Below is the edited transcript of Kartik Jhaveri’s interview with CNBC-TV18
Q: Let us start with the basic question, what is financial planning?
A: People have various sorts of understanding about what financial planning is, but very simply put, it is like a little mathematical strategy, it deals with numbers. It tells you where you are standing today, what all do you want to achieve vis-à-vis what your possibilities are. To decide upon the amount of money you should put, you have to decide your goals and then someone can help you make a strategy by doing some calculations, some of them are simple but some of them are not so simple.
However when you put together you get a holistic picture and this picture tells you exactly how some of the futures are likely to pan out. So it is some sort of a road map. It is better to have a road map rather than not have anything and just doing things by instinct and by the hour or the prevailing season. It is a very good and a robust guideline.
Top 5 Forestry Stocks To Buy Right Now: Ultrapar Participacoes S.A. (UGP)
Ultrapar Holdings Inc. operates in the petrochemical and chemical sectors. The company operates in four segments: Gas Distribution, Fuel Distribution, Chemicals, and Storage. It distributes both bottled and bulk liquefied petroleum gas for residential, commercial, and industrial customers through approximately 58 points of sales; a network of 4,700 independent retailers; and independent dealers, as well as through its own retail stores. The company also distributes diesel, gasoline, ethanol, natural gas for vehicles, fuel oil, kerosene, lubricants, and greases directly to customers, as well as through a network of service stations. As of December 31, 2012, it operated 6,460 service stations under the Ipiranga brand. In addition, the company produces and markets various chemical and petrochemical products, including ethylene oxide, ethylene glycols, ethanolamines, glycol ethers, and methyl-ethyl-ketone for chemical companies, and surface coating and polyester producers; and fatty-alcohols and related by-products, as well as specialty chemicals that are used as surfactants, softeners, dispersants, emulsifiers, and hydraulic fluids for industrial and commercial enterprises. Its chemical products are used in a range of industrial sectors, such as cosmetics, detergents, crop protection chemicals, polyester, packaging, textiles, coatings, and oil industry. Further, the company stores and handles liquid bulk, including chemicals, fuels, and vegetable oil; and offers ship loading and unloading services, as well as engages in the operation of pipelines, logistics programming, and installation engineering. Ultrapar Holdings Inc. offers its products and services primarily in Mexico, Venezuela, Uruguay, and the United States. The company was founded in 1937 and is headquartered in São Paulo, Brazil.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, Brazilian liquefied petroleum gas distributor Ultrapar Holdings (NYSE: UGP ) has earned a respected four-star ranking.
Top 5 Forestry Stocks To Buy Right Now: iShares MSCI Chile Capped ETF (ECH)
iShares MSCI Chile Index Fund (the Fund) is an exchange-traded fund that seeks investment results that correspond generally to the price and yield performance of the MSCI Chile Investable Market Index (the Index). The Index is a free float-adjusted market capitalization index that is designed to measure broad based equity market performance in Chile. The Index consists of stocks traded primarily on the Santiago Stock Exchange.
The Fund will seek to track the performance of the Index by investing at least 90% of its assets in component securities and in depositary receipts representing such securities. It may invest up to 10% of its assets in certain futures, options, swap contracts, cash and cash equivalents (including money market funds), and other exchange-traded funds, including other iShares funds. The Fund’s investment advisor is Barclays Global Fund Advisors. The index provider of the Fund is Morgan Stanley Capital International.
- [By David Fabian]
The iShares MSCI Chile Capped ETF (NYSE: ECH) is a portfolio of 42 stocks in South America that has lost more than three percent this year. By contrast, the Market Vectors Egypt ETF (NYSE: EGPT) has gained more than 31 percent and is far surpassing its Middle Eastern peers. This ETF is primarily made up of mid and small-cap financial stocks, along with select telecommunication and materials companies.
- [By Jim Powell]
And at their current prices, the most attractive emerging nations available now are in Latin America. And our latest new recommendation is iShares MSCI Chile Investable Market Index Fund (ECH).
Top 5 Forestry Stocks To Buy Right Now: Lehigh Gas Partners LP (LGP)
Lehigh Gas Partners LP, incorporated on December 2, 2011, is engaged in the wholesale distribution of motor fuels, consisting of gasoline and diesel fuel, and to own and lease real estate used in the retail distribution of motor fuels. It generates revenues from the wholesale distribution of motor fuels to gas stations, truck stops and toll road plazas, which it refers to as sites, and from real estate leases. It generates cash flows from the wholesale distribution of motor fuels by charging a per gallon margin. Its supply agreements with lessee dealers have three-year terms, and its supply agreements with independent dealers generally have 10-year terms. In May 2011, the Company acquired from Motiva Enterprises, LLC (Motiva) a total of 26 Shell Oil Company branded gas stations and convenience stores (Shell Locations) located in New Jersey and also acquired 56 wholesale fuel supply agreements. In September 2013, the Company announced that it has completed asset acquisition in the Knoxville, Tennessee region from Rocky Top Markets, LLC and Rocky Top Properties, LLC.
The Company generates cash flows from rental income by collecting rent from lessee dealers and Lehigh Gas-Ohio, LLC (LGO) pursuant to lease agreements. During the year ended December 31, 2011, it distributed approximately 561 million gallons of motor fuels to 570 sites. In addition, it has agreements requiring the operators of these sites to purchase motor fuels from it. As of December 31, 2011, it distributed motor fuels to the classes of businesses, including 185 independent dealers; 181 sites owned or leased by it and that will be operated by LGO following the closing of this offering; 134 sites owned or leased by it and operated by lessee dealers; and 70 sites distributed through six sub-wholesalers. In May 2012, the Company entered into a master lease agreement to lease 120 sites from an affiliate of Getty Realty Corp. Of the 120 sites, 74 are located in Massachus etts, 22 are located in New Hampshire, 15 are located in Pen! nsylvania and nine are located in Maine. The Company is focused on owning and leasing sites located in metropolitan and urban areas. It owns and leases sites located in Pennsylvania, New Jersey, Ohio, New York, Massachusetts, Kentucky, New Hampshire and Maine.
Wholesale Motor Fuel Distribution
The Company purchases branded and unbranded motor fuel from integrated oil companies, refiners and unbranded fuel suppliers. It distributes motor fuel to lessee dealers, independent dealers, LGO and sub-wholesalers. The Company is a distributor of brands of motor fuel, as well as unbranded motor fuel. During the year ended December 31, 2011, it distributed approximately 561 million gallons of motor fuel. It distributes motor fuel to lessee dealers and independent dealers under supply agreements. It provides credit terms to its lessee dealers and independent dealers, which are generally one to three days.
The Company distributes motor fuel to sub-w holesalers under supply agreements. Under its supply agreements, it agrees to supply a particular branded motor fuel or unbranded motor fuel to the sub-wholesaler. Motor fuels are sold to the sub-wholesalers at rack plus. It provides credit terms to its sub-wholesalers, which are one to three days. Branded motor fuels are purchased from integrated oil companies and refiners under supply agreements. During the year ended December 31, 2011, its wholesale business purchased approximately 46%, 23%, 22% and 5% of its motor fuel from ExxonMobil, BP Products North America, Inc. (BP), Shell Oil Company (Shell) and Valero respectively.
The Company owns or lease 315 sites located in Pennsylvania, New Jersey, Ohio, New York, Massachusetts and Kentucky. 186 of the sites it owns fee simple and 107 sites it leases from third-party landlords. Over 90% of its sites are located in metropolitan and urban areas. It derives its rental income from sites it owns or leases. It collects rent from the lessee dealers and! LGO purs! uant to lease agreements it has with the lessee dealers and LGO. All of its 186 owned sites are leased to lessee dealers or LGO. Its leases with the lessee dealers have three year terms. As of December 31, 2011, the average remaining lease term for owned sites it leases to lessee dealers was 1.8 years. As of December 31, 2011, it also leased 98 sites from third-parties and then sub-leased these sites to lessee dealers and LGO. As of December 31, 2011, the average remaining lease term for sites it leases from third-parties was 7.5 years. Its sub-leases with the lessee dealers have three-year terms. The average remaining sub-lease term for sites it sub-lease to lessee dealers is 4.2 years.
The rental income the Company earns from sites it owns or leases include rental income associated with the personal property located on these sites, such as motor fuel pumps. It sells sites, which it owns and then leases the sites back from the buyer. It refers to these transact ions as sale-leasebacks. In these sale-leaseback transactions, it retains the environmental liabilities associated with the site. As of December 11, 2012, the Company leased 22 sale-leaseback sites. As of December 31, 2011, the average remaining lease term of these sale-leaseback sites was 17.5 years. It sub-leases its sale-leaseback sites to lessee dealers and LGO. Its sub-leases with the lessee dealers have three-year terms. As of December 31, 2011, the average remaining sub-lease term for sites it sub-lease to lessee dealers was 2.1 years. As of December 31, 2011, the Company owned 186 sites.
- [By Robert Rapier]
Non-traditional MLPs like Susser and Lehigh Gas Partners (NYSE: LGP) have risks and opportunities that are different from the midstream mainstream. Such MLPs can provide some diversification from the midstream MLPs that make up the bulk of the space, with less commodity and execution risk than most upstream partnerships. On the other hand, they are unlikely to have the same potential upside and growth opportunities as most midstream names. I might consider Susser as part a broader portfolio of MLPs, but it wouldn’t be a core holding in my own portfolio.
Top 5 Forestry Stocks To Buy Right Now: First Connecticut Bancorp Inc (FBNK)
First Connecticut Bancorp, Inc. (FCB) is a stock holding company. FCB has been formed in connection with the conversion of First Connecticut Bancorp, Inc. a mutual holding company (MHC), from the mutual to the stock form of organization. As of December 31, 2009, MHC owned all of the outstanding stock of Farmington Bank, a savings bank. The MHC will cease to exist as a result of the conversion, and FCB will own all of the common stock of Farmington Bank. As of December 31, 2009, FCB was not engaged in any business. Farmington Bank is a full-service, community bank with 15 full-service branch offices and four limited service offices, including its main office, located throughout Hartford County, Connecticut.
Farmington Bank provides a diverse range of commercial and consumer services to businesses, individuals and governments across Central Connecticut. Farmington Bank provides a range of banking services to businesses, individuals and governments in Central Co nnecticut. It also offers a range of residential mortgage loan services. Farmington Bank’s subsidiaries include Farmington Savings Loan Servicing, Inc., Village Investments, Inc., Village Corp., Limited, 28 Main Street Corp., Village Management Corp. and Village Square Holdings Inc.
Farmington Savings Loan Servicing, Inc. operates as Farmington Bank’s passive investment company (PIC). Village Investments, Inc. offers brokerage and investment advisory services through a contract with Infinex Financial Services, a registered broker-dealer. Village Corp., Limited was established to hold certain commercial real estate acquired through foreclosures, deeds in lieu of foreclosure, or other similar means. Village Square Holdings, Inc. holds certain commercial real estate of Farmington Bank, formerly used as Farmington Bank’s operations center prior to its relocation to One Farm Glen Boulevard, Farmington, Connecticut. As of December 31, 2009, 28 Main Street Corp and Village Management Corp were inactive.
Len! ding Activities
Farmington Bank’s primary lending activities consists of the origination of one-to-four family residential real estate loans that are primarily secured by properties located in Hartford County and surrounding counties in Connecticut. During the year ended December 31, 2009, the Bank originated $75.8 million of fixed-rate one-to-four family residential loans. The Bank also offers adjustable-rate mortgage loans for one-to-four family properties, with an interest rate that adjusts annually based on the one-year Constant Maturity Treasury Bill Index, after a one, three, four, five, seven or nine-year initial fixed-rate period. Its adjustable rate mortgage loans generally provide for maximum rate adjustments of 200 basis points per adjustment, with a lifetime maximum adjustment up to 6%, regardless of the initial rate. Its adjustable rate mortgage loans amortize over terms of up to 30 years. During 2009, it originated $49.2 million adjustable rate o ne-to-four family residential loans and purchased $33 million adjustable rate mortgages.
Farmington Bank originates commercial real estate loans and loans on owner-occupied properties used for a variety of business purposes, including office buildings, industrial and warehouse facilities and retail facilities. As of December 31, 2009, the Bank’s owner-occupied commercial mortgage loans constituted the largest portion of its commercial real estate portfolio. During 2009, commercial mortgage loans totaled $265.5 million and owner-occupied commercial real estate loans totaled $133.3 million of its commercial real estate portfolio.
Farmington Bank offers construction loans, including commercial construction loans and real estate subdivision development loans, to developers, licensed contractors and builders for the construction and development of commercial real estate projects and residential properties. During 2009, the Bank’s loans outstanding, including commercial and residential, totaled $68.7 million! . The Ban! k also originates construction loans to individuals and contractors for the construction and acquisition of personal residences.
Farmington Bank’s commercial business loan portfolio comprises both middle market companies and small businesses located primarily in Connecticut. Farmington Bank’s Resort (Timeshare) Loans include receivables loans, pre-sale loans, inventory loans, acquisition and development loans, and homeowner association loans. During 2009, its timeshare loans totaled $82.8 million. Farmington Bank also offers home equity loans and home equity lines of credit, both of which are secured by owner-occupied one-to-four family residences. At December 31, 2009, home equity loans and equity lines of credit totaled $66.7 million.
Farmington Bank also offers various types of consumer loans, including installment, demand, revolving credit and collateral loans, principally to customers residing in its primary market area with acceptable cr edit ratings. Its installment and collateral consumer loans generally consist of loans on new and used automobiles, loans collateralized by deposit accounts and unsecured personal loans.
- [By CRWE]
First Connecticut Bancorp, Inc. (Nasdaq:FBNK) reported that its Board of Directors has voted to pay a cash dividend in the amount of $0.03 per share on June 14, 2012 to all shareholders of record as of June 4, 2012.
Top 5 Forestry Stocks To Buy Right Now: iShares Morningstar Small-Cap Value ETF (JKL)
iShares Morningstar Small Value Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Morningstar Small Value Index (the Index). The Index measures the performance of stocks issued by small-capitalization companies that have exhibited value characteristics as determined by Morningstar, Inc.’s (Morningstar) index methodology. Index constituents are drawn from the pool of liquid, United States-domiciled stocks that trade publicly on the NYSE, the AMEX or NASDAQ.
The Morningstar index methodology defines small-capitalization stocks as those stocks that form the 7% of market capitalization between the 90th and 97th percentile of the market capitalization of the stocks eligible to be included in the Morningstar US Market Index (a market index that represents approximately 97% of the market capitalization of publicly traded United States stocks). The Fund uses a representative sampling strategy in seeking to track the Index.
- [By Todd Shriber, ETF Professor]
Unusual volume (at least 5X ADV): QuantShares US Market Neutral Anti-Beta ETF (NYSE: BTAL), iShares 10+ Year Credit Bond ETF (NYSE: CLY), iShares Morningstar Small Value ETF (NYSE: JKL) and the PowerShares Dynamic Energy ETF (NYSE: PXI).