Skill-vs.-Luck Investing Has Risky Effects

NEW YORK (TheStreet) --TheStreet.com alum Barry Ritholtz recently shared a post from investment manager Bob Seawright that explored the difference between skill and luck when to comes to investing. Seawright invoked something called the Wyatt Earp effect where Earp famously survived countless gunfights and while history looks back at Earp as having been very skilled, luck also had to play a very large role.

Seawright continues that Bill Miller's streak of beating the S&P 500 for 15 years in a row as he managed the Legg Mason Value Trust (LMVRX) was by Miller's own account "an accident of the calendar."

Understanding the difference between skill and luck is crucial. When a long, lucky streak is confused with skill it can lead to overconfidence which can then lead to increased risk taking. In managing the Legg Mason Value Trust Miller took big risks despite the above quote attributed to him by Seawright.

He had very large positions financial stocks including Fannie Mae and Freddie Mac going into the financial crisis which he did not sell causing his fund to fare far worse with a 73% drop compared to the S&P 500's 56% decline. Overconfidence is a behavior that repeats in stock market history. One recent anecdotal example came during the internet bubble and subsequent tech wreck. As high-flying internet stocks rose, legions of day trading shops were opened around the country so that newly minted traders could quit their regular jobs and easily click their way to wealth as internet stocks kept growing to the sky. What many thought was easily acquired day trading skill turned out to be luck that soon went bad ultimately leading the first 50% decline of the preceding decade. Recent signs of similar overconfidence could include 3D printing stocks. Like the internet, 3D printing is likely to be life changing. Going into mid-November 3D Systems (DDD)was up 120% and ExOne (XONE) was up 120% from its IPO in February. Both stocks were hit very hard last week; DDD was down 9% and XONE was down 14%. XONE is down 25% from its high this summer but that did not dissuade Voxeljet (VJET)from its IPO one month ago. After rocketing to a 106% gain in just 18 trading days, it then fell 47% from its high last week.

After a few months of "skillful" trading, luck may have run out on the group... at least for the time being.

The conclusion drawn by Seawright is the need focus on process in order to achieve investment success to which I would add the word discipline. When you can truly accept the role luck plays in investing it then becomes much easier to focus on process and when you know you have a process that can lead to long-term investment success it makes it easier to remain disciplined to your chosen process.

By remaining disciplined you will create your own luck.

This is especially true in 2013 as the year winds down to an end. If you adhere to some sort of investment strategy other than indexing then you have likely lagged behind the S&P 500's 27% gain. Just as Bill Miller realized he would not beat the market every year, neither can anyone else. If your investment strategy has lagged behind the S&P 500 index you might be tempted to switch to indexing because of how well it did this year. Doing so would be an undisciplined disregarding of process. Through most of the last decade no one wanted to touch indexing with a ten-foot pole as the S&P 500 endured a volatile round trip to nowhere; from March 10, 2000 to May 9, 2007 the index was unchanged. Indexing was no worse back then as today, it just so happens that indexing has beaten most other strategies this year after lagging so many strategies before. Giving up on a strategy because of impatience once is likely to be repeated in the future which results in repeatedly chasing what was hot last year which will inhibit investment success. If your equity portfolio is up 10 or 20%, your process is not broken, 2013 just one of those years where your process wasn't the best performer and that is ok because no process can be the best performer every year. No positions

Can Siemens Break Higher?

With shares of Siemens (NYSE:SI) trading around $130, is SI an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Siemens is an integrated technology company with activities in the fields of industry, energy, and healthcare. Siemens operates in six segments: industry, energy, health care, equity investments, Siemens IT solutions and services, and Siemens financial services. The company has equity investments in telecommunications infrastructure and household appliance companies as well as in a company that provides open communications, network, and security solutions.

Siemens is in advanced negotiations to divest its water technologies business to the private equity group AEA Investors for roughly $800 million. AEA won over the private equity investor American Industrial Partners in the last round of the bidding, according to one of the sources. Siemens, which is Germany's most valuable company by market capitalization, manufactures products ranging from trains to hearing aids. The company reported last November its plan to sell off the water technologies unit.

T = Technicals on the Stock Chart Are Strong

Siemens stock has struggled to make significant progress in recent years. However, the stock is currently breaking higher, trading near highs for the year. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Siemens is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Siemens options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Siemens Options	19.55%	16%	14%

What does this mean? This means that investors or traders are buying a small amount of call and put options contracts as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
December Options	Flat	Average
January Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a small amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Siemens’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Siemens look like and more importantly, how did the markets like these numbers?

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-22.84%	11.36%	-7.03%	-0.79%
Revenue Growth (Y-O-Y)	2.59%	-10.15%	3.83%	2.24%
Earnings Reaction	1.13%	0.44%	-1.08%	1.35%

Siemens has seen decreasing earnings and rising revenue figures over the last four quarters. From these numbers, the markets have been conflicted with Siemens’s recent earnings announcements.

P = Weak Relative Performance Versus Peers and Sector

How has Siemens stock done relative to its peers, General Electric (NYSE:GE), ABB (NYSE:ABB), Phillips (NYSE:PHG), and sector?

	Siemens	General Electric	ABB	Phillips	Sector
Year-to-Date Return	19.06%	28.66%	20.88%	33.12%	26.43%

Siemens has been a weak relative performer, year-to-date.

Conclusion

Siemens provides a range of valuable technology products and services to a number of industries around the world. The company is in advanced negotiations to divest its water technologies business to the private equity group AEA Investors for roughly $800 million. The stock has struggled in recent years but is now trading near highs for the year. Over the last four quarters, earnings have been mixed while revenues have been rising, which has produced conflicting feelings among investors in the company. Relative to its peers and sector, Siemens has been a weak year-to-date performer. WAIT AND SEE what Siemens does this quarter.

Buying Low Thwarted by Narrowest Stock Valuation Gap Ever

Cheap is converging with expensive in the American equity market, narrowing options for investors looking for bargains after the broadest rally on record lifted almost 90 percent of the Standard & Poor's 500 Index this year.

The difference in valuations shrank to the smallest since at least 1990 after companies such as Hormel Foods Corp. and CenterPoint Energy Inc. rose to levels that match Ralph Lauren Corp. and Citrix Systems Inc., whose five-year average profit growth rate is twice as big. A measure of the dispersion of price-earnings ratios in the S&P 500 compiled by Goldman Sachs Group Inc. narrowed to 41 percent in June, the lowest on record, and held around that level since.

While four years of earnings growth and the Federal Reserve's near-zero interest rate have led the S&P 500 on a 166 percent rally since March 2009, they have also driven up valuations just as the bull market approaches the end of its fifth year. The monolithic market means investors may have nowhere to hide should shares fall.

"We've seen a runup in prices in the market, and we don't think it's cheap anymore," Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland, said in a Nov. 13 phone interview. "Those who simply like to buy cheap and get a regression to the mean may have less luck."

The S&P 500 climbed 1.6 percent to a record 1,798.18 last week after Fed Chairman-nominee Janet Yellen signaled she will continue the stimulus programs of her predecessor Ben S. Bernanke, and retailers suggested holiday demand would be stronger. The measure advanced 26 percent in 2013, on track for the biggest annual return in a decade. S&P 500 futures expiring in December were little changed at 9:56 a.m. in London today.

Broadest Rally

More than 440 of the S&P 500's companies have gained in 2013, the most for any year at this point since at least 1990, data compiled by Bloomb! erg show.. Advances since March 2009 have been spread among all 10 S&P 500 groups, with consumer discretionary shares up 309 percent, about four times the jump in shares of utilities companies. In the bull market from 2002 to 2007, energy stocks outpaced consumer staples shares by about sixfold.

The breadth of this year's rally has led valuations throughout the market higher. The average S&P 500 company's price-earnings ratio rose 40 percent to 20 in 2013, twice the increase for 2012 at this point of the year, according to data compiled by Bloomberg.

Economic Reality

"This market clearly has had a life of its own that's been divorced from a lot of economic reality, and so valuations are much higher," Martin Leclerc, founder of Barrack Yard Advisors LLC, said in a Nov. 14 phone interview from Bryn Mawr, Pennsylvania. His firm oversees $230 million. "Everyone bemoans the fact that the set of companies selling at very good prices has really been diminished."

Health-care shares saw the biggest multiple expansion this year, trading at 17.5 times estimated earnings last week, the highest since 2007. A group of consumer-staples stocks trades at 18.6 times estimated earnings, compared with the average of 16.4 before the bull market, according to data since 1990 compiled by Bloomberg. The price-earnings ratio for utilities shares reached 16.1, compared with the 13.8 average before 2009.

"The mantra was bond-like stocks for 18 months, from the middle of 2011 until Bernanke said the word taper," Eric Green, director of research and fund manager at Penn Capital Management, said by phone Nov. 14. The Philadelphia-based firm oversees about $7 billion. "The uncertainty has forced individual investors and institutions into more defensive types of stocks."

Value Stocks

Hormel Foods's valuation climbed 33 percent to 20.3 times estimated earnings in the last 12 months. The multiple for the maker of Spam luncheon meat is 30 percent higher than the me! an for the! decade before the bull market, according to data on reported earnings compiled by Bloomberg.

CenterPoint Energy, which distributes power to Houston, is up 30 percent in 2013, boosting the price-earnings ratio to 17.2 from 14.1 in January. Before this year the utility provider traded at a 33 percent average discount to the S&P 500 since 1990, data compiled by Bloomberg show.

Shares of AmerisourceBergen Corp., the pharmaceutical company that pays a 24-cent dividend, advanced 61 percent this year. The price-earnings ratio for the Valley Forge, Pennsylvania-based company increased 53 percent to 18.9 in 2013, Bloomberg data show.

Stock Multiples

Those valuations are about the same as stocks with earnings more tied to economic growth. Ralph Lauren, the retailer of its namesake brand clothing, trades at 19.1 times profit projections. Citrix Systems, the Fort Lauderdale, Florida-based software maker, has a multiple of 17.6, and Monsanto Co., the world's largest seed company, trades at 21.1 times earnings. ˜

"Investors are assigning similar values to more stocks despite very different earnings growth profiles," Brian Belski, chief investment strategist with BMO Capital Markets, wrote in a note last month. "These trends are not likely to continue."

The longer a rally goes on, the more valuations adjust to individual companies' earnings, meaning stocks with lower growth whose multiples have surged this year may see them drop back down, according to Belski.

While stock prices have risen faster than S&P 500 profits, analysts expect earnings to pick up in 2014. Profits will expand 10 percent next year and 11 percent in 2015, according to Bloomberg data. Nine of 10 S&P 500 industries will post faster individual growth next year, analyst estimates compiled by Bloomberg show.

Fair Value

"The P/E is just a reflection of expectations of how much those cash flows are going to grow," Wayne Lin, a portfolio manager at Baltimore-based Legg! Mason In! c., which oversees $670 billion, said in a Nov. 13 phone interview. "Earnings can continue to grow," he said. "This runup is just a return to fair value for equities."

Shares of companies whose earnings depend on economic growth are still cheaper than historic averages. A group of technology stocks has a valuation of 14.6, 27 percent lower than the average since 1991 and a fraction of the level it reached in 2000, data compiled by Bloomberg show. Energy shares are 9.1 percent cheaper than the 22-year average.

The full S&P 500 trades at about 17.5 times trailing 12-month earnings, in line with the average since the end of World War II, according to S&P data. The multiple stayed low as profits almost doubled from the level in 2008 and the Fed's accommodative policies kept stocks relatively attractive.

'Not Expensive'

"With interest rates at current levels, the market is not expensive," Donald Selkin, who helps manage about $3 billion as the New York-based chief market strategist at National Securities Corp., said in a Nov. 14 phone interview. "The market has room to go higher."

Stocks have jumped as the Fed held its benchmark lending rate near zero since December 2008 and bought more than $2.3 trillion in Treasuries through unprecedented quantitative easing programs. Economists say the Fed will lower the $85 billion in monthly purchases to $70 billion in March, according to the median in a Bloomberg News survey conducted Nov. 8.

"What everybody's been trying to figure out this year is how much longer is the Fed going to keep us on life support and if they do taper, are we going to continue to see the growth we've enjoyed the past couple of years?" Thomas Garcia, head of equity trading at Santa Fe, New Mexico-based Thornburg Investment Management Inc., said in a Nov. 14 phone interview. His firm manages more than $90 billion. "That's the big question."

Bull Markets

The last time the dispersion of valuations came c! lose to b! eing this narrow was in October 2006, a year before the last bull market ended, Goldman Sachs data show. Before that, multiples were most compressed in September 1997, 10 months before the biggest bull market on record ended.

Goldman Sachs's price-earnings ratio dispersion is a monthly reading of standard deviation, or the variance from the average, for companies in the S&P 500. Goldman Sachs compiles data for companies whose price-estimated earnings ratios are between zero and 75.

Bull markets since World War II have ended after about four years, according to the average of data compiled by Bloomberg and Birinyi Associates Inc. This rally has lasted more than 4 1/2 years. Its 166 percent gain has exceeded the 122 percent average return for the last 12 bull markets.

"We've gone from the fear of losing to the fear of losing out," Leclerc said. "That's always a dangerous inflection point."

Why Annaly Capital Management (NLY) Dipped Today

NEW YORK (TheStreet) -- Annaly Capital Management (NLY) closed down 3.5% to $11.71 in Tuesday trading, moving in sympathy with competitor American Capital Agency Group (AGNC). The mortgage real estate investment fund (REIT) saw 26.2 million shares change hands, well over its three-month average daily trading volume of 13.9 million.

American Capital reported a third-quarter loss of $1.80 a share, compared to analysts' expectations of 77 cents a share, according to Thomson Reuters' figures. The company blamed volatility in interest rates and mortgage spreads for the earnings loss, two factors which significantly influence Annaly Capital operations. Annaly expects to report third-quarter earnings on Nov. 4.

Also influencing shares, The Financial Times recently reported the New York Federal Reserve instigated a "deep dive" into the relationship between banks and mortgage REITs. The Fed is concerned if interest rates should succumb to volatility, mortgage REITs might diminish their stake in mortgage-backed securities (MBS), sparking a market selloff on a larger scale. The FT noted the firms have increased MBS holdings by 188% since 2009 to a combined $460 billion stake.

TheStreet Ratings team rates Annaly Capital Management as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate Annaly Capital Management (NLY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1897.1% when compared to the same quarter one year prior, rising from -$91.16 million to $1,638.21 million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, Annaly Capital Management's return on equity significantly exceeds that of both the industry average and the S&P 500. Annaly Capital Management reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, Annaly Capital Management increased its bottom line by earning $1.69 a share vs. 49 cents a share in the prior year. This year, the market expects earnings to be in line with last year ($1.69 vs. $1.69). NLY has underperformed the S&P 500 Index, declining 23.59% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time. Net operating cash flow has significantly decreased to -$3,820.86 million or 192.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. You can view the full analysis from the report here: NLY Ratings Report

Obamacare deadbeats: Some don't pay up

Those who didn't pay their Obamacare premiums will see their policy selection canceled.

NEW YORK (CNNMoney) Just cause they've signed up for Obamacare doesn't mean they're covered.

Around one in five people who picked health insurance policies on the state and federal exchanges last year haven't paid their first month's premiums, according to insurers polled by CNNMoney. These folks will likely see their policy selection canceled and they'll be left uninsured.

Some 2.1 million people signed up for a plan in time for their coverage to start January 1, according to the Obama administration. But with the payment deadlines stretching until January 31 at the latest, anywhere between 12% and 30% of those folks still haven't paid up, insurers say.

Most consumers were given until the middle or the end of January to pay their first premium, a necessary step to actually activating enrollment. Exchange officials and insurers repeatedly stressed the importance of sending in that first payment, with some following up with the slackers by phone or letter.

The true enrollment figure likely won't be known for a few weeks.

Share your story: Have you begun using your Obamacare benefits?

Scott & White Health Plan reached out 10 times to each person who hadn't paid and delayed the deadline to Jan. 30, said Allan Einboden, chief executive. Early on, people said there were confused about what they needed to do to activate their policies. Others, however, said they were looking at alternative options or were considering forgoing coverage.

The Texas-based insurer expected its payment rate to be in the high 80% range by its deadline, Einboden said, noting that about 450 people had signed up for coverage starting Jan. 1.

Other insurers cited figures in a similar range. More than 70% of those who signed up for Aetna (AET, Fortune 500) plans sent in payments by its mid-month deadline, while 88% of Medical Mutual of Ohio's 6,500 applicants paid their bill by the Jan. 15 cutoff. That was more than Medical Mutual had projected.

A majority of WellPoint's would-be members have paid, said WellPoint's chief financial officer, but not a "vast majority." WellPoint (WLP, Fortune 500), a major player in the exchanges with 500,000 applications, has given folks until Jan. 31 to pay.

I signed up for Obamacare!

Those who don't pay are receiving termination letters. CoOportunity Health said about 18% of the 11,000! Nebraska and Iowa residents who had signed up missed its Jan. 24 payment deadline and would receive cancellation notices this week. But even this final notice told recipients to call if they had intended to pay the premium.

The insurer had projected up to 20% wouldn't activate their enrollment.

"We figure either those people had a change of heart or thought it was too expensive," said Cliff Gold, CoOportunity's chief operating officer. "Or maybe some people decided to keep what they had."

  Starbucks CFO on Obamacare rollout

Insurers are generally pleased with the payment rates, though they are grousing about having to weed out the deadbeats, said Paul Tiede, an executive vice president at SunGard, which works with insurers on billing. There's been a huge uptick in payments in recent weeks.

"Money is flowing in the door," Tiede said.

Now insurers have to start tallying the next wave of payments. Most of those who signed up this month for coverage to start Feb. 1 have until Friday to pay and activate their enrollment.

6 Biotechnology Stocks to Buy Now

Popular Posts: 4 Pharmaceutical Stocks to Buy Now8 Oil and Gas Stocks to Buy Now5 Pharmaceutical Stocks to Buy Now Recent Posts: 6 Biotechnology Stocks to Buy Now 4 Commercial Services Stocks to Buy Now 33 Commercial Banking Stocks to Buy Now View All Posts

The grades of six biotechnology stocks are better this week, according to the Portfolio Grader database. Every one of these stocks has an “A” (“strong buy”) or “B” overall (“buy”) rating.

Inovio Pharmaceuticals, Inc. () is making progress this week as its rating of C (“hold”) from last week increases to a B (“buy”) rating this week. Inovio Pharmaceuticals engages in the discovery and development of synthetic vaccines and immune therapies focusing on cancers and infectious diseases. In Portfolio Grader’s specific subcategory of Sales Growth, INO also gets an A. .

This week, KYTHERA Biopharmaceuticals, Inc. () pushes up from a C to a B rating. KYTHERA Biopharmaceuticals focuses on the discovery, development, and commercialization of prescription products for the aesthetic medicine market. .

This week, Alkermes Plc () is showing good progress as the company’s rating jumps from a B (“buy”) last week to an A (“strong buy”). Alkermes is a fully integrated biotechnology company committed to developing medicines that will improve patients’ lives. Shares of ALKS have increased 15.7% over the past month, better than the 1.3% decrease the Nasdaq has seen over the same period of time. .

Gilead Sciences, Inc. () gets a higher grade this week, advancing from a B last week to an A. Gilead is a research-based biopharmaceutical company that discovers, develops, and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases. Wall Street has pushed the stock higher by 5.9% over the past month. .

PDL BioPharma, Inc. () shows solid improvement this week. The company’s rating rises from a C to a B. PDL BioPharma engages in intellectual property asset management and patent portfolio and related assets investment activities. Investors have pushed the stock price up 6.6% over the past month. .

Isis Pharmaceuticals, Inc. () is seeing ratings go up from a B last week to an A this week. Isis Pharmaceuticals discovers and develops novel human therapeutic compounds. Wall Street seems to agree with the upgrade and has propelled the stock up 17.2% over the past month. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Hot Bank Stocks To Watch For 2015

Sadly, past returns are not indicative of future returns. Bank of America (NYSE: BAC  ) investors were undoubtedly thrilled to see the bank's share price�double in 2012. However, going forward, does the stock have any more room to run?

Since the new year, the stock has lagged the market and most its main competitors, and some investors may be wondering if now is the time to sell the megabank.

In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer remind investors to temper their expectations for the stock and why it still may be a great investment to hold.�

However, with significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

Hot Bank Stocks To Watch For 2015: Australia and New Zealand Banking Group Ltd (ANZ)

Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Company conducts its operations in Australia, New Zealand and the Asia Pacific region. It also operates in a range of other countries, including the United Kingdom and the United States. The Company operates on a divisional structure with Australia, International and Institutional Banking (IIB), New Zealand, and Global Wealth and Private Banking. As of September 30, 2012, the Company had 1,337 branches and other points of representation worldwide, excluding automatic teller machines (ATMs). In September 2012, it sold its remaining shareholding in Visa Inc. Advisors' Opinion:

• [By Adam Haigh]

  Australia & New Zealand Banking Group Ltd. (ANZ) sank 3 percent after Australia�� third-largest bank by market value forecast interest margins will keep dropping. Hyundai Merchant Marine Co. jumped 6.9 percent in Seoul after North Korea and South Korea agreed to reopen the Gaeseong industrial complex. Chinese stock exchange officials are investigating a spike in the Shanghai Composite Index, which soared from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes. Everbright Securities Co. said it experienced a trading error.

• [By Weiyi Lim]

  The funds lured a net $25.9 billion in the period, Wei Liang Chang, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone from Singapore today, citing data from EPFR Global. Developed markets posted $24.3 billion of inflows, while emerging-nation funds drew $1.6 billion, according to Chang.

• [By Adam Haigh]

  Komatsu Ltd. tumbled 8 percent in Tokyo after the world�� second-largest maker of construction equipment cut its full-year profit forecast by 26 percent. Industrial & Commercial Bank of China Ltd. gained 1.4 percent in Hong Kong, pacing an advance among Chinese lenders, after China�� central bank added funds to the financial system for the first time in two weeks. Australia & New Zealand Banking Group Ltd. (ANZ) climbed 1.4 percent to a record in Sydney after posting its highest profit and raising its dividend more than forecast.

Hot Bank Stocks To Watch For 2015: Banco Bradesco SA (BBD)

Banco Bradesco S.A. (the Bank), incorporated on November 5, 1943, is commercial bank. The Bank offers a range of banking and financial products and services in Brazil and abroad to individuals, large, midsized and small companies and local and international corporations and institutions. It operates in two segments: the banking, and the insurance, pension and capitalization bonds. Its products and services encompass banking operations, such as loans and advances and deposittaking, credit card issuance, purchasing consortiums, insurance, leasing, payment collection and processing, pension plans, asset management and brokerage services. The main services it offers through Bradesco Expresso are receipt and submission of account applications; receipt and submission of account applications; Social Security National Service (INSS) benefit payments; checking and savings account deposits, and receipt of consumption bills, bank charges and taxes. In May, 2011, the Bank acquired Banco do Estado do Rio de Janeiro S.A. (BERJ).

Banking

The Banking segment includes deposit-taking with clients, including checking accounts, savings accounts and time deposits; loans and advances (individuals and companies, real estate financing, microcredit, onlending BNDES funds, rural credit, leasing, among others); credit cards, debit cards and pre-paid cards; management of receipts and payments; asset management; services related to capital markets and investment banking activities; intermediation and trading services; custody, depositary and controllership services; international banking services, and purchasing consortiums.

The Bank offers a variety of deposit products and services to our customers through its branches, including Non-interest bearing checking accounts, such as Easy Account, Click Account, Academic Account and Cell Phone Bonus Account; traditional savings accounts; time deposits, and deposits from financial institutions. As of December 31, 2011, it had 43.4 million savings a! ccounts. It offers its customers certain additional services, such as identified deposits and real-time banking transfers. Its loans and advances to customers, consumer credit, corporate and agricultural-sector loans, totaled R$263.5 billion as of December 31, 2011.

The Bank�� loan portfolio consists of short-term loans, vehicle financings and overdraft loans on checking accounts. It also provides revolving credit facilities and traditional term loans. As of December 31, 2011, it had outstanding advances, vehicle financings, consumer loans and revolving credit totaling R$58.0 billion, or 22.0% of its portfolio of loans and advances. Banco Bradesco Financiamentos (Bradesco Financiamentos) offers direct-to-consumer credit and leasing for the acquisition of vehicles and payroll-deductible loans to the public and private sectors 'in Brazil. Supported by BF Promotora de Vendas Ltda. (BF Promotora), and using the Bradesco Financiamentos brand, the Bank operates through its network of correspondents in Brazil, consisting of retailers and dealers selling light vehicles, trucks and motorcycles, to offer financing and/or leasing for vehicles. Through Bradesco Promotora brand, it offer payroll-deductible loans to social security retirees and pensioners, public-sector employees, military personnel and private-sector companies sponsoring plans, and other aggregated products (insurance, capitalization bonds, cards, purchasing consortiums, and others).

As of December 31, 2011, the Bank had 63,156 outstanding real estate loans. As of December 31, 2011, the aggregate outstanding amount of its real estate loans amounted to R$15.9 billion, representing 6% of its portfolio of loans and advances. As of December 31, 2011, it had 69,491 microcredit loans outstanding, totaling R$62.8 million. Its BNDES onlending portfolio totaled R$35.4 billion as of December 31, 2011.

The Bank provides traditional loans for the ongoing needs of its corporate customers. It had R$85.8 billion of outstand! ing other! local commercial loans, accounting for 32.5% of its portfolio of loans and advances as of December 31, 2011. It offers a range of loans to its Brazilian corporate customers, including short-term loans of 29 days or less; guaranteed checking accounts and corporate overdraft loans; discounting trade receivables, promissory notes, checks, credit card and supplier receivables, and a number of other receivables; financing for purchase and sale of goods and services; corporate real estate financing, and investment lines for acquisition of assets and machinery. As of December 31, 2011, the Bank had R$11 billion in outstanding rural loans, representing 4.2% of its portfolio of loans and advances. The Bank conducts its leasing operations through its primary leasing subsidiary, Bradesco Leasing and also through Bradesco Financiamentos.

The Bank offers electronic solutions for receipt and payment management solutions, which include collection and payment services and online resource management enabling its customers to pay suppliers, salaries, and taxes and other levies to governmental or public entities. The global cash management concept provides solutions for multinationals in Brazil and/or domestic companies operating abroad. It manages third-party assets through mutual funds; individual and corporate investment portfolios; pension funds, including assets guaranteeing the technical provisions of Bradesco Vida e Previdencia, and insurance companies, including assets guaranteeing the technical provisions of Bradesco Seguros.

The Bank�� subsidiaries Bradesco S.A. CTVM and Agora S.A. CTVM (or Bradesco Corretora and Agora Corretora, respectively) trade stocks, options, stock lending, public offerings and forwards. They also offer a range of products, such as Brazilian government securities (under the Tesouro Direto program), BM&F trading, investor clubs and investment funds.

The Bank offers a range of international services, such as foreign exchange transactions, foreign tr! ade finan! ce, lines of credit and banking. As of December 31, 2011, its international banking services included New York City, a branch and Bradesco Securities Inc., its subsidiary brokerage firm, or Bradesco Securities United States, and its subsidiary Bradesco North America LLC, or Bradesco North America; London, Bradesco Securities U.K., its subsidiary, or Bradesco Securities U.K.; Cayman Islands, two Bradesco branches and its subsidiary, Cidade Capital Markets Ltd., or Cidade Capital Markets; Argentina, Banco Bradesco Argentina S.A., its subsidiary, or Bradesco Argentina; Banco Bradesco Luxemburgo S.A. its subsidiary, or Bradesco Europe; Japan, Bradesco Services Co. Ltd., its subsidiary, or Bradesco Services Japan; in Hong Kong, its subsidiary Bradesco Trade Services Ltd, or Bradesco Trade, and in Mexico, its subsidiary Ibi Services, Sociedad de Responsabilidad Limitada, or Ibi Mexico.

The Bank�� Brazilian foreign-trade related business consists of export and import finance. In addition to import and export finance, its customers have access to a range of services and foreign exchange products, such as purchasing and selling travelers checks and foreign currency paper money; cross border money transfers; advance payment for exports; accounts abroad in foreign currency; cash holding in other countries; collecting import and export receivables; repaid cards with foreign currency (individual), and structured foreign currency transactions through its foreign units.

Insurance, pension plans and capitalization bonds

The Bank offers insurance products through a number of different entities, which it refers to collectively as Grupo Bradesco Seguros. It offers life, personal accident and random events insurance through its subsidiary Bradesco Vida e Previdencia. It offers health insurance policies through Bradesco Saude and its subsidiaries for small, medium or large companies. It provides automobile, property/casualty and liability products through its subsidiary Bradesco Auto! /RE. It a! lso offers certain automobile, health, and property/casualty insurance products directly through its Website.

Advisors' Opinion:

• [By Jon C. Ogg]

  Banco Bradesco S.A. (NYSE: BBD) is one of the key banks and financial services companies in Brazil. A Yahoo! Finance reference showed that the 2012 figures were as follows: 4,686 branches; 34,859 ATMs; 12,975 shared ATMs under the Banco24Horas brand; and 5,237 special points of banking services. At $11.65, the 52-week trading range is $11.29 to $17.79. This ADR is down 7% so far in 2014.

• [By Charles Sizemore]

  And speaking of top dividend stocks with high capital gains potential, next on the list of are Brazilian banking groups Banco Bradesco (BBD) and Banco Itau (ITUB) — two monthly dividend stocks you must consider.

Top 5 Oil Stocks For 2015: Wilshire Bancorp Inc.(WIBC)

Wilshire Bancorp, Inc. operates as the holding company for Wilshire State Bank that offers a range of financial products and services. It accepts various deposit products that include certificates of deposit, regular savings accounts, money market accounts, checking and negotiable order of withdrawal accounts, installment savings accounts, and individual retirement accounts. The company?s loan portfolio comprises commercial real estate and home mortgage loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including personal loans, auto loans, and other loans. It also provides trade finance services that include issuance and negotiation of letters of credit, handling of documentary collections, advising and negotiation of commercial letters of credit, transfer and issuance of back-to-back letters of credit, and trade finance lines of credit. In addition, the company offers Internet banking services, auto matic teller machines, and armored carrier services. It has 24 full-service branch offices in Southern California, Texas, New Jersey, and the greater New York City metropolitan area; and 6 loan production offices in Colorado, Georgia, Texas, New Jersey, and Virginia. The company was founded in 1980 and is headquartered in Los Angeles, California.

Advisors' Opinion:

• [By Rich Smith]

  Los Angeles-based Wilshire Bancorp (NASDAQ: WIBC  ) is acquiring some Korean banking customers... in New Jersey.

  On Monday, Wilshire announced that it has signed a definitive agreement to acquire�New Jersey's BankAsiana, a commercial bank�with three branches serving the Korean-American community in the New York/New Jersey market, boasting total assets of $207.3 million, total net loans of $161.2 million, and total deposits of $164.6 million.

Hot Bank Stocks To Watch For 2015: Canadian Imperial Bank of Commerce(CM)

Canadian Imperial Bank of Commerce provides various financial products, services, and advice to individual, small business, commercial, corporate, and institutional clients in Canada and internationally. The company offers retail markets services comprising personal banking, business banking, and wealth management services, as well as investment management services to retail and institutional clients. It also provides wholesale banking services, including credit, capital markets, investment banking, merchant banking, and research products and services to government, institutional, corporate, and retail clients. The company provides its services through its branch network, automated bank machines, mobile banking, and online banking site. As of June 3, 2011, it operated approximately 1,100 branches and 4,000 automated bank machines in Canada. The company was founded in 1867 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Dan Caplinger]

  It's easy for U.S. investors to paint Canadian banks with a single brush-stroke, as the differences in the banking system helped keep Bank of Montreal and its peers safer during the financial crisis five years ago. As Canada's housing market has kept rising even after the housing bust south of its border, however, investors have gotten increasingly concerned about the potential health of its banks, especially the largest ones. With downgrades for Canadian Imperial Bank of Commerce (NYSE: CM  ) , Toronto-Dominion (NYSE: TD  ) , and Bank of Montreal among a total of six banks in January, Moody's identified higher debt levels among Canadian consumers as driving potential risk for the economy.

• [By Rich Duprey]

  Canadian Imperial Bank of Commerce� (NYSE: CM  ) �announced this morning�its second-quarter dividend of $0.96 per share, a 2% increase over the $0.94-per-share payout it made last quarter.

• [By John Reese, Founder and CEO, Validea.com And Validea Capital Management]

  As you might imagine, the portfolio will tread into areas of the market others ignore, because of its contrarian bent. Right now, its holdings include some very unloved firms, including several financials, emerging market stocks, and much-maligned BP. Here's a look at five of the stock in our Dreman portfolio:

  Canadian Imperial Bank of Commerce (CM)
  
  BP Plc (BP)
  
  Telecom Argentina SA (TEO)
  
  China Mobile Limited (CHL)
  
  Vale SA (VALE)
  
  

  Subscribe to Validea here��/P>

Hot Bank Stocks To Watch For 2015: U.S. Bancorp(USB)

U.S. Bancorp, a financial services holding company, provides various banking and financial services in the United States. It generates various deposit products, including checking accounts, savings accounts, money market savings, and time certificates of deposit accounts. The company originates a portfolio of loans comprising commercial loans and lease financing; commercial real estate; residential mortgage; and retail loans consisting of credit cards, retail leasing, home equity and second mortgages, and other retail loans. It also offers wholesale lending, equipment finance, small-ticket leasing, depository, treasury management, capital markets, foreign exchange, and international trade services to middle market, large corporate, commercial real estate, and public sector clients. In addition, U.S. Bancorp provides telebanking and automated teller machine (ATM) services, as well as cash management services. The company, through other subsidiaries, provides trust, private banking, financial advisory, investment management, retail brokerage services, insurance, and custody and fund services; and payment services, including consumer and business credit cards, stored-value cards, debit cards, corporate and purchasing card services, consumer lines of credit, and merchant processing. U.S. Bancorp primarily serves individuals, estates, foundations, business corporations, and charitable organizations. It operates a network of approximately 3,031 banking offices and 5,310 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:

• [By Dan Caplinger]

  On Tuesday, US Bancorp (NYSE: USB  ) (NYSE: USB  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

• [By Robert Eberhard]

  U.S. Bancorp (NYSE: USB  ) has released its first-quarter earnings, and overall things look pretty good for the large regional bank. It earned $1.43 billion, or $0.73 per share, right in line with analysts' expectations. Nevertheless, shares have been down as much as 2.6% this morning, prompting a deeper look into that earnings release. Here are three reasons investors may not be that pleased with the big Minnesota-based bank.

• [By Jay Jenkins]

  The Consumer Financial Protection Bureau recently�ordered�U.S. Bancorp (NYSE: USB  ) �and its partner Dealers' Financial Services (DFS) to return $6.5 million to military service members. The CFPB uncovered unfair marketing practices and fees designed and implemented by DFS.

Hot Bank Stocks To Watch For 2015: HSBC Holdings PLC (HBC)

HSBC Holdings plc (HSBC), incorporated on January 1, 1959, is a global banking and financial services organizations. As of December 31, 2010, it provided a range of financial services to around 95 million customers through two customer groups, Personal Financial Services (PFS), including consumer finance, and Commercial Banking (CMB), and two global businesses, Global Banking and Markets (GB&M), and Global Private Banking (GPB). Its international network covers 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America. As of December 31, 2010, the Company had an international network of some 7,500 offices in 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America. PFS incorporates the Company�� consumer finance businesses, which include HSBC Finance Corporation (HSBC Finance). In April 2011, the Company closed its retail banking operation in Russia. In July 2011, the Company sold its unsecured written-off personal loan and credit card portfolio to J M Financial Asset Reconstruction Co. Pvt. Ltd. On May 20, 2012, HSBC Holdings PLC's wholly owned subsidiary HSBC Bank USA, N.A. and other wholly owned subsidiaries, sold 195 retail branches to First Niagara Bank, N.A. (First Niagara). In May 2012, the Company�� 70.03% owned subsidiary, HSBC Bank Malta plc, sold its card acquiring business to HSBC Merchant Services Ltd. In June 2012, the Company�� indirect wholly owned subsidiary, HSBC Iris Investments (Mauritius) Ltd, sold its 4.73% interest in Axis Bank Limited and 4.74% interest in Yes Bank Limited. In July 2012, its subsidiary, HSBC Europe (Netherlands B.V.), sold its 100% interest in HSBC Credit Zrt, to CentralFund Kockazati Tokealap. On March 31, 2013, Enstar Group Ltd�� subsidiary completed the acquisition from Household Insurance Group Holding Company of HSBC Insurance Company of Delaware and Household Life Insur! ance Company of Delaware, as well as its three subsidiary insurers.

The Company�� principal banking operations in Europe are HSBC Bank plc in the United Kingdom, HSBC France, HSBC Bank A.S. in Turkey, HSBC Bank Malta p.l.c., HSBC Private Bank (Suisse) S.A. and HSBC Trinkaus & Burkhardt AG. Through these operations it provides a range of banking, treasury and financial services to personal, commercial and corporate customers across Europe. HSBC�� banking subsidiaries in Hong Kong are The Hongkong and Shanghai Banking Corporation Limited and Hang Seng Bank Limited.

The Company offers a range of banking and financial services in the People�� Republic of China, mainly through its local subsidiary, HSBC Bank (China) Company Limited. It also participates indirectly in the People�� Republic of China through its four associates. Outside Hong Kong and the People�� Republic of China, it conducts business in 22 countries and territories in the Rest of Asia-Pacific region, through branches and subsidiaries of The Hongkong and Shanghai Banking Corporation, with coverage in Australia, India, Indonesia, Malaysia and Singapore.

In the Middle East, the Company has network of branches of HSBC Bank Middle East Limited, together with HSBC�� subsidiaries and associates. Its North American businesses are located in the United States, Canada and Bermuda. Operations in the United States are conducted through HSBC Bank USA, N.A., which is concentrated in New York State, and HSBC Finance, a national consumer finance company based near Chicago. HSBC Markets (USA) Inc. is the intermediate holding company of, inter alia, HSBC Securities (USA) Inc. HSBC Bank Canada and HSBC Bank Bermuda operate in their respective countries.

The Company�� operations in Latin America consists of HSBC Bank Brasil S.A.-Banco Multiplo, HSBC Mexico, S.A., HSBC Bank Argentina S.A. and HSBC Bank (Panama) S.A. In addition to banking services, it operates insurance businesses in Brazil, Mexi! co, Argen! tina, Panama and a range of smaller markets.

Personal Financial Services

PFS offers the Company�� products and services to customers based on their individual needs. Premier and Advance services are for customers who value international connectivity and benefit from its global reach and scale. It offers a range of banking products and services reflecting local requirements. In addition, it issues card globally, offering HSBC branded cards, co-branded cards with selected partners and private label (store) cards. Its customer offerings include personal banking products, including current and savings accounts, mortgages and personal loans, credit cards, debit cards and local and international payment services, and wealth management services, including insurance and investment products and financial planning services.

HSBC Premier provides preferential banking services to high net worth customers and their immediate families with a relationship manager, wealth advice and solutions. Customers can access emergency travel assistance, telephone banking and an online global view of their Premier accounts globally with free money transfers between them. HSBC Advance provides a range of preferential products and services customized to meet local needs. With a telephone service, access to wealth advice and online tools to support financial planning, it gives customers an online global view of their Advance accounts with money transfers between them. Wealth Solutions & Financial Planning process designed for global individual customer needs to help its clients to protect, grow and manage their wealth through investment and wealth insurance products manufactured by in-house partners, including Global Asset Management, Global Markets and HSBC Insurance, and by selected third party providers. During 2010, PFS provided 92 million individual and self-employed customers with financial services in over 60 markets globally.

Commercial Banking

The Company ! segments ! its CMB business into Corporate, to serve both Corporate and Mid-Market companies, and Business Banking, to serve the small and medium-sized enterprises (SME��) sector. It provides support to companies as they expand both domestically and internationally, and ensures a focus on the business banking segments. It offers a range of financing, both domestic and cross-border, including overdrafts, receivables finance, term loans and syndicated, leveraged, acquisition and project finance. Asset finance is offered in selected sites, focused on leasing and instalment finance for vehicles, plant and equipment. It is a provider of domestic and cross-border payments and collections, liquidity management and account services globally, delivered through its e-platform, HSBC net. It provides international trade products and services, to both buyers and suppliers, such as export finance, guarantees, documentary collections and forfeiting to improve efficiency and help mitigate risk throughout the supply chain.

CMB customers are volume users of its foreign exchange, derivatives and structured products. Capital markets & advisory is raising capital on debt and equity markets and provide advisory services. Commercial cards issuing helps customers enhance cash management, credit control and purchasing. Card acquiring services enable merchants to accept credit and debit card payments in person or remotely. CMB offers key person, employee benefits and a range of commercial risk insurance, such as property, cargo and trade credit. Direct channels include online and direct banking offerings, such as telephone banking, HSBCnet and Business Internet Banking.

Global Banking and Markets

GB&M provides tailored financial solutions to government, corporate and institutional clients and private investors globally. Managed as a global business, GB&M operates a long-term relationship management approach to build a understanding of clients��financial requirements. Sector-focused client service! teams co! nsisting of relationship managers and product specialists develop financial solutions to meet individual client needs. GB&M is managed as four principal business lines: Global Markets, Global Banking, Global Asset Management and Principal Investments.

Global Markets operations consist of treasury and capital markets services. Products include foreign exchange; currency, interest rate, bond, credit, equity and other derivatives; government and non-government fixed income and money market instruments; precious metals and exchange-traded futures; equity services; distribution of capital markets instruments, and securities services, including custody and clearing services and funds administration to both domestic and cross-border investors. Global Banking offers financing, advisory and transaction services. Its products include capital raising, advisory services, bilateral and syndicated lending, leveraged and acquisition finance, structured and project finance, lease finance and non-retail deposit taking; international, regional and domestic payments and cash management services; and trade services for large corporate clients.

Global Asset Management offers investment solutions to institutions, financial intermediaries and individual investors globally. Principal Investments includes its relationships with third-party private equity managers and other investments. GB&M is a global business, which provides financial solutions to government, corporate and institutional clients globally.

Global Private Banking

GPB works with the Company�� high net worth clients to offer ways to manage and preserve wealth. HSBC Private Bank is the principal marketing name of its international private banking business, GPB. GPB works with its clients to offer both ways to manage and preserve wealth while optimising returns. GPB accesses six advisory centers in Hong Kong, Singapore, Geneva, New York, Paris and London. Private Banking services consist of multi-currency depo! sit accou! nts and fiduciary deposits, credit and specialist lending, treasury trading services, cash management, securities custody and clearing. GPB works to ensure that its clients have access to other products and services available in HSBC, such as credit cards, Internet banking, corporate banking and investment banking.

Private Wealth Management consists of both advisory and discretionary investment services. A range of investment vehicles is covered, including bonds, equities, derivatives, options, futures, structured products, mutual funds and alternatives (hedge funds, private equity and real estate). Corporate Finance Solutions helps provide clients with solutions for their companies, working in conjunction with GB&M. Private Wealth Solutions consist of planning, trustee and other fiduciary services to protect wealth and preserve it for future generations. Its expertise includes trusts, foundation and company administration, charitable trusts and foundations, insurance, family office advisory and philanthropy.

Other

The Company�� Other contains the results of certain property transactions and unallocated investment activities. It also includes centrally held investment companies, movements in fair value of own debt, HSBC�� holding company and financing operations.

Advisors' Opinion:

• [By Sara Sjolin]

  Banks posted some of the biggest gains in London, with Barclays PLC (UK:BARC) � (BCS) �up 1.6%, Royal Bank of Scotland Group PLC (UK:RBS) � (RBS) �rising 1.1% and sector heavyweight HSBC Holdings PLC (UK:HSBA) � (HBC) � (HK:5) �0.7% higher.

• [By Associated Press]

  Also weighing on oil prices was a survey showing a slowdown in manufacturing in China. HSBC's (NYSE: HBC  ) preliminary purchasing managers' index fell to a nine-month low of 48.3 in June, down from 49.6 in May. Numbers below 50 indicate a contraction.

Hot Bank Stocks To Watch For 2015: State Street Corporation(STT)

State Street Corporation, a financial holding company, provides various financial products and services to institutional investors worldwide. The company?s Investment Servicing business line provides products and services, including custody, product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loan and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk, and compliance analytics. This segment also offers shareholder services, which comprise mutual fund and collective investment fund shareholder accounting. Its Investment Management business line provides a range of investment management, investment research, and other related services, such as securities finance; and strategies for managing passive and active financ ial assets, such as enhanced indexing and hedge fund strategies for U.S. and global equities and fixed-income securities. The company serves mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1832 and is headquartered in Boston, Massachusetts.

Advisors' Opinion:

• [By Dan Dzombak]

  Over the years, the expense ratios on ETFs have come down to absurdly low levels, as the size of their assets under management have grown. State Street's (NYSE: STT  ) SPDR S&P 500 ETF (NYSEMKT: SPY  ) is the largest ETF in the world, with $131 billion in assets under management and an expense ratio of 0.09%. Other funds cost even less, including Vanguard's S&P 500 ETF (NYSEMKT: VOO  ) , which has an expense ratio of just 0.05%.

Hot Bank Stocks To Watch For 2015: J P Morgan Chase & Co(JPM)

JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. Its Investment Bank segment provides various investment banking products and services, including advising on corporate strategy and structure, capital-raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, prime brokerage, and research services serving corporations, financial institutions, governments, and institutional investors. The company?s Commercial Banking segment provides lending, treasury, investment banking, and asset management services to corporations, municipalities, financial institutions, and not-for-profit entities. Its Treasury & Securities Services segment offers cash management, trade, wholesale card, and liquidity products and services to small and mid-sized companies, multinational corporations, financial institutions, and government entities. It also holds, values, clears, and services securities, cash, and alternative investments for investors and broker-dealers, and manages depositary receipt programs worldwide. JPMorgan?s Asset Management segment provides investment and wealth management to institutions, retail investors, and high-net-worth individuals. This segment offers investment management in equities, fixed income, real estate, hedge funds, private equity, and liquidity products, as well as trust and estate, banking and brokerage services, and retirement services. Its Retail Financial Services segment offers retail banking and consumer lending services that include checking and savings accounts, mortgages, home equity and business loans, and investments through ATMs, online banking, and telephone banking, as well as auto dealerships and school financial-aid offices. The company?s Card Services segment issues credit cards and processes various credit card payments. JPMorgan Chase & Co. was founded in 1823 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Alex Planes]

  Tale of the tape
  JPMorgan Chase (NYSE: JPM  ) is a 10-year veteran of the Dow, but its history stretches back for more than a century. The J.P. Morgan name has long been connected to dominant banking empires, and today's megabank is no different: JPMorgan, headquartered right on Wall Street in New York, is now the largest bank by assets in the world. However, this venerable institution may not be able to win today, as the bank (along with its dividend) was brought low by the financial crisis in 2009.

• [By Travis Hoium]

  The housing news has been a boon for big banks like Bank of America (NYSE: BAC  ) and JPMorgan Chase (NYSE: JPM  ) , which are up 3.3% and 2.6%, respectively. Even when customers default on their mortgages, there's a growing likelihood that banks can get their money back if home prices are rising. But there's another side to this positive economic news that will impact banks in the long term.

• [By WALLSTCHEATSHEET.COM]

  JPMorgan Chase is a bellwether in the banking space that forms an essential part of the United States financial system. The company is reportedly reaching a tentative agreement with the Justice Department to settle its many investigations. The stock has done relatively well in recent months but is now trading sideways as it digests recent news. Over the last four quarters, earnings have been increasing while revenues have been mixed, which has not pleased investors in the company. Relative to its peers and sector, JPMorgan Chase has been an average year-to-date performer. WAIT AND SEE what JPMorgan Chase does this quarter.

• [By John Grgurich]

  Just before the closing bell, JPMorgan Chase (NYSE: JPM  ) is down 0.30% on the day but up 5.35% so far on the week. It's been a weird two weeks, but don't expect much less weirdness anytime soon.

Hot Bank Stocks To Watch For 2015: Banco Santander Brasil SA (BSBR)

Banco Santander (Brasil) S.A. (Santander Brasil), incorporated on August 9, 1985, is a full-service bank in Brazil. The Bank operates its business along three segments: Commercial Banking, Global Wholesale Banking and Asset Management and Insurance. Through its Commercial Banking segment, the Bank offers traditional banking services, including checking and savings accounts, home and automobile financing, unsecured consumer financing, checking account overdraft loans, credit cards and payroll loans to mid- and high-income individuals and corporations (other than to its Global Banking and Markets clients). Its Global Wholesale Banking segment provides financial services and solutions to a group of approximately 700 local and multinational conglomerates, offering such products as global transaction banking, syndicated lending, corporate finance, equity and treasury. Through its Asset Management and Insurance segment, the Company manages fixed income, money market, equity and multi-market funds and offers insurance products complementary to its core banking business to its retail and small- and medium-sized corporate customers.

Lending Activities

As of December 31, 2010, the Bank�� total loans and advances to customers equaled R$160.6 billion (42.9% of its total assets). Net of allowances for credit losses, loans and advances to customers equaled R$151.4 billion as of December 31, 2010 (40.4% of its total assets). In addition to loans, it had outstanding R$93.5 billion as of December 31, 2010.

Substantially all of its loans are to borrowers domiciled in Brazil and are denominated in reais. Its commercial, financial and industrial loans include primarily loans to small and medium-sized enterprises (SMEs) in its Commercial Banking segment, and to Global Banking and Markets corporate and business enterprise customers in its Wholesale Global Banking segment. The principal products offered to SMEs in this category include revolving loans, overdraft facilities, installme! nt loans, working capital and equipment finance loans. Credit approval for SMEs is based on customer income, business activity, collateral coverage and internal and external credit scoring tools. Collateral on commercial, financial and industrial lending to SMEs generally includes receivables, liens, pledges, guarantees and mortgages, with coverage generally ranging from 100% to 150% of the loan value depending on the risk profile of the loan. Its Wholesale Global Banking customers are offered a range of loan products ranging from typical corporate banking products (installment loans, working capital and equipment finance loans) to more sophisticated products (derivative and capital markets transactions).

The Bank�� Real estate-construction loans include construction loans made principally to real estate developers that are SMEs and corporate customers in its Wholesale Global Banking Segment. Loans in this category are generally secured by mortgages and receivables, though guarantees may also be provided as additional security. Real estate-mortgage loans include loans on residential real estate to individuals. All loans granted under this category are secured by the financed real estate. Installment loans to individuals consist primarily of unsecured personal installment loans (including loans whose payments are automatically deducted from a customer�� payroll), revolving loans, overdraft facilities, consumer finance facilities and credit cards. Lease financing includes primarily automobile leases and loans to individuals. The vehicle financed acts as collateral for the particular loan granted.

Investment Activities

The Bank�� investments include Government securities-Brazil, Government securities-other countries and other debt securities. As of December 31, 2010, the book value of the investment securities was R$84.7 billion (representing 22.6% of its total assets). Brazilian government securities totaled R$55.8 billion, or 65.9% of the Bank�� investment! securiti! es as of December 31, 2010. As of December 31, 2010, the Bank held no securities of single issuers or related group of companies whose aggregate book or market value exceed 10% of stockholders��equity, other than Brazilian government securities, which represented 76.9% of its stockholders��equity.

Sources of Funds

The Bank offers its customers a variety of deposit products, such as current accounts (also referred to as demand deposits), which do not bear interest; traditional savings accounts, which earn the Brazilian reference rate for savings accounts (taxa referencial) plus 0.5% per month, as set by the federal government, and time deposits, which are represented by certificates of bank deposits (CDBs), which normally have a maturity of less than 36 months and earn interest at a fixed or floating rate. In addition, it accepts deposits from financial institutions as part of its treasury operations, which are represented by certificates of interbank deposit CDIs, and which earn the interbank deposit rate.

Advisors' Opinion:

• [By Rudy Martin]

  We are buying Banco Santander (Brasil) S.A. (BSBR) to gain broad additional exposure to the Brazilian.

  BSBR offers a full-service range of financial services, including individual and corporate banking. We also hope to benefit from the stock's 7.2% current indicated dividend yield.

Hot Bank Stocks To Watch For 2015: Ampco-Pittsburgh Corporation(AP)

Ampco-Pittsburgh Corporation and its subsidiaries manufacture and sell custom-engineered equipment in the United States and internationally. It operates in two segments, Forged and Cast Rolls, and Air and Liquid Processing. The Forged and Cast Rolls segment produces forged hardened steel rolls used in cold rolling for the producers of steel, aluminum, and other metals; and cast iron and steel rolls for hot and cold strip mills, medium/heavy section mills, and plate mills. The Air and Liquid Processing segment manufactures finned tube and plate finned heat exchange coils for the commercial and industrial construction, as well as for process and utility industries; custom air handling systems used in commercial, institutional, and industrial buildings; and a line of centrifugal pumps for the refrigeration, power generation, and marine defense industries. The company was founded in 1929 and is based in Pittsburgh, Pennsylvania.

Advisors' Opinion:

• [By Mae Anderson] ATLANTA (AP) ��Finding a knockoff version of the fur you want under the Christmas tree would ordinarily be a disappointment.

  Not this year.

• [By Rhonda Abrams]

  David Packard, left, and Bill Hewlett in 1996 in front of the Palo Alto, Calif., garage where they founded Hewlett-Packard Co.(Photo: AP)

  If you're considering going into business with someone, sit down and ask your potential partner the following questions:

• [By Anita Bruzzese]

  President Barack Obama embraces an unidentified woman Sept. 22, 2013, at a memorial service for the victims of the Washington Navy Yard shooting.(Photo: AP)

Hot Bank Stocks To Watch For 2015: Bank of America Corporation(BAC)

Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, disability, and credit insurance. The company?s Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. It was formerly known as NationsBank Corporation and changed its name on October 1, 1998. Bank of America Corporation was founded in 1874 and is based in Charlott e, North Carolina.

Advisors' Opinion:

• [By Anders Bylund]

  Investors certainly didn't panic over this report. Intel shares are flat just before 2 p.m. EDT, while the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has plunged almost 1%. Intel's mild haircut doesn't hold a candle to Bank of America (NYSE: BAC  ) shares' 5.8% drop, driven by the megabank's far more shocking earnings shortfall. Bank of America chopped about six points off the Dow today.

• [By Jessica Alling]

  Banks
  Bank of America (NYSE: BAC  ) and JPMorgan (NYSE: JPM  ) have been able to avoid slipping into the red this morning so far, with the housing news likely playing a big role in that. Of course, JPMorgan reported earnings on Friday and noted that new originations of mortgages were down year over year and also over sequential quarters, so the outlook for better current and future sales is the good news the bank needs. Since loans are one of the largest parts of a bank's revenue-generation machine, the recent uptick in interest rates has caused concern that new business would be slowing down and hurt revenue growth.

Hot Bank Stocks To Watch For 2015: Banco Bilbao Vizcaya Argentaria S.A. (BBVA)

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. The Company also has investments in some of Spain�� companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities. On August 21, 2009, through its subsidiary BBVA Compass, BBVA acquired certain assets of Guaranty from the United States Federal Deposit Insurance Corporation (the FDIC).

Spain and Portugal

The Spain and Portugal business area focuses on providing banking services and consumer finance to private individuals, enterprises and institutions in Spain and Portugal. The main business units included in the Spain and Portugal area Spanish Retail Network, which manages individual customers, high net-worth individuals (private banking) and small companies and retailers in the Spanish market; Corporate and Business Banking, which manages business with small and medium enterprises (SMEs), large companies, institutions and developers in the Spanish market, and Other units, which includes consumer finance, that manages renting and leasing business, credit to individual and to enterprises for consumer products and Internet banking; European Insurance that manages the insurance business in Spain and Portugal, and BBVA Portugal, that manages the banking business in Portugal. The Spanish Retail Network unit services the financial and non-financial needs of households, professional practices, retailers and small businesses. The Corporate and Business Banking unit offers a range of services and products to SMEs, large companies, institutions and developers with specialized branch networks for each segment.

The Company�� European Insurance unit�� activities are conducted through! various insurance companies that provide direct insurance, reinsurance and insurance brokering services in Spain and Portugal and market products for different types of customers (private individuals, SMEs, retailers, professional service firms and providers and self-employed individuals) through this unit�� branch offices. BBVA Portugal manages its banking business in Portugal.

Wholesale Banking and Asset Management

The Wholesale Banking and Asset Management area focuses on providing services to large international companies and investment banking, capital markets and treasury management services to clients. The business units included in the Wholesale Banking and Asset Management area are Corporate and Investment Banking, which coordinates origination, distribution and management of a complete catalogue of corporate and investment banking products (corporate finance, structured finance, syndicated loans and debt capital markets) and provides global trade finance and global transaction services with coverage of large corporate customers specialized by sector (industry bankers); Global Markets, which handles the origination, structuring, distribution and risk management of market products, which are placed through its trading rooms in Europe, Asia and the Americas; Asset Management, which designs and manages the products that are marketed through its different branch networks including traditional asset management, alternative asset management and Valanza (its private equity unit); Industrial and Other Holdings, which helps to diversify the area�� businesses with the aim of creating medium and long-term value through active management of a portfolio of industrial holdings and other Spanish and international projects, and Asia.

During the year ended December 31, 2009, it launched two products: BBVA Bonos Cash (BBVA Cash Bonds), a money market fund for retail customers, and BBVA Bonos Largo Plazo Gobiernos II (BBVA Long-Term Government Bonds), a public-debt fu! nd. In ad! dition it launched through this unit additional fixed-income long-term funds, including BBVA Bonos Corporativos 2011 and BBVA Bonos 2014, which were sold to HNWI customers.

Mexico

The business units included in the Mexico area are Retail and Corporate banking and Pensions and Insurance. BBVA Bancomer launched six new mortgage products for lending to home buyers in 2009. These products included: loans for home improvements, remodeling or additions to homes and financial discount which provides liquidity to construction companies. In Mexico, it operates its pensions business through Afore Bancomer, its insurance business through Seguros Bancomer, its annuities business through Pensiones Bancomer and its health insurance business through Preventis.

The United States

The business units included in the United States area are BBVA Compass and Other units: BBVA Puerto Rico and Bancomer Transfers Services (BTS). During 2009 this unit marketed and sold several new products, The ClearPoints credit card, Business Build-to-order Checking, Compass for your Cause and Money Market Sweep.

South America

The South America business area includes its banking, insurance and pension businesses in South America. The business units included in the South America business area are Retail and Corporate Banking, which includes banks in Argentina, Chile, Colombia, Panama, Paraguay, Peru, Uruguay and Venezuela; Pension businesses, which includes pensions businesses in Argentina, Bolivia, Chile, Colombia, Ecuador and Peru and Dominican Republic, and Insurance businesses, which includes insurance businesses in Argentina, Chile, Colombia, Dominican Republic and Venezuela.

Corporate Activities

The Corporate Activities area handles its general management functions. These mainly consist of structural positions for interest rates associated with the euro balance sheet and exchange rates, together with liquidity management and shareholde! rs��fun! ds.

Advisors' Opinion:

• [By Jim Woods]

  If you’re looking for an income-producing dividend stock to fill the void, consider the classic pure plays AT&T (T) and Verizon (VZ).

  Banco Bilbao Vizcaya Argentaria (BBVA)
  

  When it comes to suspending dividends, the Europeans don�� want to be left out. In October, Spain�� biggest financial institution, Banco Bilbao Vizcaya Argentaria (BBVA), cut its annual dividend by putting a cap on payouts for 2014 (and going forward) to 40% of profits.

• [By Lee Jackson]

  Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) was raised to Outperform from Neutral by Credit Suisse.

  Caterpillar Inc. (NYSE: CAT) was started as Equal Weight at Morgan Stanley

• [By fedezaldua]

  On the capitalization side, Santander has gotten significantly better, and I would expect the bank to show a Basel 2 tier 1 capital ratio of 12% by the end of 2014, which is around what most analysts expect for its closest peer, Banco Bilbao Viscaya Argentaria (BBVA) ��most commonly known as BBVA.

Hot Bank Stocks To Watch For 2015: Commonwealth Bank of Australia (CBA.AX)

Commonwealth Bank of Australia (the Bank) is engaged in the provision of a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Bank is a provider of integrated financial services, including retail, business and institutional banking, superannuation, life insurance, general insurance, funds management, broking services and finance company activities. Its operating segments include Retail Banking Services, Business and Private Banking, Institutional Banking and Markets, Wealth Management, New Zealand, Bankwest and Other. Its retail banking services include home loans, consumer finance, retail deposits and distribution. Its business and private banking include corporate financial services, regional and agribusiness banking, local business banking, private bank and equities and margin lending. The Bank and its subsidiaries ceased to be a substantial holder in Ten Network Holdings Limited, as of September 12, 2012.

Hot Bank Stocks To Watch For 2015: EverBank Financial Corp (EVER)

EverBank Financial Corp, incorporated in 2004, is an unitary savings and loan holding company. The Company provides a range of financial products and services directly to customers through multiple business channels. Its operating subsidiary is EverBank. As of December 31, 2011, EverBank had $ 10.3 billion deposits. EverBank offers a range of banking, lending and investing products to consumers and businesses. EverBank provides services to customers through Websites, over the phone, through the mail and at 14 Florida-based Financial Centers. The Company operates in two operating business segments: Banking and Wealth Management, and Mortgage Banking. Its Banking and Wealth Management segment includes earnings generated by and activities related to deposit and investment products and services and portfolio lending and leasing activities. Its Mortgage Banking segment consists of activities related to the origination and servicing of residential mortgage loans. In April 2012, the Company acquired MetLife Bank�� warehouse finance business. In October 2012, it acquired Business Property Lending, Inc.

Asset Origination and Fee Income Businesses

The Company has a range of asset origination and fee income businesses. The Company generates generate fee income from its mortgage banking activities, which consist of originating and servicing one-to-four family residential mortgage loans. It originates prime residential mortgage loans using a centrally controlled underwriting, processing and fulfillment infrastructure through financial intermediaries (including community banks, credit unions, mortgage bankers and brokers), consumer direct channels and financial centers. Its mortgage origination activities include originating, underwriting, closing, warehousing and selling to investors prime conforming and jumbo residential mortgage loans. From its mortgage origination activities, it earns fee-based income on fees charged to borrowers and other noninterest income from gains on sales from ! mortgage loans and servicing rights. During the year ended December 31, 2011, it originated six billion dollars of residential loans. It generates mortgage servicing business through the retention of servicing from its origination activities, acquisition of bulk mortgage servicing rights (MSR) and related servicing activities.

The Company�� mortgage servicing business includes collecting loan payments, remitting principal and interest payments to investors, managing escrow funds for the payment of mortgage-related expenses, such as taxes and insurance, responding to customer inquiries, counseling delinquent mortgagors, supervising foreclosures and liquidations of foreclosure properties and otherwise administering its mortgage loan servicing portfolio. It earns mortgage servicing fees and other ancillary fee-based income in connection with these activities. It services a portfolio by both product and investor, including agency and private pools of mortgages secured by properties throughout the United States. As of December 31, 2011, its mortgage servicing business, which services mortgage loans for itself and others, managed loan servicing administrative functions for loans with unpaid principal balance (UPB) of $54.8 billion.

The Company originates originate equipment leases nationwide through relationships with approximately 280 equipment vendors with networks of creditworthy borrowers and provide asset-backed loan facilities to other leasing companies. Its equipment leases and loans finance essential-use health care, office product, technology and other equipment. Its commercial financings range from approximately $25,000 to $1.0 million per transaction, with typical lease terms ranging from 36 to 60 months. Its commercial finance activities provide it with access to approximately 25,000 small business customers nationwide, which creates opportunities to cross-sell its deposit, lending and wealth management products. It focuses to offer warehouse loans, which are short-ter! m revolvi! ng facilities, primarily securitized by agency and government collateral. It provides financial advisory, planning, brokerage, trust and other wealth management services to its mass-affluent and high-net-worth customers through its registered broker dealer and recently-formed registered investment advisor subsidiaries.

Interest-Earning Asset Portfolio

As of December 31, 2011, the Company�� interest-earning assets were $11.7 billion. As of December 31, 2011, its loan and lease held for investment portfolio was $6.5 billion. As of December 31, 2011, the carrying values of its interest-earning assets are: residential, government-insured (residential), securities, commercial and commercial real estate, Bank of Florida (covered), lease financing receivables, and other.

Residential includes primarily prime loans originated and retained from its mortgage banking activities, acquired from third parties or held for sale to other investors. government-insured (residential) includes Government National Mortgage Association (GNMA) pool buyouts with government insurance, sourced from its mortgage banking segment and third-party sources. Securities include non-agency residential mortgage-backed securities (MBS) and collateralized mortgage obligation (CMO) purchased at significant discounts. This portfolio includes protection against credit losses from purchase discounts, subordination in the securities structures and borrower equity. Commercial and commercial real estate includes a range of commercial loans, including owner-occupied commercial real estate, commercial investment property and small business commercial loans. As of December 31, 2011, Bank of Florida (Covered) includes commercial, multi-family and commercial real estate loans with $71.3 million of purchase discounts. Lease financing receivables include covered lease financing receivables. As of December 31, 2011, the lease portfolio had $64.7 million of total discounts. Other includes home equity loans and lines ! of credit! , consumer and credit card loans and other investments.

Deposit Generation

As of December 31, 2011, the Company had approximately $10.3 billion in deposits. Its market-based deposit products, consisting of its WorldCurrency, MarketSafe and EverBank Metals Select products, provide investment capabilities for customers seeking portfolio diversification with respect to foreign currencies, commodities and other indices. Its financial portal includes online bill-pay, account aggregation, direct deposit, single sign-on for all customer accounts and other features. Its Website and mobile device applications provide information on its product offerings, financial tools and calculators, newsletters, financial reporting services and other applications for customers to interact with it and manages all of their EverBank accounts on a single integrated platform. Its new mobile applications allow customers using iPhone, iPad, Android and Blackberry devices to view account balances, conduct real time balance transfers between EverBank accounts, administer billpay, review account activity detail and remotely deposit checks.

The Company generates deposit customer relationships through its consumer direct, financial center and financial intermediary distribution channels. Its consumer direct channel includes Internet, e-mail, telephone and mobile device access to product and customer support offerings. Its direct distribution with a network of 14 financial centers in Florida metropolitan areas, include Jacksonville, Naples, Ft. Myers, Miami, Ft. Lauderdale, Tampa Bay and Clearwater. As of December 31, 2011, its financial centers had average deposits of $130.5 million, which is approximately double the industry average. In addition, it generates noninterest-bearing escrow deposits from its mortgage servicing business.

Advisors' Opinion:

• [By Nicole Seghetti]

  3. Build your savings account
  Take this opportunity to bolster your savings such that you have at least three months' worth of living expenses socked away. Money market or savings accounts will provide you with the best rates. For example, American Express' (NYSE: AXP  ) high-yield savings account pays 0.85%, and Capital One Financial's (NYSE: COF  ) Capital One 360 offers a 0.75% APY. Both accounts boast no minimum balances and no fees. Meanwhile, EverBank Financial (NYSE: EVER  ) pays an attractive 1.01% money market rate but requires a $1,500 minimum opening balance. �

Hot Bank Stocks To Watch For 2015: Popular Inc.(BPOP)

Popular, Inc., through its subsidiaries, provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. It offers deposit products; commercial, consumer, and mortgage loans, as well as lease finance; and finance and advisory services. The company also offers trust and asset management, brokerage and investment banking, and insurance and reinsurance services. As of December 31, 2010, it owned and occupied approximately 94 branch premises and other facilities in Puerto Rico; and 119 offices, including 20 owned and 99 leased in New York, Illinois, New Jersey, California, Florida, and Texas. Popular, Inc. was founded in 1917 and is headquartered in San Juan, Puerto Rico.

Advisors' Opinion:

• [By Paul Ausick]

  Among multinationals, Sterne Agee recommends three banks. The first is Puerto Rico�� Popular Inc. (NASDAQ: BPOP). The mid-cap bank�� stock closed at $28.21 on Friday in a 52-week range of $20.31 to $34.34. Based on Sterne Agee�� 2014 price target of $40.00, Popular has an upside potential of nearly 42% and a 2014 EPS estimate of $2.90. The investment firm�� forward multiple is just 9.6, below the Thomson Reuters consensus multiple of 10.3. Popular received TARP funds in 2009 and could repay the loan in the first quarter of next year, which will give the stock a shot in the arm as well.

• [By Jake L'Ecuyer]

  Popular (NASDAQ: BPOP) shares tumbled 5.54 percent to $27.48 after Morgan Stanley downgraded the stock from Equal-weight to Underweight.

  Pacific Coast Oil Trust (NYSE: ROYT) down, falling 7.13 percent to $16.70 after the company priced a public offering by Pacific Coast Energy Company LP and other selling unitholders of 13,500,000 trust units at a price of $17.10 per unit.

Hot Bank Stocks To Watch For 2015: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.