Nomura Securities reported that it has upgraded financial services company Barclays PLC (BCS) to “Buy.”
The firm has lifted its rating on BCS two notches from “Reduce” to “Buy.” Normura has also raised its price target from 260p to 340p.
Analyst Chintan Joshi commented: “With growth in the developed world likely to continue well into the start of next year, stocks geared to capital markets should see macroeconomic support. Structural issues are an industry feature and Barclays could still come out better relative to peers compared with its current position. We expect 2015 ROTE of c12% and believe Barclays should be valued at a 2014E P/TB of 1x as we look for 1Q14 momentum. We set our ex-rights target price at 340p (cum rights it would be 380p), which puts the stock at a 2015E P/E of 6.4x, which is hardly demanding. Barclays is now our top pick among its IB and UK peers and a preferred way to gain exposure to the current risk rally. We upgrade our rating on Barclays to Buy from Reduce. We believe investors waiting for the infamous J curve may find that it is fairly muted for Barclays on the downside.”
Top 5 Supermarket Companies To Buy For 2014: AllianceBernstein Global High Income Fund Inc (AWF)
AllianceBernstein Global High Income Fund, Inc., (the Fund), formerly Alliance World Dollar Government Fund II, Inc. is a non-diversified, closed-end management investment company. This Fund seeks high current income and secondarily, capital appreciation. Under normal circumstances, the Fund will invest at least 65% of its total assets in sovereign debt obligations issued or guaranteed by foreign governments. Up to 35% of the Fund’s investments may comprise high-yielding, high-risk fixed-income securities issued by United States corporations. AllianceBernstein Investments, Inc., an affiliate of AllianceBernstein L.P., is the manager of the Fund.
The Fund is permitted to invest, without limit, in securities denominated in non-United States currencies, as well as those denominated in the United States dollar. The Fund may also invest, without limit, in sovereign debt securities issued by emerging and developed nations and in debt securities of United States and non-United States corporate issuers.
- [By Adam Aloisi]
The following chart takes a comparative look at some widely held ETFs/CEFs holding different types of bonds. The objective is to visualize not only how much these products cost, but also to break down the percent of total yield depleted by management fees. I define total yield as current annualized yield plus net fees – in other words the yield of the fund if there were no management fees attached. The funds we will examine are aforementioned BND, iShares 20+ Treasury Bond (TLT), iShares High-Yield Corporate (HYG), Nuveen Municipal Value (NUV), Eaton Vance Limited Duration (EVV) and Alliance Bernstein Global High-Yield (AWF).
Top 5 Supermarket Companies To Buy For 2014: Armco Metals Holdings Inc (AMCO)
Armco Metals Holdings, Inc., formerly China Armco Metals, Inc., incorporated on April 25, 2007, is engaged in metal ore trading and distribution and scrap metal recycling. The Company’s s operations are conducted primarily in the People’s Republic of China (PRC). In the Company’s metal ore trading and distribution business, the Company imports, sells and distributes to the metal refinery industry in the PRC a range of metal ore which includes iron, chrome, nickel, copper and manganese ore, as well as non-ferrous metals, and coal. The Company obtains these raw materials from global suppliers primarily in Brazil, India, Indonesia, Ukraine and the United States and distributes them in the PRC. In addition, it provides sourcing and pricing services for various metals to its network of customers.
The Company’s scrap metal recycling business, it recycles scrap metal at its recycling facility and sell the recycled product to steel mills in China for use in the p roduction of recycled steel. The Company sells processed and non-ferrous ore to end-users, such as specialty steelmakers, foundries, aluminum sheets and ingot manufacturers, copper refineries and smelters, brass and bronze ingot manufacturers, wire and cable producers, utilities and telephone networks. The Company recycles scrap metals at the Facility using both heavy equipment and manual labors. Recycling scrap metal consists of a variety of steps, including collecting, inspecting, sorting, stripping, shearing, cutting, shredding and bailing.
- [By James E. Brumley]
It’s still too soon to put it in your portfolio, but Armco Metals Holdings Inc. (NYSE:AMCO) most definitely deserves a place on your watchlist. This Chinese metal stock is poised for a breakout move. It just needs the right nudge, and a little help on a certain front to let AMCO take flight.
Top 5 Supermarket Companies To Buy For 2014: BRE Properties Inc (BRE)
BRE Properties, Inc. (BRE), incorporated in 1970, is a self-administered equity real estate investment trust (REIT) focused on the development, acquisition and management of multifamily apartment communities primarily located in the metropolitan markets within the State of California, and the Seattle, Washington region. BRE also owns and operates communities in the Phoenix, Arizona and in the Denver, Colorado metropolitan markets. As of December 31, 2011, its multifamily portfolio had real estate assets, which included 76 wholly or majority owned stabilized multifamily communities, aggregating 21,336 units in California, Washington and Arizona; 11 stabilized multifamily communities owned through joint ventures comprised of 3,592 apartment units; and seven apartment communities in various stages of construction and development. In October 2013, the Company acquired Jefferson at Hollywood.
During the year ended December 31, 2011, BRE acquired three communities totaling 652 units: Lafayette Highlands, with 150 units, located in Lafayette, California; The Landing at Jack London Square, with 282 units, located in Oakland, California, and The Vistas of West Hills, with 220 units, located in Valencia, California. In addition to the communities, the Company acquired two parcels of land for future development in San Francisco, California’s Mission Bay district, and it purchased a 4.4 acre site contiguous to its existing Park Viridian operating community and its existing second phase land site in Anaheim, California. As of December 31, 2011, BRE had seven sites under development or construction.
During 2011, the Company sold two communities totaling 634 units: Galleria at Towngate, with 268 units located in Moreno Valley, California; and Windrush Village, a 366 unit property located in Colton, California. The two properties sold were located in the eastern half of the Inland Empire. In addition, during 2011, two joint ventu re assets were sold; The Landing at Bear Creek, a 224 unit j! oint venture community, located in Lakewood, Colorado; and The Pinnacle at Hunters Glen, a 264 unit joint venture community located in Thornton, Colorado.
- [By Jayson Derrick]
Owners of BRE Properties (NYSE: BRE) will receive $12.33 in cash and 0.2971 shares of newly created Essex common stock following Essex Property Trust’s (NYSE: ESS) acquisition. Shares of Essex lost 3.31 percent, closing at $142.81.
- [By Jayson Derrick]
Shares of BRE Properties Inc. (NYSE: BRE) jumped to new 52 week highs of $61.50, immediately following a Bloomberg report that the company is working with investment bankers at Wells Fargo (NYSE: WFC) for a possible sale of the company.
Top 5 Supermarket Companies To Buy For 2014: WisdomTree Investments Inc (WETF)
WisdomTree Investments, Inc. is an asset management company that focuses on exchange-traded funds (ETFs). The Company’s family of ETF includes both fundamentally weighted funds that track its own indexes, and actively managed funds. It distributes its ETFs through all channels within the asset management industry, including brokerage firms, registered investment advisors, institutional investors, private wealth managers and discount brokers. As of December 31, 2011, the Company offered a family of 48 ETFs, which included 34 international and domestic equity ETFs, seven currency ETFs, five international fixed income ETFs and two alternative strategy ETFs.
The Company offers equity ETFs covering the United States, international developed and emerging markets. These ETFs offer access to the securities of large, mid and small-cap companies, companies located in the United States, developed markets and emerging markets, as well as compan ies in particular market sectors, including basic materials, energy, utilities and real estate. Its equity ETFs track its own fundamentally weighted indexes.
The Company offers currency ETFs that provide investors with exposure to developed and emerging market currencies, including the Chinese Yuan, the Brazilian Real and the Japanese Yen. Currency ETFs invest in the United States money market securities, forward currency contracts and swaps and seek to achieve the total returns reflective of both money market rates in selected countries available to foreign investors and changes to the value of these currencies relative to the United States dollar.
International Fixed Income ETFs
In August 2010, the Company launched an ETF that invests in a range of local debt denominated in the currencies of emerging market countries and in March 2011, it launched an ETF that invests in local debt denominated in the curre ncies of Asia Pacific ex-Japan countries. In March 2012, the! Company launched an emerging markets corporate bond ETF.
Alternative Strategy ETFs
In January 2011, the Company launched the managed futures strategy ETF. This fund seeks to achieve positive returns in rising or falling markets that are not directly correlated to broad market equity or fixed income returns. In July 2011, it launched a global real return ETF. This fund seeks total returns (capital appreciation plus income) that exceed the rate of inflation over long-term investment horizons. This fund combines domestic and global inflation-linked bonds with commodity strategies and gold exposure.
Index Based ETFs
Its equity ETFs seek to track the Company’s own fundamentally weighted indexes. Most of today’s ETFs track market capitalization weighted indexes and most of these indexes are licensed from third parties by ETF sponsors. The Company has developed fundamentally weighted indexes that weight companies by a mea sure of fundamental value. The Company benchmarks its fundamentally weighted indexes against traditional market capitalization-weighted indexes designed to track similar companies, sectors, regions or exposure.
Actively Managed ETFs
The Company’s actively managed ETFs include its currency, international fixed income and alternative strategy ETFs. The securities purchased and sold by its ETFs include the United States and foreign equities, forward currency contracts and the United States and foreign debt instruments. In addition, the Company enters into derivative transactions, in particular the United States-listed futures contracts, non-deliverable currency forward contracts, and total return swap agreements in order to gain exposure to commodities, foreign currencies, and interest rates. The exchanges these securities trade on include all the exchanges worldwide.
The Company competes with Vanguard, Charles Schwab, iShares and Focus Shares (through Scottrade Inc.).
- [By Dan Newman]
WisdomTree (NASDAQ: WETF ) , the fifth-largest ETF provider, has grown its average assets under management from less than $1 billion in 2006 to more than $23 billion this year, with an average ETF fee of 0.53%. The low-cost leader, Vanguard, keeps putting the pressure on competitors with extremely low expense ratios. For the Vanguard Total Stock Market ETF (NYSEMKT: VTI ) , the annual fee amounts to a paltry 0.05%.
- [By Jonas Elmerraji]
2013 has been a stellar year for asset manager WisdomTree Investments (WETF); shares have nearly doubled since the calendar flipped over to January. That’s not a huge surprise considering the fact that investment firms are effectively leveraged plays on this equity rally. But now, the technical setup forming in shares of WisdomTree points to even higher ground for the rest of the year.
Right now, WETF is forming an ascending triangle pattern, a bullish setup that’s formed by a horizontal resistance level above shares at $14 and uptrending support to the downside. Basically, as WETF bounces in between those two technical levels, it’s getting squeezed closer and closer to a breakout above that $14 level. When that happens, investors have a buy signal.
WisdomTree isn’t exactly cheap right now. From a fundamental standpoint, this stock looks downright pricey — but that has little to do with shares’ price action right now. Until the technicals change, the high probability returns remain on the long-side of WETF.
Top 5 Supermarket Companies To Buy For 2014: Blackrock Enhanced Equity Dividend Trust (BDJ)
BlackRock Enhanced Dividend Achievers Trust (the Trust) is a diversified closed-end management investment company. The Trust’s primary investment objective is to seek current income and current gains, with a secondary objective of long-term capital appreciation. The Trust seeks to achieve these objectives by investing in common stocks that pay above average dividends and have the potential for capital appreciation and by utilizing an option writing strategy to enhance distributions paid to the Trust’s shareholders.
Under normal market conditions, the Trust will invest at least 80% of its total assets in common stocks that are included in the universe of common stocks of issuers, which Mergent has determined are Dividend Achievers and options with exposure to such stocks. From time to time, the Trust may invest up to 20% of its total assets in investments without exposure to the Dividend Achievers universe. As part of its investment strategy, the Trust inte nds to employ a strategy of writing (selling) covered call and put options on individual common stocks, indices of securities, sectors of securities and baskets of securities.
- [By Robert Hsu]
Here are four to consider:
PowerShares S&P 500 BuyWrite ETF (PBP), yielding 4.09%
Madison/Claymore Covered Call & Equity Strategy (MCN), yielding 8.94%
Nuveen Equity Premium Opportunity Fund (JSN), yielding 9.19%
BlackRock Enhanced Dividend Achievers (BDJ), yielding 7.39%
The yield on these funds is very attractive. Even more attractive is the fact that many buy-write funds actually are selling at a discount to their net asset value.
- [By Robert Hsu]
Name Type of Security Recommendation Kinder Morgan Energy Partners L.P. (NYSE: KMP) MLP August 15, 2013 TeeKay LNG Partners L.P. (NYSE: TGP) MLP September 16, 2013 PowerShares S&P 500 BuyWrite Portfol ETF (NYSE Arca: PBP) Buy-Write ETF September 30, 2013 Madison Covered Call Equity Strtgy Fd (NYSE: MCN) Buy-Write ETF September 30, 2013 Nuveen Equity Premium Opportunity Fund (NYSE: JSN) Buy-Write ETF September 30, 2013 BlackRockEnhanced Dividend Achievers Tr (NYSE: BDJ) Buy-Write ETF September 30, 2013 Vornado Realty Trust (NYSE: VNO) Real Estate
Trust September 26, 2013
Robert Hsu is the editor of Permanent Wealth Investor and a former hedge fund portfolio manager at Wall Street powerhouse Goldman Sachs. He retired from Goldman at age 31. He since has come out of retirement to establish and preside over his money management firm, Absolute Return Capital Advisors. His retirement experience has given him his current mission: helping investors like you achieve their goal of comfortable retirement through profitable income strategies.