Citigroup's first-quarter income fell 32 percent on lower revenue from its investment banking business and a decline in consumer loans. The bank was able to set aside fewer reserves for losses as more borrowers were able to keep up with their debt payments.
The New York bank on Monday said it earned $3 billion, or 10 cents per share, compared with $4.4 billion, or 15 cents a share in the first quarter of last year. The earnings were slightly higher than the 9 cents a share estimated by analysts surveyed by FactSet.
First quarter revenue fell 22 percent to $19.7 billion from the same period last year.
Continue reading Citi's Income Falls 32% as Underwriting Slips
NYSE Euronext (NYX) acquired American Stock Exchange (Amex) in 2008 to expand its equities, options and exchange-traded funds (ETFs) trading business. Recently NYSE announced plans to sell the majority of its stake in the Amex stock options market to seven companies -- including top banks, trading houses and brokerages. With this move, the company hopes to increase its trading volumes by giving major brokerages an incentive to bring their business to Amex. Major competitors are Nasdaq OMX (NDAQ), CME Group (CME), BATS Global and Direct Edge.
Continue reading NYSE Looks at Selling Stakes in Amex Exchange to Drive Volumes
- Citigroup (C) to outperform from market perform at Bernstein.
- Cubist Pharma (CBST) to outperform from neutral at RW Baird.
- Pentair (PNR) to buy from hold at Citigroup.
- Heritage Financial (HFWA) to outperform from market perform at Keefe Bruyette.
- SL Green Realty (SLG) and Digital Realty (DLR) to market perform from underperform at FBR Capital.
- MGM Resorts (MGM) to neutral from Sell at Janney Capital.
- Ciena (CIEN) to buy from neutral and Olin (OLN) to buy from underperform at BofA/Merrill.
- Mellanox (MLNX) to overweight from equal weight at Barclays.
- ConocoPhillips (COP) and Canadian Natural (CNQ) to overweight from neutral at JPMorgan.
- IDEX (IEX) to outperform from perform at Oppenheimer.
- Taiwan Semiconductor (TSM) to buy from hold at Deutsche Bank.
- Ctrip.com (CTRP) to positive from neutral at Susquehanna.
- Linear Technology (LLTC) and Analog Devices (ADI) to hold from sell at Auriga.
- Quicksilver (KWK) to outperform from market perform at BMO Capital.
Continue reading Analyst Calls: ADI, BRCM, C, CIEN, COP, INTC, MGM, OXY, QCOM, TXN ...
It should surprise no one that oil stocks have taken the lead in the first quarter, while financial stocks -- after a good two-year run -- have been tamed. This is how things have shaped up through the first quarter for my 2011 stock picks. (For a look at my original picks, see here: part 1, part 2,
and part 3
Normally, if I said a business was underwater, investors would think the worst. Actually, in the summer Noble Corp (NE
) was underwater -- and investors were not impressed. However, this was a great buying opportunity, and although the company is still underwater, it is also a market leader among my stock picks and the overall market -- even among oil industry players. With its fleet of 69 offshore drilling rigs, Noble stands tall.
Continue reading Chasing Value: 2011 Stock Picks Q1 Review -- A Platform for Success
iShares MSCI South Korea Index Fund (EWY) April put option implied volatility is at 25, July is at 29; compared to its 26-week average of 27, according to Track Data, suggesting less near-term price movement compared to outer month risk.
CBOE Volatility Index (VIX) closed up 1.53 to 19.44.
Option volume leaders today: Apple (AAPL), Citigroup (C), Netflix (NFLX), Kraft (KFT), according to Track Data.
Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Back in the summer of 2010 when the market was down, the gulf was full of spewing oil and investors were running away from bad news stocks shocked most notably by BP (BP
) oil spill, I decided to post a contrarian story
reminding readers that the fear was overblown and created a buying opportunity.
"My pal Warren" has said for years that we should buy on fear and sell on greed. The toxic stock portfolio was a result of this sentiment.
This is the fourth update to my ranting eight months ago that acquiring six of the most hated, and most highly traded stocks with constant negative headlines would outperform the overall market. The theory has born fruit as the toxic stocks are ahead and the difference is increasing over time.
Continue reading Chasing Value: Toxic Stock Update #4 -- BAC, BP, C, GE, GS, RIG
Prognosticators the world over are throwing in their 2 cents about "my pal Warren's" next market moves; especially since he announced last week that his trigger finger was itchy. When Warren Buffett, chairman of Berkshire Hathaway (BRK.A
) speaks, investors listen.
On Wednesday March 2, this investor threw in his two cents worth (see:Serious Money: What Should Warren Buffett Do Next?
) discussing possible acquisitions. Since all the "pro's", I use the term loosely, have had a say I thought I would give readers a chance to express some of their ideas too.
Continue reading Serious Money: Buffett's Next Buys -- You Pick'em
- Intel (INTC), ON Semiconductor (ONNN), Lattice Semiconductor (LSCC), Fairchild Semiconductor (FSC), STMicroelectronics (STM) and Altera (ALTR) to outperform from neutral at RW Baird.
- Capital One (COF) to overweight from equal weight at Morgan Stanley.
- Dollar Tree (DLTR) to buy from neutral at Goldman.
- Foot Locker (FL) to buy from neutral at Sterne Agee.
- Progressive (PGR) to buy from neutral at BofA/Merrill.
- Flow International (FLOW) to buy from neutral at Roth Capital.
- Signature Bank (SBNY) to buy from hold at Jefferies.
- HiSoft Technology (HSFT) to buy from neutral at UBS.
Continue reading Analyst Calls: AMTD, C, COF, DLTR, FL, GS, IBM, INTC, NYT, PGR, SCHW ...
Capital One (COF) is one of the largest financial institutions in the United States, with banking and non-banking subsidiaries that market a variety of financial products and services. The company specializes in credit cards, home loans, auto loans, banking and saving products. Its main competitors are JPMorgan (JPM), Bank of America (BAC), Citigroup (C) and American Express (AXP).
We have a price estimate of $61.26 for Capital One, well above market price.
Continue reading Rising Consumer Credit in the U.S. Should Lift Capital One
We are only one month into the new year and there have not been many dull moments. Games are going on in the Middle East and they are not the friendly kind. In Egypt a million plus protesters
are playing a game of chicken with the Mubarak government demanding he step down from his 32-year-old reign as perpetual president.
This is not radical Islam fundamentalists; it is even more fundamental. The people want to improve their daily lives in a meaningful way. Education, infrastructure, clean water and clean streets. Speaking of infrastructure and getting back to the less dramatic but still important great stock picks Telefonica (TEF
) and General Electric (GE
) were the big winners so far bouncing over 10% in January.
Continue reading Chasing Value: 2011 Picks Dust the S&P
The DJIA came within striking distance of 12,000 today. There was no major economic data and it is another melt-up rally. The news comes despite rising rate trends in China and India and despite the trends of inflation. It also comes in light of a Moscow, Russia airport bombing that killed more than 30 people.
Here were today's unofficial closing bell levels:
Dow Jones 11,980.52 +108.68 (0.92%)
S&P 500 1,290.84 +7.49 (0.58%)
Nasdaq 2,717.55 +28.01 (1.04%)
Top Analyst Upgrades and Downgrades
Continue reading Closing Bell: A Stealth Rally from Somewhere (AA, C, GE, INTC, MCD, NVDA, CRM)
Bank earnings are coming in mixed. A few days ago, JPMorgan Chase (JPM) reported its profit was up 47%. Then, Goldman Sachs (GS) reported earnings were down 52%. And on Wednesday, we got a stellar performance by Morgan Stanley (MS).
The Wall Street Journal reports that Morgan Stanley's profits were up 35% to $867 million, up from $460 million a year ago. Earnings jumped to 41 cents per share from 29 cents per share. Net revenue jumped 14% to $7.81 billion. Analysts at Thomson Reuters had forecast earnings of 35 cents a share on $7.35 billion.
Continue reading Morgan Stanley's Profit Rose 35%
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