It�� Christmas Eve and this year, as always, at my house, there�� a lot of anticipation. And by anticipation, I mean that the kids don�� want to go to sleep (I have a totally different idea). We��e tracking Santa�� progress via NORAD (North American Aerospace Defense Command, a United States and Canada bi-national organization charged with the missions of aerospace warning, aerospace control, and maritime warning for North America). If you��e curious, you can track Santa�� journey, too, via email to noradtrackssanta@outlook.com or phone by calling 1-877-HI-NORAD or 1-877-446-6723. They��e also on twitter @NoradSanta.
As of this writing, Santa was last spotted at La Paz, Bolivia, and was headed for Caracas, Venezuela. He still has a lot of ground to cover before hitting Pennsylvania.
As a result, we��e had quite a few discussions in my household about how Santa manages, in one night, to get all of his work done. Clearly, he has help. And that has financial and tax consequences, right? So we had a little chat about Santa�� money and his tax bill. And here�� what we ��a tax attorney and three kids ��decided:
5 Best Electric Utility Stocks To Own For 2015: Powershares Dynamic Leisure And Entertainment Portfolio (PEJ)
PowerShares Dynamic Leisure and Entertainment Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the Dynamic Leisure and Entertainment Intellidex Index (the Leisure and Entertainment Intellidex). The Leisure and Entertainment Intellidex consists of stocks of 30 United States leisure and entertainment companies. These are companies that are principally engaged in the design, production or distribution of goods or services in the leisure and entertainment industries. These companies may include companies that provide goods or services, including television and radio broadcast or manufacture (including cable television); motion pictures and photography; recordings and musical instruments; publishing, including newspapers and magazines; sporting goods and camping and recreational equipment; toys and games, including video and other electronic games; amusement and theme parks; travel and travel-related services; leisure apparel or footwear, and owners and operators of sports arenas and gaming casinos, hotels and motels. Stocks are selected principally on the basis of their capital appreciation potential as identified by the AMEX (the Intellidex Provider) pursuant to its Intellidex methodology.
The Fund will normally invest at least 80% of its total assets in common stocks of leisure companies and entertainment companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Leisure and Entertainment Intellidex. The Leisure and Entertainment Intellidex is adjusted quarterly, and the Fund, using an indexing investment approach, attempts to replicate the performance of the Leisure and Entertainment Intellidex. The Fund generally will invest in all of the stocks comprising the Leisure and Entertainment Intellidex in proportion to their weightings in the Leisure and Entertainment Intellidex. The Fund�� investment advisor is PowerShares Capital Management LLC.
Advisors' Opinion:- [By Mary Anne & Pamela Aden]
So, for now, the US stock market is the best overall market. So continue holding the stocks you have, which are mostly doing very well. If you want to buy new positions and increase your stock allocation, the following ETFs are among the strongest ETFs, and we recommend them for purchase: SPDR KBW Bank (KBE)
Consumer Discretionary SPDR (XLY)
Merrill Lynch Retail HOLDRS (RTH)
iShares Dow Jones US Financial Service (IYG)
PowerShares Dynamic Leisure & Entertainment (PEJ)
Subscribe to The Aden Forecast here��/P>
- [By John Udovich]
Labor Day weekend is coming and if you have travel plans, you might be making a stop at a facility owned by small cap TravelCenters of America LLC (NYSE: TA) which is also worth taking a closer look at from an investment standpoint along with the PowerShares Dynamic Leisure and Entertainment ETF (NYSEARCA: PEJ) and iShares Dow Jones Transportation Average ETF (NYSEARCA: IYT).
- [By John Udovich]
The shares of small cap IMAX Corporation (NYSE: IMAX) have slipped more than 10% this week on growth concerns - meaning it might be a good idea to take a closer look at the stock plus its performance�verses other cinema stocks like Carmike Cinemas, Inc (NASDAQ: CKEC), Cinemark Holdings, Inc (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC) along with the PowerShares Dynamic Leisure & Entertainment ETF�(NYSEARCA: PEJ).
Top 10 Financial Stocks To Own For 2014: Western Asset Inflation Management Fund Inc (IMF)
Western Asset Inflation Management Fund Inc. (the Fund), incorporated on March 16, 2004, is a non-diversified, closed-end management investment company. The Fund�� primary investment objective is total return.
Current income is a secondary investment objective. Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Fund�� investment manager and Western Asset Management Company (Western Asset) is the Fund�� sub adviser.
Advisors' Opinion:- [By Canadian Value]
From a macroeconomic viewpoint, our optimism for Asian markets��strong long-term potential is based on three main factors. First, when compared with developed markets generally, Asia�� emerging markets have had higher rates of historic economic growth, and growth expectations for the year ahead are generally higher as well. The International Monetary Fund (IMF) projects growth in developing Asia of 6.5% in 2014, compared with 2% in developed markets generally.1Since 1999, the region has seen strong growth even in 2009 when developed markets fell into recession, as you can see in the chart below.
Top 10 Financial Stocks To Own For 2014: Fifth Street Finance Corp (FSC)
Fifth Street Finance Corp. is a specialty finance company that lends to and invests in small and mid-sized companies in connection with investments by private equity sponsors. The Company�� investment objective is to maximize its portfolio's total return by generating current income from its debt investments and capital appreciation from its equity investments. As of September 30, 2011, 90.9% of its portfolio consisted of debt investments that were secured by first or second priority liens on the assets of its portfolio companies. As of September 30, 2011, it held equity investments consisting of common stock, preferred stock or other equity interests in 27 out of 65 portfolio companies. It is managed and advised by Fifth Street Management LLC. In June 2013, Fifth Street Finance Corp. announced that it has closed its portfolio company acquisition of Healthcare Finance Group, LLC (HFG).
Investments
The Company tailors the terms of its debt investments to the facts and circumstances of the transaction and prospective portfolio company. As of September 30, 2011, it directly originated a majority of its debt investments. It is focusing its origination efforts on first lien, second lien and subordinated loans. Its first lien loans have terms of four to six years, provide for a variable or fixed interest rate, contain prepayment penalties and are secured by a first priority security interest in all existing and future assets of the borrower. Its first lien loans may take many forms, including revolving lines of credit, term loans and acquisition lines of credit. Its second lien loans have terms of four to six years, provide for a fixed interest rate, contain prepayment penalties and are secured by a second priority security interest in all existing and future assets of the borrower. Its second lien loans often include payment-in-kind (PIK), interest, which represents contractual interest accrued and added to the principal that generally becomes due at maturity. Its unsecured inve! stments have terms of five to six years and provide for a fixed interest rate. It may make unsecured investments on a stand-alone basis, or in connection with a senior secured loan, a junior secured loan or a one-stop financing. Its unsecured investments may include payment-in-kind (PIK), interest, which represents contractual interest accrued and added to the principal that becomes due at maturity, and an equity component, such as warrants to purchase common stock in the portfolio company.
In addition, the Company from time to time non-control, equity co-investments in connection with private equity sponsors. It structures equity investments, such as direct equity co-investments, to provide the Company with minority rights provisions and event-driven put rights. The Company make investments in the private equity funds of certain of its equity sponsors. It makes these investments where it has a long term relationship and is comfortable with the sponsor�� business model and investment strategy. As of September 30, 2011, it had investments in six private equity funds, which represented less than 1% of the fair value of its assets as of such date.
Portfolio Management
As a business development company, the Company offers managerial assistance to its portfolio companies and to provide it if requested. It monitors the financial trends of each portfolio company to assess the appropriate course of action for each company and to evaluate overall portfolio quality. It has several methods of evaluating and monitoring the performance of its investments, which includes review of monthly and quarterly financial statements and financial projections for portfolio companies; periodic and regular contact with portfolio company management; attendance at board meetings; periodic formal update interviews with portfolio company management, and assessment of business development, including product development, profitability and the portfolio company�� overall adherence to its busine! ss plan.
In addition to various risk management and monitoring tools, the Company uses an investment rating system to characterize and monitor the credit profile and expected level of returns on each investment in itd portfolio. It uses a five-level numeric rating scale. In the event that it determines that an investment is underperforming, or circumstances suggest that the risk associated with a particular investment has significantly increased, it monitors the effected portfolio company.
Valuation of Portfolio Investments
As a business development company, the Company invests in illiquid securities, including debt and equity investments of small and mid-sized companies. The Company perform valuations of its debt and equity investments on an individual basis, using market, income, and bond yield approaches as appropriate. Under the market approach, it estimates the enterprise value of the portfolio companies, in which it invests. To estimate the enterprise value of a portfolio company, it analyze various factors, including the portfolio company�� historical and projected financial results. It requires portfolio companies to provide annual audited and quarterly and monthly unaudited financial statements, as well as annual projections for the upcoming fiscal year.
Under the income approach, the Company prepares and analyze discounted cash flow models based on projections of the future free cash flows of the business. Under the bond yield approach, it uses bond yield models to determine the present value of the future cash flow streams of its debt investments. It reviews various sources of transactional data, including private mergers and acquisitions involving debt investments with similar characteristics, and assess the information in the valuation process.
Advisors' Opinion:- [By Eddie Staley]
Fifth Street Finance (NASDAQ: FSC) shares were also up, gaining 0.70 percent to $10.04 after the company lifted its monthly dividend by 10% to 9.17 cents per share versus 8.33 cents per share.
- [By Jordan Wathen]
Its recent filing is for five-year unsecured debt. Other BDCs with investment-grade ratings have found good reception for five-year, unsecured note issuances. Fifth Street Finance (NASDAQ: FSC ) , a BDC with a BBB- rating from Standard & Poor's, raised $250 million in February at a 3.5% spread to five-year U.S. Treasury yields at the time. (It's worth pointing out that Fifth Street Finance's rating is one tier below FS Investment's BBB.)
- [By Eric Volkman]
Fifth Street Finance (NASDAQ: FSC ) is about to expand its capital base. The company has launched a fresh issue of 13.5 million shares of its common stock in an underwritten public offering. It also intends to grant its underwriters a purchase option for an additional 2.025 million shares.
- [By Bryan Perry] Popular Posts: Trade of the Day: Groupon (GRPN)Lloyds (LYG): A Sweet Stock Across the PondDoes Fifth Street Finance (FSC) Deserve a Spot in Your Portfolio? Recent Posts: Does Fifth Street Finance (FSC) Deserve a Spot in Your Portfolio? Trade of the Day: Groupon (GRPN) Trade of the Day: U.S. Steel (X) View All Posts
If you’re holding Fifth Street Finance (FSC), criticism that it’s not covering its dividend with net investment income and is not projected to do so in 2014 might have you second-guessing its place in your lineup.
Top 10 Financial Stocks To Own For 2014: Primerica Inc.(PRI)
Primerica, Inc., together with its subsidiaries, engages in the distribution of financial products on behalf of third parties to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites term life insurance products. The Investment and Savings Products segment distributes mutual funds, variable annuities, fixed annuities, and segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans, which include debt consolidation or refinance, and purchase money loans; unsecured loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; mail-order student life products; short-term disability benefit insurance; and auto and homeowners? insurance products. The company was founded in 1927 and is based in Duluth, Georgia.
Advisors' Opinion:- [By Rich Duprey]
Private equity investor Warburg Pincus has been a shareholder in term life insurance underwriter Primerica� (NYSE: PRI ) since its IPO in 2010. However, the financial products marketer will be buying back all of the holdings Warburg Pincus owns for $154.7 million. That translates into�almost�2.5 million shares of common stock�and warrants that �are�exercisable for 4.1 million shares.
Top 10 Financial Stocks To Own For 2014: Willis Group Holdings Limited(WSH)
Willis Group Holdings Public Limited Company provides a range of insurance brokerage, reinsurance, and risk management consulting services to its clients worldwide. The company offers various insurance brokerage services, including property damage, offshore construction, liability, and control of well and pollution insurance to the energy industry; and marine insurance and reinsurance brokerage services consisting of hull, cargo, and general marine liabilities. It also provides its services to aerospace clients, including aircraft manufacturers, air cargo handlers and shippers, airport managers, and other general aviation companies; and advisory services comprising claims recovery, contract and leasing risk management, market information, and safety services. In addition, the company offers risk management advice and brokerage services to the construction industry; brokerage for directors' and officers' insurance, as well as professional indemnity insurance for corporation s and professional firms; and specialist risk management and insurance services to fine art, diamond, and jewelry businesses, and operators of armored cars. Further, it provides special contingencies packages; services for horse racing and breeding industry, and agriculture/crop sector; and advice to companies involved in the insurance and reinsurance industry on capital markets products. Additionally, the company offers health, welfare, and human resources consulting and brokerage services to small, medium, and large corporations, as well as the employee benefits practice. It serves clients located in approximately 190 countries, including multinational and middle-market companies operating in various industries, as well as public institutions and individual clients. The company was formerly known as Willis Group Holdings Limited and changed its name to Willis Group Holdings Public Limited Company in January 2010. The company was founded in 1828 and is headquartered in Lond on, the United Kingdom.
Advisors' Opinion:- [By Vera Yuan]
We bought relatively small new positions in Willis Group Holdings and Avon Products in the third quarter. Willis (WSH) is a leading global insurance broker. We have followed this attractive industry for many years through investments in Aon, Brown & Brown and others (including Willis under prior management). Organic revenue growth has been solid, and Willis has a near-term opportunity to expand margins through expense initiatives and restructuring savings that are likely to kick in next year. We think the stock should be revalued higher once management follows through on its pledged cost discipline and drives operating leverage. Avon (AVP) is a direct selling, branded beauty business undergoing a turnaround in the U.S. market. The overwhelming majority of Avon�� business value comes from its stronger positions in Latin America and other emerging markets. Our investment thesis is that well-run direct selling can be a decent business with solid margins and high returns, that the Avon brand is not fundamentally broken, and that the U.S. business is bottoming as evidenced by break-even results in the most recent quarter. Avon has a wider range of potential outcomes than our typical investment and is sized accordingly.
- [By Marc Bastow]
Insurance brokerage and risk management consultant Willis Group (WSH) raised its quarterly dividend 7.1% to 30 cents per share, payable April 15 to shareholders of record as of March 31.
WSH Dividend Yield: 2.89% - [By Jonas Elmerraji]
$11 billion UK insurer Willis Group Holdings (WSH) is another uptrending channel. The big difference with Willis is that this name is actually at its trendline support level this week. Better still, shares are bouncing higher -- and it makes sense to buy the bounce here.
Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring WSH can actually still catch a bid along that line.
The 50-day moving average has been a good proxy for support on the way up, so it's a solid place to put a protective stop if you decide to be a buyer at this point.
Top 10 Financial Stocks To Own For 2014: Alps Jefferies TR/J CRB Global Commodty Eq Idx (CRBQ)
Jefferies | TR/J CRB Global Commodity Equity Index Fund (the Fund), formerly Thomson Reuters/Jefferies CRB Global Commodity Equity Index Fund, is an exchange traded fund (ETF). The Fund seeks investment results that replicate as closely as possible the price and yield performance of the Thomson Reuters/Jefferies In-The-Ground CRB Global Commodity Equity Index (the Index). The Index is a modified capitalization-weighted, float-adjusted, rules-based index designed to track the overall performance of a global universe of listed companies engaged in the production and distribution of commodities and commodity-related products and services in the sectors, such as agriculture, base/industrial metals, energy and precious metals. ALPS Advisors, Inc. is the investment adviser for the Fund. Arrow Investment Advisors, LLC is the investment sub-adviser for the Fund. Advisors' Opinion:- [By Richard Stavros]
Whereas in the 1970s there were limited ways to hedge against inflation, now there is a cornucopia of currency and international commodities instruments that can not only hedge against inflation but other global shocks, such as market bubbles and even war.
And it is these very scenarios that investors have been worried about. Since the beginning of the year, stocks, bonds and just about any investment you can think of have gyrated wildly at various times amid concerns of war, inflation and the possibility that the U.S. equity market is overvalued and headed for a correction.
In response, some market analysts in Bloomberg news reports have offered any number of wildly unsubstantiated statements for why investors should ignore today’s perils. They dismiss the danger posed by Russia�� annexation of Ukraine�� Crimea region (��utin will stop short of other countries or war with the West��. They also argue that the Federal Reserve chairwoman misspoke (��anet Yellen really didn�� mean a rate hike is coming soon. Inflation is under control. It was a rookie mistake��.
For my money, here’s the most outrageous: The Shiller Cyclically adjusted P/E metric which has predicted the 1929, 2000 and 2007 downturns doesn�� apply (��uggests only a slightly expensive market with low to moderate returns going forward on average��.
With new records being set by the S&P 500 in the last few months, it stands to reason that some investors have not needed much convincing to stay all in and buying. This mindset has prevailed, even as the impact of a Russian war or conflict, runaway inflation or a market correction could be devastating to investor portfolios, taking years to recover.
If you��e never thought of certain investments as “insurance,” it�� time to start now. Protecting wealth is as important as building wealth. And as previously mentioned, we have found that the Inflation Survival Letter�� Thri
Top 10 Financial Stocks To Own For 2014: General Growth Properties Inc. (GGP)
General Growth Properties, Inc is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It engages in owning, managing, leasing, and redeveloping high-quality regional malls. General Growth Properties, Inc was founded in 1986 and is based in Chicago, Illinois.
Advisors' Opinion:- [By Myra P. Saefong]
After the close Monday, fourth-quarter results are due from the Hartford Financial Services Group Inc. (HIG) , which is projected to report earnings of 90 cents per share, Edwards LifeSciences Corp. (EW) , expected to post earnings per share of 82 cents and General Growth Properties Inc. (GGP) , expected to report a profit per share of 35 cents. For its first quarter, Hologic Inc. (HOLX) �is expected to post earnings per share of 31 cents.
- [By Mike Arnold]
Brookfield's public assets include a 21% stake (and potentially more given certain warrants held by Brookfield) in General Growth Properties (GGP), a 51% stake in Brookfield Office Properties (BPO), a 36% stake (again, more if certain warrants are exercised) in Rouse Properties (RSE) and 21% stake in Canary Wharf Group Plc, which is majority owned by Songbird Estates Plc (SBEPF.PK).
- [By Holly LaFon]
To free up more cash, it plans to reduce expenses by close to $200 million, reduce peak inventory, separate Sears Hometown and Outlet businesses and hardware stores by transferring them to shareholders, which would raise $400 million to $500 million, and selling real estate for 11 stores to General Growth Properties (GGP) for $270 million. At the end of December, it said it would close as many as 120 stores.
- [By Adam Levine-Weinberg]
I think J.C. Penney's best bet for generating cash is selling off a few of its most desirable stores. This is not a palatable strategy, as it means losing some of the highest-potential stores, but it could produce cash without severely diluting the interests of J.C. Penney shareholders or adding interest expense that J.C. Penney cannot afford. For example, Sears Holdings,�another struggling department store giant, was able to sell 11 stores to General Growth Properties (NYSE: GGP ) for $270 million last year. Bill Ackman's Pershing Square hedge fund happens to be a major shareholder in General Growth.� This could open up an opportunity for J.C. Penney to pursue a similar deal -- if any of its real estate would be sufficiently valuable to General Growth.
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