Why Facebook Has Been in Talks with Banks Lately
According to Reuters, Facebook (FB) is currently in discussions with banks about improving customer service through its apps.
Financials
Financials Why Wells Fargo leads in loans
The bank has always focused on its bread and butter revenue-earning stream: loans. Over the years, Wells Fargo slowly realized its goal of achieving a strong market share in lending.
Interest Rate Expectations Have Jolted Equity and Debt Alike
Asset managers (VFH) are seeking stability in order to attract funds toward either equity or debt offerings.
What Do Analysts Recommend for JPMorgan Chase and Wells Fargo?
In a Bloomberg survey of 37 analysts, 19 analysts (51%) have assigned a “buy” rating to Wells Fargo (WFC) while 13 (35%) have rated it as “hold.” The stock currently has five “sell” ratings.
Once Again, Soros Makes Money off the UK’s Woes
Four days before the UK (EWU) decided to leave the European Union (VGK), Soros warned the markets of a “Black Friday” and a crash in the pound.Financials Moore Capital lowers its stakes in JPMorgan Chase
JPMorgan’s latest 2Q14 results beat estimates. Meanwhile, net income was down to $6 billion from $6.5 billion in 2Q13. The earnings per share (or EPS) was $1.46, compared to $1.60 in 2Q13.
How Wall Street Analysts Rate LyondellBasell ahead of 1Q18 Earnings
The analyst consensus target price for LyondellBasell is $116.82, implying a return potential of 8.5% over the closing price of $107.68 as of April 20, 2018.
Can State Street Recover Its Discounted Valuations?
On a next 12-month basis, State Street Corporation (STT) has a PE (price-to-earnings) ratio of 13.9x. Its competitors’ average is 21.22x.Financials Must-know: Determining a bank’s value
The first challenge is that banks are highly regulated and any change in regulations has a huge impact on the valuation of a bank—the second challenge is that it’s difficult to determine cash flow for a bank because both debt and reinvestment are difficult to calculate.
GM’s long-term competitive threat: Japan’s investment recovery
Japan is showing signs of investment recovery with its new economic policies coming into play.
Why Buffett Believes US Businesses Aren’t Really Hurting from the US Corporate Tax
The US economy has been improving gradually, but some businesses in the US have suffered a lot over the years.
A Look at the Financials Sector’s Dividend Yield: Part One
Financials and basic materials have dividend yields of 2.5% and 2.4%, respectively.
What Happens if a Robinhood Stock Is Delisted?
If you use Robinhood for investing, it’s important to know what happens if a stock you own is delisted from the NYSE or Nasdaq.
What Is Brian Deese’s Net Worth?
Brian Deese has been selected to be a top economic adviser in the Biden administration. What is his past experience and net worth?
What Are the Best Penny Stocks for 2021?
Most penny stocks don’t pay dividends. However, penny stocks can make good money if you pick a strong company.
Is Sundial Growers Stock a Buy or Sell?
Sundial Growers stock is surging as bargain hunters in the marijuana sector go for stocks that have been under the radar.
What’s Dave Ramsey’s Take on Cashless Society?
Dave Ramsey had to defend his thoughts on a cashless society after a controversial post went viral on the Internet.
What Happened to Merrill Lynch after the 2008 Global Financial Crisis?
In the past, Merrill Lynch was among the most sought after places to work for finance professionals. What happened to Merrill Lynch after 2008?
What Are the Best BEACH Stocks to Buy Now?
BEACH stocks look poised for a strong rebound as COVID-19 vaccine successes signal the beginning of the end for the COVID-19 pandemic.
Is GoodRx Stock a Solid Buy Right Now?
GoodRx stock made a strong public debut. The company runs a profitable business that helps people save on prescription drug costs.
Is CLNE Stock Right for Your Portfolio?
CLNE stock is going up. The rally may have just started as alternative energy stocks see renewed interest from investors.
What Happens if the Stock Market Is Closed?
The stock market will be closed on Thanksgiving. Here's what happens with pre-market and after-hours sessions over a holiday.
What Are Leon Cooperman’s Top Holdings?
In Q3 2020, billionaire investor Leon Cooperman’s top five holdings were Fiserv, Mr. Cooper Group, Alphabet, Cigna, and Trinity Industries.
Is Ayro Stock Good to Buy?
Ayro stock has caught many investors' attention. Investors are looking for the next Tesla or NIO in the EV space.
US Banking Sector: Key Trends and Outlook
Changes in technology have reshaped the banking sector. Banks are increasingly collaborating with fintech firms to improve their customer service.Must-know: Why the Fed drove up emerging market asset prices
Many economists, like the Nobel Prize–winning Paul Krugman, believe that the Fed acted as a “white knight” in 2008, saving the global economy in the dire aftermath of the financial crisis.Financials Why Wells Fargo has the highest net interest margin
Maintaining a high net interest margin has always been part of Wells Fargo’s (WFC) strategy. Wells Fargo has consistently been better than the industry’s average net interest margin.
China’s wage inflation: Bad news for corporate profits and banks
Wage inflation in Chinese manufacturing With an appreciating currency and growing economy, Chinese manufacturers have experienced wage inflation. The cost of Chinese labor is simply becoming more expensive, as the below graph indicates. Private sector wage growth in China was 14% in 2012, while GDP growth is slowing to around 7.5% per annum. Wages are […]
Saudi Arabia Enters International Bond Market, Raises $17.5 Billion
On October 20, the government of Saudi Arabia raised about $17.5 billion in an international bond issuance, marking the emerging market’s first foray into the international bond market.
Ginnie Mae TBAs rally before the Fed meeting
Mortgage-backed securities are the starting point for all mortgage market pricing and the investment of choice for mortgage REITs When the Federal Reserve talks about buying mortgage-backed securities, it’s referring to the To-Be-Announced (also know as the TBA) market. The TBA market allows loan originators to take individual loans and turn them into a homogeneous product […]Financials Must-know: Putting the price–to-book value ratio in perspective
We explored the most commonly used valuation metric for financial companies—the price-book value. We also understood the relation between price-book value and return on equity.
Goldman Sachs Warns of Impending Market Crash
Goldman Sachs (GS) thinks that the risk of a market crash is the highest since the financial crisis.
Jeffrey Ubben’s ValueAct Capital buys a new stake in Symantec
ValueAct Capital initiated a new position in Symantec Corp. (SYMC) that accounts for 1.14% of the fund’s first quarter portfolio.
Why we could see a new trend in Japan’s exports and imports
Japan’s import and export dynamics The below graph provides a clearer picture of the import and export dynamics of the Japanese economy. By using 2005 as a base year and adjusting for inflation or deflation, the graph shows how exports and imports have changed on a “real” basis, as opposed to a “nominal” basis. Viewing […]
American Airlines gets significantly lower position in Appaloosa
Appaloosa Management significantly lowered its position in American Airlines (AAL) in the third quarter that ended in September 2014. The position accounts for 3.81% of the fund’s total third-quarter portfolio.
Which Positions Did Einhorn Increase and Reduce in Q1?
David Einhorn’s Greenlight Capital’s (GLRE) largest stake increase in percentage terms was in Consol Energy (CEIX), in which GLRE increased its stake by 142.9% in the first quarter.Financials Must-know: Why did the Indian rupee free-fall in 2013?
India’s current account deficit rose to 4.8% of GDP in 2012–2013, largely financed through hot money flows, and exceeded the government’s target level of 2.5% to 3% of GDP.
Paul Singer Increased His Holdings in NXP Semiconductor in 3Q17
Paul Singer, the CEO of Elliott Management, increased his holdings in NXP Semiconductor (NXPI) in 3Q17, according to a recent 13F filing report.
What’s Charles Schwab’s Valuation?
Charles Schwab (SCHW) has a price-to-earnings ratio of 20.80x on an NTM (next-12-month) basis.
Pershing Square takes 8.5% stake in Zoetis
Pershing Square Capital Holdings added a new position in Zoetis Inc. (ZTS), which accounts for 1.52% of Pershing Square’s portfolio for the third quarter that ended in September 2014.
Dow Jones December Outlook: A Crash or Santa Rally?
We’re now into December. Based on last week’s closing prices, the Dow Jones Industrial Average Index has risen 20.2% in the year.
Bitcoin Retreats from Its 3-Week High of $17,712.40
Bitcoin prices touched a three-week high of $17,712.40 on January 6, 2018, and then fell. As of Monday, January 8, 2018, at 5:00 AM EST, it had a 24-hour fall of 5.4%.
Primer on mortgage backed securities, Part 3
Continued from Primer on mortgage backed securities, Part 2. Basic mortgage backed securities: Fannie Mae, Freddie Mac, and Ginnie Mae Most mortgage backed securities are agency securites, which means they are associated with government guaranteed loans. Fannie Mae and Freddie Mac are government sponsored entities (GSE’s) and do not carry an explicit government guarantee like Ginnie Mae mortgages do. […]
Will the Fed Have to Use More Unconventional Measures?
Global monetary policy is unconventional. From an era of lowering interest rates to boost economic growth, central bankers are taking rates into negative territory.
Dimensional Fund Advisors’ Major Holdings in Q3
Dimensional Fund Advisors’ top buys are Apple (AAPL), AT&T (T), Microsoft (MSFT), L3Harris Technologies (LHX), and Verizon Communications (VZ).
Bill Gross’s Views on Growth and Inflation
Gross believes that money has stopped generating growth and inflation. Equity prices are artificially elevated, and negative yields are guaranteeing capital losses.
Does “Abenomics” mean a new era of yen depreciation?
A change in yen appreciation? The below graph reflects a potential big change in Japan post-2012—has yen appreciation turned the corner as a result of post-2012 “Abenomics“? In the mid 1970’s, the U.S. dollar bought 300 yen, and by the mid-1980’s, the U.S. dollar bought 250 yen. By the end of the 1980s, the dollar […]
Why DPW Holdings Stock Soared Over 400% Yesterday
DPW Holdings stock soared over 400% on August 19 after the company announced the relaunching of online fintech portal MonthlyInterest.com.
Mortgage servicing rights increase in value as interest rates rise
Mortgage servicing rights are one of the few financial assets that increase in value as rates rise Most mortgage REITs are exposed to changes in interest rates, and are usually long-duration, which means that the value of their portfolio decreases in value as interest rates rise. Good examples of these types of REITs would be […]Financials Must-know: Is Wells Fargo making boring attractive for investors?
Wells Fargo’s (WFC) broad operation level strategy over the long run can be described by two words—slow and steady. It doesn’t take many risks. It’s stable and boring.
