earnings and margin recovery. Adjusted EBITDA fell to $1.155-billion in fiscal 2022 (fiscal year-end is March 31), down from $1.471-billion reported in fiscal 2021.The consensus EBITDA estimates are $1.55-billion in fiscal 2023, $1.79-billion in fiscal 2024, and $2-billion in fiscal 2025. Focus on continued adjusted EBITDA margin improvement, which stood at 9.7 per cent in the third-quarter of fiscal 2023, up from 6.6 per cent reported in the fourth-quarter of fiscal 2022.
Attractive valuation.
Potential risks to be aware of include: 1) fluctuating commodity prices; 2) inflationary pressures (higher costs); 3) labour shortages, particularly in the United States; and 4) persistent supply chain challenges.
Quarterly earnings results
After the market closed on Feb. 9, the company reported better-than-expected third-quarter fiscal 2023 financial results.
Adjusted EBITDA was $445-million, surpassing the consensus estimate of $409-million and up 38 per cent year-over-year. Adjusted earnings per share came in at 53 cents, above the Street’s forecast of 47 cents, and up from 33 cents reported during the same period last year. The share price rallied 5 per cent the following day.
On the earnings call, chairman, president and chief executive officer Lino Saputo remarked on management’s Global Strategic Plan, “Several capital investments and consolidation initiatives in our U.S. sector were announced last week to further optimize our manufacturing footprint and enhance operational agility. This includes the construction of a new state-of-the-art cut-and-wrap facility in Franklin, Wisconsin [cost of Cdn. $240-million and expected to operate at full capacity by the third-quarter of fiscal 2025], and the expansion of string cheese operations on the West Coast. This has led to the decision to permanently close our Big Stone, South Dakota, Green Bay, Wisconsin, and South Gate, California, facilities. As a result, we will increase operating efficiencies translating into lower cost, further consolidate our production capacity in world-class facilities, and increase capacity and capabilities for higher margin value-added products to meet growing demand. Specifically, we expect to yield financial benefits beginning in Q4 [fourth-quarter] fiscal 2024, and reaching its full potential of approximately Cdn $74-million [$55-million after-tax] annually by the end of fiscal ‘27.”
On April 2, Saputo announced the sale of two of its fresh milk processing facilities in Australia for roughly $95-million.
On June 8, the company will be releasing its fourth-quarter fiscal 2023 financial results. The consensus EBITDA and earnings per share estimate are currently $390-million and 41 cents, respectively.
Dividend policy
The company pays its shareholders a quarterly dividend of 18 cents per share or 72 cents per share yearly, equating to a current dividend yield of 2 per cent.
The dividend has been maintained at this level since the third quarter of 2021.
Analysts’ recommendations
There are 10 analysts who actively cover this consumer staples stock, of which six analysts have buy recommendations, three analysts have neutral recommendations, and one analyst (Erin Lash, the analyst at Morningstar) has a “sell” recommendation.
The 10 firms providing research on the company are: ARC Independent Research, BMO Nesbitt Burns, CIBC World Markets, Desjardins Securities, Edward Jones, Morningstar, National Bank Financial, RBC Dominion Securities, Scotiabankand TD Securities.
Revised recommendations
After the company released its third-quarter earnings results in February, eight analysts revised their targets.
ARC Independent Research’s Jim Marrone to $38 from $37.
CIBC’s Mark Petrie to $43 from $39.
Desjardins Securities’ Chris Li to $43 from $39.
Morningstar’s Erin Lash to $26.50 (the low on the Street) from $26.
National Bank Financial’s Vishal Shreedhar to $43 from $42.
RBC’s Irene Nattel to $45 from $40.
Scotiabank’s George Doumet to $39 from $38.
TD’s Mike Van Aelst to $46 (the high on the Street) from $44.
Financial forecasts
Earnings are expected to recover from the steep decline in fiscal 2022. In fiscal 2020 and 2021, adjusted EBITDA was $1.468-billion and $1.471-billion, respectively. In fiscal 2022, adjusted EBITDA fell to $1.155-billion.
The consensus EBITDA estimates are $1.55-billion in fiscal 2023, $1.79-billion in fiscal 2024, and $2-billion in fiscal 2025. Management targets EBITDA of $2.125-billion in fiscal 2025. The consensus earnings per share estimates are $1.74 in fiscal 2023, $2.03 in fiscal 2024, and $2.47 in fiscal 2025.
Earnings estimates have been rising. Three months ago, the Street was expecting EBITDA of $1.495-billion in fiscal 2023 and $1.75-billion in fiscal 2024. The consensus earnings per share estimates were $1.60 for fiscal 2023 and $1.97 for 2024.
Valuation
According to Bloomberg, the stock is trading at a price-to-earnings multiple of 17.5 times the fiscal 2024 consensus estimate, well below its five-year historical average of 21.4 times. Its lowest forward P/E multiple over the past five years was 15 times reached back in May 2022. The stock is trading at an enterprise value-to-EBITDA multiple of 10.5 times the fiscal 2023 consensus estimate, well below its five-year historical average of 12.5 times and near its trough level of roughly 10 times during this time period.
The average one-year target price is $40.72, suggesting the stock has 14 per cent upside potential over the next year. Individual target prices provided by nine firms are: $26.50 (from Morningstar’s Erin Lash), $38, $39, four at $43, $45, and $46 (from TD’s Mike Van Aelst).
Insider transaction activity
Between Feb. 24 to March 3, chief human resources officer Gaétane Wagner exercised her options, receiving a total of 67,318 shares at a cost per share of $25.55, and sold 67,318 shares at an average price per share of approximately $36.51 with 42,047 shares remaining in this particular account. Net proceeds exceeded $738,000, excluding any associated transaction charges.
Chart watch
Year-to-date, the share price is up 6 per cent, relatively in-line with the S&P/TSX composite index, which is up 7 per cent as well as the S&P/TSX consumer staples (sector) index, which is up 7 per cent.
Since mid-2022, the share price has been trading sideways, largely between $32 and $36. The share price is currently trading at the upper end of this trading band.
In terms of key technical resistance and support levels, there is an initial ceiling of resistance between $38 and $40. After that, the share price has major resistance between $45 and $46. Looking at the downside, there is initial technical support around $34, near its 200-day moving average (at $33.85). Failing that there is strong technical support around $30.
ESG Risk Rating
According to Sustainalytics, Saputo has an environmental, social and governance (ESG) risk rating of 29.7 as of April 13, 2023. A rating of between 20 and 30 reflects ‘medium’ risk.
The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. In addition, this report highlights a company’s dividend policy, analysts’ recommendations, financial forecasts, and provides a brief technical analysis for a security to provide readers with more information.
