Wells Fargo’s (WFC) financial results disappointed investors but could be good news for PNC Financial Services (PNC), Fifth Third (FITB), KeyCorp (KEY) and Comerica (CMA).
Bloomberg NewsNomura’s Bill Carcache and Yuman Lui explain why:
Loan growth trends were solid. WFC�� total core loan growth came in at 6.9% YoY, up from 5.6% last quarter. Core commercial loan growth accelerated to 8.0% YoY, up from 5.4% last quarter. The strength in WFC�� commercial loan portfolio bodes well for other regional banks, given high C&I growth correlations (i.e., ~80% or higher) with…USB, MTB…RF, and HBAN. Total loan growth correlations also exceed 90% for PNC Financial Services, Fifth Third, KeyCorp, and Comerica. As we��e noted, the R-squared between earning asset growth and NII growth is 98% for regional banks, suggesting that stronger loan growth will lead to positive EPS revisions.
Hot Managed Healthcare Companies To Own In Right Now: Stratasys Inc.(SSYS)
Stratasys, Inc., together with its subsidiaries, engages in the development, manufacture, marketing, and servicing of three-dimensional (3D) printers, rapid prototyping (RP) systems, and related consumable materials for office-based RP and direct digital manufacturing (DDM) markets. The company offers its products as integrated systems consisting of an RP machine and the software to convert the CAD designs into a machine compatible format, and modeling and support materials. Its products enable engineers and designers to create physical models, tooling, jigs, fixtures, prototypes, and end use parts out of production grade thermoplastic directly from a CAD workstation. The company also offers rapid prototyping and production part manufacturing services; and maintenance, leasing/renting, training, and contract engineering services for 3D production systems and 3D printers. Its products are used by design and manufacturing organizations in aerospace, architecture, automotive, business machines, consumer products, defense, direct digital manufacturing of custom parts, educational institutions, electronics, fixtures, jewelry, heavy equipment, medical systems, tooling, medical analysis, mold making, and dental markets. The company markets its products through a network of value-added resellers and distributors in the Americas, Europe, the Middle East, Korea, Taiwan, Japan, and China. Stratasys, Inc. was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
Advisors' Opinion:- [By Michael A. Robinson]
And consider what happened with Stratasys Ltd. (Nasdaq: SSYS). The company helped pioneer the breakthrough field of 3D printing. This is technology that allows users to "print" out physical goods like car and aircraft parts, dental implants, and architectural models, saving millions in design and preproduction costs.
- [By Paul Ausick]
Stratasys Ltd. (NASDAQ: SSYS) will report 2013 results on March 2. It is expected to post full-year earnings of�$1.83 a share�on revenue of $481.14 million. The company�� stock lost 6% on 3D Systems��earnings warning. The stock closed at $112.43 on Friday in a 52-week range of $60.20 to $138.10. Stratasys��consensus price target is around $143.20 implying a potential upside of 27% to Friday’s close. The forward multiple for the stock in 2015 is 50 based on an EPS estimate of $2.24. Stratasys has the second-highest market value of the 3D printing stocks at nearly $5.5 billion.
Hot Regional Bank Stocks To Own For 2014: Morgan Stanley Emerging Markets Fund Inc. (MSF)
Morgan Stanley Emerging Markets Fund, Inc. is a closed-ended equity mutual fund launched and managed by Morgan Stanley Investment Management Inc. It invests in the public equity markets across the global emerging markets. The fund invests in stocks of companies operating across diversified sectors. It makes its investments in companies across all market capitalizations. The fund benchmarks the performance of its portfolio against the MSCI Emerging Markets Free Index. Morgan Stanley Emerging Markets Fund Inc. was formed on November 1, 1991 and is domiciled in the United States.
Advisors' Opinion:- [By George Putnam, Editor, New Generation Research, Inc.]
Morgan Stanley Emerging Markets Fund (MSF) is not an index-based fund, and therefore, its portfolio managers have a lot of latitude.
Among their top ten holdings are a range of consumer and technology holdings, such as Samsung Electronics and Taiwan Semiconductor, as well as financials. At current prices, the fund is trading at a roughly 10.5% discount to its net asset value (NAV).
Hot Regional Bank Stocks To Own For 2014: J.C. Penney Company Inc. Holding Company(JCP)
J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating. The company also sells its products through its Internet Web site, jcp.com. J. C. Penney Company, Inc. has strategic alliance with Martha Stewart Living Omnimedia, Inc. As of December 7, 2011, it operated approximately 1,100 department stores. The company was founded in 1902 and is based in Plano, Texas.
Advisors' Opinion:- [By Steve Mauzy]
I also generally avoid retail turnarounds. I've been asked a few times for my opinion on J.C. Penney (JCP) and Sears Holdings (SHLD).
I understand a contrarian's interest. J.C. Penney's share price is down 85% in the past two years; Sears' share price is down 55%. Both are iconic retail names whose history can be measured in centuries.
- [By Lauren Pollock]
Allegion(ALLE) PLC will replace J.C. Penney Co.(JCP) in the S&P 500 index after trading concludes Nov. 29, S&P Dow Jones Indices said Friday. Ingersoll-Rand(IR) PLC is due to complete its spinoff of Allegion, which�focuses on commercial and residential security, on that date.
- [By Sara Murphy]
Factories within multi-use buildings in Bangladesh are at particularly high risk of fire, and J.C. Penney (NYSE: JCP ) plans to have phased out their use by the end of this month. Sears Holdings (NASDAQ: SHLD ) is also re-examining the dangers of multilevel factories operated by multiple owners, which could prove to be a real blow to the Bangladeshi textile industry as a whole. �
- [By Alyce Lomax]
Take two struggling retailers that stand in Wal-Mart's gigantic shadow. J.C. Penney (NYSE: JCP ) and Sears Holdings (NASDAQ: SHLD ) both said they have their own safety measures. Penney's is increasing its requirements, and wasn't a customer of the collapsed factory. Sears also rejected signing onto the accord, and wouldn't specify which factories it uses in Bangladesh. Their refusal to sign on may further soil their already-struggling brands, and therefore, their businesses. J.C. Penney and Sears both recently reported atrocious quarterly losses.
Hot Regional Bank Stocks To Own For 2014: KBR Inc. (KBR)
KBR, Inc. operates as an engineering, construction, and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, and industrial sectors worldwide. Its Downstream business unit provides front end engineering design; detailed engineering; engineering, procurement, and construction (EPC); EPC management; and program management services to petrochemical, refining, coal gasification, and syngas markets. The company?s Government and Infrastructure business unit provides program and project management, contingency logistics, operations and maintenance, construction management, engineering, and other services to military and civilian branches of governments and private clients. Its Services business unit delivers engineering, construction, construction management, fabrication, maintenance, and turnaround services. It also offers maintenance, construction, and drilling support services for offshore oil and gas producing facili ties using semisubmersible vessels. This segment serves oil, gas, petrochemicals, and hydrocarbon processing industries, as well as power, alternate energy, pulp and paper, industrial and manufacturing, and pharmaceutical industries. The company?s Technology business unit offers various process technologies, including value-added technologies in the coal monetization, petrochemical, refining, and syngas markets. Its Upstream business unit constructs liquefied natural gas, gas-to-liquids, onshore oil and gas production facilities, offshore oil and gas production facilities, and onshore and offshore pipelines. The company?s Ventures business unit invests in and manages projects, where the company provides engineering, construction, construction management or operations, and maintenance services. KBR, Inc. was founded in 1901 and is based in Houston, Texas.
Advisors' Opinion:- [By Rich Smith]
The larger of the two awards, and by a few orders of magnitude, went to government contractor KBR (NYSE: KBR ) , which won a firm-fixed-price, option-filled contract valued at up to $134.2 million to develop and construct a land-based missile defense system to be built in Deveselu, Romania. According to Time magazine, the missile base will be constructed on 430 acres of property located -- and we quote -- "125 miles southwest of Count Dracula's castle."
- [By Louis Navellier]
If we look at the sector using Portfolio Grader, we see that many of the big names in the group like Flour (FLR), Granite Construction (GVA) and KBR incorporated (KBR) are rated ��ell.��The anticipated spending for both government and private industry simply hasn�� materialized, and the companies are not seeing revenue or profit growth.
- [By Jonas Elmerraji]
Mid-cap construction and engineering firm KBR Inc. (KBR) is another name with a mountain of cash sitting on the books. The firm currently sports $895 million in net cash on its balance sheet, enough to cover 29% of its current price per share. That effectively reduces the risks of this contractor's share price by a third.
KBR is an engineering and construction services contractor that primarily serves the U.S. government and the energy sector. Until 2006, KBR was a unit of Halliburton (HAL), a connection that gives it deep-rooted connections with the oil and gas business, where the firm has transitioned much of its sales efforts. Prior to that, KBR's bread and butter was the sole contractor of food service, utilities, laundry, and other services for U.S. troops in Iraq and Afghanistan – but that changed after a series of missteps from KBR that prompted the government to add other contractors to the current iteration of the LOGCAP contract.
Bigger exposure to the private sector is a good thing -– restructuring efforts and a new management team should help steer the ship around. It's that huge cash position that helps to make KBR worth a closer look in 2014. While it's more speculative than the other names on our cash-rich list, it's also the one with the most upside potential on near-term catalysts.
- [By Garrett Cook]
KBR (NYSE: KBR) shares tumbled 8.17 percent to $24.17 after the company reported a Q1 loss of $0.29 per share on revenue of $1.63 billion. The company said it would undergo a strategic review of its businesses.
Hot Regional Bank Stocks To Own For 2014: Dutch Gold Resources Inc (DGRI)
Dutch Gold Resources, Inc. (Dutch Gold), incorporated on May 14, 2002, is a precious metals exploration-stage company engaged in the business of acquiring, exploring and developing mineral properties in North America. The Company holds an interest in properties in Nevada, Montana and Oregon.
The Company holds a leasehold interest in a property near Philipsburg, Montana which consists of 217 acres of patented land and approximately 900 acres of Bureau of Land Management (BLM) land, referred to as Basin Gulch. The Jungo gold exploration project is located approximately 50 miles northwest of the town of Winnemucca in Humboldt County, Nevada. The property is on BLM land and is held by 95 unpatented lode mining claims. During the year ended December 31, 2011, the Company has not generated revenue from operations.
Advisors' Opinion:- [By Peter Graham]
Next Generation Energy Corp (OTCMKTS: NGMC) and Dutch Gold Resources, Inc (OTCMKTS: DGRI) are the latest small cap stocks to announce their entry into the marijuana business while peer Endocan Corp (OTCMKTS: ENDO) sees some paid promotions or investor relations activities, but otherwise remains quiet. So will investors and traders alike achieve a high with any of these small cap marijuana stocks? Here is a quick reality check:
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