Exelon (NYSE: EXC ) reported earnings Wednesday, blowing away sales expectations and beating bottom line predictions. But with some nasty natural gas hedges and its stock near a 52-week high, is now the time to wave goodbye to Exelon stock? Here’s what you need to know.
On the top line, Exelon excelled where other utilities have missed. The company raked in $6.89 billion in revenue, up 9.7% from Q4 2012 and 11% higher than analysts’ expectations of $6.2 billion.
In what might’ve made Mr. Market grumpy, Exelon reported a $4 million GAAP net income loss, dropping into the red for the first time since 2006. But adjusted earnings clocked in at $602 million, dead even with Q1 2012. Adjusted EPS came out to $0.70, $0.15 below 2012’s first quarter but $0.02 ahead of analysts’ estimates.
Looking ahead, Exelon reaffirmed its Q2 $0.50-$0.60 EPS guidance, as well as its $2.35-$2.65 estimate for fiscal 2013.
Up, downs, and merger margins
Exelon’s earnings were pushed up and down by a variety of factors. Higher energy costs, lower realized market prices, increased O&M costs, and ongoing capex pushed profits down. Investors are also getting smaller pieces of Exelon stock’s profit pie due to its Constellation Energy merger last March.
Hot Financial Companies To Invest In 2014: Kite Realty Group Trust (KRG)
Kite Realty Group Trust is a publicly owned real estate investment trust. The firm invests in real estate markets of the United States. It engages in ownership, operation, management, leasing, acquisition, construction, expansion, and development and redevelopment of operating retail properties, retail properties under development, operating commercial properties, parking garage, commercial property under development, parcels of land, shopping, dining, and entertainment properties. Kite Realty Group was founded in 1968 and is based in Indianapolis, Indiana.
- [By Lauren Pollock]
Kite Realty Group Trust ag(KRG)reed to merge with fellow real-estate firm Inland Diversified Real Estate Trust in a stock-for-stock deal that will create a company worth $2.1 billion. Kite Realty shares climbed 5.7% to $6.50 premarket.
Hot Financial Companies To Invest In 2014: Banco Santander-Chile (BSAC)
Banco Santander Chile (the Bank), incorporated on August 1, 2002, provides a range of general banking services to its customers, from individuals to corporations. The Bank operates in two segments: Commercial Banking, and Global Banking and Markets. The Bank provides a range of commercial and retail banking services to its customers, including Chilean peso and foreign currency denominated loans to finance a variety of commercial transactions, trade, foreign currency forward contracts and credit lines and a variety of retail banking services, including mortgage financing. It has 499 total branches, 269 of which are operated under the Santander brand name, with the remaining branches under certain specialty brand names, including 93 under the Santander Banefe brand name, 45 under the SuperCaja brand name, 44 under the BancaPrime brand name and 53 as auxiliary and payment centers. The Bank provides a range of financial services to corporate and individual customers. It offers a variety of financial services, including financial leasing, financial advisory services, mutual fund management, securities brokerage, insurance brokerage and investment management. As of December 31, 2012, it had outstanding loans net of allowances for loan losses of $ 38,271 million, and total deposits of $ 29,408 million.
The Bank’s loan portfolio includes Commercial loans, Residential mortgage loans, Consumer loans and Non-client loans. Commercial loans include commercial loans, foreign trade loans, mortgage loans financed with mortgage bonds, factoring operations, leasing contracts and other outstanding loans. Commercial loans (includes all loans other than consumer loans and residential mortgage loans). Residential mortgage loans include draft loans, residential mortgage loans backed by mortgage bonds and other mortgage mutual loans. Residential mortgage loans, including loans granted to individuals for the acquisition, construction or repair of resi dential real estate, in which the value of the property cove! rs at least 100% of the amount of the loan. Consumer loans include installment consumer loans, consumer loans through lines of credit, credit card loans and consumer leasing contracts. Consumer loans, including loans granted to individuals for the purpose of financing the acquisition of consumer goods or payment of service.)
The Commercial Banking segment is comprised sub-segments, which includes individuals (Santander Banefe), individuals (Commercial Banking), small and mid-sized companies, institutional, companies, real estate and corporations. Individuals (Santander Banefe), consisting of individuals with monthly incomes between $ 313 and $ 835 and served through its Banefe branch network. The segment accounts for 4.2% of its total loans outstanding as of December 31, 2012. The segment offers customers a range of products, including consumer loans, credit cards, auto loans, residential mortgage loans, debit card accounts, savin gs products, mutual funds and insurance brokerage. Individuals (Commercial Banking), consisting of individuals with a monthly income greater than $ 835. Clients in the segment account for 47.1% of its total loans outstanding as of December 31, 2012, and are offered a range of products, including consumer loans, credit cards, auto loans, commercial loans, foreign trade financing, residential mortgage loans, checking accounts, savings products, mutual funds and insurance brokerage.
Small and mid-sized companies consists of small companies with annual revenue of less than $2.5 million. As of December 31, 2012, the segment represented approximately 15.0% of its total loans outstanding. Customers in the segment are offered a range of products, including commercial loans, leasing, factoring, foreign trade, credit cards, mortgage loans, checking accounts, savings products, mutual funds and insurance brokerage. Institutional, such as universities, government agencies, m unicipalities and regional governments. As of December 31, 2! 012, thes! e clients represented 1.9% of its total loans outstanding. Customers in this sub-segment are also offered the same products that are offered to the customers in its small businesses segment. The sub-segment is included in the Retail segment because customers in this sub-segment are a source for individual customers. Companies consists of companies with annual revenue over $2.5 million and up to $20.9 million. Customers in this segment are offered a range of products, including commercial loans, leasing, factoring, foreign trade, credit cards, mortgage loans, checking accounts, cash management, treasury services, financial advisory, savings products, mutual funds and insurance brokerage. As of December 31, 2012, these clients represented 8.6% of its total loans outstanding.
Real estate consists of companies in the real estate sector with annual revenue over $1.7 million, including construction companies and real estate companies that execute projects for sale to third parties. As of December 31, 2012, these clients represented 4.1% of its total loans outstanding. To these clients the Bank offers, in addition to traditional banking services, specialized services for financing, primarily residential projects, in order to increase the sale of residential mortgage loans. Large corporations consists of companies with annual revenue over $20.9 million. Customers in this segment are also offered the same products that are offered to the customers in its mid-sized companies segment. As of December 31, 2012, these clients represented 8.8% of its total loans outstanding.
Global Banking and Markets segment
The Global Banking and Markets segment is comprised of the sub-segments, which include corporate and the treasury division. Corporate consists of companies that are foreign multinationals or part of a Chilean economic group with sales of over $20.9 million. As of December 31, 2012, these clients represented 9.8% of its total loans outstanding. Customers in this segment are o! ffered a ! range of products, including commercial loans, leasing, factoring, foreign trade, mortgage loans, checking accounts, cash management, treasury services, financial advisory, savings products, mutual funds and insurance brokerage. The Treasury Division provides financial products to companies in the wholesale banking and the middle-market segments. This includes products, such as short-term financing and funding, securities brokerage, interest rate and foreign currency derivatives, securitization services and other tailor made financial products. The Treasury division also manages its trading positions.
The Bank has a Corporate Activities segment comprised of all other operational and administrative activities This segment includes the Financial Management Division, which manages global functions, such as the management of its structural foreign exchange gap position, its structural interest rate risk and its liquidity risk. The F inancial Management Division also oversees the use of its resources, the distribution of capital among its different units and the overall financing cost of investments.
The Bank competes with Banco del Estado.
- [By Sean Williams]
That inflation rate wasn’t a big help for Banco Santander Chile (NYSE: BSAC ) , the fund’s third-largest holding, which is a large bank that’s inflation-sensitive and saw its net interest margin drop in its most recent quarter. However, many of the more important underlying fundamentals of Banco Santander Chile, such as loan growth and core deposits, increased year over year while net provision expenses for consumer loans dropped 3.8% year over year.
Hot Financial Companies To Invest In 2014: Wells Fargo Advantage Income Opportunities Fund (EAD)
Evergreen Income Advantage Fund (the Fund) is a diversified closed-end management investment company. The primary investment objective of the Fund is to seek a high level of current income.
During the fiscal year ended April 30, 2005, the Fund’s investment portfolio included Marquee Holdings, Inc., Mediacom LLC, American Achievement Corp., CSK Auto, Inc., Oxford Industries, Inc., B&G Foods Holdings Corp. and Chiquita Brands International, Inc.
- [By Inyoung Hwang]
EADS (EAD) declined 1.2 percent to 51.54 euros. UBS said in a note that investing in the company is “less compelling” after shares rallied 77 percent in 2013 through yesterday and orders were announced following the Dubai Air Show.
- [By Sarah Jones]
Daimler AG jumped 6.2 percent to 52.35 euros. The world’s third-largest maker of luxury cars posted second-quarter profit that beat analyst predictions following the sale of its final holding in the parent company of planemaker Airbus SAS. (EAD)
Hot Financial Companies To Invest In 2014: Select Income REIT (SIR)
Select Income REIT, incorporated on December 19, 2011, is a real estate company that primarily owns and invests in single tenants, net leased properties. As of March 12, 2012, the Company owned 251 properties, or the Initial Properties, with a total of approximately 21.4 million rentable square feet. As of December 31, 2012, the Company acquired 16 properties from unrelated third parties with approximately 3.2 million rentable square feet. As of December 31, 2012, the Company owned 267 properties with approximately 24.6 million rentable square feet that were approximately 95.3% leased (based on rentable square feet). These properties consists of 229 properties located on the island of Oahu, HI, or the Company’s Hawaii Properties, which included approximately 17.8 million rentable square feet that are primarily leased to industrial and commercial tenants and 38 office and industrial properties with approximately 6.8 million square feet located in 18 states throughout the ma inland United States, or its Mainland Properties.
The Company’s 267 properties were leased to 253 different tenants, with a weighted average remaining lease term of approximately 11.7 years. The Company’s Mainland Properties generally consist of properties that are net leased to single tenants.
- [By Marc Bastow]
Select Income REIT (SIR), a real estate investment trust that owns single-tenant, net-leased properties, raised its quarterly dividend 4.5% to 46 cents per share, payable Nov. 20 to shareholders of record as of Oct. 24.
SIR Dividend Yield: 7.06%
Hot Financial Companies To Invest In 2014: National Australia Bank Ltd (NAB)
National Australia Bank Limited provides products, advice and services. In Australia, it operates through National Australia Bank, MLC and UBank. In the United Kingdom, it operates through Clydesdale Bank. In New Zealand, it operates through Bank of New Zealand. In the United States, it operates through Great Western Bank. Segments include Business Banking, Personal Banking, Wholesale Banking, UK Banking and NZ Banking, MLC and NAB and Great Western Ban. As of April 5, 2012, the Company and its associated entities ceased to be a substantial holder in BlueScope Steel Limited. On May 17, 2012, it ceased to be a substantial holder in Spark Infrastructure Group and Sandfire Resources NL. As of August 24, 2012, the Company and its associated entities ceased to be holder in Tabcorp Holdings Limited. In September 2012, the Company and its associated entities have ceased to be a substantial holder in Incitec Pivot Limited, as of August 30, 2012. Advisors’ Opinion:
- [By Yoshiaki Nohara]
Alacer Gold Corp. sank 4.1 percent in Sydney as the price of the precious metal declined. Honda Motor Co. (7267) lost 0.6 percent after Japan’s third-largest carmaker reported second-quarter profit that missed analysts’ estimates amid slowing motorcycle sales in Southeast Asia. National Australia Bank Ltd. (NAB) retreated 2.3 percent as expenses climbed at the country’s largest lender by assets.
Hot Financial Companies To Invest In 2014: Mid-America Apartment Communities Inc (MAA)
Mid-America Apartment Communities, Inc., incorporated on September 22, 1993, is a self-administered and self-managed real estate investment trust (REIT). The Company focuses on acquiring, owning and operating apartment communities in the Sunbelt region of the United States. The Company’s segments include Large market same store communities , Secondary market same store communities and Non same store communities and other . As of December 31, 2012 , the Company owned 100% of 160 properties representing 47,809 apartment units. Four properties include retail components with approximately 108,000 square feet of gross leasable area.
As of December 31, 2012 , the Company also had 33.33% ownership interests in Mid-America Multifamily Fund I, LLC, or Fund I, and Mid-America Multifamily Fund II, LLC, or Fund II, which owned two properties containing 626 apartment units and four properties containing 1,156 apartment units, respectively. These apartment communities we re located across 13 states. In October 2013, Mid-America Apartment Communities Inc merged with Colonial Properties Trust. In October 2013, Mid America Apartment Communities Inc and Colonial Properties Trust announced the completion of the merger of the two companies.
The Company’s Large market same store communities are generally communities in markets with a population of at least one million and at least 1% of the total public multifamily REIT units that the Company has owned and that has been stabilized for at least a full 12 months and have not been classified as held for sale. Communities are considered stabilized after achieving and maintaining at least 90% occupancy for 90 days. Secondary market same store communities are generally communities in markets with populations of more than one million but less than 1% of the total public multifamily REIT units or markets with populations of less than one million that the Company has owned and that has been s tabilized for at least a full 12 months and have not been cl! assified as held for sale. Communities are considered stabilized after achieving and maintaining at least 90% occupancy for 90 days. Non same store communities and other includes recent acquisitions, communities in development or lease-up and communities that have been classified as held for sale. Also included in non same store communities are non multifamily activities which represent less than 1% of the Company’s portfolio.
The Company’s business is conducted principally through Mid-America Apartments, L.P., which the Company refers to as its Operating Partnership. As of December 31, 2012 , the Company owned or had an ownership interest in 166 multifamily apartment communities in 13 different states. The Company also provides its own in-house leadership development program, which consists of a three-module program followed by two comprehensive case studies, which was developed with the assistance of U.S. Learning, Inc. During the year ended December 31, 2012, the Company purchased 10.6 acres of land and began construction on a new 270-unit community located in the Charleston, South Carolina metropolitan area. As of December 31, 2012 , no units have been delivered for the land in Charleston, South Carolina. During 2012, the Company also purchased 2.0 acres of land and began construction on a new 294-unit community located in Jacksonville, Florida.
- [By GURUFOCUS]
Mid-America Apartment Communities Inc. (MAA) is an independent real estate investment trust. Dec. 3, the company increased its quarterly dividend 5% to $0.73 per share. The dividend is payable on Jan. 31, 2014, to shareholders of record on Jan. 15, 2014. The yield based on the new payout is 4.8%.
- [By Marc Bastow]
Apartment community property real estate investment trust Mid-America Apartment Communities (MAA) raised its quarterly dividend 5% to 73 cents per share, payable on Jan. 31 to shareholders of record as of Jan. 15.
MAA Dividend Yield: 4.69%
Hot Financial Companies To Invest In 2014: ITonis Inc (ITNS)
ITonis Inc., incorporated on July 5, 2005, operates as a holding company. The Company focuses to purchase entrepreneurial companies that have established themselves, or are expected to establish themselves in various markets.
The Company invests in small growth entrepreneurial companies. In May 2011, the Company acquired Performance Mortgage Group, Inc., as a wholly owned subsidiary.
- [By Peter Graham]
What’s the Catch With MyEcheck Inc? According to various disclosures, transactions of $500 and $2k have or will occur to mention MyEcheck Inc in various investment newsletters. The most recent news for MyEcheck Inc is not so recent as it dates from last April and was an announcement that the company would license its proprietary system to other operators for a share of their transaction revenue on the system with the CEO pointing out: “In addition to our processing revenue, we will have licensing revenue that will exceed our processing revenue in a relatively short period of time.” However, a quick look at MyEcheck Inc’s financials reveals revenues of $3k (most recent reported quarter), zero, zero and zero for the past four quarters along with net income of $387k (most recent reported quarter) and net losses of $8k, $35k and $14k. At the end of last June, MyEcheck Inc had no cash to cover $804k in current liabilities. So maybe investor will want to wait for evidence of licensing and processing revenue to materialize.
ITonis Inc (OTCMKTS: ITNS) Recently Announced Its First Order
Small cap ITonis Inc is an Orange County, California based holding company established in 2005 that’s is currently undergoing a company-wide transformation to embark upon an aggressive acquisition plan to purchase high growth entrepreneurial companies that have established themselves, or are expected to establish themselves as leaders in various market niches. On Friday, ITonis Inc fell 9.09% to $0.003 for a market cap of $2.56 million plus ITNS is down 80.3% over the past year and down 50% over the past five years according to Google Finance.
Hot Financial Companies To Invest In 2014: Vanguard Idx Fund (VTI)
Vanguard Total Stock Market ETF (the Fund), formerly known as Vanguard Total Stock Market VIPERs, seeks to track the performance of an index that measures the investment return of the overall stock market. The Fund seeks to track the performance of Morgan Stanley Capital International (MSCI) US Broad Market Index (the Index), which includes large, mid and small-cap equity stocks diversified across growth and value styles.
The Fund employs a passive management or indexing investment approach in seeking to track the Index. The Index represents 99.5% or more of the capitalization of the United States common stocks regularly traded on the New York and American Stock Exchanges, and the NASDAQ over-the-counter market. The Fund invests all, or substantially all, of its assets in a representative sample of the stocks that make up the Index.
- [By James K. Glassman]
A manageable portfolio holds between 20 and 30 stocks. As long as they are roughly balanced by sector and weighted fairly equally, that number is enough to reduce systematic risk significantly. If you want to eliminate that risk, you can simply buy an exchange-traded fund such as Vanguard Total Stock Market ETF (VTI), which at last report held 3,657 stocks. But if you want to beat the market, you’ll need to accept some risk, and the smartest way to do that is by slimming down your portfolio.
- [By Mark Hulbert]
Even if you get smarter at selling, though, you can’t overcome a bad buying decision. As Odean points out, there is no evidence the average individual can pick stocks that outperform the market. That is why he recommends investing in a broad-based index fund. One of the very cheapest and most diversified is the Vanguard Total Stock Market ETF (VTI) , with an expense ratio of 0.05%, or $5 per $10,000 invested.