Bernie Sanders put a pretty big price tag — $14 trillion over a decade — on his Medicare-for-All proposal.
But he also promised to pay for it in full through higher taxes, especially on the rich.
A new analysis by the Committee for a Responsible Federal Budget suggests that the plan may increase deficits by at least $3 trillion, and that’s assuming Sanders correctly estimated the cost.
In a worst-case scenario, if the campaign underestimated the plan’s costs, it could add as much as $14 trillion, according to the CRFB.
The main issue: The tax hikes may not raise as much as Sanders is counting on.
For example, Sanders has proposed taxing capital gains and dividends as ordinary income. Under the Sanders plan, that would be as much as 62%: The new 52% top income tax rate he’s proposed, plus the 3.8% Medicare surtax and the 6.2% Social Security tax that Sanders would apply to income over $250,000.
Top 5 New Stocks For 2017: KeyCorp(KEY)
KeyCorp, incorporated on December 31, 1958, is a bank holding company. The Bank operates through its subsidiary, KeyBank National Association (KeyBank), which is engaged in providing banking services. Through KeyBank and other subsidiaries, the Company provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, commercial mortgage servicing and special servicing, and investment banking products and services to individual, corporate and institutional clients. The Company’s segments include Key Community Bank and Key Corporate Bank. Its Other Segments consist of corporate treasury, principal investing unit and various exit portfolios.
The Company provides its services across the country through KeyBank’s approximately 970 full-service retail banking branches and a network of over 1,260 automated teller machines (ATMs) in approximately 10 states, as well as additional offices, online and mobile banking capabilit ies, and a telephone banking call center. In addition to the customary banking services of accepting deposits and making loans, the Company offers personal, securities lending and custody services, personal financial services, access to mutual funds, treasury services, investment banking and capital markets products, and international banking services. The Company provides investment management services to clients that include large corporate and public retirement plans, foundations and endowments, high-net-worth individuals and multi-employer trust funds established for providing pension or other benefits to employees. The Company provides other financial services both within and outside of its banking markets through various nonbank subsidiaries. These services include community development financing, securities underwriting and brokerage. It also provides merchant services to businesses directly and through an equity participation in a joint venture.
Key Comm unity Bank
Key Community Bank serves individual! s and small to mid-sized businesses by offering a range of deposit, investment, lending, credit card, and personalized wealth management products and business advisory services. These products and services are provided through the Company’s relationship managers and specialists working in its branch network, which is organized into various geographic regions, including Pacific, Rocky Mountains, Indiana, Western Ohio and Michigan, Eastern Ohio, Western New York, Eastern New York and New England.
Key Community Bank provides branch-based deposit and investment products, personal finance services, and loans, including residential mortgages, home equity, credit card, and various types of installment loans. In addition, financial, estate and retirement planning, asset management services, and Delaware Trust capabilities are offered to assist high-net-worth clients with their banking, trust, portfolio management, insurance, charitable giving and related needs. It provi des small businesses with deposit, investment and credit products, and business advisory services. Mid-sized businesses are provided products and services that include commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, derivatives, and foreign exchange.
Key Corporate Bank
Key Corporate Bank is a full-service corporate and investment bank focused on serving the needs of middle market clients in industry sectors, which include consumer, energy, healthcare, industrial, public sector, real estate and technology. Key Corporate Bank delivers a product suite of banking and capital markets products to its clients, including syndicated finance, debt and equity capital markets, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory and public finance. Key Corporate Bank is also a servicer of commercial mortgage loans and a special servicer of commercial mortgage! -backed s! ecurities (CMBS). Key Corporate Bank delivers its product capabilities to clients of Key Community Bank.
- [By Ben Levisohn]
Securities account for ~23% of earning assets for our coverage and carried a median ~2.4% yield as of Q116. Banks with the highest investment securities yields as of Q116 included Fifth Third Bancorp (FITB) (3.12%),JPMorgan Chase (3.10%),Wells Fargo (3.00%), PNC Financial Services (PNC) (2.72%), and M&T Bank (MTB) (2.58%). Companies with the most securities exposure as a percentage of earning assets includeBank of America (29%), U.S. Bancorp (USB) (28%),Wells Fargo (25%), KeyCorp (KEY) (24%), and BB&T (BBT) (24%).
Top 5 New Stocks For 2017: ResMed Inc.(RMD)
ResMed Inc., incorporated on March 31, 1994, is a holding company. The Company, through its subsidiaries, designs, manufactures and markets equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. The Company develops a range of products for sleep-disordered breathing and other respiratory disorders, including airdevices, informatics solutions, diagnostic products, mask systems, headgear and other accessories.
The Company owns interest in Inova Labs, Inc., a medical device company specializing in the development and commercialization of oxygen therapy products. The Company holds interest in Brightree LLC, a provider of business management and clinical software applications for the post-acute care industry. The Company’s manufacturing operations are located in Australia, Singapore, France, Germany, Malaysia and the United States. Its major distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, Norway and Sweden.
- [By STOCKPICKR]
Medical equipment maker ResMed (RMD) is another name that’s starting to look “toppy” after a bullish start to the year. RMD has more or less kept pace with the S&P 500 in 2014, climbing just over 11% from January to today — but shares started forming a long-term triple-top over the summer, and that setup is getting close to completion this fall.
It’s worth noting that long-term price setups come with equally long term trading implications when they trigger.
The triple-top that RMD is showing is a fairly rare pattern, but the trigger is pretty perfunctory: if shares break down below support at $48, then sellers are in control, and it’s time to unload them. Downside isn’t a foregone conclusion in ResMed, but this setup only gets invalidated if shares can close above their prior highs at $54.
Hot Low Price Companies To Buy Right Now: Marathon Petroleum Corporation(MPC)
Marathon Petroleum Corporation, incorporated on November 9, 2009, is engaged in petroleum product refining, marketing, retail and transportation businesses in the United States and the east of the Mississippi. The Company’s segments include Refining & Marketing, Speedway, and Midstream. Refining & Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast and Midwest regions of the United States, purchases ethanol and refined products for resale and distributes refined products, through various means, including barges, terminals and trucks that it owns or operates. It sells refined products to wholesale marketing customers domestically and internationally, buyers on the spot market, its Speedway business segment and to independent entrepreneurs operating Marathon retail outlets.
The Company has approximately 5,400 miles of crude oil and products pipelines that its owns, leases or which it has an ownership interest; ownership i nterest in Southern Access Extension (SAX) pipeline; approximately 20 owned or leased inland towboats and over 220 owned or leased inland barges, and ownership interest in a blue water joint venture with Crowley Maritime Corporation. The Company has approximately 60 owned and operated light product terminals with approximately 20 million barrels of storage capacity and over 190 loading lanes; over 20 owned and operated asphalt terminals with approximately four million barrels of storage capacity and over 70 loading lanes; a leased and two non-operated, partially-owned light product terminals; over 2,210 owned or leased railcars; over 60 million barrels of tank and cavern storage capacity at its refineries; over 30 rail and 30 truck loading racks at its refineries; over seven owned and 11 non-owned docks at its refineries; condensate splitters at its Canton and Catlettsburg refineries, and approximately 20 billion gallons of fuels distribution.
Refining & Marketi ng
The Company owns and operates approximately ! seven refineries in the Gulf Coast and Midwest regions of the United States with an aggregate crude oil refining capacity of 1,794 million barrels per calender day (mbpcd). The Company’s refineries process approximately 1,710 mbpd of crude oil and 180 mbpd of other charge and blendstocks. Its refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, hydrocracking, catalytic reforming, coking, desulfurization and sulfur recovery units. The refineries process a range of condensate, light and heavy crude oils purchased from various domestic and foreign suppliers. It produces a range of refined products, ranging from transportation fuels, such as reformulated gasolines, blend-grade gasolines intended for blending with ethanol and ultra-low sulfur diesel (ULSD) fuel, to heavy fuel oil and asphalt. Additionally, it manufactures aromatics, propane, propylene and sulfur. Its Garyville, Louisiana refinery is located along the Mississippi River in sou theastern Louisiana between New Orleans and Baton Rouge. The Garyville refinery is configured to process a range of crude oils into gasoline, distillates, fuel-grade coke, asphalt, polymer-grade propylene, propane, slurry, sulfur and dry gas.
The Company’s Galveston Bay refinery is located on the Texas Gulf Coast approximately 30 miles southeast of Houston, Texas. The refinery can process a range of crude oils into gasoline, distillates, aromatics, heavy fuel oil, fuel-grade coke, refinery-grade propylene, sulfur and dry gas. Its Catlettsburg, Kentucky refinery is located in northeastern Kentucky on the western bank of the Big Sandy River, near the confluence with the Ohio River. The Catlettsburg refinery processes sweet and sour crude oils into gasoline, distillates, asphalt, aromatics, refinery-grade propylene and propane. Its Robinson, Illinois refinery is located in southeastern Illinois. The Robinson refinery processes sweet and sour crude oils into gasolin e, distillates, propane, anode-grade coke, aromatics and slu! rry. Its ! Detroit, Michigan refinery is located in southwest Detroit. The Detroit refinery processes sweet and heavy sour crude oils into gasoline, distillates, asphalt, fuel-grade coke, chemical-grade propylene, propane, slurry and sulfur. Its Canton, Ohio refinery is located approximately 60 miles south of Cleveland, Ohio. The Canton refinery processes sweet and sour crude oils, including production from the nearby Utica Shale, into gasoline, distillates, asphalt, roofing flux, refinery-grade propylene, propane and slurry. Its Texas City, Texas refinery is located on the Texas Gulf Coast adjacent to its Galveston Bay refinery, approximately 30 miles southeast of Houston, Texas. The refinery processes light sweet crude oils into gasoline, chemical-grade propylene, propane, aromatics, slurry and dry gas.
The Company owns a biofuel production facility in Cincinnati, Ohio that produces biodiesel, glycerin and other by-products. The capacity of the plant is approximately 60 million gallons per year. The Company holds interests in ethanol production facilities in Albion, Michigan; Clymers, Indiana and Greenville, Ohio. The Company sells gasoline, gasoline blendstocks and distillates, including No. 1 and No. 2 fuel oils, jet fuel, kerosene and diesel fuel to wholesale customers, Marathon-branded independent entrepreneurs and its Speedway convenience stores and on the spot market. In addition, it sells diesel fuel and gasoline for export to international customers. It produces propane at its refineries. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles. It is a producer and marketer of feedstocks and specialty products. It produces and markets heavy residual fuel oil or related components, including slurry, at its refineries. It has refinery-based asphalt production capacity of approximately 100 mbpcd, which includes asphalt cements , polymer-modified asphalt, emulsified asphalt, industrial a! sphalts a! nd roofing flux. Its marine transportation operations includes approximately 20 owned and one leased towboat, as well as over 200 owned and 10 leased barges that transport refined products and crude oil on the Ohio, Mississippi and Illinois rivers and their tributaries and inter-coastal waterways.
The Company’s Speedway segment sells gasoline, diesel and merchandise through convenience stores that it owns and operates under the Speedway brand. The Speedway segment sells transportation fuels and convenience products in the retail market in the Midwest, East Coast and Southeast. The Speedway convenience stores offer a range of merchandise, including prepared foods, beverages and non-food items. The Speedway segment owns approximately 100 transport trucks and over 80 trailers for the movement of gasoline and distillate.
The Company’s Midstream segment includes the operations of MPLX LP (MPLX) and certain oth er related operations. MPLX transports crude oil and other feedstocks to the Company’s refineries and other locations, delivers refined products to wholesale and retail market areas, gathers, processes and transports natural gas, and transports, fractionates, stores and markets natural gas liquids (NGLs). The Company owns, leases or has ownership interests in approximately 8,400 miles of crude oil and products pipelines, of which approximately 2,900 miles are owned through its investments in MPLX. Also through its investments in MPLX, it owns approximately 5,000 miles of gas gathering and NGL pipelines and has ownership interests in over 50 gas-processing plants, over 10 NGL fractionation facilities and a condensate stabilization facility.
- [By Ben Levisohn]
JPMorgan analyst Phil Gresh and team explain what they got wrong about Marathon Petroleum (MPC), as they cut its rating to Neutral from Overweight following yesterday’s disastrous financial results from MPLX (MPLX):
Gerald Herbert/Associated Press
We (somewhat painfully) downgradeMarathon Petroleum to Neutral from Overweight, cut our Dec-16 price target to $44 (from $62) and remove the stock from our Analyst Focus List. When we upgradedMarathon Petroleum back in August, our view had been that it was being (1) given no credit for the high likelihood that the MPLX/MWE deal would close and related GP cash flow potential, and (2) overly punished for a weak refining 2Q result. The stock subsequently rallied into the analyst day, as these two catalysts played out. However, at the analyst day, which ended up being the peak stock price, capex guidance was well above expectations and shares began to fade. We defended the stock (click here) on a cheap sustaining FCF yield and a favorable longer-term growth opportunity set, but noted that MPLX was the key to the story (retrospectively, we may have been suffering from some thesis creep). Since that time, the MLP market has further melted down and MPLXs pro forma volume g rowth opportunities have slowed, driven by weaker fundamentals at the recently acquired MWE. We figured there was some risk that MPLX could cut its distribution growth outlook; however, we thought that this was largely embedded in MPC shares at $40. We did not anticipate that management would halve its 2016 growth outlook and defer all 2017+ commitments, leading to a more than halving of our GP distribution outlook for 2019E (now only $460mm, down from $1.06B). Making matters worse,Marathon Petroleum may now be on the hook to provide even more support to MPLX (we estimate up to $500mm in 2016E beyond the marine dropdown), just to keep MPLX at ~4x leverage (assuming no additional reductions in the EBITDA targets). Finally, on a conso
- [By John Divine]
Lastly, oil refiner Marathon Petroleum (NYSE: MPC ) was one of the S&P’s worst performers for a second straight session, losing 2.2%. Yesterday, Simmons & Company said refiners in general, and Marathon in particular, would struggle with higher prices of oil pressuring margins. Credit Suisseechoed that sentiment today, citing narrowing spreads as it downgraded shares from outperform to neutral. The flipside to the recent negativity surrounding refiners is that if oil prices start unexpectedly falling, Marathon shares could be primed for a rally.
Top 5 New Stocks For 2017: China Automotive Systems, Inc.(CAAS)
China Automotive Systems, Inc., (China Automotive), incorporated on June 23, 1999, is a holding company. The Company, through its subsidiary, Great Genesis Holdings Limited (Genesis), owns interests in over eight Sino-joint ventures and over five subsidiaries in the People’s Republic of China (PRC), which manufacture power steering systems and/or related products for various segments of the automobile industry. Genesis also owns interests in a Brazil-based trading company, which engages mainly in the import and sales of automotive parts in Brazil. Henglong USA Corporation (HLUSA), which is a subsidiary of the Company, engages in marketing of automotive parts in North America, and provides after sales service and research and development support. The Company’s geographical segments include the United States, China and other foreign countries.
The Company’s subsidiary, Shenyang Jinbei Henglong Automotive Steering System Co., Ltd., focuses on power steering parts for light duty vehicles; Jingzhou Henglong Automotive Parts Co., Ltd. engages in the production of rack and pinion power steering gears for cars and light-duty vehicles; Shashi Jiulong Power Steering Gears Co., Ltd. mainly engages in the production of integral power steering gears for heavy-duty vehicles; Universal Sensor Application Inc. engages in the production and sales of sensor modules; Hubei Henglong Automotive System Group Co., Ltd engages in the production and sales of automotive steering systems; Chongqing Henglong Hongyan Automotive System Co., Ltd designs, develops and manufactures both hydraulic and electric power steering systems and parts; CAAS Brazil’s Imports And Trade In Automotive Parts Ltd. engages in the design, development and manufacture of both hydraulic and electric power steering systems and parts, and Fujian Qiaolong Special Purpose Vehicle Co., Ltd. manufactures and distributes drainage and rescue vehicles with mass flow, drainage vehicles with v ertical downhole operation, crawler-type mobile pump station! s, high-altitude water supply and discharge drainage vehicles, long-range control crawler-type mobile pump stations and other vehicles. Its Wuhan Chuguanjie Automotive Science and Technology Ltd. engages in research and development, manufacture and sales of automobile electronic systems and parts.
The Company competes with SAIC, ZF Germany, First Auto Group, Koyo Company and Nexteer.
- [By Monica Gerson]
China Automotive Systems, Inc. (NASDAQ: CAAS) is projected to post its quarterly earnings at $0.20 per share on revenue of $108.22 million.
Affimed NV (NASDAQ: AFMD) is projected to post a quarterly loss at $0.18 per share on revenue of $1.71 million.
Top 5 New Stocks For 2017: Buenaventura Mining Company Inc.(BVN)
Compa帽铆a de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold, silver, lead, zinc, and copper metals in Peru. The company operates five directly operating mining units, including Uchucchacua, Orcopampa, Julcani, Mallay, and Breapampa; and two mining unites that are under development stage comprising Tambomayo and San Gabriel. It also owns interests in Colquijirca-Marcapunta, Tantahuatay, and La Zanja mines, as well as Tantahuatay, Yanacocha and Cerro Verde mines. In addition, the company provides electrical transmission services; energy generation services through hydroelectric plants; and geological, engineering, design, and construction consulting services to the mining sector, as well as engages in chemical processing activities. Compa帽铆a de Minas Buenaventura S.A.A. was founded in 1953 and is headquartered in Lima, Peru.
- [By Sally Jones]
Buenaventura Mining Company Inc. (BVN)
Down 70% over 12 months, Buenaventura Mining Company Inc. has a market cap of $2.95 billion, and trades with a P/E of 6.70.