Best Stocks For 2018: April 2014

Tuesday, April 29, 2014

Market Wrap For Wednesday, July 31: Stocks Mostly ...

Hot Casino Stocks To Own Right Now

The U.S. stock market closed mixed on Wednesday despite upbeat economic data and a dovish FOMC statement.

The advanced GDP estimate for the second-quarter came in much better than expected and the central bank showed no signs that a pullback in its quantitative easing program is imminent. Nevertheless, stocks were mostly unchanged at the close.

The Dow Jones Industrial Average recorded a small loss, the S&P was flat, and the Nasdaq finished the day with a small gain.

Major Averages

The Dow Jones Industrial Average fell 21 points, or 0.13 percent, to 15,500.

The S&P 500 lost less than a point, or 0.01 percent, to 1,686.

The Nasdaq rose around 10 points, or 0.27 percent, to 3,626.

GDP-Advanced

According to the advance estimate, GDP rose 1.7 percent in the second-quarter. This compares to a downwardly revised reading of 1.1 percent in the first-quarter of 2013. The consensus only expected GDP to advance 1.1 percent in the most recent quarter.

FOMC Rate Decision

The Federal Reserve left interest rates unchanged after a two-day FOMC meeting. The July FOMC statement also showed that the central bank is not pulling back from its $85 billion per month quantitative easing program. The Fed may begin tapering the program later this year, however, if the economic recovery picks up steam.

Chicago PMI

The Chicago PMI index improved in July, rising from 51.6 in June to 52.3. The index showed that manufacturing activity in the Chicago region has now expanded for three months in a row after contracting in April. The consensus expected Chicago PMI to decline slightly to 51.5.

Commodities

Crude oil traded higher during Wednesday's session. At last check, NYMEX crude futures had added a little better than 2 percent to $105.24. Brent crude contracts climbed 0.79 percent to $107.75. Na! tural gas was last up 0.47 percent to $3.45.

In afternoon trade, precious metals were trading higher. COMEX gold futures were last up 0.34 percent to $1,329.30 while silver added 1.50 percent to $19.98. Copper futures jumped around 2.60 percent on the session to $3.1210.

The grains complex was mostly higher on Wednesday. Late in the day, corn futures had climbed 0.31 percent while wheat was up 1.37 percent. Movers in soft commodities included coffee and lumber. Coffee contracts were last down 1.41 percent while lumber had lost 2.41 percent.

Related: Fed bond buying on track.

Bonds

Treasuries were slightly higher near the close after rising throughout the day. At last check, the iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT) was up 0.34 percent to $107.68.

Yields were as follows on Wednesday afternoon. The yield on the 2-Year Note was 0.31 percent while the 5-Year Note was yielding 1.38 percent. The 10-Year Note and 30-Year Bond were yielding 2.57 percent and 3.65 percent, respectively.

Currencies

Heading into the close of equities, the U.S. Dollar was slightly lower on the day. The PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP), which tracks the performance of the greenback versus a basket of foreign currencies, was down 0.20 percent to $22.10.

The closely watched EUR/USD pair was last up 0.56 percent to $1.3338. Other movers on the day included the USD/CAD, which fell 0.60 percent, and the AUD/USD, which was down 0.58 percent.

Related: Is Herbalife still a buy?

Volatility and Volume

The CBOE Volatility Index (VIX) rose slightly on the session. Late in the day, the widely watched barometer of market volatility was up a little better than 1 percent to 13.54.

Volume remained lighter than normal, but above recent days on Wednesday. Around 109 million SPDR S&P 500 ETF (NYSE: SPY) shares traded hands compared to a 3-month daily average of 135 million.

Stock Movers

Shares of Q! uestcor P! harmaceuticals (NASDAQ: QCOR) jumped around 27 percent on the day after the company released better-than-expected fiscal second-quarter financial results.

Marketo (NASDAQ: MKTO) delivered strong Q2 results and forward looking guidance, sending the stock up around 20 percent in late trade.

Synchronoss Technologies (NASDAQ: SNCR) added almost 15 percent on the day after the company's fiscal Q2 results.

Sodastream International (NASDAQ: SODA) delivered Q2 financial results which beat Wall Street profit and sales estimates. Late in the day, the stock was trading up almost 12 percent.

Strong fiscal first-quarter results from InvenSense (NYSE: INVN) sent shares higher by around 13 percent near the closing bell.

NuVasive (NASDAQ: NUVA) reported a second-quarter loss and adjusted earnings missed Wall Street consensus estimates. In late trade, the stock was down around 13 percent.

Shares of Riverbed Technology (NASDAQ: RVBD) lost around 11 percent on Wednesday after the company swung to a second-quarter loss.

Regal-Beloit (NYSE: RBC) lost around 8 percent on Wednesday after reporting fiscal second-quarter results that failed to meet analysts' estimates. The company said that its North American commercial and industrial businesses remained sluggish in the quarter.

Visa (NYSE: V) traded down around 7 percent on Wednesday after an unfavorable court ruling which could limit the capping of so-called "swipe fees" on debit cards.

Today's top financial tweets!

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Monday, April 28, 2014

A Great Time to Take Over as CEO of a Miner

Potash Corp. (NYSE: POT ) had been run by Bill Doyle for about 15 years. Now, when the industry is facing an almost existential crisis, a new leader is coming in. Believe it or not, it's a great time for Jochen Tilk to be taking over.

A broken market
The problem for the potash market was the 2013 breakup of a European selling consortium. That single event sent buyers to the sidelines and potash prices plummeting. The global potash market, once dominated by two sales consortiums, quickly began to look like an every-man-for-himself world.

Source: US Government)

While it hasn't exactly played out that way, Potash and its close competitors have definitely felt the pinch of lower prices. For example, late last year Potash announced plans to cut costs, and fourth-quarter earnings came in over 50% below year-earlier results. Although on the surface it would seem taking over a retrenching company would be a bad move, it's actually a great one because it allows Tilk to make changes that Doyle may have had more difficulty pushing through.

Not alone
But Potash isn't alone in this. BHP Billiton (NYSE: BHP ) switched leaders in early 2013. After years of expansion, BHP's new boss, Andrew Mackenzie, has come in and slashed spending and refocused around productivity. Through the first six months of the company's fiscal year (years end in June), the company highlighted a 25% reduction in spending on investment activities and, "annualised productivity led volume and cost efficiencies totalling US$4.9 billion."

While the old CEO could have done the same thing, he might have been perceived as fixing a mistake. Mackenzie, on the other hand, is benefiting politically from following through on the company's renewed commitment to its shareholders. In fact, with earnings up over 80% in the first half of the current fiscal year, Mackenzie is getting to look like a genius.

And BHP wasn't the only big miner to make a change last year, Rio Tinto (NYSE: RIO ) did too, appointing Sam Walsh. That said, Rio's move shows that every leadership transition isn't smooth. In this case, the shift came after Rio posted its first ever full-year loss. That led some to suggest the departing CEO was "sacked."

A sea of change?
Mining equipment maker Joy Global (NYSE: JOY ) highlighted the CEO trend in its fiscal 2013 conference call (years end October). Executive vice president Edward Doheny noted at the time that, "In the last 24 months, we've seen over 25 new CEOs at mining companies take over with a focus on cost reduction and returns to shareholders after years of focus on growth and investment." Essentially, as the mining market struggled, miners brought in a raft of new leaders to shift gears.

(Source: Joy Global, via Wikimedia Commons)

That's generally good news for the mining industry, but for Joy it's been bad news. For example, Joy's Doheny noted that the industry's directional shift -- and new CEOs -- have "resulted in a reduction in CapEx spending of approximately 40% last year and has been reflected in our OE order rates, which were down 36% over the year."

It ain't easy
Running a company isn't easy, particularly when an entire industry hits the skids. That said, a downturn in a cyclical industry can be a great time to take over. The new CEOs get to make changes that might have been difficult for their predecessors and reap the benefits of the upswing as investors attribute at least part of the recovery to the new CEO's skill.

The comments from Joy, however, show that the real shift may have less to do with a single CEO and more to do with the industry. There may be good things going on at Rio and BHP, and good things to come at Potash, but don't get too excited about the new CEOs. They may be less important than you think. Oh, and it's worth noting that Joy Global recently announced its own plans for a leadership change...

OPEC is absolutely terrified of this game-changer
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!

Sunday, April 27, 2014

Top Financial Companies To Watch For 2015

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How to Profit From Obamacare Bureaucracy

If you��e been paying attention to financial media at all in the past year, then you��e heard the shtick before: Obamacare means new ��ustomers��for managed care stocks and hospitals.

Top Financial Companies To Watch For 2015: PIMCO Strategic Income Fund, Inc (RCS)

PIMCO Strategic Global Government Fund, Inc. (the Fund) is a closed-end bond fund. The Fund invests primarily in a portfolio of investment grade fixed-income securities of the United States and other countries. The Fund invests, under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in government securities, which include bonds issued or guaranteed by the United States or foreign governments, by their agencies, authorities or instrumentalities, or by supranational entities, and synthetic instruments.

Government securities also include mortgage-backed securities issued or guaranteed by certain United States Government agencies and government-sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae) and Government National Mortgage Association (Ginnie Mae), which may or may not be backed by the full faith and credit of the United States Government. The Fund also invests up to 20% of its total assets in non-investment grade securities regardless of the issuer, including corporate, mortgage-backed and asset-backed securities. Pacific Investment Management Company LLC is the Fund's investment adviser.

Advisors' Opinion:

[By Keith Fitz-Gerald]
1. For the near term, try the Pimco Strategic Global Government Fund (NYSE: RCS).

Managed by Allianz Global Investors Fund Management LLC, the fund is constructed of intermediate-term, high-quality government securities. The fund can invest in mortgage-related and asset-backed securities, too, if managers so desire. It's also got the flexibility to pick up foreign paper.
[By Keith Fitz-Gerald]
I like the PIMCO Strategic Global Government Fund. The ticker is (RCS). The reason I like that, is it pays a hefty income; it's a bet on increased stability through further quantitative easing.

Top Financial Companies To Watch For 2015: PennyMac Mortgage Investment Trust(PMT)

PennyMac Mortgage Investment Trust is based in the United States.

Advisors' Opinion:

[By Marc Bastow]
PennyMac Mortgage Investment Trust (PMT), a REIT involved in mortgages and mortgage-related assets, raised its quarterly dividend 4% to 59 cents per share, payable Jan. 28 to shareholders of record as of Jan. 14. At more than 10%, PMT is the highest yielder of this week’s list of dividend stocks.
PMT Stock Dividend Yield: 10.15%

Top Electric Utility Companies To Own In Right Now: Cape Bancorp Inc.(CBNJ)

Cape Bancorp, Inc. operates as the holding company for the Cape Bank that provides a line of business and personal banking products to retail customers and small and mid-sized businesses primarily in Cape May and Atlantic Counties, New Jersey. Its deposit products include non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts, including NOW and money market accounts; savings accounts; and certificates of deposit. The company?s loan products portfolio comprises commercial mortgage loans, one-to-four family residential mortgage loans, commercial business loans, construction loans, home equity loans and lines of credit, and other consumer loans. It operates through its 16 full service branch offices located in Atlantic and Cape May counties in southern New Jersey; and a loan production office in Burlington County. The company was founded in 1923 and is based in Cape May Court House, New Jersey.

Advisors' Opinion:

[By Tim Melvin]
Right now I know that silver miners like Pan American Silver (PAAS) and Coeur Mining (CDE) are very cheap on an asset basis. I know that oil and gas producers like Swift Energy (SFY) and WPX Energy (WPX) are priced as if no one will ever use the stuff again. I know that small banks like Cape Bancorp (CBNJ) and Essa Bancorp (ESSA) are crazy-cheap — and if the world does not end, those stocks will be a lot higher in a few years.

Top Financial Companies To Watch For 2015: China Fund Inc (CHN)

The China Fund, Inc. (the Fund), incorporated on April 28, 1992, is a non-diversified, closed-end management investment company. The Fund�� investment objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in the People�� Republic of China, or which derive a significant part of their revenue from the People�� Republic of China.

The China Fund, Inc. may invest in equity-linked securities, such as linked participation notes, equity swaps and zero-strike options, and securities warrants collectively referred to as Access Products. The Fund invests various sectors, including industrials, consumer discretionary, energy, information technology, financials, consumer staples, materials, utilities, healthcare and telecommunications. Martin Currie Inc. serves as the investment manager for the Fund's listed assets. Asian Direct Capital Management is the investment manager for the Fund's assets allocated to direct investments.

Advisors' Opinion:

[By Stephen Leeb, Founder and Research Chairman, Leeb Group]
Healthy economic data, coupled with low inflation, make Chinese stocks attractive as well. Our first choice here is the China Fund (CHN). It holds a diverse portfolio of stocks primarily focused on the Chinese domestic market.

Top Financial Companies To Watch For 2015: First Horizon National Corp (FHN)

First Horizon National Corporation (FHN), incorporated in 1968, is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank), and its subsidiaries. The Company�� two brands First Tennessee and FTN Financial provide customers with a range of products and services. First Tennessee provides retail and commercial banking services throughout Tennessee. FTN Financial (FTNF) is engaged in fixed income sales, trading, and strategies for institutional clients in the United States and abroad. FHN has four operating business segments: regional banking, capital markets, corporate, and non-strategic. As of December 31, 2011, the Bank had $16.4 billion in total deposits and $16 billion in total net loans. As of December 31, 2011, the Company�� subsidiaries had over 200 business locations in 17 the United States states, Hong Kong, and Tokyo, excluding off-premises automated teller machines (ATMs). As of December 31, 2011, the Bank had 183 branch locations in four states, which include 172 branches in metropolitan areas of Tennessee; two branches in northwestern Georgia; seven branches in northwestern Mississippi, and two branches in North Carolina. As of December 31, 2011, FTN Financial products and services were offered through 18 offices in total, including 16 offices in 14 states plus an office in each of Hong Kong and Tokyo.

The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and surrounding markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, cash management, and first lien mortgage originations within the Tennessee footprint. In addition, the regional banking segment includes correspondent banking, which provides credit, depository, and other banking related services to other financial institutions.

The capital markets se! gment consists of fixed income sales, trading, and strategies for institutional clients in the United States and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of gains on the extinguishment of debt, unallocated corporate expenses, expense on subordinated debt issuances and preferred stock, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, low income housing investment activities, and charges related to restructuring, repositioning, and efficiency. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements, including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses along with the associated restructuring, repositioning, and efficiency charges.

As of December 31, 2011, the Company provided services through its subsidiaries, which include general banking services for consumers, businesses, financial institutions, and governments; through FTN Financial fixed income sales and trading, underwriting of bank, loan sales, advisory services and derivative sales; discount brokerage and full-service brokerage; correspondent banking; transaction processing, such as nationwide check clearing services and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; investment and financial advisory services; mutual fund sales as agent; retail insurance sales as agent, and mortgage banking services.

As of December 31, 2011, the commercial, financial, and industrial (C&I) portfolio was eight billion dollars, and is consisted of loans used for general business purposes, and consisted of relationship customers in Tennessee and certain n! eighborin! g states, which are managed within the regional bank. Products include working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit. As of December 31, 2011, the unpaid principal balance (UPB) of trust preferred loans totaled $447.2 million with the UPB of other bank-related loans totaling approximately $161.8 million. The commercial real estate portfolio includes both financings for commercial construction and non-construction loans. This portfolio is segregated between income commercial real estate (CRE) loans which contain loans, lines, and letters of credit to commercial real estate developers for the construction and mini- permanent financing of income-producing real estate, and residential CRE loans. The residential CRE portfolio includes loans to residential builders and developers for the purpose of constructing single-family detached homes, condominiums, and town homes. As of December 31, 2011, the residential CRE portfolio was $.1 billion. As of December 31, 2011, the consumer real estate portfolio was $5.3 billion, and is composed of home equity lines and installment loans. As of December 31, 2011, the credit card and other portfolios were $.3 billion, and primarily include credit card receivables, automobile loans, and over-the-counter (OTC) construction loans and other consumer related credits.

FHN�� investment portfolio consists of debt securities, including government agency issued mortgage-backed securities (MBS) and government agency issued collateralized mortgage obligations (CMO). During the year ended December 31, 2011, Government agency issued MBS and CMO, and other agencies averaged $2.9 billion. During 2011, the United States treasury securities and municipal bonds averaged $79.5 million. During 2011, investments in equity securities averaged $222.3 million.

During 2011, short-term funds (certificates of deposit greater than $100,000, federal funds purchased (! FFP), sec! urities sold under agreements to repurchase, trading liabilities, and other short-term borrowings) averaged $3.6 billion. During 2011, other borrowings increased to $.3 billion. Term borrowings include senior and subordinated borrowings and advances with original maturities greater than one year. During 2011, average term borrowings averaged $2.6 billion.

The Company competes with Regions Bank, SunTrust Bank, Wells Fargo Bank N.A., Bank of America N.A., and Pinnacle National Bank.

Advisors' Opinion:

[By John Maxfield]
Given that you clicked on this article, it seems safe to assume you either own stock in First Horizon National (NYSE: FHN ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about First Horizon stock before deciding whether to buy, sell, or hold it.
[By Sean Williams]
Finally, regional bank First Horizon National (NYSE: FHN ) , which has banking branches throughout Tennessee, added 4.2% just a day after paying shareholders a $0.05 quarterly dividend. Like Genuine Parts, there is no company specific news driving First Horizon higher, but the prospect for a higher net interest margin because of higher interest rates is certainly adding a boost to banks like First Horizon that rely on traditional loan and deposit growth. But as my Foolish colleague John Maxfield recently pointed out, you may want to keep your expectations for First Horizon tempered in the interim.

Top Financial Companies To Watch For 2015: SPDR DB International Government Inflation-Protected Bond ETF (WIP)

SPDR DB International Government Inflation-Protected Bond ETF (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of the DB Global Government ex-US Inflation-Linked Bond Capped Index (the Index). The Index measures the performance of the inflation-linked government bond markets of developed and emerging market countries outside of the United States. Inflation protected public obligations of the inflation-linked government bond markets of developed and emerging market countries, commonly known in the United States as treasury inflation-protected securities (TIPS), are securities issued by such governments that are designed to provide inflation protection to investors. The Fund uses a passive management strategy to track the Index. The Fund�� investment advisor is SSgA Funds Management, Inc. Advisors' Opinion:

[By Richard Stavros]
With respect to inflation protected bonds, though TIPS should be a part of every portfolio. However, we believe the SPDR DB International Government Inflation-Protected Bond (WIP) offers greater protection than TIPS.

Top Financial Companies To Watch For 2015: iShares U.S. Oil & Gas Exploration & Production ETF (IEO)

iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Select Oil Exploration & Production Index (the Index). The Index measures the performance of the oil exploration and production sub-sector of the United States equity market. The Index includes companies that are engaged in the exploration for and extraction, production, refining and supply of oil and gas products.

The Fund will concentrate its investments in a particular industry or group of industries to approximately the same extent as the Index is so concentrated. Since all of the securities included in the Index are issued by companies in the oil exploration and production sub-sector, the Fund will be concentrated in the exploration and production industry. The Fund�� investment advisor is Barclays Global Fund Advisors.

Advisors' Opinion:

[By John Udovich]
At first glance, you might think it strange that we have both the ProShares UltraShort DJ-UBS Crude Oil ETF (NYSEARCA: SCO), a bearish bet on oil, and the iShares Dow Jones US Oil & Gas Ex Index ETF (NYSEARCA: IEO), a more bullish bet on both domestic oil and gas, in our SmallCap Network Elite Opportunity (SCN EO) portfolio. But there is a method to our apparent madness as one can be both bearish and bullish on oil and/or gas at the same time.

Top Financial Companies To Watch For 2015: Nomura Holdings Inc ADR (NMR)

Nomura Holdings, Inc. provides financial services in Japan and internationally. The company operates in three divisions: Retail, Asset Management, and Wholesale. The Retail division primarily offers investment consultation services to retail clients. It also provides various financial instruments, such as stocks, debt securities, investment trusts, and variable annuity insurance products for the short, medium, and long term. As of March 31, 2011, this division operated a network of approximately 174 branches. The Asset Management division involves in the development and management of investment trusts. This division also offers investment advisory services to public and private pensions, governments and their agencies, central banks, and institutional investors. The Wholesale division engages in the fixed income and equity trading, and asset finance businesses. It provides debt securities, foreign currencies, and stocks, as well as related derivatives; and equities securit ies and equity-linked derivatives; and execution services, such as algorithmic trading and transaction cost analysis. This division also involves in underwriting various types of stocks, convertible and exchangeable securities, investment grade debt, sovereign and emerging market debt, high yield debt, structured securities, and other securities; offers financial advisory services and solutions on business transactions, including mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions; and operates private equity investment business. The company primarily serves individuals, corporations, financial institutions, governments, and governmental agencies, as well as retail and asset management clients. Nomura Holdings, Inc. was founded in 1925 and is headquartered in Tokyo, Japan.

Advisors' Opinion:

[By Dan Carroll]
Japan's Nikkei (NIKKEIINDICES: ^NI225 ) has topped indexes around the world this year, but investors wouldn't know it by looking at its recent performance. One need look no further than the yen's fluctuations as the country's central bank tries to weaken its currency through stimulus. Financial stocks are the kings of volatility across the Pacific: Nomura Holdings (NYSE: NMR ) has posted a whopping 129% gain over the past year, but over the last month the stock has performed horribly, losing more than 9%.
[By Maureen Farrell]
Shortly after Lehman declared bankruptcy, Barclays (BCS) paid $1.3 billion for most of the firm's North American operations, its Times Square headquarters, and about 9,000 employees. Nomura Holdings (NMR) paid roughly $200 million for Lehman's operations in Asia.

Top Financial Companies To Watch For 2015: Realty Income Corporation(O)

Realty Income Corporation engages in the acquisition and ownership of commercial retail real estate properties in the United States. The company leases its retail properties primarily to regional and national retail chain store operators. As of December 31, 2006, it owned 1,955 retail properties located in 48 states, covering approximately 16.7 million square feet of leasable space. The company also held a portfolio of 60 properties through its wholly owned subsidiary, Crest Net Lease, Inc. (Crest), as of the above date. Realty Income Corporation has elected to be treated as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes provided it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1969 and is based in Escondido, California.

Advisors' Opinion:

[By Marc Bastow]
Free-standing retail outlet center real estate investment trust Realty Income (O) raised its monthly dividend 0.17% to 18.25 cents per share, payable April 15 to shareholders of record as of April 1. The increase marks the 75th rise in Realty Income’s dividend. At more than 5%, O is the highest-yielding stock of this week’s list of dividend stocks.
O Dividend Yield: 5.16%
[By Diane Alter]
Dividend Stocks That Increased Payout in September
Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It's the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company's consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch's Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good
[By Bob Ciura]
However, despite headwinds in the past year due to rising rates, high-quality REITs like�HCP� (NYSE: HCP ) ,�Health Care REIT� (NYSE: HCN ) , and�Realty Income� (NYSE: O ) �exhibit long-term visions for their business that should appeal greatly to Foolish investors.
[By Rubicon Associates]
Going a little further back, we see Realty Income (O) becoming the exit strategy for American Realty Capital Trust (here):
Premium to Share Price and Asset Values This transaction enables the shareholders of American Realty Capital Trust to capitalize on the recent upward price movement of the shares of ARCT, and to achieve a premium valuation for their shares. Furthermore, ARCT's assets were acquired at an opportune time in the market. This transaction allows ARCT's shareholders to realize a premium over their purchase price.

Saturday, April 26, 2014

JP Morgan Offering a 17.6% pretax yield

Company History and Business

JPMorgan Chase (JPM) is a global finacial service firm and banking institution operating in 50 countries. It is engaged in investment banking, financial sevices for consumers and small businesses, commercial banking, financial trancactions processing, asset management and private equity. It is a well-run moneymaking machine that =brought in $24 billion in revenues with $2.5 trillion in assets in the last quarter. With a outstanding CEO in Jamie Dimon who has lead the company through the financial crisis, the London Whale Losses, government investigations and a first first quarter 2014 loss, while still ensuring that the earning power of the firm isn't harmed or impaired by these problems.

Jamie Dimon has been the CEO of JPM since 2005 and Chairman of the Board since Dec. 31, 2006. Under his leadership, JPM has become the leading bank in domestic assets under management and market valuation, and the top credit card provider in the U.S. Dimon led JPM through the financial crisis and acquired Bear Stearns and Washington Mutual for pennies on the dollar, increasing JPM in size and scope. But the acquistion of Bear Stearns and Washington Mutual came with mortage-backed securities and potional government lawsuits by the Justice Department. Forseeing that JPM has injected $28 billion into its legal reserves, since the end of 2009. Starting with the London Whale losses, the bank has had the Justice Department investigate the company, resulting in penalties up to $20 billion, most of this happened within the past year.

Finances

Balance Sheet

2013

31/12

2012

31/12

2011

31/12

2010

31/12

Total Current Assets

Total Assets

2415689

2359141

2265792

2117605

Cash & Due from Banks	39771	53723	59602	27567
Other Earning Assets, Total	1404299	1358307	1271811	1174042
Net Loans	722154	711860	696111	660661
Property/Plant/Equipment, Total - Net	14891	14519	14041	13355
Property/Plant/Equipment, Total - Gross	-	-	-	-
Accumulated Depreciation, Total	-	-	-	-
Goodwill, Net	48081	48175	48188	48854
Intangibles, Net	11232	9849	10430	17688
Long Term Investments	-	-	-	-
Other Long Term Assets, Total	-	-	-	-
Other Assets, Total	175261	162708	165609	175438

Total Current Liabilities

Total Liabilities

2204511

2155072

2082219

1941499

Accounts Payable	194491	195240	202895	170330
Payable/Accrued	-	-	-	-
Accrued Expenses	-	-	-	-
Total Deposits	1287765	1193593	1127806	930369
Other Bearing Liabilities, Total	-	-	-	-
Total Short Term Borrowings	267005	322106	287071	346332
Current Port. of LT Debt/Capital Leases	-	-	-	-
Other Current liabilities, Total	-	-	-	-
Total Long Term Debt	317506	312215	322752	348302
Long Term Debt	317506	312215	322752	348302
Capital Lease Obligations	-	-	-	-
Total Debt	584511	634321	609823	694634
Deferred Income Tax	-	-	-	-
Minority Interest	-	-	-	-
Other Liabilities, Total	137744	131918	141695	146166

Total Equity

211178

204069

183573

176106

Redeemable Preferred Stock, Total	-	-	-	-
Preferred Stock - Non Redeemable, Net	11158	9058	7800	7800
Common Stock, Total	4105	4105	4105	4105
Additional Paid-In Capital	93828	94604	95602	97415
Retained Earnings (Accumulated Deficit)	115756	104223	88315	73998
Treasury Stock - Common	-14868	-12023	-13193	-8213
ESOP Debt Guarantee	-	-	-	-
Unrealized Gain (Loss)	2798	-	-	-
Other Equity, Total	-1599	4102	944	1001

Total Liabilities & Shareholders' Equity

2415689

2359141

2265792

2117605

Total Common Shares Outstanding

3756.11

3803.95

3772.7

3910.3

Total Preferred Shares Outstanding

1.12

0.91

0.78

Income Statments

2013

31/12

2012

31/12

2011

31/12

2010

31/12

Net Interest Income

43319

44910

47689

51001

Interest Income, Bank	52996	56063	61293	63782
Total Interest Expense	9677	11153	13604	12781

Loan Loss Provision

225

3385

7574

16639

Net Interest Income After Loan Loss Provision

43094

41525

40115

34362

Non-Interest Income, Bank

53287

52121

49545

51693

Non-Interest Expense, Bank

-70467

-64729

-62911

-61196

Net Income Before Taxes

25914

28917

26749

24859

Provision for Income Taxes

7991

7633

7773

7489

Net Income After Taxes

17923

21284

18976

17370

Minority Interest

Equity In Affiliates

U.S GAAP Adjustment

Net Income Before Extraordinary Items

17923

21284

18976

17370

Total Extraordinary Items

Net Income

17923

21284

18976

17370

Total Adjustments to Net Income

-1330

-1407

-1408

-1606

Income Available to Common Excluding Extraordinary Items

16593

19877

17568

15764

Dilution Adjustment

Diluted Net Income

16593

19877

17568

15764

Diluted Weighted Average Shares

3814.9

3822.2

3920.3

3976.9

Diluted EPS Excluding Extraordinary Items

4.35

5.2

4.48

3.96

DPS - Common Stock Primary Issue

1.36

1.2

0.2

Diluted Normalized EPS

6.27

5.95

5.37

5.26

For fiscal year 2013, the firm interest income decreased 5% to $53 billion and net interest income after loans after loan loss provision increased 4% to $43.09 billion. It earned $17 billion and had revenues of $96.billon for 2013. The company had legal expenses after taxes of $8.6 billion you the year. Total deposite of $453 billion up 10% from the prior year.

Financial Assets and Liquidity

Ratio's	2013	2011
Debt to Equity	1.68	1.62
Total Equity to Total Assets	0.09	0.09
LT Debt to Total Assets	0.12	0.12
Tier 1 Capital	11.9	12.6
Tier 1 Common	10.7	11.0
Total Capital	14.4	15.3

JPM Pretax Earnings

	Net Common Income to Shareholders	Income Tax	Pretax Income
1Q2013	6,121	2,553	8,684
2Q2013	6,101	2,802	8,903
3Q2013	5,346	2,278	7,624
4Q2013	5,322	1,258	6,580

JPM 12 month pretax earnings after adding back taxes paid is $31.8 billion. It trades at around $57 with 3.8 billion shares outstanding, giving JPM a market cap of $213 billion that a 14.6% pretax yield. Buying JPM stock at today's price will give a pretax return of 14.6%compaired to the 2.5% on treasury is pretty good.

What JP Morgan Considers Normal Range For Earnings

Under normalize environment JP Morgan net income of $24 billion with growth initiative that will allow the firm to earn more than $24 billion over time. With the growth initiative in place target for earnings of $27 billon. Using the $27.5 billion "normalize" figure with growth initiative and $1.3 billion in benefit from a 100 basis point increase in interest rates that would come to $39.3 billion pretax. Assuming a 30% tax rate and deducting $1.5 billion in preferred dividends thats leaves $37.8 billion. This implices a 17.8% pretax yield based on shares out standing and the current stock price.

Risk to JPM

There are risks to JPM mainly from the Department of Justice and its investigations of the bank. With $28 billion in its legal reserve it can weather the penalities from the Department of Justice. JPM has penalties totaling $20 billion from the Department of Justice. Department of Justice penalties broken down:

$2 billion civil penalties to settles DOJ claims under the Finacial Institutions Reform, Recovery, and Enforcement. $1.4 billion to settle federal and state securities claim by the National Credit Union Administration $515.4 million to federal and state securities claims by the Federal Deposit Insurance Corporation $4 billion to federal and stater securities claims by the Federal Housing Agency $298.8 million to claims by the state of California $19.7 million to claims by the state of Delaware $100 million to claims by the state of Illionois $34.4 million to claims by the state of Massachusetts $613.8 million to claims by the stae of New York

JPM said about $7 billion of its penalties were tax-deductable, because of these penalties it earnings fell flat for the four quarter. JPM still has legal risk, but there is little risk to its business model, and earning power.

JPM Valuation

The firm is selling for 13x its earnings, 2.5x free cash flow, and 1.00x book value which shows that the company isn't cheap, but it is selling below its intrinsic value based on its pretax earnings, free cash flow and book value. JPM offers a 14.6% pretax return plus it's worth $86/share base on 10x its pretax earnings. By using $37.8 billion pretax earning or $9.94 per share at 10x will give you a $99.40 per share value and a 17% pretax return. JPM will continue to grow its earnings and make more money on its loans as interest rate moves up. Compared to Wells Fargo which offers a 12.8% pretax return, you'll getting one the best managed banks in the world with a higher return. JPM didn't just survived the 2008 crisis it thrived on it, making the bank one of the most stable and sound banks in the world. If JP Morgan traded at the same price to free cash flow as Wells Fargo then the company would sell for $130.00 per share or at the same price to book value $95.04 per share. Based on all of this it is very clear that JP Morgan intrinsic value is $99.40 per share and offers a 17% pretax yield which make it a great Long-Term Play for potential investors.

http://files.shareholder.com/downloads/ONE/3120446062x0x742266/2bd13119-52d2-4d78-9d85-a433141c21ae/01-2013AR_FULL_09.pdf

http://files.shareholder.com/downloads/ONE/3120447064x0x652147/a734543b-03fa-468d-89b0-fa5a9b1d9e5f/JPMC_2012_AR.pdf

http://money.cnn.com/2014/04/11/investing/premarkets/

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Thursday, April 24, 2014

Taco Bell to test fast-casual restaurant

Think of this as a Taco Bell for foodies.

Except it's not Taco Bell. It's U.S. Taco Co., a hush-hush, fast-casual restaurant project developed deep in the bowels of Taco Bell's Irvine, Calif., headquarters building over the past year.

Later this summer, the first U.S. Taco is scheduled to open within eye-shot of the Pacific Ocean in surfer haven Huntington Beach, Calif.

Oh, and its logo is a vibrant pink, Day of the Dead sugar skull.

Logo for U.S. Taco Co.(Photo: TACO BELL)

Perhaps this, alone, tells you something about the U.S. Taco's key target: Millennials — with dough. Like the ones who eat several times a week at Chipotle or Panera Bread.

You won't find 99-cent tacos at U.S. Taco Co. The restaurant will sell tacos for as much as $7. Ten different, soft-shell, open-faced tacos initially will be the only menu entrees. One's made with Maine lobster. Another's layered with brisket from Texas. And yet another veggie version is drizzled with Wisconsin cheese.

FOOD WARS: Taco Bell's breakfast beating McDonald's according to survey

MORE: McDonald's vs. Taco Bell breakfast war goes viral

"We realized that at Taco Bell we weren't reaching all of those who want Mexican food," says Jeff Jenkins, senior brand manager. So, Taco Bell CEO Greg Creed put the project in motion last year. It was kept secret from most Taco Bell employees, says Jenkins. "It was tucked away in a part of the building where not a lot of people venture."

RELATED: Meet one of the real Ronald McDonalds in Taco Bell ad

This is not your grandfather's Taco Bell. If you walk out of Taco Bell spending $5 to $7, you'll likely double that at U.S. Taco Co. to the tune of $10 to $15.

"Every! one in the U.S. has become a foodie," says Jenkins. "The first thing young people do in a restaurant is take out their camera and take a picture of their food — and post it on Instagram." Consider: Nearly half of the images posted on Instagram are of food.

This is Taco Bell's long-awaited move to tap into the restaurant world's fastest-growing segment: fast-casual. This is the land inhabited by success stories like Chipotle and Panera Bread — who have figured a way to directly appeal to Millennials. In fact, continued growth in the fast-casual sector — particularly via fast-food chains expanding into the sector — is the No. 1 restaurant trend that the research firm Technomic projects for 2014.

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Taco Bell executives already are planning a second U.S. Taco Co. location in Southern California — but they won't say where. The second store, and those after it, will sell milkshakes spiked with beer. (It couldn't get an alcoholic beverage permit for the Huntington Beach location.)

For extra Millennial appeal, the place will pulsate with rock music. It will have an outdoor dining patio. And the kitchen will be set behind glass, so customers can watch the "food theater," says Jenkins.

Most important: Don't look for the Taco Bell name anywhere in the restaurant. "This is an entirely separate brand," says Jenkins. "You will not see Taco Bell."

Not even a Waffle Taco.

Wednesday, April 23, 2014

Net neutrality advocates slam FCC proposal

The Federal Communications Commission will propose allowing streaming companies such as Netflix to pay Internet service providers for faster transmissions directly to consumers' homes.

Until a federal appeals court tossed out net neutrality rules earlier this year, the FCC prohibited providers from preferring the content of one source over another. As the FCC prepares to recast the rules, some in the industry have advocated that the agency address the issue of whether a content provider can pay ISPs to get around heavy Internet traffic.

The provision is part of new net neutrality, or open Internet, draft proposals that FCC Chairman Tom Wheeler will forward to commissioners Thursday. They will be voted on at the agency's May 15 meeting.

The proposal will likely come under attack from net neutrality advocates, who support the equal treatment of all Internet traffic. "The FCC is inviting ISPs to pick winners and losers online," said Michael Weinberg, vice president of technology advocacy group Public Knowledge. "The very essence of a 'commercial reasonableness' standard is discrimination. And the core of net neutrality is non-discrimination. This is not net neutrality."

Late Thursday night, Wheeler issued a statement saying the FCC is not "gutting the open Internet rule. ... There is no 'turnaround in policy.' The same rules will apply to all Internet content. ... Behavior that harms consumers or competition will not be permitted."

In the proposal, the FCC will still insist that the ISPs offer a basic level of service to subscribers, but will be able to "enter into individual negotiations with content providers," according to two FCC officials. They did not want their names used because they are not authorized to discuss the issue publicly.

Such arrangements would be reviewed by the FCC on a case-by-case basis to make sure they are "commercially reasonable," they said. The provision presumably was included so that smaller companies would not be priced out of the market.!

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The FCC officials emphasized that the proposal addresses only "the last mile" that connects the ISP to customers' homes. It does not address other aspects of Internet traffic such as the back pipes used by content providers to send data to ISPs.

Netflix recently agreed to pay Comcast to connect its servers directly to Comcast's network for faster streaming. Net neutrality opponents have argued that such arrangements must also be addressed by the FCC as it revises its rules.

Even the executive who struck the deal, Netflix CEO Reed Hastings, conceded that his arrangement with Comcast was one he made reluctantly. He later urged federal regulators to craft stronger net neutrality rules. ISPs "must provide sufficient access to their network without charge," he said.

Ask a Fool: Can Baidu Turn It Around?

It's been a rough road to hoe for investors in Baidu (NASDAQ: BIDU ) , the Chinese search giant, over the last year. Now sitting down some 20%, investors are fair to ask if the investment thesis in Baidu is fundamentally broken or simply taking longer than expected to unfold. The company's still growing like gangbusters, but much of that growth isn't showing up at the bottom line. Can Baidu avert its recent tailspin and restart its upward march? Absolutely, says Fool contributor Andrew Tonner in this edition of our Ask a Fool series.

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Monday, April 21, 2014

US Airways Records Best Mainline Load Factor for June

Crowds have apparently been thick at US Airways' (NYSE: LCC ) departure gates recently. For the second month in a row, the company has recorded its highest-ever load factor (i.e., the average "occupancy" of its aircraft) in its mainline flights for that particular month. The carrier released its latest set of operating metrics, which revealed that highest-ever June load factor of 88.2%. That was 1.7 percentage points higher than June 2012's figure.

The consolidated figure (including the carrier's Express offerings) was slightly lower, however. It came in at 87.8% for the month, which was also 1.7 percentage points higher than its year-ago equivalent.

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Other statistics for consolidated operations also saw year-over-year increases. The total for revenue passenger miles was 6.5 billion, a 7% improvement over June 2012's 6.0 billion. Available seat miles grew by 5% to nearly 7.4 billion, while total boardings advanced by 6% to just over 5.7 million.

Sunday, April 20, 2014

2 Things Investors Should Watch Very Closely This Week

Allow me to make a bold claim. In my opinion, this is the most important week in April for stocks and the economy, as two unusually significant economic reports are scheduled for release on Tuesday and Wednesday, either of which could exert a big impact on the S&P 500 (SNPINDEX: ^GSPC ) .

The first, which I discussed at length yesterday, is the National Association of Realtors' report on March existing-home sales. The gravity of this can't be overstated, as the housing market is a principal component of the American economy.

Although the pace of existing-home sales has increased consistently since the middle of 2010, everything seemed to change last year. After peaking at a seasonally adjusted annual rate of 5.38 million in July of last year, they've since taken a nosedive. Most recently, the figure dropped to 4.6 million in February.

With the spring selling season just around the corner, the question is whether the downturn is a temporary blip, caused perhaps by extreme weather from earlier in the year, or whether it's a genuine correction. If it's the former, there's little reason for concern. If it's the latter, there may very well be.

Along these same lines, the second report will shed light on the homebuilding industry. On Wednesday, the government is scheduled to release its estimate of new home sales for March.

The figure for February, while not as dire as the market for previously owned homes, similarly suggested that the momentum in the housing market may have taken a turn for the worse, as new home sales were down by 3.3% compared to January. Again, the thing to watch is whether the downturn is temporary or here to stay, at least for the time being.

In sum, if you're an investor or are otherwise interested in the economy, then I'd strongly encourage you to keep a close eye on both of these events.

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Why Citigroup Got Hammered This Week

About three hours into the week's final day of trading, Citigroup (NYSE: C ) stock is down a staggering 6.80%. There's no mystery as to what's behind the plummet, as well as the rest of the market's demise this week: a little thing Ben Bernanke likes to call "tapering."

The Fed giveth, and the Fed taketh away
In case you missed it, here's the overview: On Wednesday, the Federal Reserve chairman announced his plan to taper quantitative easing, the bond-buying program investors have come to mentally rely on as they've piled more and more money into the stock market.

So long as the economy continues to improve, the pace of bond-purchases will begin to slow later this year, with a target of mid-2014 for a complete halt to buying. By then, the rate of unemployment is projected to be down to 7%. Finally, interest rates will be kept low until unemployment drops to 6.5%.

Foolish bottom line
With this announcement, markets of all kinds all over the world have been freaking out: Equity markets have tumbled, bond yields are rising, and commodity prices are dropping. Here at home, the S&P 500 is down 3.24% for the week, the Dow Jones Industrial Average is down 2.98%, and the Nasdaq is down 3.29%.

Of course, no one should be surprised at the Fed's move. Bernanke's been talking about tapering for months, without announcing any firm plans. I think it's obvious he's been trying to prepare investors for the inevitable: that QE had to end sometime, and that time is now. Although that isn't even the case: Tapering will only begin later this year, and then only if the economic data remains positive.

Still, the markets will do what they will do, and there's an argument to be made that a stock market bubble had formed because of the excess liquidity the Fed has been pumping into the system for years now, but especially since last September, when the third round of QE began. So as long as this market tumble stabilizes soon, investors will have cause to be joyful: bubbles aren't good for anyone, because once they pop, what should have been a reasonable correction can turn into panic and subsequent rout.

Citi really took it on the chin this week, though. It's performance was worse than even that of Bank of America's. It's possible investors are concerned about breaking news out of the U.K., involving a Citi trader being criminally charged with manipulating the LIBOR. So far, the scandal seems contained, but it's early on, and investors may be lumping that and the Fed's announcement together.

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But as always, Fools, stay focused on the fundamentals of the companies you're invested in, and tune out the market noise. Obsessive ticker checking can lead to more trades, which costs money, and can also lead to poorer portfolio performance. I personally own stock in Citi, and would counsel other investors to hold their positions through this bit of market turbulence. This drop could even be looked at as a buying opportunity.

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Saturday, April 19, 2014

5 Most Common 401(k) Plan Red Flags

There are five red flags defined contribution plan sponsors should watch for when evaluating their plan performance, according to research by Judy Diamond Associates, who provides sales prospecting and plan analysis tools for benefits brokers, financial advisors, plan providers and carriers serving the employee benefits and retirement markets.

The flags indicate whether a plan is underperforming, is poorly designed or has reached certain thresholds that suggest it may need new services.

“Identifying the most common problems and challenges facing the almost 600,000 401(k) plans nationwide can empower financial advisors to address the concerns that are keeping their clients up at night,” said Eric Ryles, managing director of Judy Diamond Associates. “In that way, our subscribers are able to better prepare their clients for the future and cement their own status as a consultant and valued partner, rather than ‘just’ a 401(k) vendor.”

Judy Diamond Associates based its research on the most recent 401(k) plan disclosure documents released by the Department of Labor.

Red flags are key indicators of a plan’s general health and are valuable as a sales prospect for an advisor or other provider.

The five most common 401(k) plan red flags (in reverse order) are:

401(k) red flag #5: Corrective distributions issued

5. Corrective distributions issued: Judy Diamond found 63,349 plans that fell into this category. Plans that issue corrective distributions may be experiencing flaws in the way their plans were designed or rolled out. Participation rates and employee contribution levels at these plans may be lacking and they may be receptive to better advice, education and products from new providers.

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401(k) red flag #4: Reduced employer contributions

4. Reduced employer contributions: Judy Diamond found 63,694 plans that reduced their contributions. Plans that reduce their employer contributions may benefit from better plan design.

401(k) red flag #3: Plan recently terminated

3. Plan recently terminated: Judy Diamond found 68,222 plans that fell into this category. Recently terminated plans may offer advisors opportunities to roll participants over into individual retirement accounts.

401(k) red flag #2: High average account balance

2. High average account balance: Judy Diamond found 109,287 401(k) plans that fell into this category. Having a high average account balance per participant indicates that there may be participants who are nearing retirement and approaching the need for new, individual financial advice.

1. Bottom 10% in employer contributions

1. Bottom 10% in employer contributions: In its research Judy Diamond identified 184,442 plans that fall into this category. The bottom 10% is calculated based on the value of the contribution, not the number of plans offering each value. That means that a clustering of plans around certain values, especially zero, can result in more than 10% of plans offering employer contributions ranked in the bottom 10% by value.

-- Related ThinkAdvisor stories:

Friday, April 18, 2014

Baker Hughes Q1 EPS, Revenue Rise On Strong Overseas Sales

Shares of Baker Hughes (BHI) were higher Thursday, as it delivered a top- and bottom-line beat in its first quarter.

The oilfield services company said it earned $328 million, or 74 cents a share, up from 60 cents a share in the year-ago period. Excluding one-time items, earnings were 84 cents a share, up from 65 cents, six cents ahead of the 78 cents analysts were expected.

Revenue rose 9.6% to $5.73 billion, squeaking past the consensus $5.71 billion.

Revenue in the North American region, the biggest top-line contributor, climbed 6.6% in the quarter, while overseas sales saw double-digit jumps: The Middle East and Asia-Pacific region saw a 24% increase in revenues, followed by a 17% gain in Europe, Russia, and Africa. Latin America was one blemish on the report, as sales slid 10%.

On the conference call, management said that it expects strong commodity prices to support spending by its customers. The company noted that rig counts in Saudi Arabia have reached a new high, and that they also see well counts rising in the U.S. However, it also adjusted its international rig count growth estimate to 9% for the full year, down from a previous 10%.

Not many analyst notes have trickled in yet, but FBR Capital Markets' Thomas Curran and Juan Avendano reiterated an Outperform rating on the stock, writing that the quarter demonstrates why the stock has been their top pick in the group.

Thursday, April 17, 2014

10 Insurance Stocks to Sell Now

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This week, the overall grades of 10 insurance stocks are lower, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Cincinnati Financial Corporation () ratings are on the decline this week as the company earns an F (“strong sell”). Last week, it received a D (“sell”). Cincinnati Financial markets property casualty insurance through independent insurance agents. In Portfolio Grader’s specific subcategories of Earnings Momentum and Earnings Revisions, CINF also gets F’s. .

This week, Progressive Corporation () drops from a D to an F rating. Progressive is an insurance holding company that offers primarily personal and commercial automobile insurance, in addition to other property-casualty insurance products. .

Validus Holdings, Ltd. () is on the decline this week, earning a D (“sell”) after receiving a C (“hold”) last week. Validus Holdings provides reinsurance and insurance coverage in the property and marine markets. The stock also rates an F in Earnings Surprise. .

Axis Capital Holdings Limited () gets weaker ratings this week as last week’s C drops to a D. Axis Capital Holdings provides various insurance and reinsurance products to worldwide operations. .

The rating of Meadowbrook Insurance Group, Inc. () slips from a D to an F. Meadowbrook Insurance Group provides alternative risk management programs and services. The stock gets F’s in Earnings Revisions, Cash Flow and Sales Growth. .

Crawford & Company Class B’s () rating weakens this week, dropping to a D versus last week’s C. Crawford & Company is an independent provider of claims management solutions to insurance companies and self-insured entities. .

State Auto Financial Corporation () gets weaker ratings this week as last week’s C drops to a D. State Auto Financial is a property and casualty insurance company engaged in writing personal and business lines of insurance. The stock also gets an F in Earnings Momentum. .

This is a rough week for OneBeacon Insurance Group, Ltd. Class A (). The company’s rating falls to D from the previous week’s C. OneBeacon Insurance Group offers specialized insurance products and services. The stock also gets an F in Sales Growth. .

Erie Indemnity Company Class A () earns an F this week, falling from last week’s grade of D. Erie Indemnity is involved in the property/casualty insurance business. The stock also rates an F in Earnings Surprise. .

Aspen Insurance Holdings Limited () experiences a ratings drop this week, going from last week’s C to a D. Aspen Insurance Holdings provides insurance and reinsurance solutions worldwide. .

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Wednesday, April 16, 2014

BofA Posts Loss as Litigation Charges Weigh

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Bank Fees Mark Lennihan/AP Bank of America (BAC) posted a first-quarter loss as the No. 2 U.S. bank recorded $6 billion in litigation expenses related to a settlement with the Federal Housing Finance Agency and other mortgage-related matters. The bank reported a net loss attributable to shareholders of$514 million, or 5 cents a share, in the three months to March 31 compared with a profit of $1.11 billion, or 10 cents a share, a year earlier. The previous quarter's results were hit by $1.6 billion in charges related to disputes with bond insurers. Analysts on average had expected earnings of 5 cents a share, according to Thomson Reuters I/B/E/S. BofA shares, which have risen 5.3 percent so far this year, were down nearly 2 percent at $16.10 in premarket trading. Revenue fell 3.8 percent to $22.66 billion, excluding accounting adjustments, but beat the average analyst estimate of $22.33 billion. Bank of America is coming off its best year since before the financial crisis, with 2013 net income of $11.4 billion the highest since 2007. But large legal bills continue to overshadow the performance of many of its main businesses. BofA agreed in March to pay $9.5 billion to settle claims that it sold Fannie Mae and Freddie Mac faulty mortgage bonds, helping it to end one of the largest legal headaches it still faced from the financial crisis. BofA made progress resolving many of its legal issues in the first quarter, although some proved to be costly. The bank said on March 26 that first-quarter pre-tax profit would be reduced by about $3.7 billion as a result of a settlement with the Federal Housing Finance Agency, the overseer of government-backed mortgage giants Fannie Mae and Freddie Mac. "The cost of resolving more of our mortgage issues hurt our earnings this quarter," Chief Executive Officer Brian Moynihan said in a statement. Litigation expenses rose to $6 billion from $2.2 billion in the first quarter of 2013. Noninterest expenses increased to $22.2 billion from $19.5 billion. Costs in the bank's Legacy Assets and Servicing division, excluding litigation expenses, fell to $1.6 billion from $2.6 billion a year earlier and $1.8 billion in the third quarter. The Charlotte, North Carolina-based bank has said that costs in the unit, which handles delinquent mortgage loans, would fall below $1.1 billion a quarter by the end of 2014 and will be about $500 million a quarter by the end of 2015. Bank of America released $379 million from its allowances for bad loans, compared with $804 million in the same period a year earlier and $1.2 billion in the fourth quarter.

Monday, April 14, 2014

Pot taxes won't be as high as hoped

Dude, these tax-revenue figures are really harshing my mellow.

NEW YORK (CNNMoney) It's been just three months since marijuana was legalized in Colorado, but economists don't think the state will raise as much in taxes as was hoped.

They had expected to raise $22.7 million before July from special sales taxes on recreational marijuana, but state economist Larson Silbaugh is skeptical.

About $3.4 million was raised in January and February, the only months for which sales have been reported so far.

"If current tax revenues keep coming in at the same pace, we won't meet that expectation," Silbaugh said.

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Economists have also lowered the forecast for the full fiscal year ending in June 2015 to $54.7 million from $67 million.

The forecast was cut because fewer people switched from buying medical marijuana to buying recreational marijuana than was first expected, Silbaugh said. Medical marijuana users need to get approval from a doctor to buy the drug, but the state taxes those sales at just 2.9%. Recreational marijuana is taxed another 25%.

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Still, making predictions for such a new industry is tough. Colorado is the first state to legalize sales of recreational marijuana in the country.

Early numbers may not accurately reflect what will happen when the marijuana market is completely developed. Sales in the first couple of months could be inflated due to the initial hype. But on the other hand, sales could be getting off to a slow start because only 24 retail stores were open for the entire month of January. Now, that number has more than doubled.

Gov. John Hickenlooper's office has its own predictions, which put tax revenue at about $98 million for the first fiscal year. But the governor also recently lowered his forecast, too, by about $20 million.

The tax revenue is slated for school construction, substance abuse treatment and programs aimed at keeping kids away from pot.

Sunday, April 13, 2014

Top 10 Electric Utility Companies To Watch In Right Now

Top 10 Electric Utility Companies To Watch In Right Now: Allstate Corp (ALL)

The Allstate Corporation (Allstate), November 5, 1992, is a holding company for Allstate Insurance Company. The Company's business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and their affiliates. It is engaged, principally in the United States, in the property-liability insurance, life insurance, retirement and investment product business. Allstate's primary business is the sale of private passenger auto and homeowners insurance. The Company also sells several other personal property and casualty insurance products, select commercial property and casualty coverages, life insurance, annuities, voluntary accident and health insurance and funding agreements. Allstate primarily distributes its products through exclusive agencies, financial specialists, independent agencies, call centers and the Internet. It conducts its business primarily in the United States. Allstate has four business segments: Allstate Protection, Allstate Financial, Discontinued Lines and Coverages and Corporate and Other. The Company is a personal lines insurer in the United States. Customers can access Allstate products and services, such as auto insurance and homeowners insurance through nearly 12,000 exclusive Allstate agencies and financial representatives in the United States and Canada. In October 2011, the Company acquired Esurance and Answer Financial from White Mountains Insurance Group.

ALLSTATE PROTECTION SEGMENT

In this segment, the Company principally sells private passenger auto and homeowners insurance through agencies and directly through call centers and the Internet. These products are marketed under the Allstate, Encompass and Esurance brand names. The Allstate Protection segment also includes a separate organization called Emerging Businesses, whic! h comprises Business Insurance (commercial products for small business owners), Consumer Household (specialty products including moto rcycle, boat, renters and condominium insurance policies), A! llstate Dealer Services (insurance and non-insurance products sold primarily to auto dealers), Allstate Roadside Services (retail and wholesale roadside assistance products) and Ivantage (insurance agency). The Company also participates in the involuntary or shared private passenger auto insurance business in order to maintain its licenses to do business in many states. In some states, Allstate exclusive agencies offer non-proprietary property insurance products. Allstate brand auto and homeowners insurance products are sold primarily through Allstate exclusive agencies and serve customers who prefer local personal advice and service and are brand-sensitive. In most states, customers can also purchase certain Allstate brand personal insurance products, and obtain service, directly through call centers and the Internet.

During the year ended December 31, 2011, total Allstate Protection premiums written were $25.98 billion. Its broad-based network of approximately 10,000 Allstate exclusive agencies in approximately 9,700 locations in the United States produced approximately 86% of the Allstate Protection segment's written premiums in 2011. It provides personal property and casualty insurance products through independent agencies in the United States. Additionally, Allstate distribution, through brokering arrangements, offers non-proprietary products to consumers when an Allstate product is not available.

ALLSTATE FINANCIAL SEGMENT

Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products. Its principal products are interest-sensitive, traditional and variable life insurance; fixed annuities, including deferred and immediate; and voluntary accident and health insurance. Its institutional pr! oducts co! nsist of funding agreements sold to unaffiliated trusts that use them to back medium-term notes issued to institutional and individ ual investors. Banking products and services were offered to! customer! s through the Allstate Bank through September 2011. In 2011, after receiving regulatory approval to voluntarily dissolve, Allstate Bank ceased operations.

The Company sells Allstate Financial products to individuals through multiple intermediary distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents, specialized structured settlement brokers and directly through call centers and the Internet. The Company sells products through independent agents affiliated with approximately 125 master brokerage agencies. Independent workplace enrolling agents and Allstate exclusive agencies also sell its voluntary accident and health insurance products primarily to employees of unaffiliated businesses. Its mortgage loan portfolio, which is primarily held in the Allstate Financial portfolio, totaled $7.14 billion as of December 31, 2011

Allstate Financial, through several companies, is authorized to sell life insurance and retirement products in all 50 states, the District of Columbia, Puerto Rico, the United States, Virgin Islands and Guam. Allstate Financial distributes its products to individuals through multiple distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents (including master brokerage agencies and workplace enrolling agents), specialized structured settlement brokers and directly through call centers and the Internet.

OTHER BUSINESS SEGMENTS

The Company's Corporate and Other segment consistsof holding company activities and certain non-insurance operations. It's Discontinued Lines and Coverages segment includes results from insurance coverage that it no longer writes and results for certain commercial and other businesses i! n run-off! . Its exposure to asbestos, environmental and other discontinued lines claims is presented in the segment. The segment also includes the hist orical results of the commercial and reinsurance businesses ! sold in 1! 996.

Advisors' Opinion:

[By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number CINF is trading at a discount to only 3.) above. The stock is trading at a 36.8% premium to its calculated fair value of $34.96. CINF did not earn any Stars in this section. Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% CINF earned two Stars in this section for 1.) and 2.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1954 and has increased its dividend payments for 54 consecutive years. Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA The NPV MMA Diff. of the $62 is below the $500 target I look for in a stock that has increased dividends as long as CINF has. If CINF grows its divid! end at 1.! 2% per year, it will take 5 years to equal a MMA yielding an estimated 20-year average rate of 3.68%. Memberships and Peers: CINF is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers™ Index and a Divid
[By John Kell]
Allstate Corp.(ALL) said its fourth-quarter profit more than doubled, boosted in part by rising insurance policies in several units and fewer catastrophes.

source from Top Stocks Blog:http://www.topstocksblog.com/top-10-electric-utility-companies-to-watch-in-right-now.html