Adam Jones

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  • By Adam Jones - March 17, 2013

  • AIG & Hartford Book Value Metrics - Which To Use?

    By Adam Jones - March 12, 2013 | Tickers: AIG, HIG

     I've been looking into ways to get exposure to the insurance industry, and have narrowed the search to two companies: AIG (NYSE: AIG) and The Hartford Group (NYSE: HIG).  Both appear to be compelling investments at first glance.

    AIG provides a range of insurance and financial services.  The company received a huge bailout during the financial crisis and is now a hedge fund darling that is either loved or more »

  • Freddie Mac Made $11 Billion - How About the Private Mortgage Insureres?

    By Adam Jones - March 7, 2013 | Tickers: AIG, MTG, RDN

    Freddie Mac, the government-run mortgage finance provider, recently reported an annual profit of $11 billion.  Freddie attributed the earnings to an increase in home values and a drop in delinquencies.  This great news provides additional data regarding the housing market's continued recovery.

    The fact that Freddie attributed the gains to a drop in delinquencies piqued my interest in relation to the private mortgage insurers -- particularly that sector's two more »

  • Early Signs of Improvement in China

    By Adam Jones - March 3, 2013 | Tickers: FCX, SCCO

    During a recent industrial conference, the CEO of Joy Global discussed several positive signs for future growth in China.  Some excerpts are shown below.

    “In the international markets, commodities are very, very dependent upon China. And China had its own headwinds through most of 2012. But in the latter half of the year, we started to see improvements in fundamentals. And we look at things that both are more discretely more »

  • Ratings Agencies Aren't Going Away Any Time Soon

    By Adam Jones - March 1, 2013 | Tickers: MHFI, MCO

    While reading through earnings calls over the past week, I have noticed a theme: companies from all industries are still very concerned with what the ratings agencies think of them.  Below are a few quotes that stood out to me.

    “We are working very closely with the rating agencies to make sure they are comfortable.” - Bob Benmosche, CEO of AIG, Q4 2012 Earnings Call

     “We have reviewed the plan with more »

  • 1 Clear Winner Among Small Cap ETF Offerings

    By Adam Jones - February 6, 2013 | Tickers: IJR, RWJ, SLY, VIOO

    $191 billion was invested in ETFs in 2012, the strongest net inflows into ETFs in history.  In fact, $37.7 billion was invested in December alone.  Total assets invested in ETFs is now $1.35 trillion.  From these numbers, it is obvious that investors are becoming more comfortable with ETFs.  Given the total assets invested in ETFs and an average expense ratio of 0.44%, nearly $600 million is paid more »

  • Small PE Companies: High Yield Exposure to Smaller Companies

    By Adam Jones - February 5, 2013 | Tickers: AINV, BKCC, GAIN, PSEC, TCAP

    There is a booming market for investments in smaller private companies which are very lucrative.  There are numerous publicly traded companies currently focused on finding small companies to invest in.  These companies’ investments can yield anywhere from 8% to 15% per year.  This return is often paid out to shareholders in the form of large dividends.  The large dividends can result in a substantial total return over long periods of more »

  • Bank Preferred Stocks – A Good Alternative to Bonds

    By Adam Jones - February 4, 2013 | Tickers: BAC, GS

    Preferred stocks issued by banks are a good alternative to bonds in a portfolio.  They provide a relatively high yield (5% to 8%) and will change little in value as the yield curve steepens.

    Preferred stocks have characteristics of both stocks and bonds.  They are like stocks because they trade on equity exchanges.  They are like bonds because they pay a fixed dividend.  Investors in preferred shares get no voting more »

  • Warrants - Cheap Long Term Exposure to Banks

    By Adam Jones - January 28, 2013 | Tickers: AIG, BAC, C, HIG, JPM

    During the crisis, AIG (NYSE: AIG), Bank of America (NYSE: BAC), Citi (NYSE: C), The Hartford (NYSE: HIG), JPMorgan (NYSE: JPM), as well as many others received aid from the government.  As a result, the government was given long term warrants in the companies which they have been selling off.  These warrants are now publicly traded and accessible to all investors.  These warrants have an expiration date between late 2018 more »