Sure, everyone keeps up to date with the "Big Four" banks: Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. They collectively account for $7,889,731,000 in assets.
But the banks just under them shouldn't be neglected. Ranked 5-8 in the U.S. by assets, the "Small Four" banks make up a a significant part of the financial market share. (Note: I don't include GE Capital more »
By definition, under-the-radar stock picks are tough to find and even harder to time. By the time the market catches on to a particularly compelling name, it could well be past its top. It is frustratingly difficult to find truly great stocks that produce value year after year.
It is by no means certain that FBR Capital Markets (NASDAQ: FBRC) is one such stock. However, it is impossible to deny more »
While the financial service sector has roared back with the broader stock market, there are still niche firms that have not surged with the others.
Calamos Asset Management (NASDAQ: CLMS), an asset management company specializing in convertible bonds, is up less than 5% for 2013 with the Standard & Poor’s 500 Index higher by more than 20%, and the Rydex S&P Equal Weights Financial Exchange Traded Fund (NYSE: RFY more »
It is hard to understand the upside opportunity in European banks, especially when there is almost nothing ever positive said about them. However, given enough time, I think the risk-to-reward on owning European banks will eventually improve.
What happened with these three European banks?
The financial markets require a lot of services in order to remain functional. A good financial portfolio should include an exchange, ratings agency, and investment banking firm.
The stock exchange
Personally, I have always been fascinated by stock exchanges. More specifically, the Nasdaq OMX Group (NASDAQ: NDAQ). The company recently acquired Swedish OMX AB, hence the name NASDAQ OMX Group. The NASDAQ stock exchange is the second-largest exchange in the more »
One of the most disappointing things to see is manipulation, cheapness, unfairness, and above all fraud on Wall Street. The recent energy scandal reminds me of Enron and how it bought out a Californian power company, and caused fake shortages in energy that caused prices to spike. Having control over prices and investing with that foreknowledge is the ultimate form of manipulation.
Two banks caught red handed
So I’m more »
I recently wrote about Goldman Sachs Group (NYSE: GS) and their potential for big future profits given the current economic climate. The stock closed at $163 flat before the July 16 earnings call. Since then, Goldman Sachs has surged 2%. More investors bought into the dinosaur-esque investment bank after it beat analyst estimates.
The Commodities Futures Trading Commission (CFTC) recently adopted new trading rules for US banks' overseas operations.
The federal regulator’s cross border guidance applies to American banks conducting trade in London, the European Union and elsewhere in the global village. The new rules are part of the CFTC’s new-found powers under the Dodd-Frank reform measure. In particular the cross border guidance is aimed at the $700 trillion derivatives market more »
Second quarter results for the country's biggest banks appear to show that the glory days of banking are back. The total net income of JPMorgan (NYSE: JPM), Wells Fargo (NYSE: WFC), Citigroup (NYSE: C), Bank of America, Goldman Sachs (NYSE: GS) and Morgan Stanley touched a level not seen since the second quarter of 2007, and more importantly, the banks did this on a loan to deposit ratio of more »
Earnings yield is a valuation method used by some analysts to compare individual companies to the rest of the market and government bonds, in particular, the risk-free 10-year Treasury. Currently the earnings yield for the S&P 500 stands at 5.1%, while the current 10-year Treasury yield is about 2.5% - indicating that the market as a whole is undervalued compared to bonds.
What about individual companies? Well, surprisingly more »
Citigroup (NYSE: C) pleasantly surprised the analysts and investors alike as it announced the second quarter results reporting a profit of $4.2 billion, up 42% from a year earlier on the back of strong performance in the emerging economies.
The results are indicative of the bank’s efforts of aligning itself with its global strategy of overseas expansion and exit from businesses that are unfit to its strategic vision more »
Despite the rallying market, big financial stocks continue to trade at relatively low multiples. The economic headwinds all over the world have not disturbed firms like Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS) and JPMorgan (NYSE: JPM). These stocks are up 30%, 45% and 31%, respectively. Can this momentum continue?
Goldman Sachs has recently reported its quarterly earnings, beating analysts’ estimates. The company enjoyed a 45% rise more »
Morgan Stanley (NYSE: MS), like the rest of Wall Street, reported a fairly solid quarter. The favorable macroeconomic headwinds have helped the company generate substantial returns for shareholders the past quarter.
The company reported 22% year-over-year gains in consolidated revenue. The growth in revenue was primarily driven by growth in its institutional securities (investment banking) and investment management businesses. The institutional securities division generated 30% year-over-year growth in more »
A slew of corporate earnings announcements have recently marked the opening session of Q2 earnings. The positive note by many companies pushed the market to a new all-time high. One company that's always worth paying attention to is Goldman Sachs (NYSE: GS), the octopus of the financial world.
Why Goldman matters
Goldman has always been at the center of any major financial trend. It's basically a financial octopus more »
I’ll be honest, I voiced concerns over Goldman Sachs (NYSE: GS). I wasn’t sure if the bank would be able to meet analyst expectations in the most recent quarter. However, my concerns about volatility having an unfavorable impact on client execution and asset management fees abated this quarter.
Goldman Sachs revenue
Goldman Sachs grew its revenue by 30% year-over-year in the second quarter of 2013. This blew my more »
The asset-management industry is probably one of the most lucrative hot spots in the financial sector. This is primarily driven by the fact that stocks are trending higher, and it allows for asset-management companies to reap the benefits with performance fees. Both Blackstone (NYSE: BX) and BlackRock (NYSE: BLK) have been able to benefit from record moves in equity prices.
Earnings highlights for BlackRock
BlackRock has been able to report more »
Several big banks have reported earnings over the past week and it has helped push stocks back up to record highs. Citigroup (NYSE: C) reported earnings on Monday that beat expectations and helped counterbalance tepid consumer spending numbers (which was up only 0.15% for core sales).
Citigroup posted earnings of $1.25 a share ($3.89 billion), which beat expectations of $1.17 a share and was up from more »
Bank results are a good proxy of what might be happening in the economy. Signs of an economy that is improving such as more M&A deals, more loans and fewer defaults are also the drivers of much better top and bottom line results at banking institutions. Here I will analyze the last earning results of three key U.S. banks and set some insights about the future.
Steady rise more »
Big-time earning reports earlier this week, but for the most part, we have seen very little movement. In this piece, I am looking at the top reports from Tuesday, with my takeaways, as I look for stocks to buy and to add to My CAPS picks.
Does Diagnostics Really Matter?
Interest rates have been surging lately for a ton of different reasons. The economic climate is getting better, and eventually we'll see the Fed bump up the price of debt. Increased lending and investment spending is also a factor that's spiking interest rates to the highest levels they've been since 2011.
It's a bear-bond market ladies and gentlemen; let's find a good way to take more »
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