Financials

  • Why Main Street Capital is the Perfect Stock

    By Andrew Zurlo - February 26, 2013 | Tickers: AYR, AINV, FSC, MAIN, SLRC

    Main Street Capital (NYSE: MAIN) is an investment firm that provides long term debt and equity capital to lower-middle market and middle-market companies. This company has impressive stock growth over the past few years and will continue to provide investors with strong returns. The reasoning for this comes from strong financial growth, competition-leading cost structure and a high yielding dividend.

    Company background

    Main Street Capital is an internally-managed business development more »

  • Can This mREIT Out Maneuver The Fed?

    By Waqar Saif - February 1, 2013 | Tickers: AGNC, NLY, ARR, CXS.DL

    In its bid to out-maneuver the Fed’s policy of keeping the rates low, Annaly Capital Management (NYSE: NLY) disclosed its interest in purchasing the remaining stocks of CreXus Investments (NYSE: CXS.DL). CreXus Investments specializes in the acquisition and management of commercial mortgage backed securities. Annaly Capital currently holds around 12.4% of CreXus and the full acquisition would provide risk-adjusted returns to shareholders, while at the same time act more »

  • All Is Well For Annaly Capital

    By Mohsin Saeed - January 31, 2013 | Tickers: NLY, CXS.DL

    Annaly Capital (NYSE: NLY) finally announces agreement to acquire CreXus Investments (NYSE: CXS.DL) amid increasing long-term mortgage rates. Under the agreement, Annaly agreed to hike the November bid price of $12.5 for each share of CreXus to $13 a share. This way Annaly would pay $872 million for the remaining shares of the commercial mortgage REIT. I believe this diversification is a strategic step in the right direction under more »

  • Have Income Investors Returned To Agency mREITs?

    By Mohsin Saeed - January 31, 2013 | Tickers: AGNC, NLY, ARR, CYS, HTS

    Back in December last year, Agency mortgage REITs were trading on deep discounts to their book values Since the beginning of the year 2013, Agency mortgage REITs have appreciated in price greater than the year to date performance of S&P (the broad market). However, most are still trading at discounts to their book values yielding attractive double digit dividends under the ultra low interest rate environment.  

    Year To Date more »

  • Why mREITs Will Fly High In 1Q13

    By Waqar Saif - January 30, 2013 | Tickers: AGNC, NLY, ARR

    Editor's Note: The initial version stated Annaly and American Capital reported earnings, that is incorrect. Motley Fool apologizes for the error. This version has been corrected.

    The US mortgage rates continue to climb higher and higher since the beginning of the year 2013, increasing borrowing cost for potential home owners despite Fed’s commitment to keep home loans affordable.  Home prices are increasing across the US as improving employment more »

  • Regional Banks Reporting 4Q12 Are Flying High

    By Mohsin Saeed - January 25, 2013 | Tickers: PNC, USB

    Continuing the trend in the US banking sector, US Bancorp (NYSE: USB) and PNC (NYSE: PNC) reported strong 2012 fourth quarter results. According to Fitch, which rates the bank as one of the top rated banks globally, USB’s continued strength in mortgage banking was a major contributor to the bank’s earnings; while improvement in PNC’s results was associated with better revenues. USB’s adjusted bottom line of more »

  • E*Trade Earnings: Are Things Finally Going to Turn Around?

    By Matthew Frankel - January 17, 2013 | Tickers: SCHW, ETFC, AMTD

    One of the leading discount brokerages, E*Trade (NASDAQ: ETFC) also provides banking services to its retail customers.  However, the company’s shareholders have not exactly felt like “leaders” over the past several years.  Since hitting an all-time (split-adjusted) high of $277.60 in 2006, E*Trade has fallen drastically, mostly during 2007-2008, and has settled in the upper single digits, currently trading at $9.86 as of this writing more »

  • Amazing Benefits for this mRIET

    By Mohsin Saeed - January 16, 2013 | Tickers: AGNC, NLY, ARR

    During a large part of 2012, the spreads that mortgage REITs in general earned were squeezed by the Fed's third round of quantitative easing, also known as QE3. Under QE3, the Fed purchased mortgage-backed securities worth $40 billion every month with an aim to make home borrowing cheaper. This aggressive buying of MBS increased the demand, increasing their prices as a result. Increased prices of these MBS resulted in more »

  • Bank of America Needs to Give Good News

    By Matthew Frankel - January 11, 2013 | Tickers: BAC, C, WFC

    Bank of America (NYSE: BAC) was by far the best performing major financial stock of 2012, more than doubling throughout the year.  With the company set to report on Thursday, the market will be keeping its ears open for signs that a) justify the gains, and b) are indicative of future performance.

     

    <img src="/media/images/user_14267/bac-1-year_large.png" />

     

    Bank of America is the second largest U.S. financial holding company, with total assets of $2.2 more »

  • Morgan Stanley Earnings Preview: Will Increased Wealth Management Business Pay Off?

    By Matthew Frankel - January 7, 2013 | Tickers: C, GS, NES.DL

    Morgan Stanley (NYSE: MS) is one of the largest financial services companies in the U.S. and is currently trading at historically low levels.  The company’s stock hit an all-time high of $90.95 in 2007, before the financial crisis, and even after the crisis was trading at over $30 until as recently as March 2011 (see chart below – it would have been nice to buy at $6.71 more »

  • Wells Fargo Earnings Preview: Are They Still Best in Breed?

    By Matthew Frankel - January 6, 2013 | Tickers: BAC, C, USB, WFC

    Wells Fargo (NYSE: WFC) is the first major financial company to report this earnings season, so they certainly have the ability to set the tone for the sector.  While I believe Wells Fargo is best in breed, I do believe there are certain things investors need to hear in order to remain bullish on the company.  More on this later…

    Wells was arguably the strongest of the large banks going more »

  • Dissecting Invesco Mortgage 12.99% Dividend Yielder

    By Mohsin Saeed - December 28, 2012 | Tickers: AGNC, NLY, ARR, IVR

    Invesco Mortgage Capital’s (NYSE: IVR) diversified MBS portfolio gives the company an edge over the rest of the mortgage REITs under the prevailing macroeconomic situation, where the Fed is committed to keep the yield curve flat through its various initiatives. The mortgage rates have declined to the record low due to QE3 and Operation Twist. The 15-year mortgage rates declined to 2.65%, while the 30-year US mortgage rates more »

  • These Banks Are Missing Out On the Money Machine

    By Mohsin Saeed - December 28, 2012 | Tickers: BAC, C, JPM, WFC

    The Fed has been busy in its efforts to revive the US housing markets, however, Citigroup (NYSE: C) and Bank of America (NYSE: BAC) have been reluctant in offering new home loans and are missing out on the biggest mortgage profits on record after the housing crash.  Both the banks suffered $258 billion in credit losses and writedowns, largely related to mortgages from 3Q2012 to 2Q2011. Much to the dismay more »

  • Amid mREIT Headaches, This Company Is Confident

    By Mohsin Saeed - December 26, 2012 | Tickers: AGNC, NLY, ARR

    Investment Strategy

    Overall MBS prepayment speeds have declined during the month of November. However, prepayment speeds on higher coupon securities have increased, which are causing headaches for Annaly Capital (NYSE: NLY). Compared to American Capital Agency (NASDAQ: AGNC) and Armour Residential (NYSE: ARR), Annaly Capital own securities with higher coupons. Among the three REITs, Annaly also has the highest prepayment speed for its MBS portfolio. Annaly was also forced to more »

  • An Analysis of Barron’s 10 Stocks for 2013- Part I

    By Justin Carley - December 19, 2012 | Tickers: AAPL, BKS, BLK, F, GD, JPM, TXT | Editor's Choice

    Barron’s is out with their 10 favorite stocks for 2013.  I highlighted their performance in 2012 and they did a good job with market-beating success.  These lists always elicit plenty of emotions from investors of all varieties, but it helps to put a little context into the picks.  First, I believe Barron’s tilts toward the large-cap space and seeks a group beta roughly in-line with the S&P more »

  • Which Side of the JP Morgan Trade Are You On?

    By J. Keith Johnson - May 22, 2012 | Tickers: JPM

    When Jamie Dimon confessed that JP Morgan (NYSE: JPM) had grossly and irresponsibly handled finances a few days ago, $2 billion was the amount stated. With each passing day, however, that number grows. In fact, as of the other day, it’s grown by 50%. Now that’s some serious growth. Wouldn’t it be something to be on the other side of that trade?

    That’s exactly what many more »

  • Bank Bears Reawaken

    By Tony Daltorio - May 15, 2012 | Tickers: BAC, C, GS, JPM, NES.DL

    Until late last week, the group that led the S&P 500 in gains for the year so far was the financial sector. This group of stocks was up nearly 15 percent for the year, nearly double the gain made by the broader market. But financial stocks fell sharply on Friday after JPMorgan (NYSE: JPM) stated it had made “egregious mistakes” and incurred significant ($2 billion) mark-to-market losses in credit more »

  • Banks Firing on All Cylinders

    By Tim Brugger - April 19, 2012 | Tickers: BAC, C, JPM, NES.DL, WFC

    Talk about a roll. What a week for banks and financial services companies. Morgan Stanley’s (NYSE: MS) recently announced better than expected earnings for Q1 is yet one more feather in the industry’s cap. The good news comes on the heels of Wells Fargo (NYSE: WFC) kicking things off earlier in the week – something they always like to do – in stellar fashion. Citigroup (NYSE: C) followed that up more »

  • Don’t Jump Yet, Comerica Investors

    By Tim Brugger - April 17, 2012 | Tickers: C, CMA, WFC

    It’s hard to imagine a 26% jump in earnings year-over-year could be anything but good news. But a closer look into Comerica’s (NYSE: CMA) recently announced Q1 financial results exposes a few less-than-desirable factoids for the commercial lender.

    On the upside of course is the jump in earnings – to $130 million from $103 million in Q1 of 2011. That equates to $0.66 a share vs. $0.57 more »

  • Sifting Through The Mess: Wells, JPMorgan and Citi

    By Tim Brugger - April 16, 2012 | Tickers: C, JPM, WFC | Editor's Choice

    Most investors are glad to be rid of last week, and good riddance. After Friday’s drop of another 1%+, the markets officially finished with the worst 5-day stretch so far this year – ugh. It got so bad even what appeared to be good news was brushed aside by anxious investors more concerned with global economic data than earnings. Not that there’s anything wrong with that mind you – that more »

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