A typical housewife with no knowledge of money matters, Richa transformed herself into a financially smart lady - and in just six months. Till last year, she was a 35-year old happy-go-lucky wife of Raj, a senior sales manager in an MNC, and mother of two kids Mitesh and Ria.
When they lost almost Rs.50,000 to a wrong investment, done at the recommendation of a relationship manager, Richa was jolted out of her complacency. She wondered whether understanding personal financial matters was really such a big deal. At school she could easily master trigonometry and calculus; chemical reactions, equations and formulas; Newton�s and Einstein�s laws; and all the history, geography, etc. So why couldn�t she study personal finance too?
So with lots of enthusiasm and determination she decided to crack the finance code. She vowed that her money knowledge would no longer be restricted to just spending what Raj earned, but henceforth she would also manage the money judiciously while her husband was busy with his work and travel commitments.
As a first step, therefore, Richa registered herself for an online course on the basics of personal finance. This would enable her to study from home and at her convenience. The idea behind doing this course was to first learn the ABC of finance. There are many aspects to Personal Finance such as Investments, Borrowing, Insurance, Taxation etc. Further, for each of these, there are a plethora of alternatives/options available. Therefore, Richa wanted to begin by familiarizing herself with the nitty-gritty of each of these facets.
To supplement this, she started buying one book on personal finance every month. She thought how ridiculous it was with people (including herself till a few months back) willing to spend Rs.500-1000 on pizzas and burgers every weekend but not investing Rs.300-500 in a book even once a month. Thus, with time, Richa not only enhanced her knowledge multifold, but also created a nice little library (and a more useful legacy than money) for her children.
She also decided to avail the services of an independent personal finance advisor. However, her intention was not to be spoon-fed. Rather, Richa was looking for a person who would also be her mentor and accelerate her learning process.
From time to time, she enhanced her knowledge and understanding in a few areas of her interest by attending specific workshops and seminars.
Further, she has subscribed to a personal finance magazine and a business newspaper. Richa knows that policies change, investment climate changes, products change, economic situations change, and therefore, timely action is important if one doesn�t want to get caught on the wrong foot or miss any new opportunities. In fact, these magazines and newspapers not only disseminate news, they also carry useful analyses; interviews with financial experts; product comparisons; new investment ideas; investor queries; and so on.
And of course, internet, the storehouse of unlimited knowledge, has become Richa�s friend, philosopher and guide. Internet is no longer just for entertainment, chatting, social networking and online shopping. It is also a very useful learning tool.
That apart, Richa has switched channels. No more saas-bahu dramas for her! Now she mainly watches the business channels.
Read on for more tips!
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The issue, which was launched on January 9, closed on February 7. The issue size was Rs 750 crore with an option to retain over-subscription up to Rs 5,000 crore. "We have done well. The issue was oversubscribed by about three times. The maximum amount was raised from retail investors," HUDCO Chairman and Managing Director V. P. Baligar told PTI. The company has raised Rs 1,402 crore from retail investors, of which Rs 801 crore came from retail investors investing up to Rs 10 lakh and the remaining Rs 601 crore from high-net worth individuals (HNIs), he added. "We have raised more funds from retail investors than other tax-free bonds public issues launched recently," Baligar said. Of the total 20,881 investors that participated in this issue, he said 20,481 were retail investors and 241 HNIs. For retail investors, HUDCO offered a higher coupon rate of 8.01 per cent per annum for 15 years maturity period and 7.84 per cent for 10 years. An investment up to Rs 10 lakh qualifies under the retail category. Asked about further fund raising plans, Baligar said: "We have been allowed to raise up to Rs 5,000 crore by the Finance Ministry. We have already garnered Rs 2,216 crore and we are considering raising the balance before this fiscal". HUDCO, a mini-ratna firm, is a financial institution that provides long-term finance for housing and urban infrastructure projects. The company posted a net profit of Rs 630.33 crore over a gross income of Rs 2,778.63 crore in 2011-12 fiscal. Baligar said the company would achieve the sanctioning and disbursal targets for this fiscal at Rs 22,000 crore and over Rs 6,000 crore, respectively. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Below is the verbatim transcript of Navlakhi's interview with CNBC-TV18. Q: We have seen foreign investors bringing in flows into our equity markets and yet recent data shows that mutual funds have been net sellers. What is the reason they are facing this kind of redemption pressure? Logically, wouldn't this be a good time to be buying? A: Mutual fund investors have got tired so they have been waiting on the sidelines with their investments, which have been in the red and when they start seeing it getting into the black, they decide to bailout. Our view has been quite the opposite ever since the time in September that the government decided to hike diesel prices by 10 percent and somewhere around that time when the index was 17,300 level, one has not seen 17,000 since that time. It has crossed 18,000 and then hovered between 18,000 and 20,000 from that time on and essentially investors must remember few macro and fundamental reasons why they should invest in equities. In the short run of course there are sentimental reasons and that is why there is some selling pressure, but long-term investors, I can see a whole bunch of positives in the market as follow: (1) we are at the top of the interest rate cycle, we are seeing that interest rates are going to come downwards and whenever that happens it is typically very good for corporate (2) valuations have now dropped below the long-term average so it is not like dirt cheap, but it is certainly a time when one should consider investing in Indian equities (3) internationally also we are getting supported on two fronts; one, commodity prices have fallen sharply and as a result of that one has seen the impact on oil prices etc so the subsidies that Indian government had on petrol and diesel, apart from their increasing prices on one side the subsidies have dropped because international prices have also dropped and simultaneously one is seeing that the quantitative easing by US and Japan is continuing so one is seeing flows continuing to come into the market. Therefore, whole bunch of reasons why I would recommend that people do look at equity markets. Indian growth numbers, gross domestic product (GDP) numbers were not very good but if compared with the international markets, they are relatively much better and the fact of the matter is that in the long run it is profits of companies and the growth in profits of companies, which will dictate the type of returns one make in the equity markets. So, I would strongly recommend people to look at equities as an asset class, consult financial advisor and look at asset allocations. Therefore, I am not saying go overboard and pump in all money today, but certainly look at asset allocation and the amount that need to add to equity. One way of reducing the risk is to enter in a staggered manner. So I can see whole bunch of reasons and when one look back at September to today on macro front, one do not know what sort of reforms or what sort of issues -- there have been issues on political front, corruption front, but over the years India has proved far more resilient and I do see scope for investing in equities. 1 2 Watch Video Excerpts from Markets and Macros on CNBC-TV18 Watch the full show » .ftCnbcShare{border-top:#d1d1d1 1px solid; padding:8px;margin-bottom: -27px; margin-top:10px;} Markets And Macros at 11:00 am .gD_15nRedN{font:15px/20px Arial;color:#FF0000 !important;text-decoration:none;font-weight:normal;}
At first glance, unemployment statistics in the United States suggest that the country is beginning to experience a period of sustained economic growth. From a starting point of 7.9% in January of this year, the national rate of unemployment tumbled to 7.6% in June as a growing number of firms continued to hire steadily and without interruption. Even as unemployment benefit applications rose by 16,000 during the first week of June, this was consistent with the level of tentative growth that has continued through the second financial quarter.
Beyond the statistics, however, there are various reasons for the nation's politicians to be concerned. Not only is the current labor market recovery the weakest since World War II, but there remain several demographics that are unable to find work or achieve their desired career success. To put this into context, approximately 55% of the 175,000 jobs added to the U.S. economy during May were either low-paid or temporary assignments, while youth unemployment continues to soar and has now reached a staggering 16.2% across the U.S. Chronic Student Underemployment
It is the current generation of graduates that is suffering the most considerable hardship, however, as minimal employment opportunities and spiraling debt continue to undermine future prospects. According to a recent online survey, more than 40% of U.S. college graduates are either underemployed or working in jobs that do not even require a college degree. Subsequently, cumulative student debt in the U.S. has soared beyond the $1 trillion mark, which in turn has created a demographic that is unable to repay the cost of their education or contribute toward the growth of a nation's economy.
So is this simply the result of a failing labor market, or are there steps that students and graduates can take to improve their suitability as candidates for work in 2013? Increasingly, recruiters are looking for candidates to display practical workplace skills and experience that can be applied directly to a specific industry or market niche. While this cannot be acquired at the expense of a required academic qualification or degree certification, the prevailing employer mindset does provide an opportunity for students to enhance their appeal in a competitive market. Consider the following steps toward gaining relevant and actionable experience: Travel and Work Abroad During the Summer Months
As an aspiring graduate, you must never loose sight of your academic goals and what is required to achieve them. This is why sourcing work experience can be difficult when studying, especially for those pursuing qualifications in challenging subjects such as business and finance. That said, the summer months and the year immediately following graduation provide students with the ideal opportunity to seek out viable workplace experience, as they can focus on developing practical skills without having to carefully manage their time.
Depending on your long-term career goals, it may be worth spending some time abroad to acquire experience of the global job market, as this will afford you a unique edge over the majority of your contemporaries while also allowing you to develop maturity and a greater sense of cultural awareness. When you consider the increasingly flexible and global nature of the workplace, these attributes are likely to be in considerable demand during the next decade. Volunteering and Vocational Work
While many experts have bemoaned the state of the labor market and the concept of underemployment, others would claim that this only facilitates the culture of entitlement that exists in developed economies. The truth remains that if graduates are driven to succeed in their long-term career goals, they should be willing to accept menial, vocational and volunteer opportunities that provide them with the necessary workplace skills and experience.
In fact, these types of job are extremely beneficial for students as, although they may be financially and intellectually unrewarding, they provide the ideal stepping stone for graduate jobs and future career moves. Experiences gained in the nonprofit sector or an entry level role that is related to your career of choice can significantly boost your appeal in the eyes of employers, primarily because they build your strength of character and reveal an innate desire to work. Consider Offering a Service or Establishing an Independent Venture
If you aspire to secure a prosperous career upon graduation, it is absolutely imperative that you recognize the changing face of the workplace and labor force. This is especially true if you aspire to work in management or develop professional leadership skills, as there is a need to understand the contemporary employee mindset and most popular methods of working. With Intuit predicting that freelancers and self-employed workers could contribute toward 40% of the labor market by 2020, managing a team of staff will require a diverse and unusual range of practical skills.
In order to acquire these skills, you may consider establishing a part-time venture that delivers a service to fellow students or a wider consumer base. If established during the summer, this will enable you to gain first-hand experience of managing a professional project and selling a marketable service, without compromising on your academic studies. With the opportunity to also employ staff and learn the fundamental basics of workplace leadership, your independent venture could make a considerable difference in the eyes of demanding employees. The Bottom Line
While labor market growth remains tentative and has been undermined by the creation of low paid, temporary work, the issues facing unemployed graduates stretch far beyond an ailing economy. A failure to appreciate the importance of workplace experience and its benefits is a significant cause for concern, while some graduates may also be carrying a sense of entitlement that is preventing them from being proactive in their search for work. With vision, desire and a long-term career plan, however, it is possible to gain valuable workplace experience and succeed even as the job market falters.
The ultra-deepwater drilling market is still sizzling hot, and that's great news to the companies with exposure to the market. After the market closed yesterday, Seadrill (NYSE: SDRL ) announced that it secured a three-year, $662 million contract for the newbuild West Neptune, which isn't due to be delivered until June 2014. The operator leasing the rig plans to use it in the Gulf of Mexico and has an option for an extra year if necessary. � This contract comes with a dayrate of just over $600,000 for Seadrill, keeping the momentum rig owners have in deep water. The company has 10 ultra-deepwater semi-submersibles and 10 drillships in operation when you include the holdings of Seadrill Partners (NYSE: SDLP ) . Five more drillships will be completed by the end of 2014, which will drive earnings higher if these high dayrates continue. Management expects that these new rigs will help drive 50% or greater EBITDA growth by 2015. Top 5 Growth Companies To Watch For 2014: Crocs Inc.(CROX) Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado. Advisors' Opinion: - [By Paul]
They’re back! Two years ago everyone was convinced that Crocs (CROX: 23.33 0.00%) was just a fad, but their stock price exploded in 2010 gaining 206%. Revenues are expected to climb 20% this year and analysts are looking for 27% earnings growth in 2011. That type of growth could make Crocs a hot item again in 2011, especially if they can continue to top Wall Street’s estimates each quarter.
Top 5 Growth Companies To Watch For 2014: Sara Lee Corporation(SLE) Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf Advisors' Opinion: - [By Carlson]
Director of Sara Lee Corp., James S Crown, bought 37,500 shares on 9/12/2011 at an average price of $17.5. Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. Sara Lee Corp. has a market cap of $10.24 billion; its shares were traded at around $17.5 with a P/E ratio of 19.9 and P/S ratio of 1.2. The dividend yield of Sara Lee Corp. stocks is 2.7%.
On August 11, Sara Lee Corp. reported earnings for the fourth quarter 2011. The fourth quarter included an 8% increase in adjusted net sales from continuing operations to $2.3 billion; 9% reported net sales increase, 40% increase in adjusted operating income to $189 million; and reported operating income increase of 19%.
Last week, Director James S Crown bought 37,500 shares of SLE stock. Executive Chairman Jan Bennink bought 58,400 shares in August.
Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California. Advisors' Opinion: - [By Jim Lowell]
Intuitive Surgical (ISRG: 329.49 0.00%) is an expensive stock and their stock price is currently well below the $400 level that it flirted with in April. However, the stock is a compelling growth story with revenues and earnings expected to climb 19% in 2011. The company faces little competitive pressure and 2011 is likely the year that consumers opt for procedures that they delayed in 2009-10. That could produce some blowout earnings results for ISRG in 2011. - [By Holly LaFon] Intuitive Surgical is the maker of the da Vinci Surgical System, a breakthrough in robotic-assisted minimally invasive surgery. It provides technology and procedural innovation across cardiac, thoracic, urology, gynecologic, colorectal, pediatric and general surgical disciplines and allows patients to recover in record time.
In the last year, this fast-growing company�� stock has surged 66% to $529.54. Its revenue over the last ten years has grown at a rate of 38%, and it grew 24.5% last year with 72.5% gross profit and 39.5% operating margin. The company expects fiscal 2012 revenue growth of 17-19%.
The da Vinci System is new technology first introduced to market in July 2000 after the US FDA approved it for laparoscopic surgery. Its new S model was released in April 2009. Already there are more than 1,933 systems installed in over 1,560 hospitals worldwide.
Apple Inc. (AAPL)
Apple Inc. is the maker of popular consumer products such as the Mac, iPod, iPhone and iPad. Its stock has famously increased 569% over the past five years to hit a record of $600 per share last week. Apple has split its stock 2 for 1 three times in the past on June 15, 1987, June 21, 2000 and February 28, 2005. CEO Tim Cook said as recently as this morning that the company saw little reason to that a split would help the stock but if it was in the best interest of shareholder the company would have one. The company also announced this morning that it would initiate a $2.65 per share quarterly dividend and buy back up to $10 billion of its common stock.
In the last ten years, Apple�� annual growth rate for revenue was 34.5%, EBITDA 112.4% and book value 36.3%. Free cash flow increased 11% in the last five years and 58% in the last year. The rapidly growing company still has a relatively low P/E ratio of 16.68.
Google Inc. Cl A (GOOG)
Google Inc. is the search engine company founded in 1998 that has expanded to offer dozens of advertising and web services. Since going public i! n 2004, its stock has increased 485% to $633.98 per share on Monday. It has never had a stock split or paid a dividend.
Google has also grown rapidly. Its revenue per share over the last 10 years has increased at an annual rate of 52.3%, EBITDA at 51.9%, free cash flow at 64.8% and book value at 74.8%.Its P/E ratio is 20.
The company is also launching its 7-inch Nexus table in May to compete with Apple�� iPad and Amazon�� Kind Fire and is in the process of the biggest revamp of its Internet search formula in company history.
Google has an expressed long-term focus in its business, rather than quarter-to-quarter goals, as stated in its IPO letter which quotes Warren Buffett. The company�� higher stock price may help discourage frequent trading and encourage high-quality shareholders, as Buffett has mentioned in the past.
Priceline.com (PCLN)
Priceline.com Inc. is an online travel booking company that debuted on the Nasdaq in 1999. In the last five years its stock increased 1,248%. Priceline.com�� stock price cratered to under $10 after the dot-com bubble and driven it up to almost $1,000. In 2003 it announced a 1 for 6 reverse stock split.
"This reverse stock split enhances our position by expanding investor interest, reducing transaction costs for trading our stock, making our results more comparable to peer companies with far fewer outstanding shares, and allowing priceline.com's earnings per share on a post-split basis to more precisely reflect the Company's operating results," said priceline.com President and CEO Jeffery H. Boyd.
On Monday it had climbed to $696.93 per share and its financial results have been strong and growing once again. Revenue in 2011 was $4.4 billion from $3 billion in 2010, earnings increased to $1.1 billion from $528 billion and free cash flow increased to $1.3 billion from $755 million. The company also has over $2.7 billion in cash, $164 in long-term liabilities and no debt.
The stock has become expensive ! in the la! st several years and has a P/E of 30.3.
NVR Inc. (NVR)
NVR Inc. consists of two operating segments: homebuilding and mortgage banking. The homebuilding unit makes homes under the trade names Ryan Homes, NVHomes and Fox Ridge Homes, and NVR Mortgage primarily focuses on serving NVR homebuyers.
NVR�� is older than most of the other companies on the over-$500 share-price list, having gone public in 1993. Since then its stock price has increased 7,219% to $741 per share on Monday. It has never split its stock.
Seaboard Corp. (SEB)
Seaboard is also an older company founded more than 90 years ago and has focused on grain and agriculturally derived products. In the last 10 years its stock has appreciated 543%, and on Monday one share costs $1,955. It has never split its stock.
Seaboard is still a growing company. In the last ten years it increased revenue per share at an average rate of 12.5%, EBITDA at 9.8%, and book value at 18.2%. It also has a low P/E of 6.8, its lowest since about 2007.
Berkshire Hathaway-A (BRK.A)
Berkshire Hathaway is the multinational conglomerate founded by Warren Buffett and is the eighth largest company in the world. They are the highest priced shares on the New York Stock Exchange, partially due to never splitting their stock or paying a dividend. Rather, they reinvest corporate earnings to continue growth.
In the last 10 years, Berkshire Hathaway stock has increased 67%. On Monday, one share of BRK.A cost $122,115.
Berkshire management has grown book value at an annual rate of 20.3% for the last 44 years. Growth has been continuing in recent history. In the last 10 years, revenue per share increased at a rate of 11.4%, EBITDA at 7.5% and free cash flow at 3.3%. Its P/E is 17.1.
These stocks are not necessarily expensive or not expensive based on how much one share costs but are subject to the same va
Top 5 Growth Companies To Watch For 2014: MEDIFAST INC(MED) Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland. Advisors' Opinion: Top 5 Growth Companies To Watch For 2014: Buffalo Wild Wings Inc.(BWLD) Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota. Advisors' Opinion: - [By Fabian]
While Chipotle has captured most of the attention among the restaurant stocks, Buffalo Wild Wings (BWLD: 56.62 0.00%) could be 2011’s big winner. Wall Street is expecting 19% earnings growth from Buffalo Wild Wings in 2011 which is only slightly lower than Chipotle’s 20% growth rate. However, BWLD trades at only 18x consensus 2011 estimates while CMG trades at a pricey 40x. On an EBITDA basis, Chipotle trades at over 20x, while Buffalo Wild Wings trades at less than 9x. - [By Roberto Pedone]
Buffalo Wild Wings (BWLD) is an owner, operator and franchiser of restaurants featuring a variety of boldly-flavored, craveable menu items. This stock closed up 6% to $103.58 in Wednesday's trading session. Wednesday's Volume: 1.55 million
Three-Month Average Volume: 402,120
Volume % Change: 319% From a technical perspective, BWLD ripped higher here back above its 50-day moving average of $98.38 with heavy upside volume. This move is quickly pushing shares of BWLD within range of triggering major breakout trade. That trade will hit if BWLD manages to take out its intraday high on Wednesday of $105.32 and then once it clears is 52-week high at $106.03 with high volume. Traders should now look for long-biased trades in BWLD as long as it's trending above its 50-day at $98.38 and then once it sustains a move or close above those breakout levels with volume that hits near or above 402,120 shares. If that breakout triggers soon, then BWLD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $110 to $120.
On Jul 10, 2013, Zacks Investment Research upgraded Zynga Inc (ZNGA) to a Zacks Rank #1 (Strong Buy). With a strong year-to-date return of 41.8% and a positive estimate revision trend, Zynga is an attractive investment opportunity.
Why the Upgrade?
The recent top-level management change is the primary factor behind the upgrade. In a surprising move, Zynga hired Don Mattrick, ex-head of Microsoft's Xbox division, as the chief executive officer ("CEO"). On Jul 8, Don Mattrick replaced Zynga's founder Mark Pincus, who will continue as the chief product officer and president of the board.
Don Mattrick is credited for developing major EA franchises namely FIFA and the Sims. His successful stint with Microsoft saw the release of Kinect motion technology. He is known for his outspoken manner and also for his management style.
Don Mattrick will look after the day-to-day affairs of Zynga, while Mark Pincus will be responsible for developing games and overseeing important strategic decisions through a new executive committee (jointly headed with Mattrick).
Although we believe that the new CEO has a tough job on his hands, the surge in stock price since the announcement indicates increasing investor confidence in the management change. Zynga has beaten the Zacks Consensus Estimate in the last four quarters with an average beat of 36.2%. Apart from the CEO change, the recent acquisition of Spooky Cool Lab is another positive move as it will help Zynga to gain traction in the online casino-style gaming market. This will boost bookings going forward. The Zacks Consensus Estimate for fiscal 2013 remained steady at a loss of 17 cents per share over the last 60 days. However, this estimate is much better than 30 cents loss reported by Zynga in 2012. For fiscal 2014, the Zacks Consensus Estimate improved a penny to a loss of 13 cents per share over the same period. Other Stocks to Consider: Investors can also consider other socia! l and casino gaming stocks that are doing well right now. These include Ameristar Casinos (ASCA), Multimedia Games (MGAM) and International Game Technology (IGT). While Ameristar and Multimedia carry a Zacks Rank #1 (Strong Buy), International Game Technology has a Zacks Rank #2 (Buy).
Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls. Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline. Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Exponent (Nasdaq: EXPO ) , whose recent revenue and earnings are plotted below. Top Safest Stocks To Invest In Right Now: Goldman Sachs Group Inc.(The) The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York. Top Safest Stocks To Invest In Right Now: Petroleo Brasileiro S.A.- Petrobras(PBR) Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil. Advisors' Opinion: - [By Dave Friedman]
Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.
Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland. Advisors' Opinion: - [By Victor Mora]
Under Armour provides athletic apparel, footwear, and accessories to a growing health and wellness, athletic, and fitness enthusiast population around the world. The stock has been on a powerful move towards higher prices that has led to it trading at all-time highs. Earnings and revenue figures have increased over most of the last four quarters which has led to excited investors. Relative to its peers and sector, Under Armour has led in year-to-date performance by a wide margin. Look for Under Armour to OUTPERFORM. - [By Glenn]
Current Price: $27.27 12-month target: $37 I see potential in opportunities for new product adjacencies, and expanding distribution worldwide. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.
Top Safest Stocks To Invest In Right Now: Fluor Corporation(FLR) Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas. Advisors' Opinion: - [By CRWE]
Fluor Corporation�� (NYSE:FLR) Chairman and Chief Executive Officer, David Seaton, and Chief Financial Officer, Biggs Porter, will give a presentation to investors at the Credit Suisse 2012 Engineering & Construction Conference in New York on Thursday, June 7 at 9:00 a.m. Eastern Daylight Time.
Federal Reserve Chairman Ben Bernanke ignited another stock market rally and stocks ended last week near all-time highs. Traders will stay focused on Bernanke for at least the next week. All Eyes Will Stay On the Fed Last week, SPDR S&P 500 (NYSE: SPY) gained 2.75% as traders once again cheered the Fed's easy money policy. This week, monetary policy should remain in focus as Bernanke makes his semi-annual visit to Capitol Hill. During the past month, the chairman's words have sparked a sell-off (in mid-June) and a recovery (last week) in stock prices. It is unlikely he will add any new information about policy in his testimony, but his words will be scrutinized. A 30-minute chart of SPY shows the impact Bernanke had on prices last week. A speech after the close on Wednesday, where the chairman said that monetary policy would remain "accommodative" for the "foreseeable future," pushed stocks up by more than 1% the next morning. 
Stepping back to look at the weekly chart, we can see that SPY has become overbought.
However, an 8% pullback may have set the stage for a new bull run. The 2-period Relative Strength Index (RSI), a very short-term measure of market conditions, is above 90. While traders often expect a pullback after prices become overbought, testing shows that there is a greater-than-average chance of gains over the next six months.
The table below shows how SPY has performed since 2001 on average and how it performs after becoming overbought.
In the past, on average, gains are greater after the market becomes overbought as the price trend ac! celerates. Whether or not that will happen this time depends on the Fed.
One of the strongest index funds in the market right now is the iShares Russell Midcap Growth Index (NYSE: IWP). The Income Trader Volatility (ITV) indicator signaled a buy in IWP at the end of last week.
ITV also signaled a buy in SPY last week. Junior Gold Miners Now 80% Below All-Time Highs SPDR Gold Shares (NYSE: GLD) gained 5.11% last week. It's too early to tell whether this is the start of a recovery in gold prices. After large price declines, prices often spend weeks forming a consolidation pattern that serves as a bottom. In the precious metals sector, junior mining companies have suffered the most. Junior miners are generally exploration companies working to find gold rather than operating mines. Many junior miners have little, if any, revenue. In a bull market they can be among the biggest winners, but in bear markets they are likely to lose more than companies that have revenue. Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) is now more than 80% off its 2010 highs. 
An 80% decline is rarely seen. Homebuilder stocks offer a recent example of this kind of decline, and they remain significantly below their highs more than four years after bottoming.
Junior gold miners are unlikely to recover quickly. They also may not be done falling. Bank of America (NYSE: BAC) is an example of a stock that fell more than 80% after topping in 2006. After falling 80%, BAC fell an additional 75% before finding a bottom. In all, BAC lost 95% of its value in the bear market. BAC is still 75% below its all! -time hig! h even after rallying more than 440% in the past four and a half years.
I say all of this to illustrate the fact that miners are not a buy simply because they have fallen and are oversold. Many individual companies are likely to fail at this point. Company financials will have a greater impact on their survival than gold prices will.
Gold does look set to rally, at least briefly, and iShares Silver Trust (NYSE: SLV) appears to be the most interesting trade in the metals sector.
SLV could rally significantly as it has done in the past when a bullish divergence in the Bollinger Percent B indictor develops. This divergence forms when prices make a lower low but the indicator does not.
This article originally appeared on ProfitableTrading.com:
Market Outlook: 2 Index Funds and This Metal Are on Buy Signals
It's no longer any secret that the biggest banks are being forced to acknowledge that the mortgage-lending mini-boom that gave Wells Fargo (NYSE: WFC ) and JPMorgan Chase (NYSE: JPM ) such lifts in revenue last year is fading fast. Though neither bank turned in lousy first-quarter earnings reports, JPMorgan CEO Jamie Dimon noted�that loan growth was stagnating throughout the industry. Wells reported a dip in refinancing, which had helped stoke profits last year, of 65% of new mortgages, from 76% in the year-ago period. All big banks are feeling the pinch
Bank of America (NYSE: BAC ) saw its marginal mortgage business jump, thanks to refinancing, by 57% year over year, but the news from the mortgage front may cause that impetus to fizzle. While earnings at U.S. Bancorp (NYSE: USB ) were up from the previous year, they were flat from the previous quarter, and Fitch noted�that cost savings might not continue to buoy revenue as mortgage activity slows. Hot Bank Stocks To Own For 2014: Commonwealth Bank of Australia (CBA) Commonwealth Bank of Australia (the Bank) is engaged in the provision of a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Bank is a provider of integrated financial services, including retail, business and institutional banking, superannuation, life insurance, general insurance, funds management, broking services and finance company activities. Its operating segments include Retail Banking Services, Business and Private Banking, Institutional Banking and Markets, Wealth Management, New Zealand, Bankwest and Other. Its retail banking services include home loans, consumer finance, retail deposits and distribution. Its business and private banking include corporate financial services, regional and agribusiness banking, local business banking, private bank and equities and margin lending. The Bank and its subsidiaries ceased to be a substantial holder in Ten Network Holdings Limited, as of September 12, 2012. Advisors' Opinion: - [By Dale Gillham]
CBA has held up better relative to the 2009 low and has been less volatile than ANZ. Also, the retracement in 2011 was just under 50 per cent ($42.02) of the range from the 2009 low to the high at $60.00, whereas the other banks broke this level. Over recent months CBA has rebounded and is currently close to strong resistance around $49.50. Like ANZ, the overhead resistance may hold the stock back in the short term. However, if CBA jumps the immediate hurdle it also has the potential to move up over the coming months by around 10 per cent to between $53.00 and $56.50.
Hot Bank Stocks To Own For 2014: HDFC Bank Ltd (HDB) HDFC Bank Limited (HDFC Bank), incorporated in August 1994, is a banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. The Bank has overseas branch operations in Bahrain and Hong Kong. The Bank operates in four segments: treasury, which primarily consists of net interest earnings from the Bank�� investment portfolio, money market borrowing and lending, gains or losses on investment operations and on account of trading in foreign exchange and derivative contracts; retail banking, which serves retail customers through a branch network and other delivery channels; wholesale banking, which provides loans, non-fund facilities and transaction services to corporate, public sector units, government bodies, financial institutions and medium scale enterprises, and other banking business, segment includes income from para banking activities, such as credit cards, debit cards, third party product distribution, primary dealership business and the associated costs. Revenues of the retail banking segment are derived from interest earned on retail loans, net of commission (net of subvention received) paid to sales agents and interest earned from other segments for surplus funds placed with those segments, fees from services rendered, foreign exchange earnings on retail products. Retail Banking The Bank is a financial services provider of various deposit products, of retail loans (auto loans, personal loans, commercial vehicle loans, mortgages, business banking, loan against gold jewellery), credit cards, debit cards, depository (custody services), investment advisory, bill payments and several transactional services. Apart from its own products, the Bank distributes third party financial products, such as mutual funds and life and general insurance. As of March 31, 2012, the Bank had 2,544 branches in 1,399 Indian cities. The Bank had 8,913 automated teller machines (ATMs) during the fiscal year ended March 31,! 2012. In addition to the Bank does home loans in conjunction with HDFC Limited. Under this arrangement the Bank sells loans provided by HDFC Limited through its branches. HDFC Limited approves and disburses the loans, which are booked in their books, with the Bank receiving a sourcing fee for these loans. HDFC Limited offers the Bank an option to purchase up to 70% of the fully disbursed home loans sourced under this arrangement through either the issue of mortgage backed pass through certificates (PTCs) or by a direct assignment of loans; the balance is retained by HDFC Limited. It also distributes life, general insurance and mutual fund products through its tie-ups with insurance companies and mutual fund houses. Wholesale Banking The Bank provides its corporate and institutional clients a range of commercial and transactional banking products. The Bank�� commercial banking business covers the corporate sector, the emerging corporate segments and some small and medium enterprises (SMEs). The Bank has a number of business groups catering to various segments of its wholesale banking customers with a range of banking services covering their working capital, term finance, trade services, cash management, foreign exchange and electronic banking requirements. The Bank�� financial institutions and government business group (FIG) offers commercial and transaction banking products to financial institutions, mutual funds, public sector undertakings, central and state government departments. The main focus for this segment is offering various deposit and transaction banking products to this segment besides offering funded, non-funded treasury and foreign exchange products. The Bank provides its customers both working capital and term financing. The Bank�� corporate banking business includes cash management and vendor and distributor (supply chain) finance products. The Bank has a wholesale banking branch in Bahrain, a branch in Hong Kong and two representative offic! es in the! United Arab Emirates (UAE) and Kenya. The branches offer the Bank�� suite of banking services including treasury and trade finance products to its corporate clients. The Bank offers wealth management products, remittance facilities and markets deposits to the non-resident Indian community from its representative offices. Treasury The treasury group is responsible for compliance with reserve requirements and management of liquidity and interest rate risk on the Bank�� balance sheet. On the foreign exchange and derivatives front, revenues are driven primarily by spreads on customer transactions based on trade flows and customers��demonstrated hedging needs. The Bank offers Indian rupee and foreign exchange derivative products to its customers. The Bank enters into foreign exchange and derivative deals with counterparties after it has set up appropriate counterparty credit limits based on its evaluation of the ability of the counterparty to meet its obligations in the event of crystallization of the exposure. The Bank also deals in Indian rupee derivatives on its own account, including for the purpose of its own balance sheet risk management. Other banking business The Bank has two subsidiaries: HDFC Securities Limited (HSL) and HDB Financial Services Limited (HDBFS). HSL is primarily in the business of providing brokerage services through the Internet and other channels. As of March 31, 2012, HSL had a network of 184 branches across the country. HDBFS is a non-deposit taking non-bank finance company (NBFC). Apart from lending to individuals, it grants loans to small and medium business enterprises and micro small and medium enterprises, the principle businesses of HDBFS include loans, which offers a range of loans in the secured and unsecured loans space that fulfill the financial needs of its target segment; insurance services, HDBFS is a corporate agent for HDFC Standard Life Insurance Company and sells insurance products ,as well as products, ! such as L! oan Cover and Asset Cover, and collections-BPO services, which runs six call centres. These centres cover collection requirements at over 200 towns through its calling and field teams. As on March 31, 2012, HDBFS had 180 branches in 135 cities in order to distribute its products and services. Advisors' Opinion: - [By Halah Touryalai]
The largest privately owned retail bank in India with a network of 1,986 branches in 996 cities across the country. The bank has a strong deposit franchise and technology backbone. EPS has grown at a rate of 26% per year, over the past 10 years.
Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise (GSE) chartered by the United States Congress to support liquidity and stability in the secondary mortgage market, where mortgage-related assets are purchased and sold. The Company�� activities include providing market liquidity by securitizing mortgage loans originated by lenders in the primary mortgage market into Fannie Mae mortgage-backed securities (Fannie Mae MBS), and purchasing mortgage loans and mortgage-related securities in the secondary market for its mortgage portfolio. Fannie Mae operates in three business segments: Single-Family business, Multifamily Business (formerly Housing and Community Development (HCD)) and Capital Markets group. Its Single-Family Credit Guaranty and Multifamily businesses work with its lender customers to purchase and securitize mortgage loans customers deliver to the Company into Fannie Mae MBS. The Company obtains funds to suppo rt its business activities by issuing a variety of debt securities in the domestic and international capital markets. Fannie Mae acquires funds to purchase mortgage-related assets for its mortgage portfolio by issuing a variety of debt securities in the domestic and international capital markets. It also makes other investments. Fannie Mae conducts its business in the United States residential mortgage market and the global securities market. It conducts business in the United States residential mortgage market and the global securities market. During the year ended December 31, 2011, the Company�� Single-Family Business Single-Family business includes mortgage securitizations, mortgage acquisitions, credit risk management and credit loss management. Single-Family business works with the Company�� lender customers to provide funds to the mortgage market by securitizing single-family mortgage loans into Fannie Mae MBS. Its Single-Family business also works with its Capital Markets group to facilitate th! e! purchase of single-family mortgage loans for the Company�� mortgage portfolio. Fannie Mae�� Single-Family business prices and manages the credit risk on its single-family guaranty book of business, which consists of single-family mortgage loans underlying Fannie Mae MBS and single-family loans held in its mortgage portfolio. Single-Family business and Capital Markets group securitize and purchase primarily single-family fixed-rate or adjustable-rate, first lien mortgage loans, or mortgage-related securities backed by these types of loans. The Company securitizes or purchases loans insured by Federal Housing Administration (FHA), loans guaranteed by the Department of Veterans Affairs (VA), and loans guaranteed by the Rural Development Housing and Community Facilities Program of the Department of Agriculture, manufactured housing loans, reverse mortgage loans, multifamily mortgage loans, subordinate lien mortgage loans and other mortgage-related securities. I ts Single-Family business securitizes single-family mortgage loans and issues single-class Fannie Mae MBS. Fannie Mae�� Single-Family business securitizes loans solely in lender swap transactions, in which lenders deliver pools of mortgage loans to the Company, which are placed immediately in a trust, in exchange for Fannie Mae MBS backed by these loans. Generally, the servicing of the mortgage loans held in its mortgage portfolio or that backs its Fannie Mae MBS is performed by mortgage servicers on the Company�� behalf. Lenders who sell single-family mortgage loans to Fannie Mae service these loans for the Company. For loans it owns or guarantees, the lender or servicer must obtain its approval before selling servicing rights to another servicer. Fannie Mae�� mortgage servicers collect and deliver principal and interest payments, administer escrow accounts, monitor and report delinquencies, perform default prevention activities, evaluate transfers of own ership interests, respond to requests for partial releas! es o! f s! ecurit! y, and handle proceeds from casualty and condemnation losses. Its mortgage servicers are the primary point of contact for borrowers and perform implementation of its homeownership assistance initiatives, negotiation of workouts of troubled loans, and loss mitigation activities. Mortgage servicers also inspect and preserve properties and process foreclosures and bankruptcies. Multifamily Mortgage Business Multifamily business works with the Company�� lender customers to provide funds to the mortgage market by securitizing multifamily mortgage loans into Fannie Mae MBS. Through its Multifamily business, Fannie Mae provides liquidity and support to the United States multifamily housing market principally by purchasing or securitizing loans that finance multifamily rental housing properties. It also provides some limited debt financing for other acquisition, development, construction and rehabilitation activity related to projects that complement this business. Fannie Mae�� Multifamily business also works with its Capital Markets group to facilitate the purchase and securitization of multifamily mortgage loans and securities for Fannie Mae�� portfolio, as well as to facilitate portfolio securitization and resecuritization activities. The Company�� multifamily guaranty book of business consists of multifamily mortgage loans underlying Fannie Mae MBS and multifamily loans and securities held in Fannie Mae�� mortgage portfolio. Revenues for Fannie Mae�� Multifamily business are derived from a variety of sources, including guaranty fees received as compensation for assuming the credit risk on the mortgage loans underlying multifamily Fannie Mae MBS and on the multifamily mortgage loans held in its portfolio and on other mortgage-related securities; transaction fees associated with the multifamily business, and other bond credit enhancement related fees. As with the servicing of single-family mortgages, multifamily mortgage servicing is performed by the ! lenders !! who sell ! the mortgages to the Company. Fannie Mae�� Multifamily business is organized and operated as an integrated commercial real estate finance business. Capital Markets Capital Markets group's primary business activities include mortgage and other investments, mortgage securitizations, structured mortgage securitizations and other customer services, and interest rate risk management. Capital Markets group manages the Company�� investment activity in mortgage-related assets and other interest-earning, non-mortgage investments. It funds its investments primarily through proceeds the Company receives from the issuance of debt securities in the domestic and international capital markets. Its business activity is focused on making short-term use of its balance sheet rather than long-term investments. Activities Fannie Mae is undertaking to provide liquidity to the mortgage market include whole loan conduit, early funding, real estate mortgage investment c onduit (REMICs) and other structured securitizations and dollar roll transactions. Whole loan conduit activities include its purchase of both single-family and multifamily loans principally for the purpose of securitizing them. During the year ended December 31, 2010, it was engaged in dollar roll activity. A dollar roll transaction is a commitment to purchase a mortgage-related security with a concurrent agreement to re-sell a similar security at a later date or vice versa. Fannie Mae�� Capital Markets group is engaged in issuing both single-class and multi-class Fannie Mae MBS through both portfolio securitizations and structured securitizations involving third party assets. Its Capital Markets group creates single-class and multi-class Fannie Mae MBS from mortgage-related assets held in its mortgage portfolio. Fannie Mae�� Capital Markets group may sell these Fannie Mae MBS into the secondary market or may retain the Fannie Mae MBS in its investment portf olio. The Company�� Capital Markets group cr! eates sin! gle-c! lass and ! multi-class structured Fannie Mae MBS, for its lender customers or securities dealer customers, in exchange for a transaction fee. The Company�� Capital Markets group provides its lender customers and their affiliates with services that include offering to purchase a range of mortgage assets, including non-standard mortgage loan products; segregating customer portfolios to obtain optimal pricing for their mortgage loans, and assisting customers with hedging their mortgage business. Although the Company�� Capital Markets group�� business activities are focused on short-term financing and investing, revenue from its Capital Markets group is derived primarily from the difference, or spread, between the interests it earns on its mortgage and non-mortgage investments and the interest it incurs on the debt the Company issues to fund these assets. Its Capital Markets revenues are primarily derived from the Company�� mortgage asset portfolio. Capital Markets gro up funds its investments primarily through the issuance of a variety of debt securities in a range of maturities in the domestic and international capital markets. Investors in the Company�� debt securities include commercial bank portfolios and trust departments, investment fund managers, insurance companies, pension funds, state and local governments, and central banks. The Company competes with Freddie Mac, FHA and Ginnie Mae. Hot Bank Stocks To Own For 2014: First Commonwealth Financial Corporation(FCF) First Commonwealth Financial Corporation operates as the holding company for First Commonwealth Bank that provides consumer and commercial banking services to individuals and small and mid-sized businesses in central and western Pennsylvania. The company offers personal checking accounts, interest-earning checking accounts, savings accounts, health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, and IRA accounts. It also provides secured and unsecured installment loans, construction and mortgage loans, safe deposit facilities, credit lines with overdraft checking protection, and student loans, as well as Internet and telephone banking, and automated teller machine services. In addition, the company offers commercial banking services, including commercial lending, small and high-volume business checking accounts, on-line account management services, ACH origination, payroll direct deposi t, commercial cash management services, and repurchase agreements. Further, it provides various trust and asset management services, as well as a complement of auto, home, business, and term life insurance. Additionally, the company offers annuities, mutual funds, stock, and bond brokerage services through an arrangement with a broker-dealer and insurance brokers. It operates 115 community banking offices in western Pennsylvania and 2 loan production offices in downtown Pittsburgh and State College, Pennsylvania. The company was founded in 1982 and is headquartered in Indiana, Pennsylvania. Advisors' Opinion: - [By Philip]
Shares First Commonwealth Financial Corp.(FCF) of Indiana, Pa., closed at $4.75 Friday, declining 31% year-to-date. Based on a consensus price target of $6.46, the shares have 36% upside potential. Based on a quarterly payout of three cents, the shares have a dividend yield of 2.53%. First Commonwealth had $5.7 billion in total assets as of Sept. 30, operating 112 First Commonwealth Bank offices in 15 counties in western and central Pennsylvania. The company reported third-quarter earnings of $8.3 million, or 8 cents a share, increasing from $7.4 million, or 7 cents a share, during the second quarter, but declining from $10.6 million, or 11 cents a share, in the third quarter of 2010. The year-over-year earnings decline reflected an 8% decline in net interest income to a tax-adjusted $48.8 million in the third quarter, as the company saw an 8% decline in its loan portfolio, "as the result of more disciplined underwriting guidelines concerning geography and size for commercial loans, the managing down of large credit relationships over $15 million," and weak loan demand. The net interest margin declined to 3.81%, increasing from 3.76% the previous quarter, but declining from 3.90% a year earlier. Earnings were also affected by a $7.0 million third-quarter provision for loan losses, which was down from $9.1 million the previous quarter, but up from $4.5 million a year earlier. First Commonwealth's nonperforming assets ratio was 3.45%, increasing from 3.22% the previous quarter and 2.70% a year earlier, with one commercial credit relationship in Pennsylvania representing $32.8 million, or 17% of the company's $195.2 million in nonperforming assets. The third-quarter net charge-off ratio was 1.00% and reserves covered 1.81% of total loans as of September 30. Following First Commonwealth's earnings announcement, Sterne Agee analyst Mike Shafir reiterated his Buy rating on the shares, with a price target of $6.50, and said that "W! hile NPAs rose during the quarter, the company exhibited positive trends with a higher net interest margin, lower expenses, and a reduction in the pace of loan decline." The shares trade for 11.3 times the consensus 2012 EPS estimate of 42 cents, and 0.8 times their Sept. 30 tangible book value of $5.77, according to SNL Financial. Six out of nine analysts covering First Commonwealth rate the shares a buy, while the remaining analysts all have neutral ratings
Early Wednesday, the Bank of England, led by Governor Mark Carney, formally adopted forward rate guidance. The BoE became just the second major central bank to adopt such policies, following Ben Bernanke of the Federal Reserve in tying rate hikes and other policy initiatives explicitly to economic data. "Explicit Rate Guidance" Governor Carney sent the British pound on a whipsaw as he adopted what he termed "explicit rate guidance." The Bank of England has now tied any future rate hikes to the unemployment rate, noting that rates will not rise until at least the unemployment rate reaches 7.0 percent from the current 7.8 percent; the Bank of England does not see this until 2016 in its current forecasts. "The [Monetary Policy Committee] intends not to raise Bank Rate above its current level of 0.5% at least until the Labour Force Survey headline measure of unemployment has fallen to a threshold of 7%" said Carney in his opening remarks. "While the unemployment rate remains above 7%, the MPC stands ready to undertake further asset purchases if further stimulus is warranted." Carney also noted that the MPC, the policy making committee of the BoE akin to the FOMC, would not look to sell any of its bond holdings until at least this threshold is reached. "But until the unemployment threshold is reached the MPC intends not to reduce the stock of asset purchases from the current £375 billion." Carney did note that the BoE would not stick to these thresholds indefinitely if risks to either the bank's inflation forecast or financial stability were to arise. "The Bank of England's unwavering commitment to price stability and financial stability is such that this threshold guidance will cease to apply if material risks to either are judged to have arisen," said Carney. "In that event, the unemployment threshold would be 'knocked out'." The Anti-Taper The Bank of England has not increased the size of its asset purchase program since July of last year, when the BoE bo! osted its purchase program by an additional 50 billion pounds to 375 billion pounds. However, the BoE did launch the FLS program since then aimed at lowering market interest rates for borrowers. The guidance issued by Carney appears to be an anti-taper, as it opens the door to additional purchases in the future. Also, Carney noted that short term market rates appear to be pricing in rate hikes sooner than the third quarter of 2016, when the BoE forecasts the unemployment rate will drop to its 7.0 percent threshold, and thus sees downside for yields in the U.K. bond market. Real Improvements Across the Nation Carney noted that the forward guidance thresholds were chosen as the BoE fears taking its foot off of the proverbial pedal too soon. "There is understandable relief that the UK economy has begun growing again," he said. "But there should be little satisfaction. Much is at stake as we seek to secure this recovery and return inflation to the target." "A fall in unemployment from 7.8% now to the 7% threshold would, given the normal growth of the labour force, mean well over three quarters of a million new jobs over the three-year forecast period. A recovery in productivity driven by a recovery in demand would mean faster growth of real incomes. Such outcomes would represent real improvements in the lives of people across the nation." Cable Gains Nearly 300 Pips After dropping initially on the headlines that the BoE will keep easy-money policy for longer to a session low of 1.5204, the pound rallied nearly 300 pips against the dollar to a high of 1.54918 before consolidating gains around 1.5475. Meanwhile, British stocks sold off as the FTSE 100 Index dropped 0.88 percent. ForexLive's Ryan Littlestone tried to makes sense of the quick and strong reversal in the pound this morning, noting that hopes may have been too high for the forward guidance. "So forward guidance isn't a definitively set path for monetary policy but just an adjustment of previous targ! ets," he ! wrote. "Yes it's narrowed them down somewhat and painted crosshairs on things like unemployment but it's still all 'wait and see' stuff and that's what the market doesn't like." "Without sounding like I'm beating my own drum, it went pretty much as I expected. Rates stay low, the QE gun is still loaded but it's locked in the draw for now. The recovery is fragile and still faces risks but the emphasis is now on taking up the slack and improving productivity." "Inflation has become an even bigger part of the equation today and they will need to monitor any home grown inflationary risk as that could affect the threshold that forward guidance is built on." (c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This past week marked my six-month anniversary of focusing on a space that I didn't even realize existed until I read a sensational article about one of the leading companies in the sector that marked the popping of a bubble that I then described in "Reefer Madness: Pot Stocks In A Bubble". Since then, I have published several articles on the sector as I have come up the learning curve. You can access the complete chronologically-ordered series here. After intensive study, it's clear to me that the move towards legalized recreational and medical marijuana is likely to be a persistent and powerful investment theme over the next several years, and I am launching a series of articles intended to help investors navigate the space of the publicly-traded stocks. My goal is to help investors uncover opportunities but also, perhaps more importantly, to identify risks. I hope to balance my own perspective as a non-using financial analyst with input from experts. I have had many conversations with dispensary owners and others involved in the field and, in fact, am currently working on an interview that I intend to publish in the next week. Today, I will be sharing my perspective on the sector, introducing a table to help investors quickly hone in on some important attributes of stocks in the marijuana-related company universe, sharing my "Focus Four" and introducing my first two "Cannabis Calls" on two of the leading names in the sector. State of the Sector Depending upon when one wants to start one's analysis, the pot stocks are either in a bear market or a correction of a bull market. The volatility has been tremendous since the elections in November, with a huge run followed by a big collapse. I think that potential investors need to realize several points: Demand currently outstrips supply substantiallySupply is increasingThe quality of the companies is generally lowThere is minimal Wall Street coverage or participation As I have previously described, the total market ! cap at present is not that much, as one can see in the table below. The public companies that claim to be participants in the cannabis sector represent a tiny fraction of the entire industry. While private investing may be a better option, it's not really available to most investors. In my view, the wave of interest and the lack of supply earlier this year led to significant imbalances. Currently, my read is that the market remains undersupplied in terms of potential investments relative to the demand. Not too surprisingly, supply is starting to increase. We have seen some companies enter the space by expanding their own businesses, but there have been some reverse mergers lately too. I had mentioned Refill Energy (REFG.PK) recently (soon to be Medical Cannabis Financial Group), but earlier this month Promap (PMAP.OB) acquired 94% of Advanced Cannabis Solutions (link to 8-K). As an aside, I think that this company is worth considering given the management team and the business model. Investors should keep in the back of their mind that there are many companies that are quietly developing their business models and could become public over time, especially as the regulatory and legal landscapes improve. Almost every stock in the sector trades in the pink sheets or on the OTC. Most who follow the sector are aware that FINRA issued a warning last week, suggesting that investors should be aware of potential marijuana stock scams. Some may not be aware, but this warning actually follows a series of similar alerts over the past 12 years. Human behavior doesn't change, just the headlines! The advice was a little late and basic, but it certainly drives home the point that there are some people chasing a fast buck. Over time, investors will have better choices and will learn to discern between the fakers and the real deal. Finally, it's worth noting that there isn't a lot of scrutiny on the sector. Given the small size of the tradeable universe, it's not surprising that these stocks fly under th! e radar o! f Wall Street. The investor base is oriented towards small investors, and my impression is that many of them are young or not particularly experienced when it comes to investing. The "research" that is available tends to be highly promotional and sponsored by companies. Put it all together, and it's not surprising that the stocks experienced a bubble earlier this year. I am hopeful that there will be more independent analysis such as I intend to offer to help investors make informed choices. Cannabis Universe I have identified about two dozen potential names, but here are the publicly-traded companies that I am tracking with market caps above $10mm: (click to enlarge) Please note that I compiled this data by hand and encourage anyone to let me know if there are potential omissions or errors. Again, I am excluding all market caps less than $10mm. To calculate market cap, I converted all securities without regard to caps potentially imposed by authorized share limitations. My fiduciary assessment is subjective. As most of these stocks are not listed, the basic assumption is that one should expect yellow (caution). I may be too generous, quite frankly, as many of the yellows might considered red in general. The assessment is intended to be relative to the rest of the universe. Focus Four Taking into account all of the data I have shared, I want to introduce my take on the most important names to follow. My initial list takes into account not only the market cap, business model and interest-level. These are the stocks that I think merit the most attention (in alphabetical order): CannaVest (CANV.OB)GW Pharma (GWPH)MedBox (MDBX.PK)Medical Marijuana, Inc. (MJNA.PK) CANV doesn't really trade, as it is held closely by insiders (99.7%, including MJNA). I have a few concerns, including the valuation and s! ome near-! term financial challenges typical of a start-up with just one client looking to expand its customer base, but I like the focus and the fact that it is an SEC filer with a relatively clean history (i.e. none of the baggage of some of these other companies). I have spoken to its outsourced CFO and am impressed by his background (has been CFO or held key financial roles at publicly-traded healthcare companies). CANV is the partner to MJNA that is responsible for manufacturing the CBD (Cannibidiol, the cannabinoid in marijuana that is increasingly viewed as offering substantial medical benefits). I am very concerned about the near-term financials, but this is a pure-play with probably a two-year lead over other companies. I don't see a moat in terms of intellectual property or brands, but they have a good lead in terms of sourcing of supply and penetration into potential customers. Quite simply, they don't appear to have competition at present. The company, then, is a call option on CBD demand taking off. It appears that it could be a supplier to even Big Pharma should medical marijuana research move into the mainstream. GW Pharma is the only listed company of the entire group, and it has Wall Street coverage as well. They even hold conference calls. Note that the ticker I have shared above represents the ADS. Each share represents 12 shares of the UK-listed stock. There is also a pink-sheet listing (GWPRF.PK). Based in the UK, it has a CBD/THC spray on the market in Europe and could enter the U.S. pending FDA approval. It is currently studying Sativex for multiple sclerosis. The management team has significant industry experience. Here is a link to their website. Perhaps a better place to start is this recent presentation. Medbox is somewhat controversial. It has the largest market cap of the group, and I was impressed that its CEO presented at the JPM Healthcare Conference earlier this year. The public float, though, is pretty small here too, which led to the massive spike earlier in the year ! (on limit! ed volume). I found it refreshing when the Chairman stated publicly that the stock was overvalued at the time. Medbox makes dispensing machines that have biometric identification controls to limit access. The company has branched off into adjacent areas recently as well, announcing three acquisitions, two of which are now in litigation (Medvend Holdings and Bio-Tech Medical Software). The company successfully closed its purchase of Vaporfection International, maker of the viVape vaporizer. MJNA was the first publicly-traded company in the space and commands the most attention from investors. The stock is down dramatically from it's all-time high earlier this year, but it is also well above the mid-point of the 2012 trading range. Founded in 2009 by Bruce Perlowin, the "King of Pot", new management came in 2011, turning it into a real business. The company has a lot of different pursuits, but the primary focus appears to be its CBD-based products, where it is really first-to-market with cannabinoids that are legal in all 50 states. I have written extensively on the company, which I believe hasn't been particularly transparent in the past, though I have noted some improvement since April. Cannabis Calls Before I share my first two ratings, I want to remind readers that I am not a sell-side analyst. No one should treat what follows as anything other than my opinion. Before making an investment in any stock, one should conduct one's own analysis or consult an investment advisor qualified to assess the suitability of the investment. My first call will likely not surprise readers. I think that Hemp, Inc. (HEMP.PK) is a SELL. (click to enlarge) The stock currently trades at $0.0135, and I am establishing a target of $0.0025. Of course, I have been negative on this since February, when it was $0.08, but the m! ore I hav! e learned the more I have realized how overpriced it was. As I have previously discussed, HEMP appears to be a self-enrichment scheme only. A serious review of its businesses shows that there is little substance. Since my last article that focused on the exchange last year of 193mm Preferred "K" shares for $1.9mm in debt that effectively gives CEO Bruce Perlowin over 1.9 billion shares (1/10 of a penny per share), the company reported its non-audited Q2 results. The bad news is that the company reported sales of only $534K but a net loss of $576K. It appears to me that the company did not close a deal for ScrubNuts that they announced during the quarter. The good news is that the full share count including conversion of all of the preferred stock is less than I had previously reported, as the company's prior filing was apparently incorrect regarding the outstanding amounts of the preferred stocks. With 1.445 billion common shares and two series of preferred stocks that could add another 2.114 billion shares, the effective number of shares outstanding is slightly above the authorized shares (as majority owner, I assume Perlowin could lift the A/S or implement a reverse split), which suggests a market cap of $48mm. My target is based on a value of $10mm for the ticker and domain names less $1.6mm in liabilities (mainly a loan from Perlowin). So, while HEMP is way down from its peak, I believe that the downside is significant still. My second call may surprise readers, as I have been accused by some of being a paid basher and worse, but I am initiating MJNA as a HOLD. (click to enlarge) The stock is still up in 2012, commands a large market cap and trades with good liquidity. I reviewed the Q2 results earlier this month. Subsequently, CannaVest reported a terrible quarter, with sales of just $108K. On the other han! d, its DT! C Chill was finally lifted and the company announced a small distribution deal for its CBD gum to Russia and other Commonwealth of Independent States. While I don't think the DTC Chill was really much of an issue, the distribution deal, while likely not a material financial contributor on the bottom-line in the near-term, is an important step in its commercialization efforts. I had hoped to be more enthusiastic about the stock, but the second quarter was disappointing, as I have previously described. Had it not been for the frenzy caused by CNN Chief Medical Correspondent Dr. Sanjay Gupta's dramatic reversal in his views about medical marijuana that he described in documentary "Weed", I think that we might have seen the stock drop below $0.10 following the report. After trading as high as $0.26 going into the report, MJNA has fallen into the $0.10-.15 range I suggested after they reported. While I still see risk to as low as $0.05, I think that the company, if it gains some traction in its CBD products, could regain investor enthusiasm. While this isn't my prediction (nor is $0.05), the stock could quickly return to $0.25. Imagine if Dr. Oz were to endorse medical marijuana! The near-term bull case takes into account the Gupta effect, which could lead to a bounce in sales of their Dixie Botanicals, CanChew CBD gum and RSHO concentrated CBD. From a technical perspective, my read is that there is a lot of support at $0.12, but we sure are close to that level. I would expect a slight breach should we trade to there, similar to the slight breach of the $0.10 level in late June. I would get more bullish at a price level below $0.10 given what we know right now, perhaps $0.08, though this is above my "risk" level. The main things that concern me in the near-term include the pending trial of its former CEO Michael Llamas (who, in my opinion, is still involved through his ownership of CannaBANK, a controlling investor of MJNA), the hazy status of the authorized share count (and, more importantly, th! e handcuf! fs currently imposed with the O/S of 946mm compared to a "management-capped" A/S of 950mm) and the unresolved capital structure at CannaVest (MJNA could see its investment diluted significantly under certain scenarios, and the current value of the investment accounts for the majority of MJNA's market cap). Conclusion The landscape is rapidly changing with respect to the legal and regulatory environments for recreational and medical marijuana as well as hemp. While it's very early in the game for the publicly-traded universe of companies with an oar in the water, it's clear that investor appetite for cannabis-related stocks remains quite high. There is no denying the "Green Rush", which promises to be a win-win-win over time for consumers, businesses and the government. The data and opinions that I have shared will hopefully help investors as they assess the risks and opportunities in the sector. I encourage readers to let me know if there are topics of interest to explore in future articles. Similarly, if any reader has any specific insight that they would like to share with my audience, I invite him or her to consider being interviewed. Source: Capitalizing On Cannabis: A Review Of Publicly-Traded Marijuana Stocks Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)
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