Last week, Tiffany (TIF) CFO Ralph Nicolettileft the luxury retailer for Newell Brands (NWL). Wells Fargo’s Ike Boruchow and team argued that Nicoletti’s departure is “an untimely distraction” for a stock that can’t afford one:
Ben Pruchnie/Getty Images
Surprise Departure By CFO is an Untimely Distraction. Last Friday,Tiffany announced that CFO Ralph Nicoletti was leaving the company on May 20th (it was subsequently announced that he will be taking the same position at Newell). Nicoletti had been with the company for only two years, and the timing of his departure bodes poorly forTiffany given the current volatility in their business. More specifically, the company is experiencing significant pressure in their core key geographies, and the turnaround efforts are further complicated by the need to fill the vacant CFO seat…
Top 10 Warren Buffett Stocks To Watch Right Now: Energy Focus, Inc.(EFOI)
Energy Focus, Inc., incorporated on May 2, 2007, along with its subsidiaries is engaged in the design, development, manufacturing, marketing, installation and sale of lighting systems. The Company is engaged in developing and selling of light-emitting diode (LED) lighting products for military maritime market, and general commercial and industrial markets.
The Company produces, sources and/or markets a range of lighting technologies to serve its primary end markets. The Company offers military maritime products, including Military Intellitube, military globe lights and military berth light to serve the United States navy and allied foreign navies. The Company offers commercial products, including direct-wire tubular LED (TLED) replacements for linear fluorescent lamps, LED dock lights, vapor tight lighting, low-bay and high-bay lighting for high-intensity discharge (HID) applications and LED retrofit kits to serve commercial and industrial markets. The Company produces its lighting products and systems through a combination of internal manufacturing and assembly at its Solon, Ohio facility, and sourced finished goods. Its internal lighting system manufacturing consists primarily of final assembly, testing, and quality control.
The Company competes with Royal Philips, CREE, Inc., Osram Sylvania and GE, Inc.
- [By Lisa Levin]
Shares of Energy Focus Inc (NASDAQ: EFOI) were down 40 percent to $7.95 after the company reported weaker-than-expected Q4 results.
Omega Protein Corporation (NYSE: OME) was down, falling around 20 percent to $17.47 after the company reported weaker-than-expected results for its fourth quarter.
Top 10 Warren Buffett Stocks To Watch Right Now: KKR(KKR)
Kohlberg Kravis Roberts & Co. is a private equity and venture capital firm specializing in acquisitions, leveraged buyouts, management buyouts, and mezzanine investments in large cap companies. The firm will consider investments in all industries globally, with a focus on financial services, infrastructure, and renewable energy. It seeks a board seat in its portfolio companies. The firm holds a controlling interest in its portfolio companies after they go public. It typically holds its investment for a period of five years and more and exits through initial public offerings, secondary offerings, and sales to strategic buyers. Kohlberg Kravis Roberts & Co. was founded in 1976 and is based at New York, New York with additional offices across United States, Europe, Australia, and Asia.
- [By Monica Gerson]
KKR & Co. L.P. (NYSE: KKR) is projected to report a quarterly loss at $0.33 per share on revenue of $276.90 million.
Allison Transmission Holdings Inc (NYSE: ALSN) is estimated to post its quarterly earnings at $0.58 per share on revenue of $445.39 million.
Top 10 Airline Companies To Buy For 2017: Clayton Williams Energy, Inc.(CWEI)
Clayton Williams Energy, Inc., incorporated on October 27, 1991, is an oil and gas company engaged in the exploration for and production of oil and natural gas. The Company operates in Texas, Louisiana and New Mexico. Its segments include oil and gas exploration and production, and contract drilling services. It has holdings in approximately two oil shale plays in the United States, which include Wolfcamp Shale in the Southern Delaware Basin of West Texas and the Eagle Ford Shale in the Giddings Area of East Central Texas. The Company is also engaged in finding reserves through exploratory drilling. Its exploration program consists of generating exploratory prospects, leasing the acreage related to these prospects, drilling exploratory wells on these prospects to determine if recoverable oil and gas reserves exist, drilling developmental wells on these prospects and producing and selling any resulting oil and gas production.
The Company’s estimated proved rese rves are approximately 46,570 thousand barrels of oil equivalent (MBOE). Its portfolio of oil and natural gas reserves is weighted in favor of oil, with approximately 83% of its proved consisting of oil and natural gas liquids (NGLs) and approximately 17% consisting of natural gas. The Company also holds interests in approximately 3,170 gross producing oil and gas wells, and owns leasehold interests in approximately 629,000 gross undeveloped acre. Through its subsidiary, Desta Drilling, L.P., the Company operates approximately 10 drilling rigs available for use or for contract drilling operations, of which approximately eight are owned and two are under lease. Its other regions of exploration and development activities include South Louisiana, Oklahoma and California.
The Permian Basin is a sedimentary basin in West Texas and Southeastern New Mexico with oil and gas deposits. The Permian Basin covers an area approximately 250 miles wid e and over 350 miles long and contains commercial accumulati! ons of oil and gas in various stratigraphic horizons at depths ranging from 1,000 feet to 25,000 feet. It is engaged in drilling and recompletion activities. The Company holds approximately 66,000 net acres in the active Wolfbone resource play in the Delaware Basin, primarily in Reeves County, Texas. The Company owns oil, gas and water disposal pipelines in Reeves County, Texas consisting of approximately 105 miles of oil pipelines with a capacity of approximately 10,000 barrels of oil per day; over 109 natural gas pipelines with a capacity of over 10,000 million cubic feet (Mcf) of natural gas per day, and approximately 109 miles of salt water disposal pipelines with a capacity of approximately 15,000 barrels of produced water per day.
The Company’s wells in the Giddings Area are drilled as horizontal wells with laterals in different producing horizons, including the Austin Chalk, Buda and Georgetown formations in East Central Texas. Hydrocarbons are also encountered in the Giddings Area from other formations, including the Cotton Valley, Deep Bossier, Eagle Ford Shale and Taylor formations. It has approximately 170,000 net acres in the Giddings Area. Assets in Giddings Area include Austin Chalk and Eagle Ford Shale. The Company’s production in the Giddings Area is derived from the Austin Chalk formation, an upper Cretaceous geologic formation in the Gulf Coast region of the United States that stretches across various fields in Texas and Louisiana. Its horizontal Eagle Ford Shale play is concentrated in the northern portion of its Austin Chalk acreage block in Robertson, Burleson and Lee Counties, Texas. In this area, it has over 40 horizontal Eagle Ford Shale wells on production.
- [By Andrew Efimoff]
WTI crude oil plunged 3.11 percent on Friday to $48.99 a barrel. Below are the biggest energy losers for the day:
California Resources Corporation (NYSE: CRC): -19.22% Dynamic Materials (NASDAQ: BOOM): -12.39% Clayton Williams Energy (NYSE: CWEI): -11.45% Dynergy (NYSE: DYN): -11.91% EP Energy Corporation (NYSE: EPE): -11.20% Mexco Energy (NYSE: MXC) -10.90% Whiting Petroleum (NYSE: WLL) -10.79% Southwestern Energy Company (NYSE: SWN) -10.79% SM Energy Company (NYSE: SM) -10.38% Real Goods Solar (NASDAQ: RGSE) -10.34%
Posted-In: Commodities After-Hours Center Markets Movers
Top 10 Warren Buffett Stocks To Watch Right Now: Tyson Foods Inc.(TSN)
Tyson Foods, Inc., together with its subsidiaries, engages in the production, distribution, and marketing of chicken, beef, pork, and prepared food products, as well as related allied products worldwide. The company?s Chicken segment involves in breeding and raising chickens, as well as processing live chickens into fresh, frozen, and value-added chicken products. Its Beef segment processes live fed cattle and fabricates dressed beef carcasses into primal and sub-primal meat cuts and case-ready products The company?s Pork segment involves in the processing live market hogs; and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Its Prepared Foods segment manufactures and markets frozen and refrigerated food products comprising pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, and processed meats. The company mark ets and sells its products to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, international export companies, and domestic distributors, as well as to foodservice operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors. Tyson Foods, Inc. also offers its allied products to the manufacturers of pharmaceuticals and technical products, as well as to pork processors. The company was founded in 1935 and is headquartered in Springdale, Arkansas.
- [By Ben Levisohn]
BMO Capital Markets analysts Kenneth Zaslow and Patrick Chen took a look at the valuations of Tyson Foods (TSN) and Pilgrim’s Pride (PPC) and decided they were afraid of heights. They explain why they cut Tyson Foods to Market Perform from Outperform…
- [By Ben Levisohn]
Tyson Foods (TSN) has gained 3.5% to $76.20 after beating earnings forecasts and raising its full-year guidance.
Tesla Motors (TSLA) has fallen 1.1% to $227.50 after the auto-maker turned energy company said it would need $1.1 billion during the third quarter to fund its gigafactory and other expenses.
Top 10 Warren Buffett Stocks To Watch Right Now: MGT Capital Investments Inc(MGT)
MGT Capital Investments, Inc., together with its subsidiaries, engages in acquiring, developing, and monetizing assets in the casino, online, and mobile gaming space. It operates through four segments: Medicsight Software/Devices, Medicsight Services, Gaming, and Intellectual Property. The company develops, publishes, distributes, and sells mobile games for smartphones and tablets; develops and produces free to play mobile and social casinostyle games; and owns the United States patents related to casino gaming systems. It also operates DraftDay.com, a daily fantasy sports Website that offers players to participate in real money daily fantasy gameplay for the NFL, MLB, NCAA, NHL, NBA, and professional golf; FantasySportsLive.com, an online portal for fantasy sports news and commentary; and Slot Champ. The company has strategic alliance agreements with M2P Entertainment GmbH; M2P Americas, Inc.; and MGT Studios, Inc. to marke t and exploit M2P Entertainment GmbHs gaming technology in North and South America. MGT Capital Investments, Inc. was founded in 1979 and is based in Harrison, New York.
- [By Lisa Levin]
MGT Capital Investments Inc. (NYSE: MGT) shares shot up 73 percent to $2.98 after John McAfee proposed to become Executive Chairman and CEO.
Shares of Anacor Pharmaceuticals Inc (NASDAQ: ANAC) got a boost, shooting up 55 percent to $99.49 after the company agreed to be acquired by Pfizer Inc. (NYSE: PFE) for $99.25 per share.
Top 10 Warren Buffett Stocks To Watch Right Now: Alexion Pharmaceuticals, Inc.(ALXN)
Alexion Pharmaceuticals, Inc., incorporated on January 28, 1992, is a biopharmaceutical company. The Company is focused on the development and commercialization of life-transforming therapeutic products. The Company operates through innovation, development and commercialization of life-transforming therapeutic products segment. The Company’s marketed products include Soliris (eculizumab), Strensiq (asfotase alfa) and Kanuma (sebelipase alfa). The Company’s clinical programs include Soliris (eculizumab), ALXN 1101, ALXN 1007, SBC-103, ALXN 1210 and ALXN 5500.
In the Company’s complement franchise, it offers Soliris for patients with either paroxysmal nocturnal hemoglobinuria (PNH), a life-threatening and ultra-rare genetic blood disorder, or atypical hemolytic uremic syndrome (aHUS), a life-threatening and ultra-rare genetic disease. PNH and aHUS are severe and ultra-rare disorders resulting from chronic uncontrolled activation of the complement component of the immune system. Soliris is designed to inhibit a specific aspect of the complement component of the immune system and thereby treat inflammation associated with chronic disorders in several therapeutic areas, including hematology, nephrology, transplant rejection and neurology. Soliris is a humanized monoclonal antibody that blocks terminal complement activity.
The Company has completed enrollment of patients in a Phase III multinational, placebo-controlled registration trial of eculizumab in patients with refractory generalized Myasthenia Gravis (MG). The Company is enrolling patients in a global, randomized, double-blind, placebo-controlled to evaluate eculizumab as a treatment for patients with relapsing neuromyelitis optica spectrum disorder (NMOSD). The Company has completed enrollment in a single, multinational, placebo-controlled delayed kidney transplant graft function (DGF) registration trial. The Company has completed a randomized, open-label, multicenter Phase II clinical tri! al of eculizumab presensitized kidney transplant patients at an elevated risk of antibody mediated rejection (AMR) receiving kidneys from living donors.
Strensiq (asfotase alfa)
In the Company’s metabolic franchise, it markets Strensiq for the treatment of patients with Hypophosphatasia (HPP). HPP is a genetic ultra-rare disease characterized by defective bone mineralization that can lead to deformity of bones and other skeletal abnormalities. Strensiq is a targeted enzyme replacement therapy. It is designed to address underlying causes of HPP by aiming to restore the genetically defective metabolic process, thereby preventing or reversing the severe and potentially life-threatening complications in patients with HPP.
Kanuma (sebelipase alfa)
The Company offers Kanuma for the treatment of patients with Lysosomal Acid Lipase Deficiency (LAL-D). Kanuma is a recombinant form of the human LAL enzyme. It is an enzyme-replacement therapy, which is approved for the treatment for patients with LAL-D.
cPMP (ALXN 1101)
The Company has completed evaluation of its synthetic form of cyclic Pyranopterin Monophosphate (cPMP) replacement therapy in a Phase I healthy volunteer study. The Company has completed enrollment in a multi-center, multinational open-label clinical trial of synthetic cPMP in patients with Molybdenum Cofactor Deficiency (MoCD) Type A switched from treatment with recombinant cPMP. The Company has commenced the Phase II/III pivotal open-label, single-arm trial of ALXN1101 for treatment-naive neonates with MoCD Type A.
The Company’s product candidate, ALXN 1007, is a humanized antibody designed to target rare and severe inflammatory disorders and is a product of its antibody discovery technologies. The Company has completed enrollment in both a Phase I single-dose, dose escalating safety and pharmacology study in healthy voluntee rs, as well as in a multi-dose, dose escalating safety and p! harmacolo! gy study in healthy volunteers. The Company is conducting a proof-of-concept study in patients with an ultra-rare disorder, gastrointestinal graft versus host disease (GI-GVHD). The Company is conducting Phase II proof-of-concept study in patients with non-criteria manifestations of anti-phospholipid syndrome (APS).
The Company’s product candidate, SBC-103, is a recombinant form of natural human alpha-N-acetyl-glucosaminidase (NAGLU) enzyme, which leads to a buildup of abnormal amounts of heparan sulfate (HS) in the brain and throughout the body. SBC-103 is designed to replace the missing (or deficient) NAGLU enzyme.
The Company’s product candidate, ALXN 1210, is a next-generation complement inhibitor in development for PNH and other indications. The Company is conducting a multiple-ascending dose study of ALXN 1210 to evaluate the safety and efficacy of ALXN 1210. In addition, it has over two clinical stu dies of ALXN 1210 in patients with PNH. The Company also has initiated an open-label, multi-dose Phase II study of ALXN 1210 in patients with PNH that is designed to measure change in lactate dehydrogenase (LDH) levels and safety in several dosing cohorts and intervals.
- [By Ben Levisohn]
Alexion Pharmaceuticals (ALXN) had dropped 4.6% to $131 after the biotech company beat earnings forecasts but offered below-consensus guidance.
Atwood Oceanics (ATW) has gained 5.3% to $5.60 after the offshore driller’s earnings beat the Street consensus.
- [By Ben Levisohn]
Long-Term BucketBuy and hold; we consider these to be high-quality names that we see outperforming the group both in the current market and longer term: Celgene (CELG), Alexion Pharmaceuticals (ALXN), Jazz Pharmaceuticals (JAZZ).
- [By Ben Levisohn]
As biotech stocks like Alexion Pharmaceuticals (ALXN), BioMarin Pharmaceutical (BMRN), Incyte (INCY), Regeneron Pharmaceuticals (REGN) and Vertex Pharmaceuticals (VRTX) get ready to report earnings, Piper Jaffray’s Joshua Schimmer and team write that they “would not be surprised to see the volatility continue.” They explain why:
Macro considerations have continued to weigh on stocks whenever they’ve shown signs of life and consensus estimates for many of the large cap companies have been declining. With the sector’s underperformance, the delta in the average PEG ratio for biotech growth companies (excluding Medivation (MDVN)) compared to non-biotech growth companies is slightly wider than it’s been for most of the year. As such, we remain constructive on the sector. That said, while valuations are attractive on a relative basis, there remains some uncertainty for the group and we would not be surprised to see the volatility continue…
We’ve been tracking the difference in PEG ratios between the biotech growth companies versus non-biotech growth companies (defined as market cap >$5B, EPS CAGR >20% by consensus, EPS >$1.00). The average biotech growth 2017E PEG ratio is now 0.4 points below that of non-biotech growth. Historically, when this spread widens, the biotech sector tends to outperform. We do note that in the past biotech has reached PEG ratio levels 0.5-0.7 below that of non-biotech growth alternatives, and we are seeing downward estimate revisions for many biotech names. if these trends continue for the sector, the spread in PEG ratios may be overstated and the sector could continue to languish. However, we are optimistic that bottom lines (if not top lines) will meet or exceed expectations as we head into 2Q earnings.
2Q outlook stronger for bottom lines than top lines, we believe: The outlook for 2Q is difficult to predict based on our recent IMS scrip ana
Top 10 Warren Buffett Stocks To Watch Right Now: Royal Dutch Shell PLC(RDS.A)
Royal Dutch Shell plc (shell), incorporated on February 5, 2002, is an independent oil and gas company. The Company explores for crude oil and natural gas across the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company is engaged in the principal aspects of the oil and gas industry in approximately 70 countries. The Company operates in three segments: Upstream, Downstream and Corporate. Its Upstream segment focuses on exploration for new crude oil and natural gas reserves and on developing new projects. In Downstream, the Company focuses on turning crude oil into a range of refined products, which are moved and marketed around the world for domestic, industrial and transport use. The Company sells various products, which include gasoline, diesel, heating oil, aviation fuel, marine fuel, liquefied natural gas (LNG) for transport, lubricants, bitumen and sulfur. It also produces and sells ethanol from sugar cane in B razil.
The Company’s Upstream segment combines the operating segments Upstream International and Upstream Americas. The Company extracts bitumen from mined oil sands, which the Company converts into synthetic crude oil. The Company liquefies natural gas by cooling it and transports LNG to customers around the world. It also converts natural gas to liquids (GTL) to provide fuels and other products, and it markets and trades crude oil and natural gas (including LNG) in support of its Upstream businesses. Shell subsidiaries, joint ventures and associates are involved in all aspects of upstream activities, including matters, such as land tenure, entitlement to produced hydrocarbons, production rates, royalties, pricing, environmental protection, social impact, exports, taxes and foreign exchange. The conditions of the leases, licenses and contracts under, which oil and gas interests are held vary from country to country.
The Compan y’s Upstream International business manages Shell’s Upstream! activities outside the Americas. The Company explores for and extracts crude oil, natural gas and natural gas liquids, transports oil and gas, and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream International also manages the LNG and GTL businesses outside the Americas, and markets and trades natural gas, including LNG, outside the Americas. It manages its operations primarily by line of business, with this structure overlaying country organizations The Company’s Upstream Americas business manages Shell’s Upstream activities in North and South America. Upstream Americas also extracts bitumen from oil sands that is converted into synthetic crude oil. It manages the LNG business in the Americas, including assets in Peru and Trinidad and Tobago. It also markets and trades natural gas in the Americas. In addition, it manages the United States wind business.
The Company’s Downstream bus iness manages Shell’s oil products activities, consisting refining, trading and supply, pipelines and marketing, and chemicals activities. In addition, the Company produces and sells petrochemicals for industrial use across the world. Its marketing activities include retail, lubricants, business-to-business (B2B) and alternative energies. In trading and supply, the Company trades crude oil, oil products and petrochemicals, to optimize feedstock for refining and chemicals, to supply its marketing businesses and third parties. The Company has interests in over 20 refineries across the world with the capacity to process a total of approximately 3.1 million barrels of crude oil per day. Trading and supply trades in physical and financial contracts, lease storage and transportation capacities, and manages shipping and wholesale commercial fuel activities globally. Across approximately 100 countries, the Company produces, markets or sells lubricants for passenger cars, motorcycles , trucks and coaches, and for industrial machinery in the ma! nufacturi! ng, mining, power generation, agriculture and construction sectors.
The Company has a global lubricants supply chain with a network of over eight base oil manufacturing plants, 40 lubricant blending plants, 10 grease plants and four gas-to-liquids base oil storage hubs. Through its marine activities, the Company primarily provides lubricants along with fuels and related technical services, to the shipping and maritime sectors. Its B2B activities encompass the sale of fuels and specialty products and services to a range of commercial customers. Its plants produce a range of base chemicals, including ethylene, propylene and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide and ethylene glycol. It has capacity to produce approximately six million tons of ethylene a year.
- [By Ben Levisohn]
Citigroup’s Alastair Syme and team argue that the earnings from big oil companies like Chevron (CVX), Total (TOT) and Royal Dutch Shell (RDS.A) will be bad…real bad. But that won’t stop the stocks from outperforming. They explain why:
- [By Ben Levisohn]
1) Extending Duration.Transocean remains focused on increasing financial flexibility. We expectTransocean to take advantage of its four contracted drillships with Shell (RDS.A) (10 Years) to line up secured financing. We expect two tranches (each about $800M) as the rigs probably need to be up and running to get the deals done.
- [By Tom Petruno]
We went looking for the greatest companies outside the U.S. and came up with eight proven picks. Here’s one of them: Royal Dutch Shell (RDS.A). To make the list, the businesses had to have U.S.-traded shares and be industry leaders. They also had to possess substantial financial resources to weather rough economic times. Finally, we sought companies that had significant catalysts to drive the next phase of their growth.
- [By Ben Levisohn]
But even if you buy that,Cheniere is still “crazy expensive” compared to peers.Chevron (CVX), Royal Dutch Shell (RDS.A) and Australian firm Woodside trade between 5 and 6.3 times EV/EBITDA. Cheniere: 11.4 times. And while Chevron, Royal Dutch Shell and Woodside will be paying down debt, Cheniere’s will be growing its own, Chanos argued. “This is financial engineering gone crazy,” Chanos says. “[It’s] extremely skewed to the short side.”
Top 10 Warren Buffett Stocks To Watch Right Now: SunTrust Banks, Inc.(STI)
SunTrust Banks, Inc., incorporated on July 24, 1984, is a bank holding company and a financial holding company. Through its principal subsidiary, SunTrust Bank, the Company offers a line of financial services for consumers and businesses, including deposit, credit, mortgage banking, and trust and investment services. The Company’s other subsidiaries provide asset and wealth management, securities brokerage and capital market services. The Company operates through three segments: Consumer Banking and Private Wealth Management, Wholesale Banking and Mortgage Banking. It also operates a Corporate Other segment, which includes the management of the Company’s investment securities portfolio, long-term debt, end-user derivative instruments, short-term liquidity and funding activities, balance sheet risk management, and real estate assets. The Company operates primarily within Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and the District of Colu mbia.
The Company offers commercial, residential and consumer loans. The commercial and industrial (C&I) loans include loans to fund business operations or activities, loans secured by owner-occupied properties, corporate credit cards, and other wholesale lending activities. The Residential mortgages, both government-guaranteed and non-guaranteed, consist of loans secured by one- to four-family homes, primarily prime, first-lien loans. Residential home equity products consist of equity lines of credit and closed-end equity loans. Consumer loans include government-guaranteed student loans, other direct loans consisting primarily of direct auto loans, loans secured by negotiable collateral, unsecured loans, and private student loans; indirect loans consisting of loans secured by automobiles, boats and recreational vehicles, and consumer credit cards. The Company’s commercial loans amount to approximately $75.252 million. The Company’s residential loans amount to a pproximately $38.928 million. The consumer loans amount to a! pproximately $22.262 million.
The Company’s agency securities consist of debt obligations issued by the United States Department of Housing and Urban Development (HUD), Federal Home Loan Bank (FHLB), and other agencies or collateralized by loans that are guaranteed by the small business administration (SBA). The Company’s investments in the states and political subdivisions of the United States include obligations of county and municipal authorities and agency bonds, which are general obligations of the municipality or are supported by a specified revenue source. Agency mortgage-backed securities (MBS) include pass-through securities and collateralized mortgage obligations issued by Government-sponsored enterprise (GSEs) and the United States government agencies, such as Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), and Government National Mortgage Association (Ginnie Mae). Private MBS includes purchase d interests in third party securitizations, as well as retained interests in Company-sponsored securitizations. The total securities, available for sale at fair value amount to approximately $27.568 million.
The deposits are the Company’s primary source of funds. The Company’s deposits amount to approximately $148.9 billion. Its non-interest-bearing deposits amount to approximately $42.102 million. Its consumer and commercial deposits amount to approximately $144.202 million. The Company’s borrowings amount to approximately $4.627 million.
Consumer Banking and Private Wealth Management
The Company’s Consumer Banking and Private Wealth Management segment is made up of approximately two primary businesses: Consumer Banking and Private Wealth Management (PWM). Consumer Banking provides services to consumers and branch-managed small business clients, through a network of traditional and in-store branches, automated teller machines (ATMs), t he Internet (www.suntrust.com), mobile banking and telephone! (1-800-S! UNTRUST).. Financial products and services offered to consumers and small business clients include deposits, home equity lines and loans, credit lines, indirect auto, student lending, bank card, other lending products, and various fee-based services. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.
The PWM business provides a range of wealth management products and professional services to both individual and institutional clients, including loans, deposits, brokerage, professional investment management and trust services to clients seeking management of their financial resources. Institutional clients are served by the Institutional Investment Solutions business. Discount/online and full-service brokerage products are offered to individual clients through SunTrust Investment Services, Inc. (STIS). PWM also includes the operations of GenSpring Family Offices, LLC. (GenSpring), which provides family off ice solutions to ultra-high net worth individuals and their families.
The Company’s Wholesale Banking segment includes approximately four businesses: corporate and investment banking (CIB), commercial and business banking, commercial real estate and treasury and payment solutions. CIB delivers capital markets solutions, including advisory, capital raising and financial risk management. Investment Banking and Corporate Banking teams within CIB serve clients, offering a suite of traditional banking and investment banking products and services to companies. Investment Banking serves industry segments, including consumer and retail, energy, financial services, healthcare, industrials, and technology, media and communications. Corporate Banking serves clients across diversified industry sectors based on size, complexity and frequency of capital markets issuance. CIB also manages the Equipment Finance Group, which provides lease-financin g solutions (through SunTrust Equipment Finance & Leasing). ! The commer! cial and business banking business offers a range of traditional banking products, including lending, cash management services and investment banking solutions to commercial clients, not-for-profit organizations and government entities, as well as auto dealer financing (floor plan inventory financing). Also managed within the commercial and business banking business is the Premium Assignment Corporation, which provides corporate insurance premium financing solutions.
The commercial real estate business provides a range of financial solutions for commercial real estate developers, owners, and investors, including construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions. Commercial Real Estate also offers financing and equity investment solutions for community development and affordable housing projects through SunTrust Community Capital. The treasury and payment solutions business provides the Com pany’s business clients with services required to manage their payments and receipts. The treasury and payment solutions business operates electronic and paper payment types, including card, wire transfer, automated clearing house (ACH), check, and cash. It also provides clients the means to manage their accounts electronically online, both domestically and internationally.
The Company’s Mortgage Banking segment offers residential mortgage products through its retail and correspondent channels, as well as through the Internet (www.suntrust.com) and by telephone (1-800-SUNTRUST). These products are either sold in the secondary market, primarily with servicing rights retained, or held in the Company’s loan portfolio. Mortgage Banking services loans for itself and for other investors.
- [By Shauna O’Brien]
On Thursday, financial services company SunTrust Banks, Inc. (STI) was upgraded to “Buy” at Compass Point.
The firm raised its rating on STI from “Neutral” to “Buy,” and has given the company a $38 price target. This price target suggests a 12% upside from the stock’s current price of $33.26.
Analyst Kevin Barker commented: “We believe these headwinds are already priced into the stock and the bank stands to be one of the biggest beneficiaries of a pickup in CRE and residential lending.”
“In addition, we believe the company is getting very little credit for cost save initiatives and would screen as being more asset sensitive if it were to let its swap portfolio run-off. Add in the potential for significant capital return following the March 2014 CCAR and we believe STI is setting up to outperform in the next year,” added the analyst.
SunTrust shares were up 15 cents, or 0.45%, during pre-market trading Thursday. The stock is up 17% YTD.
Top 10 Warren Buffett Stocks To Watch Right Now: Yingli Green Energy Holding Company Limited(YGE)
Yingli Green Energy Holding Company Limited, together with its subsidiaries, designs, develops, markets, manufactures, sells, and installs photovoltaic (PV) products in the Peoples Republic of China and internationally. The company offers polysilicon ingots and blocks, polysilicon wafers, PV cells, PV modules, and integrated PV systems; and develops and operates solar projects. It primarily sells its PV modules to distributors, wholesalers, power plant developers and operators, and PV system integrators under the brand names Yingli and Yingli Solar. Yingli Green Energy Holding Company Limited was founded in 1998 and is headquartered in Baoding, the Peoples Republic of China.
- [By Monica Gerson]
Yingli Green Energy Holding Co Ltd (ADR) (NYSE: YGE) is expected to post a quarterly loss at $1.48 per share on revenue of $372.30 million.
Ameren Corp (NYSE: AEE) is estimated to post its quarterly earnings at $0.38 per share on revenue of $1.51 billion.
Top 10 Warren Buffett Stocks To Watch Right Now: Freshpet, Inc.(FRPT)
Freshpet, Inc., incorporated on November 12, 2004, is a manufacturer of fresh, refrigerated pet food distributed across North America. The Company operates in the segment of manufacturing, marketing and distribution of pet food and pet treats for dogs and cats. The Company offers products consisting of dog food, cat food, and dog and cat treats. Its recipes include real, fresh meat and varying combinations of vegetables, leafy greens and anti-oxidant rich fruits, without the use of preservatives, additives or artificial ingredients. All of its products are sold under the Freshpet brand name, with ingredients, packaging and labeling customized by class of retail. It also offers fresh treats across all classes of retail under the Dognation and Dog Joy labels. The Company’s products are available in various forms, including slice and serve rolls, bagged meals and tubs.
All of the Company’s products are manufactured in the United States. The Company owns and opera tes refrigerated pet food manufacturing facility in North America, the Freshpet Kitchens at Bethlehem, Pennsylvania. The Company’s products are distributed throughout the United States and Canada into retail classes, including Grocery and Mass (which includes club), as well as Pet specialty and Natural retail. It sells its products through a network of company-owned branded refrigerators, the Freshpet Fridges. The Company designs, produces, installs and maintains the Freshpet Fridge through a combination of in-house resources and partners.
The Company competes with Mars, Nestle, The J.M. Smucker Company, Colgate-Palmolive and Blue Buffalo.
- [By Lisa Levin]
Freshpet Inc (NASDAQ: FRPT) shares shot up 25 percent to $10.36. Freshpet reported a Q2 loss of $0.10 per share on revenue of $33 million.
Shares of Lantheus Holdings Inc (NASDAQ: LNTH) got a boost, shooting up 50 percent to $5.84 as the company reported strong Q2 results.