BloggingStocks

BP Hopes to Stop Oil Leak (and Stock Slide) Next Week

Michael Fowlkes — Sat, 22 May 2010 09:40:00 EST

Filed under: Bad News, BP p.l.c. ADS (BP), Oil

It's has been over a month since BP's (BP) oil well in the Gulf of Mexico exploded and collapsed, and the company has still not been able to stop the flow of oil into the ocean. The company's engineers are now hoping that they finally will be able to stop the leak as early as the 25th.

There has been a lot of debate over just how much oil is being leaked into the ocean. One thing is for sure: any oil is too much oil. Everyone is waiting to hear the good news that BP has been able to successfully stop the oil from spewing into the gulf.

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BP Hopes to Stop Oil Leak (and Stock Slide) Next Week originally appeared on BloggingStocks on Sat, 22 May 2010 09:40:00 EST. Please see our terms for use of feeds.

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Florida Insurance Bodies to Issue Bonds

Tom Johansmeyer — Tue, 30 Mar 2010 12:00:00 EST

Filed under: Deals, JPMorgan Chase (JPM), Goldman Sachs Group (GS)

Florida's insurer for high-risk homeowner policies, Citizens Property Insurance Corp., is issuing a bond to beef up its balance sheet. The state property insurer, which takes on the risks that private insurers in the state will not, is looking to raise around $2.5 billion.

The "pre-sale" ends on April 6, 2009 and was called "very successful" by Citizens CFO Sharon Binnun, who continued, "We met our liquidity goal for the year." A quiet hurricane season in 2009 left Citizens, the largest property insurer in the state, with a surplus of around $14 billion.

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Florida Insurance Bodies to Issue Bonds originally appeared on BloggingStocks on Tue, 30 Mar 2010 12:00:00 EST. Please see our terms for use of feeds.

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Annual Ritual: Speculating on Florida Insurance Market's Strength

Tom Johansmeyer — Tue, 09 Mar 2010 14:40:00 EST

Filed under: Bank of America (BAC), Amer Intl Group (AIG)

It's not an unusual problem at this time of year. We're a few months from June 1, the official start of hurricane season, at least as far as the insurance industry is concerned. Through April and May, the Florida legislature will rush to nail down details pertaining to Citizens Property Insurance Corporation, the state entity that provides insurance to some homeowners (usually when risk is too high for private insurers to accept), and the Florida Hurricane Catastrophe Fund, which provides some reinsurance protection to carriers writing property-catastrophe risk in Florida.

And even earlier, the editorials start to fly. There are concerns over whether homeowners will get sufficient coverage. There are questions about thinly capitalized Florida carriers. This is an annual ritual, of sorts, and 2010 is no different. Already, the Sarasota Herald-Tribune is raising the issue of whether some local carriers are sufficiently capitalized. Ultimately, this isn't much of a problem - unless a hurricane hits.

Continue reading Annual Ritual: Speculating on Florida Insurance Market's Strength

Annual Ritual: Speculating on Florida Insurance Market's Strength originally appeared on BloggingStocks on Tue, 09 Mar 2010 14:40:00 EST. Please see our terms for use of feeds.

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Bank Failures Surge 25% in One Week

Tom Johansmeyer — Sun, 21 Feb 2010 09:40:00 EST

Filed under: Recession, Financial Crisis

Not even two months into 2010, the number of banks closed this year has already reached 20, not far behind the full-year result of 25 in 2008 and ahead of the three in 2007. On Friday, four banks were shut down by regulators, carrying forward the momentum from 2009's 140 bank failures. In only one week, the number of bank failures this year spiked 25%.

La Jolla Bank FSB in California was taken over by the Federal Deposit Insurance Corp. It had 10 branches, $3.6 billion in assets and $2.8 billion in deposits. Its deposits and assets were taken over by OneWest Bank in Pasadena in a deal that is expected to cost the insurance fund $882.3 million. OneWest and the FDIC will share the losses on failed bank loans and other assets of approximately $3.3 billion.

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Bank Failures Surge 25% in One Week originally appeared on BloggingStocks on Sun, 21 Feb 2010 09:40:00 EST. Please see our terms for use of feeds.

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Florida bank brings failure count to 131

Tom Johansmeyer — Sun, 13 Dec 2009 11:20:00 EST

Filed under: Recession, Financial Crisis

The bank bust tally is up to 131. Republic Federal Bank was the most recent to be shut down by regulators, which happened on Friday, making it the 13th in Florida to fall.

Boca Raton-based 1st United Bank (FUBC) has agreed to pick up its $352.7 million in deposits and $267.1 million of its $433 million in assets. The FDIC and 1st United are sharing $210.4 million in loans and other assets -- the stuff left over will be held by the FDIC until it is sold. According to the FDIC, this failure will cost the deposit insurance fund $122.6 million.

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Florida bank brings failure count to 131 originally appeared on BloggingStocks on Sun, 13 Dec 2009 11:20:00 EST. Please see our terms for use of feeds.

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California insurance commissioner chases indirect investments in Iran

Tom Johansmeyer — Fri, 04 Dec 2009 13:00:00 EST

Filed under: Law, Petroleo Brasileiro (PBR)

Insurance companies have $12 billion in indirect investments related to Iran, according to California Insurance Commissioner Steve Poizner -- and he wants them to stop. He's pushing insurers in his state to divest, and the perspective is gaining popularity: his counterpart in Florida thinks the policy should go national.

Kevin McCarty, commissioner in Florida, said to National Underwriter, "I have consulted with other state insurance commissioners to evaluate the practicality of developing a national initiative similar to the undertaking by the California Department of Insurance." He's already contacted the National Association of Insurance Commissioners' Securities Valuation Office to figure out "the feasibility of leveraging national resources to review the financial statements of national insurers to determine their exposure to companies with operations in Iran."

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California insurance commissioner chases indirect investments in Iran originally appeared on BloggingStocks on Fri, 04 Dec 2009 13:00:00 EST. Please see our terms for use of feeds.

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Madoff mansion moves for more than asking price

Tom Johansmeyer — Thu, 17 Sep 2009 18:00:00 EST

Filed under: Scandals, Housing

Disgraced Ponzi schemer Bernie Madoff's (former) Montauk, Long Island home is no longer on the market. A buyer willing to pay more than the $8.75 million asking price has picked up the property, only two weeks after the U.S. Marshals Service listed it for sale.

Anne Lacombe, spokeswoman for the Corcoran Group, a real estate broker involved in the transaction, said the home was under contract for more than asking but did not have information on the exact amount, buyer or closing date, according to the Associated Press.

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Madoff mansion moves for more than asking price originally appeared on BloggingStocks on Thu, 17 Sep 2009 18:00:00 EST. Please see our terms for use of feeds.

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Half of all mortgages to be underwater by 2011

Tom Johansmeyer — Thu, 06 Aug 2009 12:00:00 EST

Filed under: Personal Finance, Housing, Recession, Financial Crisis

Deutsche Bank (NYSE: DB) expects almost half of all U.S. homeowners to be underwater -- figuratively, of course -- by 2011.

Declines in home prices and the fact that some of those difficult mortgages just aren't going away put 26% of homeowners in this situation by the end of last March, and it seems the situation is only going to get worse. Unlike the early stages of the credit crisis, which were driven by subprime mortgages, the next iteration will have a greater effect on prime mortgage borrowers, which comprise two-thirds of the loans outstanding.

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Half of all mortgages to be underwater by 2011 originally appeared on BloggingStocks on Thu, 06 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

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Teco Energy awaits Florida's recovery

Joseph Lazzaro — Tue, 04 Aug 2009 17:40:00 EST

Filed under: Stocks to Buy

It goes without saying that I favor the power generation sector, and operators in Florida, in particular. The Sunshine State may be down but it's hardly out, and with above in mind Teco Energy (NYSE: TE) is worth a review.

Teco Energy is a holding company for several energy plays, including Tampa Electric, and Peoples Gas System.

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Teco Energy awaits Florida's recovery originally appeared on BloggingStocks on Tue, 04 Aug 2009 17:40:00 EST. Please see our terms for use of feeds.

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Blackstone consortium buys BankUnited on the cheap for $900 million

Connie Madon — Fri, 22 May 2009 15:30:00 EST

Filed under: Deals, Competitive Strategy, Blackstone Group L.P (BX)

I've got a deal that you can't refuse. How would you like to buy a bank worth nearly $13 billion by assets for a measly $900 million?

That's what a group led by Blackstone Group LP (NYSE: BX) did. The bank in question is BankUnited, which failed and was taken over by the FDIC. Regulators decided to put it up for auction. Blackstone will share in $10.7 billion of the bank's 12.8 billion in assets. The government will will take 80% of the first $4 billion in losses and 95% of any remaining losses. In return the government will receive warrants giving it a share on any further upside.

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Blackstone consortium buys BankUnited on the cheap for $900 million originally appeared on BloggingStocks on Fri, 22 May 2009 15:30:00 EST. Please see our terms for use of feeds.

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Consider FPL Group, because the Gold Coast is still there, recession and all

Joseph Lazzaro — Tue, 03 Mar 2009 18:20:00 EST

Filed under: Stocks to Buy

Nary a good word can be said about this market in the first week of March 2009. The U.S. economy seems set to register at least an 18-month recession, and probably a longer one. U.S. Treasury Secretary Timothy Geithner went to Capitol Hill Tuesday to essentially tell the U.S. Congress more money will be needed for the banking bailout, and Fed Chair Ben Bernanke did the same to brace elected officials for more, essential help for American International Group (NYSE: AIG). As 'The Great One,' Jackie Gleason would chime, "Oh, wonderful!"

Translation: rough sledding, at best, for equities, and a defensive posture is the rule. Still, so long as one expects the U.S. economy to return to some semblance of normalcy -- and that's the view here -- there are bargains to be had for those investors who can tolerate moderate risk. And with the above in mind utility, FPL Group (NYSE: FPL) is worth a review.

Continue reading Consider FPL Group, because the Gold Coast is still there, recession and all

Consider FPL Group, because the Gold Coast is still there, recession and all originally appeared on BloggingStocks on Tue, 03 Mar 2009 18:20:00 EST. Please see our terms for use of feeds.

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California economy crashes

Douglas McIntyre — Thu, 11 Dec 2008 12:27:00 EST

Filed under: Bad News, Economic Data, Politics, Financial Crisis

The state of California is nearly out of money and nearly out of options.

According to the San Francisco Chronicle, Gov. Arnold Schwarzenegger sharpened his attack Wednesday against his fellow Republicans as he declared that California's budget shortfall has grown to $14.8 billion for the current fiscal year -- several billion more than the shortfall legislators already have been unable to solve.

One option to balance the budget is to cut state services. Politicians rarely like that. It looks bad to the voters. The Legislature could raise taxes on homes and businesses. That looks bad to the taxpayers, too. With falling home prices, failing businesses, and rising unemployment, getting more money into the state treasury may also be impractical.

That brings the conversation around to what happens on the day California can't pay its bills -- any of them. State workers don't get checks. Neither do contractors. Business failures and unemployment gets worse. The house begins to collapse in on itself.

It is too early to make a definitive statement about the eventual solution, but the only ready source of the magnitude of capital needed is the federal government. That would be the same federal government that is printing money to save banks, car companies, and mortgages. How many states will get into real trouble in the next couple of months? Add Michigan and Florida to the list. Unemployment is rising and property prices are plunging. The situation could give the bailout war a whole new front to fight on.

Douglas A. McIntyre is an editor at 247wallst.com.

California economy crashes originally appeared on BloggingStocks on Thu, 11 Dec 2008 12:27:00 EST. Please see our terms for use of feeds.

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The housing slump may continue well into 2010

Joseph Lazzaro — Tue, 19 Aug 2008 10:57:00 EST

Filed under: Forecasts, Bad News, Housing, Recession

Picture this: a U.S. neighborhood where no homes are being constructed, for miles.

In the current economic climate, the above could be a snapshot in any region of the country (or, sadly, in every region of the country).

U.S. housing starts fell to a seasonally-adjusted annual rate of 965,000 in July, the U.S. Commerce Department announced Tuesday (pdf). It was the lowest level for housing starts in 17 years.

Economists surveyed by Bloomberg News had expected July U.S. housing starts to total 950,000.

Further, housing starts have declined 29.6% in the past 12 months. Economist Glen Langan told BloggingStocks Tuesday he knows why.

"It doesn't take a Harvard mathematician to deduce this one. Builders are competing for sales with the large supply of foreclosed homes, as well as with home owners in good standing with banks, who are trying to sell their homes," Langan said. "So the great U.S. homebuilder pullback continues."

The U.S. economy is growing at a minuscule rate or is already in recession. Job growth, save a few sectors, is non-existent. Bank mortgage qualifying requirements are at their most rigorous levels in a decade. Investors / readers ask, 'where are the buyers going to come from to spark a rebound in the housing sector?'

Continue reading The housing slump may continue well into 2010

The housing slump may continue well into 2010 originally appeared on BloggingStocks on Tue, 19 Aug 2008 10:57:00 EST. Please see our terms for use of feeds.

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Dispelling a few home buying / selling myths

Joseph Lazzaro — Mon, 04 Aug 2008 13:50:00 EST

Filed under: Housing, Recession

During the roaring 1990s, it was called 'merger Monday' -- due to the plethora of corporate mergers announced on the day, driven by the robust U.S. economy.

In the current sluggish (or perhaps worse) U.S. economy, it's becoming known as 'morbid Monday' -- due to the spate of unpleasant predictions publicized on the day.

Oppenheimer analyst Meredith Whitney filled the August 4 installment of the latter by predicting that housing prices will fall more than 30% and banks will remain reluctant to lend until the credit crisis wanes, CNBC reported Monday.

To be sure, the housing sector is a jumbled, uncertain morass, so in order to provide some clarity on the sector (and to either confirm / refute several conventional wisdom points), BloggingStocks Monday corralled economists Peter Dawson and David H. Wang.

Point 1: Those states hardest hit by the housing sector, California, Florida, Nevada, will be the first to recover.

Dawson: Not true. Wang: Most un-true.

"You may find a $300,000 or $350,000 bargain in California or Florida, but understand that five years down the road that home may be roughly the same price in real terms, after inflation," Wang said. "Job creation in an area will determine which way house prices are going in a region in the years ahead, much more than how bad the local housing market is now."

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Dispelling a few home buying / selling myths originally appeared on BloggingStocks on Mon, 04 Aug 2008 13:50:00 EST. Please see our terms for use of feeds.

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Florida coast shows promise for oil drilling

Douglas McIntyre — Sat, 05 Jul 2008 12:40:00 EST

Filed under: Politics, Oil

One of the most controversial proposals for dropping the price of oil is to allow drilling in protected parklands and in restricted off-shore areas. Since there are deposits of crude and gas in these areas, it is also one of the more sure-fire ways of adding to production.

It now appears that the waters off Florida are among the most promising. According to the AP, "The early activity here stems from a 2006 Congressional compromise that allows drilling on 8.3 million acres more than 125 miles off the Panhandle."

The promise of the Florida coast is both good news and bad, depending which side of the debate one is on. A find of any real significance is likely to be proof of the fact that opening protected lands will yield results.

For the "green" crown, it could mean the the government will be encouraged to drill of near protected beaches. There may even be wells in Yellowstone.

Douglas A. McIntyre is an editor at 247wallst.com.

Florida coast shows promise for oil drilling originally appeared on BloggingStocks on Sat, 05 Jul 2008 12:40:00 EST. Please see our terms for use of feeds.

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Big company, small town: Publix, Lakeland, Florida

Lita Epstein — Sun, 29 Jun 2008 10:10:00 EST

Filed under: Industry, Competitive Strategy, Entrepreneurs

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

Publix Super Markets is the largest employee-owned supermarket chain in the U.S. with 936 stores in Florida, Georgia, South Carolina, Tennessee, and Alabama. You must be an employee of Publix to buy stock in the company. More than 30% of the stock is owned by employees, and more than 30 million shares are owned by members of the founding family -- Jenkins. Its chairman is a family member -- Charlie Jenkins, Jr.

Publix ranks number 11 on the Forbes list of largest private companies, and 107 on the Forbes 500 list. It employs more than 100,000 employees, with revenues over $23 billion.

Yes, if you haven't figured it out, the company was founded by a Jenkins -- George W. Jenkins, Jr., in Winter Haven, Florida, in 1930. In 1940, Jenkins built Florida's first supermarket by mortgaging an orange grove. Jenkins moved the headquarters for Publix to Lakeland, Florida, in 1951, and built its first distribution warehouse there. In 2005, Publix celebrated its 75th anniversary.

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Big company, small town: Publix, Lakeland, Florida originally appeared on BloggingStocks on Sun, 29 Jun 2008 10:10:00 EST. Please see our terms for use of feeds.

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Many states appear to be in recession, fiscal survey shows

Joseph Lazzaro — Fri, 25 Apr 2008 13:28:00 EST

Filed under: Forecasts, Bad News, Economic Data, Housing, Recession

The United States is an enormous, diverse nation, and there's perhaps no better evidence of that than the U.S.'s current economic cycle.

The finances of many states have deteriorated to such a degree that they appear to be in recession, even though the nation as a whole may not be, a survey of 50 state fiscal directors concluded.

The states: budget deficits abound

The National Conference of State Legislatures' survey says that "arguing whether the national economy is in recession is almost beside the point" because the fiscal condition of some states has declined so much that they appear to be in a recession.

In all, 23 states, including hard-hit housing slump states Florida, California, and Nevada, expect to report budget deficits in the next fiscal year, fiscal 2009, with the aggregate revenue shortfall reaching $26 billion. Further, more than two-thirds of the states said they are concerned or pessimistic regarding their F2009 revenue outlook.

Historically, most states experience a decline in revenue as the U.S. economy contracts, as the economic slowdown results in lower retail sales, which lowers sales tax revenue -- a major source of revenue for many states. Job layoffs also decrease state income tax revenue. Further, state social service costs typically increase, as unemployment claims increase and applications for income/food/energy assistance rise.

Florida, California hard hit

Economist Peter Dawson told BloggingStocks Friday the NCSL data is in-line with the profile of this cycle's economic slowdown. "From the research we can see that the states under most stress are those that rank very high regarding mortgage default and housing foreclosure lists, with Florida and California being the most obvious examples," Dawson said. "These states are going to be under fiscal stress for a considerable period of time due to the size of their housing correction."

Moreover, Dawson said because of California's and Florida's size, "it will be very hard for the nation to grow at capacity until these states have started to grow." Hence, a return to robust economic conditions nationally, "could be a year to 18 months off, assuming growth resumes nationally by late 2008," he said.

Continue reading Many states appear to be in recession, fiscal survey shows

Many states appear to be in recession, fiscal survey shows originally appeared on BloggingStocks on Fri, 25 Apr 2008 13:28:00 EST. Please see our terms for use of feeds.

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Hitting the skids in Florida

Zack Miller — Wed, 26 Mar 2008 17:45:00 EST

Filed under: Personal Finance, Housing, Recession

I grew up in Miami. Yes, I was born and raised there and am under 40-years-old. One of the few. I love the city. I love the people. I love the Latin flavor of the town, its food and nightlife. I also enjoyed owning and selling a home there in the early 2000s.

Things are different now. Homeowners have been hit with the downside of a strong housing market and have seen prices snapback much greater than some other parts of the country. After seeing a pullback in net worth, Floridians have been tightening their belts this year in some creative and not-so-creative ways.

Today's Bloomberg has an article about how the changes in the Florida housing market are being dealt with by Dolphins fans. Floridians, and Miami residents in particular, are dining out less, seeing fewer movies, foregoing on travel plans, and in some extreme cases, drinking less expensive beer.

According to Bloomberg, Miami real estate prices fell 19.3% year-over-year in January, tied with Las Vegas for the largest drop among 20 metro areas. Some homeowners feeling the pinch are no longer drinking Guinness and Royal Extra beers, but instead buy something domestic and cheaper.

This change in net worth is real and is affecting consumption decisions. While it hurts everyone involved, the process of (trying!) to realign the split between assets and debts is ultimately a healthy one for our country and something, I believe, will help strengthen the U.S. dollar and regain respect for American ingenuity, strength and democratic values around the globe.

Zack Miller is the managing editor of IsraelNewsletter.com ,a former equity analyst for a leading multinational hedge fund, and a proud former Floridian.

Hitting the skids in Florida originally appeared on BloggingStocks on Wed, 26 Mar 2008 17:45:00 EST. Please see our terms for use of feeds.

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FPL Group's results may shine when others' don't

Joseph Lazzaro — Mon, 14 Jan 2008 18:34:00 EST

Filed under: Stocks to Buy

With the U.S. economic landscape becoming more uncertain, it's prudent to add a defensive stock or two to your portfolio, and utility FPL Group, Inc. (NYSE: FPL) is worth an evaluation.

FPL Group boasts the fundamentals analysts like to see in a utility company: steady cash flow, above-par customer growth, adequate generating capacity, and favorable power market conditions. Further, analysts also like the cooperative regulatory environment in Florida, FPL's primary state, and the company's 2.3% dividend. With operations in 24 states, FPL has diversified operationally, but the focal point, for investors, is its Florida market: 4.4 million customers, and ample land for commercial and residential growth. The Reuters FY 2007/FY 2008 EPS consensus estimates for FPL are $3.46 to $3.88.

The risks? Analysts are keeping an eye on Florida's population growth and household formation for signs of any changes in long-term trends.

Stock Analysis: FPL Group is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from FPL's shares. Sell/Stop Loss if you were to purchase shares in this company: $48.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

FPL Group's results may shine when others' don't originally appeared on BloggingStocks on Mon, 14 Jan 2008 18:34:00 EST. Please see our terms for use of feeds.

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Population growth slows in states previously experiencing a housing boom

Joseph Lazzaro — Thu, 27 Dec 2007 14:03:00 EST

Filed under: Other Issues, Economic Data, Housing

Population growth has slowed in the prior housing boom states of Arizona, Florida and Nevada, The Wall Street Journal reported Thursday [subscription required], citing U.S. Census Bureau data for the 12 months ended July 1, 2007.

Further, the U.S. Census Bureau's report continued to confirm a decades-long trend of U.S. population shift from the Northeast and Midwest to the West and South.

Florida, arguably the state that's been hardest hit by the housing slump, experienced the largest decline in population growth, The Journal reported. Florida's population increased by 35,301, or 1%, during the 12-month period, compared to an increase of 134,798 during the previous 12-month period.

Continue reading Population growth slows in states previously experiencing a housing boom

Population growth slows in states previously experiencing a housing boom originally appeared on BloggingStocks on Thu, 27 Dec 2007 14:03:00 EST. Please see our terms for use of feeds.

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