Option volume has ramped up on Regions Financial (RF) today, with 14,000 contracts changing hands by midday -- more than double the equity's average daily volume. Calls are dominating most of the action, as no fewer than 12,000 of these bullishly oriented options have been exchanged.

Traders appear to be adding new positions at RF's out-of-the-money November 8 and December 8 call strikes, continuing a recent trend in the options pits. During the past 10 days, the International Securities Exchange (ISE) reports that options players have bought to open 9.12 calls for every put on RF. This ratio arrives in the 94th percentile of its annual range, not far from an optimistic peak.

Continue reading Regions Financial Straddled Ahead of Earnings

Regions Financial Straddled Ahead of Earnings originally appeared on BloggingStocks on Wed, 20 Oct 2010 14:30:00 EST. Please see our terms for use of feeds.

Goldman Sachs (GS) offered up a blowout quarterly report Tuesday. GS earnings were the second best on record and short only of Goldman fourth quarter earnings report from just a few months ago.

In the wake of recent fraud allegations against the investment bank, there's plenty of reason for politicians and taxpayers to grumble. But don't think it's envy over the record profits -- the real problem here isn't the big buckets of money being pulled in by Goldman Sachs, but the source of the income. Consider that without all the money GS made on Wall Street via proprietary trading, the bank's quarterly profits would be just $2.53 billion -- about half the profits put up by U.S. Bancorp (USB) the same day.

Continue reading Goldman Sachs Profits Demonstrate Main St.-Wall St. Divide

Goldman Sachs Profits Demonstrate Main St.-Wall St. Divide originally appeared on BloggingStocks on Wed, 21 Apr 2010 11:30:00 EST. Please see our terms for use of feeds.

"Direct Investment Plans -- or DRIPs -- are a great way to investor regardless of the market environment; in fact, avoiding the emotional decisions usually made by the typical investor may be their greatest strength," observes DRIP specialist Vita Nelson.

In her MoneyPaper's Direct Investing, she reviews the basics of DRIP investing and discusses her latest "Bargain Corner" stock pick -- Regions Financial (RF).

Vita Nelson explains, "This strategy involve the four Ds -- dividend reinvestment, dollar-cost averaging, diversification, and discipline.

Continue reading Bank on Regions Financial (RF) ... and DRIPs

Bank on Regions Financial (RF) ... and DRIPs originally appeared on BloggingStocks on Mon, 16 Nov 2009 11:00:00 EST. Please see our terms for use of feeds.

"Even among the broad-based market carnage of the past year, regional banks with heavy real estate exposure have been notably poor performers," notes turnaround expert George Putnam.

In The Turnaround Letter, he explains, "While investors are still wary of this group, there are cases where the market has overreacted and the stocks will eventually rebound dramatically." Here, he looks at four favorite regionals.

"Many regional banking stocks are now trading at a small fraction of their 'book value.' In more normal times, most banks will trade for two to three times book value and sometimes more.

Continue reading Four bank turnarounds: Rebound in regionals?

Four bank turnarounds: Rebound in regionals? originally appeared on BloggingStocks on Fri, 07 Aug 2009 13:00:00 EST. Please see our terms for use of feeds.

Long-known in the newsletter community for his expertise in income investing, the advisor has just launched a new blog service, Stocks that Pay You. Here, he looks at some winners and losers from the current proposals for financial regulation.

George says, "In my view, these supposedly massive changes amount to window dressing. Banks and other related firms can continue to do what they've always done: cherry pick regulators and play off one regulator against another.

"So, unless we get the government actually empowering the guys down the line inside all of these agencies and departments, don't look for any big changes, because - while the players and the names might be changing - the contest is staying the same.

Continue reading Income ideas: Winners from financial regulation

Income ideas: Winners from financial regulation originally appeared on BloggingStocks on Tue, 23 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

Regions Financial Corporation (NYSE: RF) started today's trading with a resounding thud after announcing a $1.25 billion stock offering. The regional banking issue said it will offer $1 billion in common shares and $250 million in new convertible preferred shares. The proceeds will address roughly half of the $2.5 billion in capital Regions was instructed to raise by the U.S. Treasury Department following its stress test results.

Despite a negative start to the session, RF has since ticked fractionally higher. The security has shed more than 34% of its value in 2009, and it's currently struggling under the weight of resistance from its 32-week moving average. Since 2007, RF has managed to notch just one weekly close above this steadily descending trendline.

Continue reading Put volume spikes as Regions Financial rushes to raise capital

Put volume spikes as Regions Financial rushes to raise capital originally appeared on BloggingStocks on Wed, 20 May 2009 11:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Abbott Laboratories (NYSE: ABT) Q1 profit edged past expectations despite lower sales of Humira.
• AMR Corp. (NYSE: AMR) posted a smaller-than-expected Q1 loss, sending shares sharply higher.
• Baxter International Inc. (NYSE: BAX) reported better-than-expected Q1 earnings, sending share higher.
• BP (NYSE: BP) and other oil companies were downgraded due to higher environmental costs.
• Charles Schwab Corp. (NASDAQ: SCHW) Q1 earnings declined but still topped analysts' expectations.
• Chevron Corp. (NYSE: CVX) said Q1 earnings would be lower due to a weaker dollar and lower oil prices.

Continue reading Earnings highlights: Goldman Sachs, Google, Citigroup, GE, Intel, Nokia and more

Earnings highlights: Goldman Sachs, Google, Citigroup, GE, Intel, Nokia and more originally appeared on BloggingStocks on Sat, 18 Apr 2009 12:10:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: An IPO, Banks & Tech, all killing the bears (JPM, RST, SBUX, LUV, RF)

Closing Bell: An IPO, Banks & Tech, all killing the bears (JPM, RST, SBUX, LUV, RF) originally appeared on BloggingStocks on Thu, 16 Apr 2009 16:20:00 EST. Please see our terms for use of feeds.

The shares of Regions Financial Corporation (NYSE: RF) surged this afternoon after the regional bank said it expects to report a first-quarter profit. In a regulatory filing with the Securities and Exchange Commission (SEC), Chairman and CEO Dowd Ritter attributed the unexpectedly profitable quarter to recent strength in new account openings and customer deposit growth.

If Wall Street seems shocked by the news, it's because analysts were predicting Regions to swallow a quarterly loss of about $290 million, or 42 cents per share, according to Thomson Reuters. Plus, with nearly 5% of the equity's float sold short, it seems that many investors were also betting on the bank to report gloomy earnings.

Continue reading Regions Financial draws heavy call volume after 1Q profit forecast

Regions Financial draws heavy call volume after 1Q profit forecast originally appeared on BloggingStocks on Thu, 16 Apr 2009 16:00:00 EST. Please see our terms for use of feeds.

The FDIC took over three more banks yesterday bringing the total number of bank failures so far this year to nine. As I posted, the FDIC likes to close banks on Friday after hours so they can reopen as branches of the acquiring bank on the following Monday morning. It remains to be seen whether the FDIC has enough money in its deposit insurance fund to handle its obligations for 2009 and beyond.

As it did last year, the FDIC is closing small banks while the Treasury and the Fed continue to keep the very largest ones from collapsing under the weight of their bad assets. On Friday, regulators closed banks in Georgia and California including:

Continue reading Bank Failure Count: U.S. closes three banks bringing 2009 total to nine

Bank Failure Count: U.S. closes three banks bringing 2009 total to nine originally appeared on BloggingStocks on Sat, 07 Feb 2009 09:06:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Advanced Micro Devices Inc. (NYSE: AMD) reported dismal Q4 results due to lower demand.
• AMR Corp. (NYSE: AMR) reported a bigger-than-expected Q4 loss, sending shares lower.
• Check Point Software Technologies Ltd. (NASDAQ: CHKP) earnings prospects led to an upgrade.
• eBay Inc. (NASDAQ: EBAY) posted Q4 and full-year results with increased revenue due to a stronger dollar.
• Google Inc. (NASDAQ: GOOG) reported strong Q4 numbers that beat analysts' expectations.
• International Business Machines Corp. (NYSE: IBM) reported better-than-expected Q4 and 2008 earnings.
• Lockheed Martin Corp. (NYSE: LMT) posted strong Q4 results but lowered its 2009 guidance.
• Northern Trust Corp. (NASDAQ: NTRS) shares surged after posting better-than-expected earnings.
• Regions Financial Corp. (NYSE: RF) reported a huge loss due to write-downs and offered a bleak outlook.
• Societe Generale said that it expects to have broken even in the final quarter of 2008.
• Southwest Airlines Co. (NYSE: LUV) posted its second straight quarterly loss due to fuel hedging costs.
• UAL Corp. (NASDAQ: UAUA) reported a huge loss on the erosion in value of oil hedges as prices dropped.
• Usana Health Sciences Inc. (NASDAQ: USNA) posted record Q4 results despite one-time charges.

For more highlights from this week, see Apple, Microsoft, GE, Johnson & Johnson, Harley Davidson and others

Continue reading Earnings highlights: eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others

Earnings highlights: eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others originally appeared on BloggingStocks on Sat, 24 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

It's a dismal day on Wall Street for financial stocks, and Regions Financial Corp. (NYSE: RF) is no exception. The Alabama-based bank today reported an eye-popping quarterly loss of $6.22 billion, or $9.01 per share, as results were pressured by a $6 billion writedown in its banking and Treasury operations.

On an operating basis, Regions' loss of 35 cents per share exceeded the consensus estimate for a loss of 20 cents per share. Net charge-offs for the quarter soared to $796 million, compared to $107.5 million in the year-ago period. Additionally, the company confessed to "emerging stress" in its Florida-based real estate and mortgage businesses.

"Although we're encouraged by steps the government has taken to stabilize the housing market and revitalize the economy, there is no quick fix for credit quality issues currently plaguing the financial services industry," commented Dowd Ritter, RF's chairman, president and chief executive officer.

Ritter added that he doesn't expect unemployment to peak or real estate values to bottom in 2009, and he warned that bank earnings won't improve until such a trough is reached. He doesn't foresee the need to seek new capital from the government, though Regions will look for opportunities to shore up its capital position as market conditions allow.

Continue reading Regions Financial swallows huge quarterly loss, hits 24-year low

Regions Financial swallows huge quarterly loss, hits 24-year low originally appeared on BloggingStocks on Tue, 20 Jan 2009 14:10:00 EST. Please see our terms for use of feeds.

I think it's fair to say that there's much trepidation about the earnings season that picks up steam this week. And for better or worse, numbers from the big financials have begun to roll in. Last week we saw profit sink for JPMorgan Chase (NYSE: JPM) and significant losses from Bank of American Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), and Deutsche Bank (NYSE: DB).

Analysts surveyed by Thomson Reuters expect Bank of New York Mellon Corp. (NYSE: BK) to be among those financials reporting fourth-quarter earnings growth this week. They anticipate that Bank of New York will post a profit of $0.70 per share, compared to $0.67 per share a year ago and $0.72 in the previous quarter. Revenue is expected come to $3.8 billion, about the same as it was a year ago. Bank of New York has fallen short of earnings estimates in two of the past five quarters, by as much as 11.1%. For the full year, analysts are looking for $2.78 per share (+5.8%) on $14.8 billion (+4.2%). The consensus recommendation of analysts is to buy BK, and the long-term EPS growth rate forecast is 10.7%. Shares are 48.7% lower than a year ago. Other financials expected to report quarterly earnings growth this week include SunTrust Banks Inc. (NYSE: STI) and M&T Bank Corp. (NYSE: MTB).

Continue reading The week in preview: Financials, techs lead off earnings crunch

The week in preview: Financials, techs lead off earnings crunch originally appeared on BloggingStocks on Sun, 18 Jan 2009 12:30:00 EST. Please see our terms for use of feeds.

The Washington Post reports that Hank Paulson plans to turn the back of his hand to people who hold common shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) in his "rescue" plan. But Paulson may bailout the holders of their preferred shares -- which currently pay a dividend yield of about 20%.

Why does Paulson prefer the preferred to the common shareholders? That's because the common shareholders are big mutual funds with lots of small shareholders who have no importance to the economy in his judgment. The preferred shareholders are regional banks whose capital he thinks would sink dangerously if he wipes out their dividend.

Below is a list from the Post of the big Fannie and Freddie preferred holders:

• Regions Financial (NYSE: RF) which has an estimated $200 million,
• M&T Bank (NYSE: MTB) with $161 million, and
• Astoria Financial Corp. (NYSE: AF) with $83 million.

Continue reading Paulson to Fannie/Freddie common shareholders: Drop Dead

Paulson to Fannie/Freddie common shareholders: Drop Dead originally appeared on BloggingStocks on Sat, 23 Aug 2008 09:55:00 EST. Please see our terms for use of feeds.

Regions Financial boosted by finance sector earnings originally appeared on BloggingStocks on Thu, 17 Jul 2008 14:48:00 EST. Please see our terms for use of feeds.

Regions Financial Corporation (NYSE: RF), a financial holding company based in Birmingham, Alabama, recently down 99c to $12.76:

Friedman Billings has an underperform rating on RF. RF call option volume of 6,410 contracts compared to put volume of 37,361 contracts. RF June 12.5 straddle was priced at 85c. RF July option implied volatility of 72 was above its 26-week average of 48 according to Track Data, suggesting larger risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update; Regions Financial put volume heavy; shares near 14-year low originally appeared on BloggingStocks on Tue, 17 Jun 2008 16:35:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Goldman downgraded the department store sector to Neutral from Attractive after raising its 2008 oil forecast to $149 from $115, as it believes higher gas prices will impact consumer discretionary spend and sentiment. Goldman downgraded JC Penney (NYSE: JCP) and Nordstrom (NYSE: JWN) to Neutral and also removed Kohl's (NYSE: KSS) from its Conviction Buy List.
  
• JMP Securities downgraded SanDisk (NASDAQ: SNDK) to Underperform from Market Perform based on increased competition in NAND, a potential decline in royalty income, valuation, and lack of catalysts from flash-based solid state drives.
  
• CNET Networks (NASDAQ: CNET) was cut to Neutral from Buy at Banc of America following the tender offer from CBS (NYSE: CBS).

• Merrill downgraded Regions Financial (NYSE: RF) to Sell from Neutral.
  
• B. Riley downgraded Exar (NASDAQ: EXAR) to Neutral from Buy.
  
• Albermarle (NYSE: ALB) was lowered to Neutral from Overweight at JP Morgan.

Analyst downgrades: Department store sector, SNDK and CNET originally appeared on BloggingStocks on Fri, 16 May 2008 11:38:00 EST. Please see our terms for use of feeds.

"Socially Responsible Investing (SRI) is no longer relegated to a tiny corner of the investment landscape; indeed, according to the Social Investment Forum, SRI now accounts for $2.7 trillion, up more than 18% since 2005," says Chuck Carlson.

Here, the editor of The DRIP Investor offers five stock that both rank high for their social responsibility and also stand out based on more traditional earnings and valuation analysis.

"The Social Investment Forum estimates that more than one in every 10 dollars under professional management in the U.S. is involved in SRI investing. What is driving the growth in SRI?

"One factor is the increasing numbers of women and younger investors among the investor populace have fueled demand for SRI investments.

"In addition, we see an increased focus on environment, social, and corporate governance issues. Further, widely publicized stories concerning global warming as well as various corporate governance issues, have caused many investors to reconsider how they deploy their investment capital.

Continue reading Socially responsible favorites

Socially responsible favorites originally appeared on BloggingStocks on Tue, 06 May 2008 10:33:00 EST. Please see our terms for use of feeds.

• Jefferies upgraded shares of Venoco (NYSE:VQ) to Buy from Hold on increased confidence in the company's 5%-10% 2008 production growth target.
  
• Newfield Exploration (NYSE:NFX) was upgraded to Outperform from Market Perform at Friedman Billings. The firm said there has been significant progress in the economics of NFX's Woodford play.
  
• Citigroup upgraded Regions Financial (NYSE:RF) to Hold from Sell on valuation, as they their concerns are now priced into shares.

• ASML Holdings (NASDAQ:ASML) was raised at Merrill to Buy from Neutral.
  
• UBS upgraded Forest Oil (NYSE:FST) to Buy from Neutral.
  
• Bear upgraded Gaylord Entertainment (NYSE:GET) to Outperform from Peer Perform.

Analyst upgrades: VQ, NFX and RF originally appeared on BloggingStocks on Thu, 17 Apr 2008 11:01:00 EST. Please see our terms for use of feeds.

Regions Financial (NYSE: RF), a financial holding company with nearly $138 billion of assets in Birmingham, Alabama, is expected to report EPS on January 22. RF closed at $21.16. RF February option implied volatility of 58 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Huntington Bancshares (NASDAQ: HBAN), a $54 billion regional bank holding company headquartered in Columbus, Ohio, closed at $12.43. HBAN is expected to report full Q4 EPS today. HBAN overall option implied volatility of 57 is above its 26-week average of 34 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options update 1-17-08: Regional banks' volatility Elevated (RF, HBAN) originally appeared on BloggingStocks on Thu, 17 Jan 2008 08:16:00 EST. Please see our terms for use of feeds.