Top 5 Financial Companies To Watch In Right Now

“More means less.” Amarin (NASDAQ: AMRN  ) demonstrated this seemingly contradictory maxim today following its announcement of a new public offering. Shares promptly sank by 8%. With more shares on the market, the less each share is worth. Let’s take a look at the details.

Adding up the ADSs
Amarin plans to sell 21.7 million American Depositary Shares, or ADSs, in a public offering. The underwriters of the sale will also have a 30-day option to purchase another 3.255 million shares. The shares will be offered at prevailing market prices.

There are currently 150.7 million or so outstanding shares of Amarin’s stock. This new offering represents around 14% of outstanding shares, with the option available to underwriters making up another 2%. In one sense, a drop of only 8% with potential share dilution of twice as much doesn’t sound too bad. 

As of the end of March, Amarin had cash and equivalents of a little more than $203 million. Why have another public offering now? The company wants to use the proceeds generated to fund its continued commercial launch of triglyceride-lowering drug Vascepa. At the current pace it’s burning through cash, Amarin will need more in 2014. It’s better to take care of business sooner rather than later.

Top 5 Financial Companies To Watch In Right Now: Associated Estates Realty Corp (AEC)

Associated Estates Realty Corporation (AEC), incorporated on July 29, 1993, is an integrated, self-administered and self-managed equity real estate investment trust (REIT). As of December 31, 2012, the Company’s portfolio consisted of 52 properties containing 13,950 units located in 10 states. The Company operates in one segment: multifamily properties. The Company is focused on multifamily ownership, operation, acquisition, development, construction, disposition and property management activities. Its multifamily properties provided approximately 99.4% of its consolidated revenue. In 2012, the Company acquired four properties. Three of the properties, totaling 760 units, are located in the Raleigh/Durham submarket and the fourth is a 396-unit property located in Dallas, Texas. In addition, in 2012, it acquired land for development of an apartment community in Los Angeles, California that also includes a building containing approximately 78,800 total square feet of offic e and retail space. In 2012, it sold six properties containing 1,356 units, one in Georgia, one in Central Ohio and four in Western Michigan. During the three years ended December 31, 2012, it acquired 11 multifamily properties.

The Company’s primary source of income is rental revenue. The Company’s subsidiary, Merit Enterprises, Inc. (Merit), is a general contractor and construction manager, which acts as its in-house construction division. In March 2012, the partnership acquired a 2.5 acre parcel of land in Bethesda, Maryland.

Advisors’ Opinion:

  • [By Sally Jones]

    Associated Estates Realty Corp. (AEC) – Yield 4.90

    Associated Estates Realty Corp. is up 1% over 12 months. The company has a market cap of $764.39 million; it trades with a P/E ratio of 16.60 and P/S ratio of 4.10.

  • [By Nathan Slaughter]

    Shocking new data reveals that of the 5.5 million new households that will be formed between now and 2016, an estimated 3.8 million, or nearly 70%, will be renters, not homeowners according to Jeffrey Friedman, CEO of apartment REIT Associated Estates Realty (Nasdaq: AEC).

Top 5 Financial Companies To Watch In Right Now: Cohen & Steers Inc (CNS)

Cohen & Steers, Inc. (CNS) is a global investment management firm focused on global real estate securities, global listed infrastructure, real assets, large cap value stocks, and preferred securities. The Company also manages alternative investment strategies such as hedged real estate securities portfolios and private real estate multimanager strategies for qualified investors. It serves individual and institutional investors through a range of investment vehicles. CNS manages three types of accounts: institutional accounts, open-end mutual funds and closed-end mutual funds. Its revenue is derived primarily from investment advisory, administration, distribution and service fees received from open-end and closed-end mutual funds and investment advisory fees received from institutional accounts.

Institutional Accounts

The 113 institutional accounts for which the Company is an investment adviser represent portfolios of securities it manage for insti tutional clients. It manages the assets in each institutional account in a manner tailored to the investment preferences of that individual client as defined within each client’s individual investment advisory agreement. Sub-advisory assets, which may be sold to retail investors, are included in its institutional account assets. Sub-advisory assets represent accounts for which it has been named as a sub-adviser by the investment adviser to that account.

Open-End Mutual Funds

The 14 open-end mutual funds for which the Company is an investment adviser offer and issue new shares continuously as funds are invested and redeem shares when funds are withdrawn. Investment advisory fees for the open-end mutual funds vary based on each fund’s investment objective and strategy, fees charged by other comparable mutual funds and the nature of the investors to whom the mutual fund is offered. In addition, it receives a separate fee for providing administrative se rvices to each open-end mutual fund at a rate that is design! ed to reimburse the Company for the cost of providing these services. Each of the open-end mutual funds pays the Company a monthly administration fee based on a percentage of the fund’s average assets under management.

Closed-End Mutual Funds

The eight closed-end mutual funds for which the Company is an investment adviser are registered investment companies that have issued a fixed number of shares through public offerings. It receives a separate fee for providing administrative services to seven of the eight closed-end mutual funds at a rate that is designed to reimburse the Company for the cost of providing these services.

Portfolio Consulting and Other Services

The Company maintains two indices, Cohen & Steers Realty Majors Index (RMP) and Cohen & Steers Global Realty Majors Index (GRM). RMP is the basis for the iShares Cohen & Steers Realty Majors Index Fund (ICF) sponsored by BlackRock Institutional Trust Company, N.A. GRM is the basis for Cohen & Steers Global Realty Majors Fund (GRI) sponsored by ALPS Fund Services, Inc. and Claymore Global Real Estate ETF (CGR) sponsored by Claymore Investments, Inc. It provides services in connection with model-based strategies (MBS) accounts. As portfolio consultant for a number of MBS accounts, it constructs portfolios of securities that fulfill the investment objective of the mandate and supply models on a regular basis. As portfolio consultant, it provides several services in connection with investment products, such as unit investment trusts (UITs). As portfolio consultant to a number of UITs, it constructs a portfolio of securities.

Advisors’ Opinion:

  • [By Jonathan Yates]

    Another one to consider is Cohen & Steers Inc (NYSE: CNS), an asset manager based in New York City.

    While the dividend yield for a member of the Standard & Poor’s 500 Index averages around 1.9 percent, for Cohen & Steers it is just over 5 percent, much higher than that for BP or Caterpillar. Cohen & Steer’s has a beta of 1.56, which means the share price moves up and down nearly 60 percent more than the stock market as a whole, which has a beta of 1.

  • [By Anna Prior]

    Cohen & Steers Inc.(CNS) said Monday that it will separate the chairman and chief executive roles in January, as the investment management firm divides up the positions among its two namesakes.

Top 5 Financial Companies To Watch In Right Now: Annaly Capital Management Inc (NLY)

Annaly Capital Management, Inc. (Annaly), incorporated on November 25, 1996, owns, manage, and finance a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), Agency callable debentures, and other securities representing interests in or obligations backed by pools of mortgage loans. The Company’s wholly owned subsidiaries offer diversified real estate, asset management and other financial services. The Company’s subsidiary, RCap Securities, Inc. (RCap), operates as a broker-dealer. In August 2012, the Company liquidated FIDAC FSI LLC. In December 2012, the Company sold FIDAC Europe Limited.

The Company’s subsidiary Fixed Income Discount Advisory Company (FIDAC) is an investment advisor registered with the Securities & Exchange Commission (SEC), is a fixed-income investment management company specializing in managing fixed income investments in residential mortgage-backed securi ties, commercial mortgage-backed securities and collateralized debt obligations for various investment vehicles and separate accounts. FIDAC is engaged in managing and structuring debt financing associated with various asset classes and as a liquidation agent of collateralized debt obligations. As of December 31, 2012, FIDAC was the adviser or sub-adviser for real estate investment trust (REITs )and other investment vehicles. Merganser Capital Management, Inc. (Merganser) is an investment advisor, registered with the SEC, engaged in a range of fixed income strategies and focuses on managing each portfolio based on each client’s specific investment principles. Merganser serves a group of clients in a range of disciplines globally, including pension, public, operating, Taft-Hartley and endowment funds, as well contribution plans. RCap Securities, Inc. (RCap) operates as a broker-dealer and is a member in the Financial Industry Regulatory Authority (FINRA).

Throu gh the Company’s subsidiary Shannon Funding LLC (Shannon),! it provides warehouse financing to residential mortgage originators in the United States. It also owns an additional subsidiary, which owns trading securities. Under the Company’s investment policy, at least 75% of its total assets consisted of mortgage-backed securities and short-term investments. The remainder of its assets, consisting not more than 25% of its total assets, may consist of other qualified REIT real estate assets. As of December 31, 2012, all of the mortgage-backed securities, which it has acquired, have been backed by single-family residential mortgage loans. The Company also invests in Agency debentures, which consist of debentures issued by the Federal Home Loan Bank (FHLB), Freddie Mac and Fannie Mae.

Advisors’ Opinion:


    But, on its own I still really like this pick. It’s Annaly Capital Management Inc. (NYSE: NLY).

    I like this mortgage REIT for several reasons. First and foremost it’s been hit hard as interest rates have risen. It’s a “bottom-feeding” play for us. Meaning it’s trading down at its 52-week lows and we’re playing it for a bounce.

  • [By Charles Sizemore]

    As Spain recovers from its worst crisis in decades, TEF stock should enjoy a nice rally. I expect total returns of over 100% in the next 12-24 months.

    Dividend Stocks to Buy Now: Annaly Capital Management (NLY)

    NLY Dividend Yield: 11.9%

  • [By Dan Caplinger]

    Monmouth Real Estate Investment (NYSE: MNR  ) will release its quarterly report on Thursday, and investors have been nervous lately about the real estate investment trust’s prospects in a rising interest rate environment. Yet what sets Monmouth apart from both leveraged mortgage REIT Annaly Capital Management (NYSE: NLY  ) and traditional industrial REITs is the fact that Monmouth gets about half of its rental revenue from a single customer, FedEx (NYSE: FDX  ) . Does that add an unacceptable level of risk to the investment, or is it actually a positive for Monmouth?

  • [By Tim Melvin]

    Annaly Capital (NLY) is one of the leaders in the mortgage REIT sector, and the stock has not been spared the pummeling seen in this group. So far in 2013 the shares have fallen by more than 25% … but insiders seem to think that better times are ahead.

Top 5 Financial Companies To Watch In Right Now: United States Brent Oil Fund LP (BNO)

United States Brent Oil Fund, LP (USBO) is a commodity pool. USBO is focused on issuing units that may be purchased and sold on the NYSE Arca, Inc. The investment objective of USBO is for the daily changes in percentage terms of its units’ per unit net asset value (NAV) to reflect the daily changes in percentage terms of the spot price of Brent crude oil, as measured by the daily changes in the price of the futures contract for Brent crude oil traded on the ICE Futures Exchange (the ICE Futures).

The investment portfolio of USBO will consist primarily of investments in futures contracts for crude oil, heating oil, gasoline, natural gas and other petroleum-based fuels that are traded on the ICE Futures, New York Mercantile Exchange (the NYMEX) or other United States and foreign exchanges (collectively, Futures Contracts). USBO may also take positions in other crude oil-related investments, such as cash-settled options on Futures Contracts, forward contracts f or oil, cleared swap contracts and non-exchange traded (over-the-counter) transactions that are based on the price of crude oil, other petroleum-based fuels, Futures Contracts and indices based on the foregoing (collectively, Other Crude Oil-Related Investments).

Advisors’ Opinion:

  • [By Aaron Levitt]

    As we said before, the Iranian deal doesn’t actually add any new supplies back into marketplace for quite some time. With oil demand starting to move ahead as the global economy is beginning to return to normalcy, Brent prices should grind their way upwards. That makes the United States Brent Oil (BNO) a prime play.

  • [By Dan Caplinger]

    How to invest
    If those trends persist, then it could eventually solve the problem that United States Oil Fund has had in underperforming the spot price of crude. Given Brent’s stronger backwardation trend, United States Brent Oil Fund (NYSEMKT: BNO  ) might be the better oil ETF to choose.

  • [By Paul Ausick]

    The United States Brent Oil ETF (NYSEMKT: BNO) is up less than 0.1%, at $44.38 in a 52-week range of $36.88 to $45.05. The annual high was also set today.

Top 5 Financial Companies To Watch In Right Now: ProShares UltraShort Russell2000 (TWM)

ProShares UltraShort Russell2000 (the Fund) seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the Russell 2000 Index (the Index). The Fund intends to invest at least 80% of its net assets, including any borrowings for investment purposes, to investments that, in combination, have economic characteristics that are inverse to those of the Index. The Fund also intends to invest assets not invested in financial instruments, in debt instruments and/or money market instruments. The Fund intends to concentrate its investments in a particular industry or group of industries to approximately the same extent as the Index is so concentrated. ProShare Advisors LLC serves as the investment advisor to the Fund. Advisors’ Opinion:

  • [By Richard Rhodes]

    We remain short, via a position, the Russell 200 2X Short (TWM) as well as short positions in Tesla (TSLA) and Chipolte (CMG).

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