The following video is from Tuesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Jason Moser and Matt Argersinger, discuss the top business and investing stories of the day.
Goldman Sachs (NYSE: GS ) reported a better-than-expected quarterly profit of $2.2 billion, but�shares were down on the news. Fifty percent of Goldman Sachs' net revenue is generated from�the company's�trading business. Shares of Goldman Sachs are beating the market over the past year. In this installment of MarketFoolery, our analysts take stock of the future of Goldman.
During the financial crisis, Goldman Sachs did so well pivoting to avoid the worst of the fallout that it had to downplay its success to duck public ire and conspiracy theories. Today, Goldman is still arguably the powerhouse global financial name, yet its stock trades at a valuation of less than half what it fetched before the crisis. Does this make Goldman one of the best opportunities in the market today? To answer that question, check out The Motley Fool's special report on the bank. In it, Fool banking expert Matt Koppenheffer uncovers the key issues facing Goldman, including three specific areas Goldman investors must watch. To get access to this report, just click here.
Huntington Bancshares Incorporated operates as the holding company for The Huntington National Bank that provides commercial, small business, and consumer banking services. The company?s Retail and Business Banking segment offers various financial products and services, including checking, savings, and money market accounts, certificates of deposit, consumer loans, and small business loans and leases; and investments, insurance, interest rate risk protection, foreign exchange hedging, and treasury management services to consumer and small business customers. Its Regional and Commercial Banking segment provides commercial lending; depository and liquidity management products; treasury management solutions; equipment and technology leasing; international services; and capital markets services, such as interest rate risk protection, foreign exchange hedging and sales, trading of securities, mezzanine investment capabilities, and employee benefit programs to government, not-f or-profit, health-care, and publicly traded entities. The company?s Automobile Finance and Commercial Real Estate segment offers financing for the purchase of automobiles, and new and used vehicle inventory by automotive dealerships; and financing for land, buildings, and other commercial real estate owned or constructed by real estate developers, automobile dealerships, or other customers. Its Wealth Advisors, Government Finance, and Home Lending segment provides investment management; investment servicing; custody, and corporate trust and retirement plan services; and administrative and operational support to fund to high net worth customers. It also offers online, mobile, and telephone banking services; and operates approximately 1,300 automated teller machines. As of December 31, 2011, the company had 652 branches located in Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.
Advisors' Opinion: - [By Selena Maranjian]
Finally, Diamond Hill's biggest closed positions included Johnson & Johnson and PPG Industries. Other closed positions of interest include Huntington Bancshares (NASDAQ: HBAN ) , which many view as a high-quality bank because of its low percentage of non-performing assets. It's also viewed favorably for its effective management and smart growth strategy. Its recently reported first quarter featured net income down a bit -- but also a 25% dividend increase.
- [By Tim Melvin]
The year ahead should be a great one for the smaller bank stocks. Larger regionals like Huntington Bancorp (HBAN) and Capital Ban Financial (CBF) have made it clear they intend to grow by acquisition in the years ahead. Banks like First Merit (FMER) and First Merchants (FRME) have done deals in the past year and are open to doing more to increase their market share and footprints. This should be the year the floodgates open and we see the first wave of merger activity in small banks.
- [By James Brumley]
Manitex certainly has gotten the attention of Forbes, which in October put Manitex on its list of America’s best small companies.
Huntington Bancshares (HBAN)
12/2 Price: $9.23
- [By Selena Maranjian]
The biggest new holdings are Willis Group Holdings�and Whirlpool. Other new holdings of interest include Baidu (NASDAQ: BIDU ) and Huntington Bancshares (NASDAQ: HBAN ) . Chinese search-engine giant Baidu has been hurt by China's slowing economic growth�as well as by tough competition, such as from Qihoo 360. Many like its profitability and growth prospects, such as in video, and recent news that it's buying a major Chinese mobile apps company sent shares soaring.
Top 10 Financial Companies To Buy Right Now: Health Care Select Sector SPDR (XLV)
Health Care Select Sector SPDR Fund (the Fund) seeks to provide investment results that correspond to the price and yield performance of the Health Care Select Sector of the S&P 500 Index (the Index). The Index includes companies whose primary business may include healthcare equipment and supplies, healthcare services, biotechnology and pharmaceuticals.
The Fund utilizes a passive or indexing investment approach and attempts to invest in a portfolio of stocks that seek to replicate the Index. The Fund�� investment advisor is SSgA Funds Management, Inc.
Advisors' Opinion: - [By Gary Gordon]
On behalf of most of my clients in 2013, I chose to overweight tech and health care. However, I did so with areas that are traditionally less volatile. I continue to own Powershares Pharmaceuticals (PJP) and/or SPDR Select Healthcare (XLV). I’ve been a proponent of “old tech” with the attractive prices and dividends; First Trust NASDAQ Tech Dividend (TDIV) fits the bill. Additionally, I have remained faithful to iShares Small Cap Value (IJS) for small-cap exposure, rather than hop on the IWO express.
- [By John Udovich]
Beaten down small cap home care and infusion stock BioScrip Inc (NASDAQ: BIOS) was recently�called a�potential takeover target, meaning its worth taking a closer look at the stock along with healthcare ETFs like the iShares Dow Jones US Health Care ETF (NYSEARCA: IHF) or the Health Care SPDR ETF (NYSEARCA: XLV).�I should mention that during the third quarter of last year, we had BioScrip in our SmallCap Network Elite Opportunity (SCN EO) portfolio after the stock had�taken a beating but we also believed the company is on the verge of turning a profit and is potentially undervalued.
- [By Tom Aspray]
If you are willing to spend the time and do the work, I think you can become your own investment analyst. These more active investors should consider a core position in an S&P-500-tracking ETF and then allocate to other industry-specific ETFs. So far in 2014, the Select Sector SPDR Utilities (XLU) is up 8.8% for the year. Not too far behind is the Select Sector SPDR Health Care (XLV), which is up 7.8%.
- [By David Fabian]
The most widely held ETF in this sector is the SPDR Healthcare Select Sector (XLV), which contains 56 large-cap companies primarily engaged in the pharmaceuticals, biotechnology, and medical provider fields.
Top 10 Financial Companies To Buy Right Now: iShares Short Treasury Bond ETF (SHV)
iShares Lehman Short Treasury Bond Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the short-term sector of the United States Treasury market as defined by the Lehman Brothers Short U.S. Treasury Index (the Index). The Index includes all publicly issued United States Treasury securities that have a remaining maturity of between 1 and 12 months, and have more than $250 million or more of outstanding face value. In addition, the securities must be denominated in United States dollars, and must be fixed-rate and non-convertible securities. Excluded from the Index are certain special issues, such as flower bonds, targeted investor notes, and state and local government series bonds (SLG5), and coupon issues that have been stripped from assets that are already included in the Index.
The Index is a market capitalization-weighted index. The Fund generally will invest at least 95% of its assets in the United States Government bonds. The Fund invests in a representative sample of the securities in the Index, which has a similar investment profile as the Index. The Fund�� investment advisor is Barclays Global Fund Advisor.
Advisors' Opinion: - [By Donald van Deventer]
Shorter-duration Treasury Exchange-Traded Funds: (SHY), (SHV), (IEI), (BIL), (TUZ), (FIVZ), (DTUL), (VGSH), (DTUS), (DFVS), (DFVL), (SST), (ISTB), (TBZ).
Top 10 Financial Companies To Buy Right Now: 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 Adam Levine-Weinberg]
One way to grow your retirement savings is by investing in low-fee index funds, such as State Street's (NYSE: STT ) ETF that tracks the S&P 500 index: SPDR S&P 500 (NYSEMKT: SPY ) . State Street invented the ETF concept two decades ago and remains a leader in the ETF market, with index funds tracking individual S&P 500 sectors as well as the full index. (State Street has actively managed funds, as well.)
Top 10 Financial Companies To Buy Right Now: Sinner AG (SIN)
Sinner AG is a Germany-based company active in the lease of property. In the fiscal year ended December 31, 2010, 55% of the Company's rentals were leased to commercial and service companies, 31% were leased to manufacturing companies, 8% were leased to public authorities, public institutions, craft factories and others, and 6% were leased as office and residential properties. Sinner AG is majority owned by STINAG Stuttgart Invest AG, which holds a 75.14% of total share capital in the Company.
Advisors' Opinion: - [By Vanina Egea]
As China enters a new phase of economic development, characterized by slower growth, analysts begin to wonder about the future of companies deeply related to state activities. Common knowledge indicates that as the economy�� growth slows down, activities at the industries associated with that growth will slow too. Nonetheless, that simple take on economics can be deceiving and an analysis of Sinopec (SIN) will uncover considerable growth opportunities. The reasoning is the following. First, the Chinese economy will not stop growing. Second, the slowdown is not a product of model exhaustion, but a mere capacity readjustment. Third, the oil and gas industry will remain a key to continue growing for the Chinese economy. And the priority placed upon the oil and gas is where growth opportunities for the industry lie. Gurus are divided over this position, but their trading activities on Sinopec have not ceased.
Top 10 Financial Companies To Buy Right Now: Western Asset Global Partners Income Fund Inc. (GDF)
Western Asset Global Partners Income Fund Inc. operates as a close-ended fixed income mutual fund launched and advised by Legg Mason Partners Fund Advisor, LLC. The fund is sub-advised by Western Asset Management Company. It primarily invests in the fixed income markets across the globe. The fund invests in high-yield U.S. and non-U.S. corporate debt securities and high-yield foreign sovereign debt securities. It benchmarks the performance of its portfolio against the Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index and the JPMorgan Emerging Markets Bond Index Global Index. The fund was formerly known as Salomon Brothers Global Partners Income Fund Inc. Western Asset Global Partners Income Fund was founded in 1993 and is based in the United States.
Advisors' Opinion: - [By Chuck Carnevale]
Our first example looks at Vectren Corp.�� historical earnings, a utility with a 15-year historical earnings growth rate that is below our 3% threshold established in Part 1. Note that fair valuation is calculated using Graham Dodd�� Formula (GDF) deriving a fair value PE of 13.8 (slightly below, but close to our PE 15 standard). However, a normal PE of 16 has been historically applied by Mr. Market. Therefore, valuation falls between a PE of 13.8 to 16, or well within a range of normalcy.
Top 10 Financial Companies To Buy Right Now: United States 12 Month Oil Fund LP (USL)
The United States 12 Month Oil Fund, LP (US12OF) is a commodity pool that issues limited partnership interests traded on the New York Stock Exchange (NYSE) Arca, Inc. (the NYSE Arca). The investment objective of US12OF is for the daily changes in percentage terms of its units per unit net asset value (NAV) to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the changes in the average of the prices of 12 futures contracts for light, sweet crude oil traded on the New York Mercantile Exchange (the NYMEX) consisting of the near month contract to expire and the contracts for 11 months, for a total of 12 consecutive months contracts, except when the near month contract is within two weeks of expiration, in which case it is measured by the futures contract that is the next month contract to expire and the contracts for 11 consecutive months (the Benchmark Oil Futures Contracts). The Company is managed and controlled by its general partner, United States Commodity Funds LLC (the General Partner). The General Partner is the general partner of US12OF and is responsible for the management of US12OF.
The net assets of US12OF consist primarily of investments in futures contracts for light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas, and other petroleum-based fuels that are traded on the NYMEX, ICE Futures or other United States and foreign exchanges (collectively, Oil Futures Contracts). It also invests in other oil interests, such as cash-settled options on Oil Futures Contracts, forward contracts for oil, cleared swap contracts and non-exchange traded (over-the-counter) transactions that are based on the price of oil, other petroleum-based fuels, Oil Futures Contracts and indices based on the foregoing (collectively, Other Oil-Related Investments). For convenience and unless otherwise specified, Oil Futures Contracts and Other Oil-Related Investments collectively are referred to! as oil Interests.
US12OF invests in Oil Interests to the fullest extent possible without being leveraged or unable to satisfy its current or potential margin or collateral obligations with respect to its investments in Oil Futures Contracts and Other Oil-Related Investments. US12OF�� investments in short-term obligations of the United States of two years or less (Treasuries), cash and/or cash equivalents.
Advisors' Opinion: - [By Dan Caplinger]
Another choice is to use ETFs with a longer-term futures strategy. The United States 12-Month Oil Fund (NYSEMKT: USL ) holds equal positions in each of the next 12 futures contracts. That reduces the positive impact of near-term backwardation, but it gives you more exposure to the heavier backwardation that exists further into the future.
