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Yep...Remember it well. Already has my vote for "Stock of the Year"!! lol
Story book stock for sure. Wasn't all that long ago,we were looking for the $20 break.
Posted by: Wildbill729 Date: Thursday, March 06, 2008 10:55:41 AM
In reply to: None Post # of 291393
JRCC 19.60 +1.76% Closer & closer to $20
LOL...Yep, it's a Solar so no need to push one's luck too far. They get turned on a dime, for sure
SPIR, definitely nice today. Should still have a good bit of upside left in it as it has been it has been totally unfairly beaten down since the 1st of the year. Strong Solar with alot going for it...IMO
ABAT 4.90 19.51% Nice! Been a while,long overdue. Not sure what's driving it as I have seen no new news, but I like it. :)
SPIR 14.14 15.05%.......
IDEV 1.89 8.62% Over 4 Mil vol....
Banking turnaround likely in '09: Goldman
Tuesday June 17, 12:46 pm ET
Goldman Sachs sees broad rebound in the banking sector starting in the 1st quarter of 2009
NEW YORK (AP) -- Four major hurdles must be crossed before a broad recovery in the banking sector, and that might not occur for another six to nine months, according to a new research report from Goldman Sachs.
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The sector is only likely to rebound broadly when credit costs have stabilized, banks complete a process of recapitalization, consensus estimate ranges for earnings narrow and the yield curve steepens, Goldman Sachs analysts wrote in the report, which it based on looking at past credit cycles.
Goldman Sachs estimates credit losses resulting from continued deterioration in the mortgage and lending markets will not peak until early 2009, making a broad-based rally in the sector unlikely before the end of 2008. Goldman Sachs estimates peak losses will occur during the first quarter of 2009, with charge-off ratios reaching, on average, 1.39 percent.
Charge-off ratios were at about 0.95 percent during the first quarter, and Goldman Sachs expects them to rise to about 1.12 percent for the second quarter. Charge-offs are loans written off as not being repaid. The ratio measures charge-offs as a percentage of the size of a bank's total loan portfolio.
Banks also must continue to raise new capital before share prices can rebound. Goldman Sachs estimates the recapitalization process is about two-thirds complete for U.S. banks and the risk of insolvency has been significantly reduced. U.S. banks have raised about $120 billion and will need to raise an additional $65 billion, Goldman Sachs wrote in the report.
But with loss estimates still changing and some banks still needing to raise capital, analyst estimates vary widely from bank to bank, Goldman Sachs said.
The variations in future earnings estimates means there is no agreement where earnings or book value of banks will stabilize during the credit downturn, according to the report.
"We watch for a tightening of the consensus range, which is at record highs," Goldman Sachs said in the report. "When the range tightens, it will signal confidence in where book values stabilize."
The one factor likely already completed is the steepening of the yield curve, Goldman Sachs said. The Federal Reserve has significantly cut interest rates to try and help boost the financial markets and the economy, which has led to a steeper yield curve.
But, Goldman Sachs notes a steepening yield curve during this cycle might not provide the benefit of past cycles because banks earn more money on fees now and the easing by the Fed has yet to improve tight credit conditions.
Because of revisions to credit costs and loss estimates, Goldman Sachs also reduced price targets and 2008, 2009 and 2010 earnings estimates for some national, regional and trust banks because of the likely continued increase of credit-related losses.
Among 21 banks it covers in the space, Goldman Sachs, on average, cut 2008 estimates by 9 percent, 2009 estimates by 4 percent and 2010 estimates by 2 percent to account for greater credit losses.
Comerica Inc.'s 2008 estimate was cut the furthest. Goldman Sachs reduced its 2008 estimate for Comerica 34 percent to $1.75 per share.
Shares of Comerica fell 37 cents to $31.65 in afternoon trading as broader markets declined, including much of the financial sector.
Western Alliance Bancorp's 2009 and 2010 estimates were reduced the most. The 2009 estimate was cut 17 percent to $1 per share, while the 2010 estimate was lowered 14 percent to $1.25 per share.
Western Alliance shares fell 21 cents, or 2.3 percent, to $8.94.
Price targets among the group of banks were cut, on average, 14 percent. Huntington Bancshares Inc.'s price target was cut the most as Goldman Sachs reduced the target 43 percent to $6.
Shares of Huntington Bancshares fell 40 cents, or 6 percent, to $6.27.
IDEV 1.83 5.18% Serious believe $2 is in the not so distant future here
IVAN 3.43 +10.65% Look at Ivan go!
IDEV 1.79 +2.87% Green and moving again
JRCC 54.10 5.66% Coal, the gift that keeps on giving!
US, China commence high-stakes business conference
Tuesday June 17, 10:33 am ET
By Martin Crutsinger, AP Economics Writer
US and Chinese officials begin conference on bilateral economic issues
ANNAPOLIS, Md. (AP) -- The United States and China must increase their cooperation on energy issues in the face of increased demand and record high oil prices, Treasury Secretary Henry Paulson said Tuesday as he opened a meeting of high-level economic officials from the two countries.
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The session, the fourth in a series, was held on the campus of the U.S. Naval Academy. The Chinese team was being led by a newcomer, Vice Premier Wang Qishan, who took over after the retirement earlier this year of former Vice Premier Wu Yi.
"As the two largest net importers of oil, China and the United States face similar challenges as demand for energy increases," Paulson told the conference.
It was Paulson's fourth time to head a U.S. delegation of Cabinet officials in such a conference. The Chinese team was being led by a newcomer, Vice Premier Wang Qishan, who took over after the retirement earlier this year of former Vice Premier Wu Yi.
In his opening remarks, Wang said that substantial progress had been made in dealing with contentious issues such as currency and the trade deficit and he urged patience going forward. He also said the two countries needed to avoid "complicating and politicizing economic issues."
"Our cooperation is an irreversible and unstoppable current," Wang said. "China needs the United States and the United States needs China."
Paulson led a large U.S. delegation that included a number of Cabinet secretaries including Commerce Secretary Carlos Gutierrez, Labor Secretary Elaine Chao and Health and Human Services Secretary Michael Leavitt.
Paulson came up with the idea for the high-level talks, dubbed the Strategic Economic Dialogue, when he joined the Bush administration in 2006 after leading investment giant Goldman Sachs.
However, hopes that the discussions could produce significant results on a number of contentious trade disputes have not been fulfilled. Paulson, who is hoping that the discussions will be continued by the next administration, said Tuesday that they had produced more results than could have been accomplished absent the twice-a-year meetings. He said it was important for the global economy that the two nations continue talking.
"The United States and China don't always agree on economic issues," he said. "Sometimes we may disagree quite strongly, but we keep talking."
Business groups, which believe the meetings have been beneficial, said it would be wise for the Chinese to produce results as a way of convincing the next occupant of the White House to keep the talks going. But other China experts say the Chinese delegation may believe that it is not worthwhile to offer too many economic concessions to a lame-duck administration when they can wait to negotiate with a new team.
This week's talks are being held at a time when the U.S. trade deficit with China has jumped to an all-time high of $256.2 billion, the largest deficit ever recorded with a single country and an amount equal to nearly one-third of America's total trade deficit of $700.3 billion last year.
The two days of talks are expected to focus on the challenges both countries face with rising energy and food costs. China is the world's biggest consumer and producer of coal. Pollution from its coal-fired industries is believed to be a major factor in global warming.
But a U.S. effort to get China to promote greater energy efficiency as a way of reducing strains on global supplies is unlikely to achieve much success. That's because the Chinese have been moving in the opposite direction, providing ever greater subsidies to keep energy prices low as global prices have surged.
The soaring trade deficit with China is blamed by critics as a major contributing factor in the loss of more than 3 million U.S. manufacturing jobs since 2001. U.S. executives say the undervalued yuan makes Chinese goods cheaper in this country and U.S. products more expensive in China.
The Bush administration acknowledges that the Chinese have allowed their currency to rise in value by about 20 percent against the dollar since July 2005, but U.S. officials contend that more needs to be done.
The administration also wants the Chinese to open their financial system to foreign banks and investment houses, including major U.S. institutions, as a way of gaining needed expertise. However, that effort is meeting strong resistance from the Chinese, given the billions of dollars in losses suffered by U.S. financial giants in the credit crisis that erupted last August.
Major business groups like the National Association of Manufacturers, the U.S. Chamber of Commerce and the Financial Services Forum believe the high-level talks have been worthwhile. But other groups have been more critical, saying the discussions have been a waste of time and Congress should move ahead with legislation to penalize China for its currency policies.
ABAT 4.54 10.73% Wondered when this would play again...
lol...That's the Solar Sector we know and love! :)
Centerline Holding Company Declares Common and Preferred Dividends Per Share for the Second Quarter of 2008
Tuesday June 17, 8:30 am ET
NEW YORK--(BUSINESS WIRE)--The Board of Trustees of Centerline Holding Company (NYSE:CHC - News) (the “Company”), the parent company of Centerline Capital Group (“Centerline”), has declared a dividend of $0.075 per common share for the second quarter of 2008, payable on August 15, 2008, to common shareholders of record as of June 30, 2008.
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“The importance of the dividend to our long-term common shareholders is an important factor in our decision-making process. Although we expect to generate positive cash flow sufficient to cover dividends in 2008, given current volatile market conditions, the Board believes the quarterly dividend we are now declaring reflects market conditions and our strategy to preserve capital,” said Marc D. Schnitzer, Chief Executive Officer and President of Centerline.
The Company's common dividend level will continue to be determined by the Board of Trustees based on a number of factors, including operating results, economic conditions, capital requirements, taxable income, available tax losses, liquidity, retention of capital and other operating trends.
The Company's Board of Trustees also declared a dividend distribution of $0.321 per share for Centerline’s 11.0% Cumulative Convertible Preferred Shares, Series A-1 (“Preferred Shares”), for the second quarter of 2008. The Preferred Shares dividend will be payable on July 31, 2008, to shareholders of record as of June 30, 2008 (as adjusted in accordance with the pro ration terms sets forth in the Rights Offering prospectus date March 7, 2008, as applicable).
About the Company
Centerline Capital Group, a subsidiary of Centerline Holding Company (NYSE:CHC - News), is an alternative asset manager focused on real estate funds and financing. As of March 31, 2008, Centerline had more than $12 billion of assets under management. Centerline is headquartered in New York, New York and has nearly 475 employees in nine offices throughout the United States. For more information, please visit Centerline's website at http://www.centerline.com or contact the Corporate Communications Department directly at (800) 831-4826.
Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, and include, among others, adverse changes in real estate markets, general economic and business conditions; adverse changes in credit markets and risks related to the form and structure of our financing arrangements; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; competition with other companies; risk of loss from direct and indirect investments in commercial mortgage-backed securities and collateralized debt obligations; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
Contact:
Centerline Holding Company
Investor Relations:
Hande Tuney, 800-831-4826
--------------------------------------------------------------------------------
Source: Centerline Holding Company
McCain Seeks to End Offshore Drilling Ban
By Michael D. Shear and Juliet Eilperin
Washington Post Staff Writers
Tuesday, June 17, 2008; Page A01
Sen. John McCain called yesterday for an end to the federal ban on offshore oil drilling, offering an aggressive response to high gasoline prices and immediately drawing the ire of environmental groups that the presumptive Republican presidential nominee has courted for months.
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The move is aimed at easing voter anger over rising energy prices by freeing states to open vast stretches of the country's coastline to oil exploration. In a new Washington Post-ABC News poll, nearly 80 percent said soaring prices at the pump are causing them financial hardship, the highest in surveys this decade.
"We must embark on a national mission to eliminate our dependence on foreign oil," McCain told reporters yesterday. In a speech today, he plans to add that "we have untapped oil reserves of at least 21 billion barrels in the United States. But a broad federal moratorium stands in the way of energy exploration and production. . . . It is time for the federal government to lift these restrictions."
McCain's announcement is a reversal of the position he took in his 2000 presidential campaign and a break with environmental activists, even as he attempts to win the support of independents and moderate Democrats. Since becoming the presumptive GOP nominee in March, McCain has presented himself as a friend of the environment by touting his plans to combat global warming and his opposition to drilling in the Arctic National Wildlife Refuge and in the Everglades.
Representatives of several environmental groups criticized him for backing an idea they said would endanger the nation's most environmentally sensitive waters.
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"It's disappointing that Senator McCain is clinging to the failed energy policies of the past," said Tiernan Sittenfeld, legislative director for the League of Conservation Voters.
Sierra Club political director Cathy Duvall said McCain "is using the environment as a way to portray himself as being different from George Bush. But the reality is that he isn't." The group began running radio commercials yesterday that criticize McCain's environmental record in the battleground state of Ohio.
Democratic Sen. Barack Obama joined the criticism, calling the idea of lifting the ban the wrong answer to out-of-control energy prices. "John McCain's plan to simply drill our way out of our energy crisis is the same misguided approach backed by President Bush that has failed our families for too long and only serves to benefit the big oil companies," Obama spokesman Hari Sevugan said.
Energy policy -- led by the spike in gas prices -- is now a top-tier issue in the campaign, forcing both candidates to shift their attention from other domestic issues and foreign affairs. Spot prices for a barrel of crude oil briefly hit an all-time high yesterday, flirting with $140 a barrel before settling back to a bit less than $134.
In the Post-ABC poll, conducted Thursday through Sunday, about half of those surveyed called high gas prices a serious burden, while the issue emerged for the first time during the campaign as a top concern for voters. Obama held double-digit leads over McCain as the candidate more trusted to deal with gasoline prices and energy policy.
While both candidates have spoken about the need to shift to cleaner energy sources, they have proposed different ways to do so.
McCain backs federal subsidies for building more nuclear power plants, which he considers the best way to reduce U.S. carbon dioxide emissions. He plans to begin outlining his energy proposals in the first of three major speeches today in Houston. Aides said the centerpiece of the speech will be the proposal to lift the ban on drilling, but McCain will also have harsh words for market speculators who are driving up the cost of oil.
"Investigation is underway to root out this kind of reckless wagering, unrelated to any kind of productive commerce, because it can distort the market, drive prices beyond rational limits, and put the investments and pensions of millions of Americans at risk," he will say in the speech, according to excerpts the campaign provided yesterday.
Obama backs using money raised through an auction of greenhouse-gas emissions credits to bolster research and development projects, while imposing requirements on how much renewable energy public utilities would have to buy.
Yesterday in the down-at-the-heels manufacturing city of Flint, Mich., Obama said that a new energy policy must be part of government efforts to revive the economy.
"Our dependence on foreign oil strains family budgets and it saps our economy. Oil money pays for the bombs going off from Baghdad to Beirut, and the bombast of dictators from Caracas to Tehran," Obama said. "Our nation will not be secure unless we take that leverage away, and our planet will not be safe unless we move decisively toward a clean energy future."
McCain's call for an end to the coastal oil drilling ban is at odds with his oft-stated view that drilling should remain off-limits in sensitive areas such as the Arctic National Wildlife Refuge. Asked by reporters about those places, McCain said yesterday that he still thinks the refuge is a "pristine" area and opposes drilling there.
The senator's push to end the ban is sure to annoy two key Republican allies -- California Gov. Arnold Schwarzenegger and Florida Gov. Charlie Crist -- both of whom oppose drilling off their states' coastlines.
Schwarzenegger spokesman Aaron McLear noted the governor's overall support for McCain's candidacy but said: "There are things that he and the senator will agree on, and things they won't agree on." Crist said in a statement: "It has become increasingly clear that we must be pragmatic in protecting both our beaches and our economy. We look forward to the dialogue as we move forward to protect both our environment and our country's economic interests."
Congress created a moratorium on new drilling off the coast in 1981, and every president since then has extended it.
While McCain has traditionally sided with environmentalists on climate change, he has a mixed voting record on oil drilling and support for renewable energy.
Staff writers Christopher Twarowski, Anne E. Kornblut and Steven Mufson contributed to this report.
Yep...Solar sector as a whole looks good again today. We will see if it continues...AKNS,DSTI,SPIR,SOLF,ect,ect,ect
Canadian Solar Increases Annual Guidance for 2008, Announces e-Module Sales Contracts and New Expansion Plan
Tuesday June 17, 8:35 am ET
JIANGSU, China, June 17 /Xinhua-PRNewswire/ -- Canadian Solar Inc. ("the Company'', ''CSI'' or ''we'') (Nasdaq: CSIQ - News) today announced that it will increase its 2008 annual revenue and output guidance to reflect the sales of its e-Module products. These sales will be realized in H2 of this year.
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The Company announced that it has commenced delivery of e-Modules to Pro Solar Solarstrom GmbH and Iliotec Solar GmbH of Germany. The companies signed annual supply agreements with CSI in early 2008. The total shipments to these two companies are estimated at 24.5 MW before the end of 2008. As of today, CSI's total committed sales of e-Modules in 2008 is 35 MW, with approximately another 20 MW of firm interest from additional customers.
The company is accordingly raising its annual guidance for 2008 from 200 - 220 MW to 230 - 260 MW in output and its estimated annual revenue from $650 - $750 million to $750 - $870 million. The company estimates that it will ship approximately 10 - 12 MW of e-Modules to USA and South Korea in 2008, thus making these two countries significant markets for CSI.
Based on robust market demand for our products, the Company plans to increase its annual ingot and wafer capacity from the previous target of 40 - 60 MW to 150 - 200 MW; to increase our internal cell capacity from the previous target of 250 MW to 400 MW and to increase module capacity to 800 MW. We expect to have the above new capacity fully commissioned at the beginning of 2009.
Dr. Shawn Qu, Chairman and CEO remarked: ''We were pleased by the demand for both our regular and e-Module products at the Intersolar Show in Munich, which was very strong for the second half of 2008 and even well into 2009. Our expected e-Module output for 2008 was sold out; we are pleased that e- Modules have been accepted by leading industry players such as Pro Solar and Iliotec. Since we have secured our supply of raw materials and are on track with our planned capacity ramp we are now comfortable in raising our guidance. Looking ahead, we are also seeing strong demand in 2009 for both our regular and e-Modules. To meet this demand the Board has authorized an increase in capital expenditures to accelerate our planned capacity ramp. This will position us well to deliver on our customers' volume requirements for 2009 and allows us to use the e-Module program to strategically develop PV markets both within and outside of Europe such as the US and South Korea.''
About Canadian Solar Inc. (Nasdaq: CSIQ - News)
Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and custom-designed solar application products serving customers worldwide. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
Safe Harbor/Forward-Looking Statements
Certain statements in this press release including statements regarding expected future financial and industry growth are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business and economic conditions and the state of the solar industry; governmental support for the deployment of solar power; future shortage or availability of the supply of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers, including customers of our silicon materials sales; changes in demand from major markets such as Germany; changes in customer order patterns; changes in product mix; capacity utilization; level of competition; pricing pressure and declines in average selling price; delays in new product introduction; continued success in technological innovations and delivery of products with the features customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange rate fluctuations; litigation and other risks as described in the Company's SEC filings, including its annual report on Form 20-F originally filed on May 29, 2007. Although the Company believes that the expectations reflected in the forward looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.
For more information, please contact:
In Jiangsu, P.R. China
Alex Taylor, IR Director
Canadian Solar Inc.
Tel: +86-512-6690-8088
Email: ir@csisolar.com
In the U.S.
Tyler Wilson
The Ruth Group
Tel: +1-646-536-7018
Email: twilson@theruthgroup.com
--------------------------------------------------------------------------------
Source: Canadian Solar Inc.
UBS ups Hovnanian to neutral on valuation
By Steve Goldstein
Last update: 7:51 a.m. EDT June 17, 2008
LONDON (MarketWatch) -- Home builder Hovnanian Enterprises (HOV:Hovnanian Enterprises, Inc
News, chart, profile, more
Last: 6.67+0.21+3.25%
4:03pm 06/16/2008
HOV 6.67, +0.21, +3.3%) was upgraded to neutral from sell at UBS as the broker noted that the company's stock price has dropped 45% since April 29, vs. a 30% fall for the group. However, UBS cut its price target to $7 from $9 on expectations it will underperform rivals in the near term.
6 bank stocks worth buying
Many bank stocks are at multi-year lows and more trouble lies ahead. But some value fund managers argue that not all banks are doomed.
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See all CNNMoney.com RSS FEEDS (close) By David Ellis, CNNMoney.com staff writer
Last Updated: June 16, 2008: 8:11 PM
NEW YORK (CNNMoney.com) -- Banks have got investors running scared.
From writedowns to dividend cuts to dilutive stock offerings, it's no wonder that so many banks have seen their market values evaporate.
It seems almost inevitable that more difficulties lay ahead for the most troubled banks, including companies like Wachovia and Washington Mutual, given further fallout both in the housing market and the broader economy.
But even with all these tales of woe, some value fund managers say there may be a handful of bank stocks that are now too cheap to pass up.
"There are some good long-term values out there," said Bill Andrews, a portfolio manager for the Pittsburgh-based money manager C.S. McKee. "The question on everyone's mind is: 'Do they get cheaper before they go up?' "
Wells Fargo
One of the names mentioned most when fund managers talk about big banks worth buying is usually Wells Fargo (WFC, Fortune 500).
Even though a significant piece of its lending operations are in California, one of the regions hit hardest by the housing crunch, tough underwriting standards managed to save the San Francisco-based bank from the problems facing many of its peers.
"It's got one of the strongest balance sheets and one of the best management teams," said Jeff Auxier, president of the Lake Oswego, Ore.-based Auxier Management, which operates the Auxier Focus Fund. The fund currently owns shares of Wells Fargo and is considering buying more.
To be sure, analysts expect the bank to report a decline in profits in the second quarter and for the full year. And with shares of the San Francisco-based firm trading at 1.8 times its book value, compared to an average of about 1.2 for financial services stocks, it's far from cheap on a relative basis. (Book value is a company's assets minus its liabilities and is widely used by analysts as a way to value bank stocks.)
But Auxier notes that Wells Fargo chairman Richard Kovacevich bought more than 40,000 shares just over a week ago. So that could be a sign that he thinks the stock is close to a bottom.
Sovereign
For Sovereign Bancorp (SOV, Fortune 500), the biggest uncertainty may be how much deterioration its home equity portfolio endures, says Bernard Horn Jr., portfolio manager at the Boston-based Polaris Capital Management, which operates the Polaris Global Value Fund and manages about $4 billion.
The company, which has a network of about 750 branches in the Northeast, announced plans last month to raise $19 billion.
But investors reacted much differently to this news than they did when other banks disclosed that they need to raise more cash.
The stock has gained about 14% since it raised the money. Yet, shares of Sovereign still trade at only about two-thirds of its book value.
And given the hands-on approach the company's CEO Joseph Campanelli has taken to tackle the credit crisis, Horn believes that Sovereign, which his fund currently owns shares of, could be a big winner.
"In 3 to 5 years, one could look back and say it was a good time to buy this one," says Horn.
Washington Federal
Buying bank stocks could be more of an art than a science nowadays, argues Auxier. Sure dividends, price-to-earnings and other key metrics matter, but a better guide may be finding a lender "that didn't go crazy and didn't lose discipline" like Washington Federal (WFSL).
Much of the Seattle-based thrift's business is tied to real estate, including first mortgages on single-family homes as well as construction and home equity loans.
But unlike its peers, it exercised caution when it came to the housing boom, notes Auxier. Last quarter, the company said its non-performing assets reached just 0.58% of total assets. That's far below what was reported by its cross-town rival Washington Mutual, whose nonperforming assets grew to 2.87% of its total assets.
Investors certainly won't score the same deep discount as with other firms by buying its stock, as the stock trades at 1.37 times its book value, more than twice what the average savings and loan stock is priced at.
But they will own a piece of a strong "plain-vanilla" lender, said Auxier, with more than 100 offices in seven states that reported higher earnings last quarter, and is expected to do so again later this month. It also has an attractive 4% dividend yield that looks pretty secure.
Bank of America
Bank of America (BAC, Fortune 500) can't seem to catch a break lately. Its stock now hovers at 7-year lows and the company can't quash lingering doubts that the planned Countrywide merger will fall apart. What's more, speculation persists that the company could cut its dividend.
But Bill Andrews of C.S. McKee is still a believer. He notes the stock is currently priced below its book value and that the company boasts an impressive consumer banking footprint that will likely grow further after the Countrywide acquisition is completed.
As for talk about cutting the company's impressive 8.9% annual dividend yield?
"[It] certainly is a possibility, but even if you cut it in half, that's still better than a 4% yield," said Andrews.
SunTrust
Like Icarus, shares of SunTrust (STI, Fortune 500) have come hurtling back towards Earth. A year ago, shares of the Atlanta-based bank were in the stratosphere, drifting just north of $90 a share. Just last week they tumbled below $44 a share -- their lowest level in eight years.
Even though the firm remains dogged by writedowns and rising loan loss reserves, it has a broad footprint in the Southeast, one of the fastest growing areas of the country, says Andrews.
What's more, if the bank does become a takeover target, as has been rumored recently, shareholders could get rewarded with a nice premium.
Even if it doesn't, investors buying the stock now can take comfort in knowing they scooped it up at a pretty good discount, as it currently trades at about 0.9 times its book value.
Bank of New York Mellon
If there's one bank that has delivered consistent results despite the turmoil in the broader financial services sector, it's Bank of New York Mellon (BK, Fortune 500).
A trust bank by nature, the company has delivered a steady increase in profits since Bank of New York completed its merger with Mellon Financial last July. In the most recent quarter, the company saw its earnings surge by 72%, as market volatility revved up results in its asset servicing and clearing businesses.
While the company's asset management business got dinged in the previous quarter, these two businesses have kept Bank of New York Mellon's results chugging along, notes Mark Boyar, president and chief executive at the New York City-based Boyar Asset Management, which oversees over $600 million and owns Bank of New York Mellon stock.
The steady performance comes at a price as the stock trades at a premium of 1.7 times book value. But the dependability of the firm's earnings makes the bank a better bet than most in a sector that is suffering a crisis of confidence.
What's more, during the company's most recent earnings conference call, Bank of New York Mellon CEO Robert Kelly suggested the company will remain "opportunistic" and look for possible acquisitions. So this bank may be able to take advantage of the downturn to grow its business.
First Published: June 16, 2008: 12:50 PM EDT
SA:XM-Sirius Merger Clears Major Hurdle
by: Julia Boorstin posted on: June 17, 2008 | about stocks: SIRI / XMSR Font Size: PrintEmail XM (XMSR) and Sirius Satellite Radio (SIRI) -- the nation's only two satellite radio operators -- have cleared a major hurdle: FCC Chair Kevin Martin recommended approval of their merger. This puts them one step closer to the deal that's now valued at roughly $7.5 billion dollars, based on recent stock prices.
This follows the Justice Department's approval of the merger in March. The theory behind Martin and the Justice Department's approval hinges on the idea that creating a monopoly in the Satellite Radio space won't hurt consumers because Satellite Radio also competes with a range of other media -- from traditional radio, to Internet radio, even MP3s.
This whole new approach could set a new precedent for the way future media mergers work, though future mergers will also depend on how a new presidential administration weighs in.
That being said, Martin is requiring some concessions to protect consumers, and the companies have already agreed to them. The companies have to turn eight percent of their satellite channels--24 of them--over to non-commercial and minority programming. They have to put a price cap on the combined company's service fees for three years. They'll also have to offer new options for a la carte pricing, so you can pay just a couple of dollars per channel for the few you want to subscribe to.
And perhaps the biggest gesture to encourage competition, the combined company will have to create an "Open Radio" standard-- licensing their technology to other manufacturers within a year of the deal's close, so other companies can create compatible radios.
Both stocks -- SIRI and XMSR -- traded up on this news. The word on the street is that while these two companies are in big trouble if they're on their own, together, they'd save billions of dollars, and have a real chance at success. But the battle isn't won yet. Mergers can be tough, and RBC Capital Markets analyst David Bank tells me he thinks it'll be about five years before investors see any real big benefits from the merger. He also points out that in a rocky consumer economy the companies--combined or separate--still face the challenge of adding subscribers, convincing people that this high-end radio service is a must-buy.
Now three of the five FCC commissioners must approve the deal. Though the debate could drag out for another month or so, it seems that eventually, the necessary three will get on board.
Yep...Been following since it tanked and as stated, have been waiting patiently...
Absolutely, a very nice day...Solar is on the move again. Will be interesting to see how far they let it go...
IDEV 1.74 22.54% :)
FRPT 4.64 15.14%
DSTI 4.43 11.87% RSOL 6.54 8.82% AKNS 5.94 8.99% Solar performing well today
Very nice move today
BAC 30.62 2.82%
CFC 5.10 5.37%
MBI 6.16 4.94%
ABK 2.40 14.29%
IDEV 1.57 +10.56% Took a while, but on its way back up
MBI 6.08 +3.58%
CFC 5.17 +6.82% BAC 30.60 +2.75%
FRPT 4.75 17.87% News must be forthcoming
FRPT 4.71 16.87% Come on $5
BAC 30.46 2.28%
CFC 5.10 5.37%
FRPT 4.60 14.14%