|Bid||62.25 x 3200|
|Ask||62.26 x 800|
|Day's Range||62.05 - 64.13|
|52 Week Range||48.42 - 75.24|
|Beta (3Y Monthly)||1.82|
|PE Ratio (TTM)||8.66|
|Earnings Date||Oct 15, 2019|
|Forward Dividend & Yield||2.04 (3.19%)|
|1y Target Est||83.00|
The turbulence created by a slowing economy and inversion in yield curve has forced investors to look for safe stocks. These five stocks are sure winners.
Citigroup's veteran shipping finance banker Michael Parker is to become chairman of the bank's shipping & logistics business, a role which will include bolstering the lender's environmental focus in the sector, Citi said on Thursday. The initiative highlights how businesses are having to respond to moves by investors around the world to factor environment, social and governance (ESG) risk into their commercial strategy.
(Bloomberg) -- Huawei Technologies Co. used code names and secret subsidiaries to conduct business in Syria, Sudan and Iran, the U.S. alleged in the extradition case related to sanctions violations against the company’s chief financial officer.The Chinese networking giant allegedly operated a de facto unit called DirectPoint in Sudan and Canicula in Syria, according to documents released this week by a Canadian court. In internal spreadsheets, Huawei also used the code “A5” to refer to Sudan and “A7” to Syria, the U.S. said in the documents submitted to the Canadian government in support of its request for the extradition of company CFO Meng Wanzhou.Huawei operated those units just as it controlled a subsidiary in Iran that obtained American goods, technologies and services in violation of U.S. sanctions, according to the allegations.The U.S. is seeking to extradite Meng -- daughter of Huawei’s billionaire founder Ren Zhengfei -- after accusing her and others at the company of conspiring to trick banks into conducting more than $100 million worth of transactions that may have violated U.S. sanctions. The company has denied it committed any violations. It didn’t respond Wednesday to requests for comment on the allegations in the court documents.“The motivation for these misrepresentations stemmed from Huawei’s need to move money out of countries that are subject to U.S. or EU sanctions -- such as Iran, Syria, or Sudan -- through the international banking system,” the Justice Department said in its request for Canada to arrest Meng as she arrived at Vancouver’s airport last December.The court on Tuesday released hundreds of pages of documents and video footage submitted by Meng’s defense to back its arguments that Canadian authorities deceived her about the true nature of her detention in order to collect evidence for the U.S. FBI.In those documents, the U.S. outlined its case against Meng and its plans for witnesses in the case against her if she is successfully extradited. Among those witness are unnamed executives from HSBC Holdings Plc, Standard Chartered Plc, BNP Paribas SA and Citigroup Inc. that allegedly were misled by Meng and her colleagues into continuing business with Huawei at the time despite the risk of sanctions violations.To contact the reporter on this story: Natalie Obiko Pearson in Vancouver at email@example.comTo contact the editors responsible for this story: David Scanlan at firstname.lastname@example.org, Andrew Pollack, Peter BlumbergFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- For 47 years, the Business Roundtable has lobbied on behalf of corporate America. Much of that time, it maintained a fiction(1) -- that the sole purpose of a corporation was to maximize profits on behalf of shareholders. This philosophy has been under assault for several years now, and this week the Business Roundtable announced it wants to put it to rest.In a widely circulated memo, the 200-member organization reversed itself, writing that "shareholder primacy” is no longer the sole purpose of a corporation. Instead, corporations must include a commitment to “all stakeholders,” which includes customers, employees, suppliers and local communities.Some kudos are in order for JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, and chairman of the Business Roundtable, for driving these changes. He has been discussing the need for a more inclusive form of capitalism, both in public speeches and in his letters to shareholders, for some time.But turning this aircraft carrier around won’t be easy, in large part because of the group's own history. Indeed, the Roundtable has spent most of the past four decades advocating against the interests of those exact stakeholders. To cite some of the more notable examples:\-- It fought the rise of labor unions and pro-union legislation;\-- Helped to defeat antitrust bills;\-- Prevented the formation of the Consumer Protection Agency;\-- Opposed corporate governance changes to make boards of directors and CEOs more accountable to stockholders;\-- Fought proper accounting of stock options given as compensation to executives and insiders;\-- Opposed increases in the national minimum wage (it now favors increases);\-- Lobbied to prevent restrictions on executive compensation;\-- Fought legislation that would create cleaner energy and address climate change;\-- Pushed for corporate income-tax cuts;\-- Supported anti-consumer Supreme Court decisions, including the fiction that corporations are legal people, and that campaign donations equal speech. The Roundtable might respond that this is all in the past. Let’s hope so. But the organization has an even greater challenge: Scan the list of 181 signatories to the recent memo and it's a Who’s Who of corporate behavior that has burdened and disadvantaged the very stakeholders they will now champion.Consider a few of the signatories:\-- Amazon.com Inc. and Apple Inc.: Two of the most valuable companies in the world are famously effective at using various tax dodges to avoid paying their fair share. I can recall when the Internal Revenue Service went after maneuvers that serve no valid business purpose other than tax avoidance. Consider that what isn't paid in tax by those who avoid them must be made up for by those who do -- mostly average Americans who also happen to be customers of these companies.The share of federal tax revenue paid by corporations has dropped by two-thirds in the past seven decades -- from 32% in 1952 to 10% in 2013; and corporate income tax as a share of gross domestic product has fallen from about 6% in 1946 to about 1.5% today.\-- Visa Inc., Mastercard Inc. and American Express Co.: Show good faith -- working with card-issuing banks as needed -- by simplifying the incomprehensible small print in the cardholder agreement and spell out in clear language the terms and penalties for late payment. Second, do the same for mandatory arbitration clauses that take away the right of customers to seek redress in public courts.\-- Ameriprise Financial Inc., Morgan Stanley and Principal Financial Group Inc: The brokers and insurers on the list have been zealous opponents of the fiduciary rule. Instead, they prefer a less stringent rule that allows them to sell products that are better for them than for their customers. Until those firms -- and Citigroup Inc. and JPMorgan are in this group -- embrace a higher duty of care, their gestures toward stakeholders are hollow. Oh, and they should drop the requirement that customers agree to mandatory arbitration clauses as one of the conditions for opening a brokerage account.\-- Coca Cola Co. and PepsiCo Inc.: For years these companies have been helping the American public achieve record levels of diabetes and obesity by selling health-damaging sugary drinks. They should acknowledge and warn customers of the consequences of consuming too much of their products, and accept the same kinds of taxes and health warnings now affixed to cigarettes.\-- Deere & Co.: The maker of farm machinery has led the fight against customers, insisting that they not make repairs to the equipment they own, and denying them access to parts and instructions. Repairs can only be made by Deere service technicians in what has come to be known as a “repair monopoly.” Apple, by the way, does the same thing.\-- Walmart Inc. and McDonald's Corp.: Both were steadfast opponents of increases in minimum wages for years. Although both now offer higher minimum pay, it was only after a tightening labor market forced them to increase wages. But this wasn't a case of corporate altruism -- their stores were messy and employees were sullen, and pay increases were part of plans to keep ill-treated customers from defecting. (McDonald's is not a signatory to the Roundtable memo).For the Roundtable commitment to be meaningful, the signatories are going to have to alter their behavior in ways large and small, and maybe even in ways that aren't always optimal for maximizing short-term profits. Still, we should be encouraged. But the proof will be in the follow through and the actual actions of the Roundtable members.(Corrects to clarify section on credit-card companies to indicate the role of banks in setting terms for customers. )(1) In “The Shareholder Value Myth,” Lynn Stout explained how the entire theory is based on a misreading of a 1919 court case -- Dodge vs. Ford – at the time, both privately held, non-public companies.To contact the author of this story: Barry Ritholtz at email@example.comTo contact the editor responsible for this story: James Greiff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Wanda Sports Group Co. -- a global sports marketing firm and event promoter -- has nabbed the interest of Wall Street bulls, suggesting it could be the next tech and media darling, and further indicating the growth in investor demand for Chinese stocks.American depository receipts in the Beijing-based company rose the most on record Wednesday, climbing 13% in New York, as several investment banks initiated the stock with buy-equivalent ratings. Deutsche Bank said the company is “well positioned for growth” in a “highly fragmented industry offering substantial organic and inorganic growth opportunities.”Wanda Sports, which owns the organizer of the Ironman triathlon race, began trading on the Nasdaq in late July. While it has lost almost half of its market value since its debut, Morgan Stanley sees the company as a “distinctive asset at [a] distressed valuation.”The fast-growing global sports industry has Morgan Stanley optimistic, and Wanda Sports’ portfolio of mass participation and spectator events worldwide “are relatively resilient amid macro uncertainties.” The firm began coverage of the stock with an overweight rating and $8 target.Wanda Sports, a unit of Chinese conglomerate Dalian Wanda Group Co., prompted Citigroup to also join the bullish wave with its buy rating. Citigroup, Deutsche Bank and Morgan Stanley led the company’s initial public offering. Loop Capital’s buy call turns a focus to China, which the firm sees as Wanda Sports’ “largest growth opportunity.”While investor reception has most recently been lukewarm, the “company’s reach into China will be an increasingly important differentiator with sports federations looking to expand global audience and participation,” said Loop Capital managing director Alan Gould.(Updates shares and chart, adds more commentary in final paragraph.)To contact the reporter on this story: Kamaron Leach in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
U.S.-based Citigroup Inc and French bank BNP Paribas are caught up in the U.S. criminal case against the chief financial officer of China's Huawei Technologies, according to newly available documents. The banks were named in documents released on Tuesday after a hearing in British Columbia Supreme Court, where Huawei CFO Meng Wanzhou is fighting extradition to the United States on bank fraud charges. The two are among at least four financial institutions that had banking relationships with Huawei when Meng and others allegedly misled them about its business dealings in Iran despite U.S. sanctions.
Earlier this month, the yield curve inverted. That is, the 10-year treasury bond yield slipped lower than the 2-year bond yield. It’s a switch that spooked the markets, signaling as it does that investors are losing confidence in short term gains and require higher yields to buy shorter term bonds. It’s also a switch that has preceded, sometimes by even a year or more, every recession for the last half-century, and so it brought the dreaded R-word back into investors’ discourse. That’s an article for another day, however.Instead, we’ll focus on a recent comment from Goldman Sachs analyst David Kostin, who in a succinct observation pointed out a more immediate problem and a possible solution for return-minded investors: “With the 10-year Treasury yield at just 1.5% and the Fed likely to cut two more times this year, investors should look for opportunities in dividend stocks.” A move toward high-paying dividend stocks would give investors an alternative to lower bond yields, as well as a cushion against lower share price gains. Goldman has a basket of such stocks.So, for investors interested in faster returns, here are three buy-rated stocks that reliably pay out a high dividend. AT&T, Inc. (T)AT&T has been persistently cheap since the Great Recession of 2008. The stock dropped below $30 per share then, and has been unable to break above $40 ever since. Shares are trading now at $34, with a 2018 PE ratio of 9.07 and an estimated 2020 PE of just 8.72. So not only is it cheap, it’s expected to stay cheap. But is that a realistic forecast?After all, we’re talking about the world’s largest telecom company. It’s the largest landline phone company and largest mobile service provider in the US, and last year purchased WarnerMedia as the foundation for a content-based streaming service scheduled to go online later this year. The stock may be cheap, but the company has enormous assets and plenty of future profit potential.And it is consistently one of the S&P 500’s top dividend payers, with a yield of 5.83% and a current annualized payout of $2.04 per share. The company’s cash flow is net positive, and management has been able to maintain that dividend payout while incurring the debt necessary to acquire WarnerMedia and its content, and cover the interest. It’s an impressive performance.Looking ahead, AT&T appears ready to cash in on its profit potential. 5G is coming, and wireless providers are going to benefit – as the largest such provider in the American market, T is likely to gain proportionately, at least. The same is likely to happen as the streaming sector opens up. With its large body of mobile customers, AT&T has a built-in audience for entertainment streaming via smartphone.The gains may have already begun. 5-star analyst Colby Synesael, from Cowen, looked at T after its recent quarterly earnings release and wrote, “The company is meeting and/or beating revenue and earnings for each segment except International. AT&T is on pace to meet and/or exceed its 2019 guidance.” He raised his price target by 17.6%, to $40. His new PT suggests an upside of 14%, in line with his upbeat outlook.AT&T gets a Strong Buy rating from the analyst consensus, with 7 buys and 2 hold given in recent months. As noted, shares are selling for $34.98. The average price target, $36.14, implies a modest upside potential of 3.3%, but don’t be surprised to see that increase in the near future. This stock is resting on fundamental strengths. Citigroup, Inc. (C) Unlike AT&T above, Citigroup hasn’t been dealing with headwinds lately. In fact, the banking giant has shown consistent growth in revenue and earnings for the last 5 years, while streamlining for efficiency. In 1H19, revenues gained a respectable 4% while net income rose even faster, 13%.At the same time, Citi’s forward PE ratio is only 8.8, and is expected to drop as low as 6.9 by the end of 2021. These numbers, for a globe-spanning banking conglomerate, indicate a stock that is a serious bargain by any standard.With a relatively cheap share price, Citi has been making itself more attractive to investors by a combination of consistent dividend payouts and recent dividend increases. Over the past two years, Citi has boosted its dividend by almost 60%. For investors, that’s a gift, even if it’s not part of Goldman’s dividend basket. Citi shares are now yielding 3.22%, and give an annualized payout of $2.04. This easily beats money market accounts, and if the Fed lowers rates again as expected, the disparity will only make the dividend more attractive.Even better, Citi is well positioned to continue increasing the yield. Despite the recent rate cut and falling bond yields, Citi has seen growth in the core business of deposits and loans, generating cash and float for investment – and dividend payments.Wall Street’s analysts agree that C shares are investment-grade. Last month, Brian Kleinhanzl of KBW upgraded his call on the stock, bumping it to Buy, and raised his price target 16% to $86. More recently, Betsy Graseck from Morgan Stanley and Mike Mayo from Wells Fargo also gave Buy ratings to C, with price targets of $78 and $85.Overall, C has a Strong Buy on the analyst consensus, with 9 recent buy ratings and 1 sell. Shares are trading for $63.91, the average price target is $79.20, and the upside potential is 24%. Kohl’s Corporation (KSS)Kohl’s, the department store chain, reported earnings on Aug 20, and the results showed a somewhat mixed bag. On the negative side, EPS dropped nearly 20 cents from the year-ago quarter and revenues slipped $140 million, to $4.43 billion, over the same period. These were not results to inspire confidence.On the positive side, however, the $1.55 EPS easily beat the $1.52 forecast. So, while earnings were down, they weren’t down as far as feared. Even better, the 2% positive surprise was a welcome reversal from the previous quarter’s 9% EPS miss.The dividend, however, makes this a stock worth paying attention to. Kohl’s is the second-highest yielding stock in Goldman’s dividend growth basket, at 5.82%, and pays out $2.68 per share annually. Again, the story is slightly clouded; while Kohl’s pays out generously, it does not do so consistently, having made just 10 payouts since 2012. Again to the positive side, Kohl’s has been careful to continuously adjust the rate for an increasing payment.KSS is an inconsistent stock, but its earnings are moving in the right direction and the company is confident enough now to restart dividend payments at nearly 6%. In a climate of falling interest rates and bond yields, and an economy that runs on consumer spending, this alone recommends KSS for return-minded investors.Randal Konik, writing from Jefferies, agrees that KSS is worth buying. He cites the company’s strong name recognition, and notes that shares are trading at a discount; the PE ratio is 8.01 now, and only expected to reach 8.65 by 2022. With the low valuation and the current high dividend, Konik sees KSS as a stock with a positive risk/reward balance. He gives it a price target of $75, suggesting an upside potential of 62%.Kohl’s has a Moderate Buy rating from the analyst consensus, with an even split of 5 buys and 5 holds, along with 2 sells. Shares are attractively priced at $46, and the $56 average price target gives the stock a 21% upside.
Citi’s Issuer Services business, acting through Citibank, N.A. has been appointed by 9F Inc. , an exempted company incorporated in Cayman Islands with principal operations in mainland China, as the depositary bank for its American Depositary Receipts program.
While issuance of non-QM loans is picking pace and attracting attention of big U.S. banks like Citigroup (C), it is early to worry as volume remains considerably below the level in pre-crisis years.
It is taken a decade, but Credit Suisse and Citigroup, are back to creating mortgage bonds out of debt to homeowners with less-than-spotless credit, this time dubbed ‘non-qualified’ loans
[Editor's note: "The 10 Best Cheap Stocks to Buy Right Now" was previously published in June 2019. It has since been updated to include the most relevant information available.]For a surprising number of names, the debate about whether a stock is overbought or oversold is largely irrelevant. Some stocks are simply (still) too cheap to overlook, poised to make gains whether or not the broad market's tide helps out in the foreseeable future. For deeply undervalued equities in anything but a wildly bearish environment, the bigger risk is being on the sidelines rather than in a position. * 10 Cheap Dividend Stocks to Load Up On To that end, here's a rundown of 10 of the market's best cheap stocks to buy right now. In some cases, the per-share price is just oddly low. In other cases, prices compared to earnings are well into single-digit territories. In most cases, both qualities apply.InvestorPlace - Stock Market News, Stock Advice & Trading Tips CBS Corporation (CBS)CBS Corporation (NYSE:CBS) may be down of late, but I still have confidence in CBS stock anyway. The television giant has improved in a big way where it needed to the most, streaming. By 2022, it should have 25 million streaming customers in tow.It's only a sign of the current paradigm shift in how video is delivered to consumers. It's also the reason we've seen a frenzy of M&A within the film and TV arena, the most notable of which is the Walt Disney (NYSE:DIS) acquisition of Twenty-First Century Fox (NASDAQ:FOXA).CBS has also jockeyed to acquire Viacom (NASDAQ:VIAB). At this point, they're just ironing out the details and divvying up the proceeds among the executives.With CBS stock priced at only 5.4 times this year's expected earnings though, the company would also make for a dirt-cheap entry or expansion into the entertainment industry. Air Lease (AL)Source: Karen Neoh via FlickrAir Lease (NYSE:AL) relies on at least a decent economy to drive demand for passenger jets, and recently, investors have seen what they think are too many red flags.Take a closer look at all the data, though, and matters aren't as dire as they may seem. While global economic growth may be running into a near-term headwind in the wake of plenty of political drama, in the bigger picture, airlines still desperately need new aircraft to satisfy demand.In May, and for the 12 months ending then, enplanements and total miles flown once again beat forcasted levels. Boeing (NYSE:BA) believes that between now and 2037, the world's airlines will take delivery of more than 42,000 new aircraft. * 10 Stocks Under $5 to Buy for Fall Given that trend and outlook, Air Lease is undervalued at its forward P/E of just above 5.8. Micron Technology (MU)Source: Shutterstock Micron Technology (NASDAQ:MU) has been a cheap stocks for awhile, but it's bumping up against being properly valued.It's not an easy idea for some investors to get behind.Micron beat the previous quarter's estimates by more than 30% and looks as if it might be coming out of the chip glut cycle better than it entered it.This is a cycle investors have seen over and over again, however, with the same end result every time. That is, producers will curtail production, abating supply and restoring pricing power.Rivals Samsung Electronics (OTCMKTS:SSNLF) and SK Hynix, in fact, have already slowed their DRAM expansion plans, and Micron had undertaken a project to cut capital expenditures by more than $1 billion this year.It could take a while for tempered production to restore DRAM prices, but trading at only 5.22 times this year's projected per-share profits, MU stock is worth the wait. It has been every time before. Citigroup (C)Source: Shutterstock Citigroup (NYSE:C), like most bank stocks, had a rough 2018, and though it has bounced this year, the 2019 rally to-date has been subpar.The stock is trading at a trailing P/E of 10, and a forward-looking earnings multiple of 8. This is cheap even by current banking stock standards, which have been abnormally low.The reason for the mismatched price and forecasted earnings is understandable enough. That is, enough investors are convinced interest rates are going to become just a little too high against a backdrop of just a little too much economic weakness. The concern is largely manifested in the flattening yield curve, which is particularly problematic for banks. * 15 Growth Stocks to Buy for the Long Haul As was the case with Air Lease though (and will be for several others below), the worry isn't fully merited. NCR Corporation (NCR)Source: Shutterstock You may know the company better as National Cash Register Corporation, even though it changed its name years ago to NCR Corporation (NYSE:NCR).The less-limiting moniker reflects the fact that point-of-sale devices are now much more than a means of completing a sale. Since then, the company has expanded into areas like ATMs, self-service kiosks and full-blown inventory management platforms.It's certainly a move in the right direction, although it's arguable that the market isn't giving the new NCR enough credit.That might have something to do with the fact that outfits like Square (NYSE:SQ) and Paypal (NASDAQ:PYPL) are encroaching in NCR's turf. It's a legitimate concern too. There's a huge subset of companies, however, that will prefer to do business with a long-established name like NCR. Timken (TKR)Source: Shutterstock Timken (NYSE:TKR) is anything but a household name. The company makes ball bearings and industrial transmissions to supply mechanical power where it's needed in a manufacturing environment.It's anything but a riveting business, but it's a business that's starting to grow in earnest again as America's industrial engine revs. After rolling over in 2015 as the nation started to fully transition to a service-oriented economy,the United States began making more goods again in 2016. It's never looked back. * 7 Safe Dividend Stocks for Investors to Buy Right Now The paradigm shift has proven to be a boon for Timken, which has grown revenue at a double-digit pace since early 2017. Better still, the new revenue trend has set the stage for earnings growth this year that translates into a projected P/E of only 8.3. General Motors (GM)Source: Shutterstock There's no denying General Motors (NYSE:GM) ran into a headwind four years ago when "peak auto" became a reality. Though a victim of its own rampant success -- subsequent comparisons have all looked lackluster -- investors tend to only care about how current results stack up against the recent past.Those investors, however, may be unfairly harsh with their treatment of GM stock and its peers.While it remains unclear when we'll see another automobile purchase growth cycle again, General Motors is still a solid cash cow, yielding 4.25% while it sports a dirt-cheap trailing P/E of 5.9. * 7 Stocks Under $7 to Invest in Now Regardless, the carmaker continues to impress regardless of the stock's valuation. Nicolas Chahine commented, "the 2018 barrage of tariff headlines made GM stock a tough trade as it fell sharply off its January 2018 highs.This year so far it has been the total opposite. GM management clearly gave Wall Street reason to rejoice and buy the stock and investors ate it up. This morning, they backed up their claim…" Lumentum Holdings (LITE)Don't worry if Lumentum Holdings (NASDAQ:LITE) is an unfamiliar name. Many investors probably haven't heard of it. The company makes communications equipment and industrial lasers and has a big presence in the fiber optic industry.There has never been a time when the world has needed such high-speed connectivity.As more and more wireless devices compete for a finite amount of radiofrequency bandwidth, middlemen are looking for easier and faster ways to offload some of that traffic to physical infrastructure. Fiber-optic lines are more than up to the task.The market doesn't seem to see it yet, pricing LITE stock at a forward P/E of 14.57 despite this year's expected revenue growth of 28% and next year's 27%. As time passes though, Lumentum's role in the future of telecom will become clearer. Terex (TEX)Source: Shutterstock Name any piece of mobile machinery, and Terex (NYSE:TEX) probably makes it. From backhoes to cherry pickers to tracked conveyors to cranes, Terex has solutions for almost any industrial application.That diversity hasn't helped revenue in a while, with the top line peaking in 2014. The stock has been hit-and-miss since then … more misses than hits.The doubters may have overshot their pessimism though, sending TEX stock to a forward-looking P/E of 6.93 after a disappointing second quarter reported in July. While sales growth is expected to slow this year, the company more often than not topped sales and earnings estimates in 2018. It may hold a few pleasant surprises in store this year after this brief stumble. Capital One (COF)Source: Shutterstock Last but not least, add credit card company Capital One (NYSE:COF) to your list of cheap stocks to consider here.Like Citigroup, Air Lease and others, investors have been fearful that a slowing economy -- maybe even a shrinking one -- could work against Capital One. In fact, rising interest rates could hit Capital One particularly hard in that situation, as its target market of risky borrowers could be the first to underpay of stop payments altogether should the global economic condition sour. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What It's another case, however, where the doubters may have overshot. COF stock is now priced at only 7.5 times this year's expected profits, making it one of the cheapest stocks to own in the financial sector. The worst-case scenario is more than priced in.As of this writing, James Brumley held a long position in CBS Corporation. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises The post The 10 Best Cheap Stocks to Buy Right Now appeared first on InvestorPlace.
(Bloomberg) -- Vulcan Capital, the investment house of late Microsoft Corp. co-founder Paul Allen, has opened its first international office in Singapore. The multi-billion dollar fund intends to invest an initial $100 million across Southeast Asian startups.Vulcan Capital is an unusual addition to the city-state’s investment scene. It is part of Vulcan Inc., which oversees the billionaire’s holdings and supports his causes in everything from elephant conservation to artificial intelligence research. Chief Executive Officer Bill Hilf channeled his late boss’s methodical approach when Vulcan took almost three years to decide on Singapore as an Asian base.“Before we take a step into Singapore, we know everything about it; we know every university, we know every politician, the politician’s friends,” Hilf said, describing the cautious approach. “That’s because we hold Paul, his family name and the Vulcan reputation as a sterling brand.”Allen died in 2018 and left a $26.1 billion fortune behind, an estate that some experts predicted could take years to sort out. Hilf said the process of shifting Vulcan from a management company to an estate trust may take close to a decade to complete because of the complexity of businesses it oversees.The Seattle-based company plans to use the nine-figure allocation in Singapore to back tech startups in Southeast Asia, making it one of the largest early-stage platforms in the region. The firm has hired financiers Tommy Teo and Minjie Yu as managing directors to lead the Singapore outfit. They will focus on seed, Series A and Series B investments in a broad range of areas including financial services, real estate technology and consumer internet, according to Teo. Their initial target markets will be Singapore, Indonesia and Vietnam.“There is a great momentum right now,” said Teo, who formerly worked at Singapore-based private equity firm Northstar Group and Citigroup Inc. among others. “It’s early enough for us to come in here in a meaningful way.”Investors like Vulcan will help build the ecosystem in the region, said Wilton Chau, who teaches entrepreneurship, VC and PE in Hong Kong and Singapore. “International VCs will have the network, the expertise and the knowledge of different markets and they will be more attractive to ventures here,” he said.Vulcan Capital takes an unusual approach to investing. Like any venture capital firm, it will aim to maximize returns from its investments. But the returns from those investments will go directly into Vulcan’s broad range of philanthropic projects, including climate change and wildlife conservation in Africa. The company is hoping its model will help attract young and mission-driven startup founders in the region.Paul Allen, Billionaire Who Co-Founded Microsoft, Dies at 65 (3)Southeast Asia is drawing more attention from U.S. investors. With deepening mobile penetration and an emergent middle class, the region has given birth to tech giants such as Grab, Gojek and Tokopedia in the past decade.“There are some really powerful players here,’” Hilf said. With 5G and satellite telecommunications, “I think we are going to leapfrog in connectivity in a way that most people are not even predicting.”To contact the reporters on this story: Yoolim Lee in Singapore at email@example.com;David Ramli in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Five Wall Street regulators have finally released their overhaul to the Volcker Rule after years of complaints from America’s biggest banks. Seemingly, it would be a reason for the industry to cheer.Instead, it feels like little to get excited about, given that the rewrite comes less than a month after news that Citigroup Inc. was preparing to cut hundreds of jobs in its trading division, a sign that banking executives might be worried about more lasting challenges to the business. Trading revenue at the five biggest U.S. banks dropped 8% in the second quarter and 14% in the first quarter. It’ll take more than tinkering around the edges and simplifying the “proprietary trading” ban to lift bankers’ spirits given the specter of layoffs. To top it off, the inverted U.S. yield curve is poised to further erode the firms’ crucial net interest margins.So, no, don’t expect bankers to break out the bubbly for Volcker 2.0. As for the details of the overhaul, the range of banned trading won’t change substantially from the original 2013 rule, but the ability to make markets for customers will be made clearer. Bloomberg Intelligence’s Nathan Dean said “the changes won’t likely lead to drastic changes in trading behavior.” While proprietary trading will still be banned, “banks may be able to increase transaction volumes so long as they don't exceed internal-risk limits,” he wrote. Still, no one is expecting liquidity to return to what it was before the rule took hold. I’ve argued that it’s in the banks’ own best interest to step back during times of market stress, given the potential for steep losses. They don’t have the massive balance sheets they once did for a reason — so that they can’t once again risk the collapse of the financial system.That’s not to say nothing has shifted with this rewrite. Certainly, all signs point to less-burdensome compliance demands. Bloomberg News’s Jesse Hamilton and Benjamin Bain did a great job explaining what was at stake in a preview last week:In creating the rule named for former Fed Chairman Paul Volcker, who championed the idea, Congress and the regulators banned short-term trades that couldn’t be shown to meet exemptions for things such as hedging or market-making. The rule has assumed that trades are banned unless banks show they aren’t.The new version is expected to upend that by generally giving banks the benefit of the doubt that they’re in compliance, the people said. Regulators have said they expect to have more confidence that banks are abiding by the rules because the standards will be clearer, allowing firms to plan portfolios with more certainty.To those with vivid memories of the financial crisis, it’s surely a bit unnerving to see regulators willing to give banks “the benefit of the doubt.” On the other hand, Wall Street has grappled with the initial Volcker Rule for years and presumably has ample evidence that the regulations as written were overly vague and onerous. Federal Reserve Vice Chair for Supervision Randal Quarles has called the revisions “the fruit of long and shared experience.” Elsewhere, the rewrite is set to loosen restrictions on banks investing their own money in private equity and hedge funds. The regulators may also issue further proposals on the treatment of fund investments. The final changes must be approved by the Fed, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the Securities and Exchange Commission and the Commodity Futures Trading Commission. Volcker 2.0 also seems likely to face a legal battle.Some articles referred to the new Volcker Rule as providing Wall Street traders with more “wiggle room,” and that’s probably the right way to think about it. Banking is an intricate industry that needs to be fine-tuned and calibrated based on experience. If Paul Volcker is on board with how his namesake has evolved over the past several years, that should be a sign that this rewrite is by no means a green light for traders to run rampant with speculative bets. But a bit more leeway most likely won’t be enough to stop the bleeding among Wall Street’s trading desks. It’s not going to reverse the weakness among hedge funds nor stop the pace of technological progress and new products that are crimping spreads across markets. Volcker 2.0 is here, and it doesn’t feel much different.To contact the author of this story: Brian Chappatta at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- After a brief respite at the end of last week, Argentina’s debt is getting hammered again.The nation’s offshore notes approached new lows on Monday, close to wiping out the small rebound from late last week, after the country was downgraded deeper into junk territory by two of the three biggest ratings companies and the Economy Minister Nicolas Dujovne resigned.The extra yield investors demand to own Argentine bonds over U.S. Treasuries widened 205 basis points to 18.58 percentage points, according to a JPMorgan index, while 100-year securities fell 4.7 cents to 47.4 cents on the dollar, approaching last week’s record low. The upfront cost to protect Argentina’s debt for five years using credit default swaps rose to 52% from 47% on Friday. Local markets are closed on Monday for a holiday.“You’re going to see plenty more volatility between now and the end of October,” said Graham Stock, a senior emerging-market sovereign strategist at BlueBay Asset Management in London. Measures taken by President Mauricio Macri last week “won’t be enough” to help him in the Oct. 27 election, and he risks pursuing “too populist an economic agenda” in the lead-up to the vote, Stock said.Macri’s measures to support the economy include freezing fuel prices for 90 days, increasing the minimum salary and modifying taxes paid by workers.Default RiskDespite a two-day respite at the end of last week, the nation’s credit default swaps still imply a 86% chance of a default in the next five years amid expectations the populist opposition will win October’s election. The brutal slump in the peso made the country’s large pile of debt much harder to repay. As of March 31, Argentina had $33.7 billion in foreign-currency debt payments due by year-end, the vast majority in short-term Treasury bills.In an interview on Bloomberg TV, Alejo Czerwonko, an emerging-markets strategist at UBS Wealth Management, said a surprise in the first round for Macri would bolster assets, but that it was very unlikely. Argentines vote in presidential elections on Oct. 27 and the next government would take over on Dec. 10.The sharp market sell-off was prompted by a surprise result in the Aug. 11 primary election showing opposition candidate Alberto Fernandez with a commanding lead over Macri.A delegation from the International Monetary Fund is expected to arrive in Buenos Aires this week for meetings with the government and the opposition ahead of a decision on whether to disburse about $5 billion of additional funds next month. The nation’s reserves fell $3.9 billion last week to $62.4 billion, the lowest since December, aggravating concerns about the country’s finances.Opposition LeaderIn several interviews with local newspapers on Sunday, Fernandez spoke about what he considered successful debt talks during his time as cabinet chief that led to a restructuring of bonds and the need to negotiate with bondholders. While he didn’t say he would necessarily push for a restructuring he said that “no one knows better than us the damage caused by default.” On Monday, his economic adviser, Guillermo Nielsen, said Fernandez has no plans to restructure the country’s debt.“While he added some clarity on his views, he did not shed any light on future cabinet members, which would be necessary to understand his economic policies more concretely,” Citigroup Inc. strategists led by Dirk Willer wrote on a report on Monday.Late last week, Fitch Ratings cut Argentina’s long-term issuer rating to CCC from B, putting the South American nation on par with Zambia and the Republic of Congo. S&P followed, lowering the country’s sovereign rating to B- from B and slapping a negative outlook on it.“Uncertainty continues on the private sector’s predisposition to roll over government debt and hold pesos while depreciation stresses the government’s high financing needs,” S&P analyst Lisa Schineller wrote in a statement accompanying the downgrade. Fitch’s said the deterioration in the macroeconomic environment “increases the likelihood of a sovereign default or restructuring of some kind.”(Adds Nielsen comment on 10th paragraph.)\--With assistance from Sydney Maki.To contact the reporter on this story: Aline Oyamada in Sao Paulo at firstname.lastname@example.orgTo contact the editors responsible for this story: Julia Leite at email@example.com, Daniel CancelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- It’s hard not to see HSBC Holdings Plc’s exclusion from China’s interest-rate reform as a snub.Hong Kong’s biggest bank wasn’t included in a list of 18 lenders that will participate in pricing for a new loan prime rate that the People’s Bank of China will start releasing Tuesday. The roster includes foreign lenders Standard Chartered Plc and Citigroup Inc., which have smaller China businesses than HSBC.It’s the latest sign that all may not be well in HSBC’s relations with Beijing, after a turbulent period that has seen the departures this month of Chief Executive Officer John Flint and the bank’s Greater China head, Helen Wong. HSBC shares fell 13% in Hong Kong this year through last Friday, compared with a decline of less than 1% in the benchmark Hang Seng Index.London-based HSBC, which is also Europe’s biggest bank, has made China a key plank of its growth strategy. The lender is the third-largest corporate bank in the country by market penetration, according to data provider Greenwich Associates LLC. That places it ahead even of China Construction Bank Corp. and Agricultural Bank of China Ltd., two of the nation’s big four state-owned lenders. Standard Chartered and Citigroup don’t rank among the top five, according Gaurav Arora, head of Asia Pacific at Greenwich.It could be argued that HSBC’s focus on big corporate clients means it’s less attuned to the loan market for small and medium-size enterprises that are the focus of China’s changes to its interest-rate regime. That would be a stretch, though. Corporate banking is a scale game. And even though StanChart may have a greater preponderance of smaller clients, HSBC surely has many similar customers. Citigroup’s inclusion makes more sense: It’s the only U.S. bank in China with a consumer-lending business that spans credit cards to SME loans. The list also includes less influential domestic lenders such as Bank of Xian Co. Those searching for reasons why HSBC may have fallen into China’s bad books may point to Huawei Technologies Co. Liu Xiaoming, China’s ambassador to the U.K., summoned Flint to the embassy earlier this year to interrogate him over the bank’s role in the arrest and prosecution of Meng Wanzhou, the chief financial officer of Huawei, the Financial Times reported Monday. The then-CEO told him HSBC had no option but to turn over information that helped U.S. prosecutors build a case against Meng, the FT said. On Aug. 9, an HSBC spokeswoman denied that Wong’s departure as Greater China head was linked to any issue involving Huawei, pointing out that she announced her resignation before Flint’s departure. Still, the bank has faced criticism in China’s state-owned media over its role in the case. The way HSBC helped the U.S. Department of Justice acquire documents concerning Huawei was unethical, the Global Times reported previously, citing a source close to the matter. The bank was likely to be included in China’s first “unreliable entity” list of companies that have jeopardized the interests of Chinese firms, it said.The timing of China’s interest-rate snub won’t do anything to quell jitters, coming a day after Cathay Pacific Airways Ltd. CEO Rupert Hogg resigned amid criticism from Chinese regulators over its stance on employee participation in Hong Kong’s protests. Beijing is becoming more muscular in its attitude to the city’s unrest and foreign-owned businesses aren’t being spared. In an increasingly politicized environment, even a business that’s been around for 154 years will have to tread carefully. To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- JPMorgan Chase & Co. plans to host a conference call on Tuesday to help clients make sense of markets after a week of wild swings for stocks and bonds.“In the wake of a rather violent decline in yields, inversion of the curve, and volatility in equity markets, we consider the role of poor liquidity and systematic flows in exacerbating these market moves,” JPMorgan strategists led by Marko Kolanovic wrote in an invitation to clients obtained by Bloomberg. A spokeswoman for the lender confirmed the event.The meeting comes after U.S. equities suffered one of the deepest sell-offs of the year on Aug. 14 and a key portion of the U.S. Treasury yield curve inverted for the first time in 12 years, stoking fears of a recession. President Donald Trump held a conference call that day with the chief executive officers of JPMorgan, Bank of America Corp. and Citigroup Inc.Kolanovic and strategist Munier Salem plan to address the bout of unusual illiquidity in U.S. equities and discuss the extent to which high-frequency trading is to blame for drops in market depth, according to the invitation. Joshua Younger, a fixed-income strategist, will lead a discussion on convexity hedging in rate markets.The bank said last week that measures of market depth in U.S. equities, Treasuries and currencies relative to the rest of the year have fallen below the average since 2010 -- a sign that market players don’t have as much capacity to absorb the trade-driven trends sweeping assets.Some Wall Street trading desks have warned that the sudden rupture of volatility could cause quant-driven funds to dump billions of dollars of stocks.(Adds conference call with president in third paragraph.)To contact the reporter on this story: Michelle F. Davis in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Josh Friedman, Linus ChuaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Now we know the real reason President Donald Trump has been so keen for the Federal Reserve to lower interest rates. It seems that the nation’s chief executive was mulling a deal out of his previous career as a real estate mogul.
It's hard to find a bargain stock with dividends growing quickly. Often they are overvalued and not worth buying. Another problem is these kind of stocks can't sustain the dividend growth. The trick to uncovering the best stocks to buy now is to search for fast-growing dividend stocks with low earnings-payout ratios. Even better if they're cheap.For example, fast growing tech companies reinvest their earnings in their business. They can't afford to pay dividends without sacrificing growth. Amazon (NASDAQ:AMZN) has never paid out a dividend but is growing very fast. The stock is not cheap as investors rely on steady growth, but its investors are willing to forgo dividends.Among the best stocks to buy now for value and income are business development companies (BDC). BDCs often raise their dividends at high rates, borrowing money or continually selling equity to finance dividend growth. Their payout ratios are high and the companies tend to be highly leveraged as a result.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBelow are five stocks selling below 10x earnings whose dividends have been rising 15% or more per year. The companies pay out less than 30% of their earnings in dividends. They reinvest the rest to maintain consistent growth. * 10 Cheap Dividend Stocks to Load Up On None of these stocks are turnarounds. They have been growing consistently for the past several years. You can rely on them to continue to increase their dividends at these rates. Best Value Stocks: CIT Group (CIT)2-Year Dividend Growth: +133%CIT Group (NYSE:CIT) is a bank holding company that has transformed itself into a vibrant, growing commercial lender after its demise in 2009. Earnings have been growing nicely as the company has divested itself of loss making divisions.In Q2 2018, CIT's dividends were at an annual rate of 64 cents. Three quarters later in Q1 2019, CIT raised the rate 56% to $1.00. And just recently in July CIT did it again - hiking the dividend to $1.40, up 40%.Analysts expect CIT to earn $4.96 this year. Its dividend represents just 28% of expected earnings. The stock now yields 3.1% and has a price-to-earnings ratio of 9.2x.CIT has been simplifying its commercial lending business, selling off non-core units, and strengthening its capital ratios. Its recent stock buybacks and dividends increases show that this is a very shareholder friendly company.Expect the company to continue to reward shareholders with consistent earnings and dividend increases. Bank of America (BAC)2-Year Dividend Growth: +50%Bank of America (NYSE:BAC), the U.S. bank holding company, has increased its quarterly dividends over the past two years from an annual rate of 48 cents to 72 cents, paid in July. In addition, BAC has been showing good operational growth, despite interest rate headwinds.BAC sports a 2.54% dividend yield and trades for just 10 times earnings per share. BAC reported Q2 earnings of 74 cents per share, which was up 17% over the past year.BAC can comfortably afford its dividend. The 72 cents annual dividend rate represents just 28% of its expected earnings per share of $2.84 for this year.BAC has a large and stable asset base with its consumer deposits and high earnings quality. It is well diversified with its Merrill Lynch brokerage arm, and an asset management business with $220 billion in assets under management. Their stable fees strengthen its lending business. * 10 Best Stocks to Buy and Hold Forever BAC has consistently grown its dividends. They rose 25% in 2018 and 20% in 2019. Expect the stock to continue to increase its earnings and dividends over the next year at a similar rate. Boyd Gaming (BYD)2-Year Dividend Growth Rate: +40%Boyd Gaming (NYSE:BYD) is a casino operator mainly focused on niche markets such as the local, non-Strip gambler in Las Vegas. Its revenue and earnings have picked up nicely over the past several years as U.S. economic growth, and disposable income, has grown.BYD has increased its dividend 40% over the past two years. This includes a 20% increase in 2018 and recently 17% increase to 28 cents on an annual basis. This represents just 16% of its expected earnings this year of $1.78 per share.BYD's dividend yield is 1.15%. There is plenty of room for the dividends to grow as Wall Street expects that the company will continue to show consistent earnings growth. As sports betting picks up speed across new states, now that the Supreme Court has OK'd it, BYD expects to participate in the growth in that arena.BYD is play on the economy continuing to steam ahead and the regional consumer's willingness to dispose of income at BYD's casinos. Expect the dividend to rise substantially over the next several years. Delta Air Lines (DAL)2-Year Dividend Growth: +32%Delta Air Lines (NYSE:DAL) has increased its dividend by over 32% over the past two years. In 2018 the dividend rose 14.8% and recently DAL set the annual rate at $1.61, up 15.1%. The stock is a general play on economic growth as well as its moves to diversity earnings.Delta's recent Q2 revenues were up 9% year-over-year. Earnings shot up an incredible 32%. Analysts are especially optimistic about the new credit card that DAL is going to co-brand in partnership with American Express (NYSE:AXP).The stock is still cheap, though. It trades at just 8.4x earnings which are expected to reach $7.10 for the year.Given that its dividend rate is $1.61, the pay-out ratio is 22%. So there is plenty of room for the company to continue to increase the dividend. Moreover, the stock sports a very attractive dividend yield of 2.71%. * 7 Great No-Load Mutual Funds for Retirement Portfolios Investors can expect DAL to consistently raise the dividend over the next several years. Citigroup (C)2-Year Dividend Growth: +59.4%Citigroup (NYSE:C) has raised its dividend almost 60% in the past two years. The dividend was up 41% in 2018 and this year Citigroup has hiked it another 13.3%.Citigroup is a play on strong economic growth in the U.S. The company has consistently produced solid revenue and earnings growth in the past 5 years.The company is well positioned to withstand any interest rate headwinds, should rates continue to fall. Deposits and loans have continued to grow despite interest rate cuts. Revenue was up 4% in the first half of 2019 and net income rose 13%.Citigroup's stock trades for less than 9x earnings per share. The dividend yield is very attractive at 3.1%. This is more than investors can make in their money market accounts.With the dividend set at $2.04, and earnings expected to be $7.64 this year, the payout ratio is only 26.7%. So there is still plenty of room for Citigroup to raise the dividend as earnings grows.Investors can expect Citigroup to raise its dividend over the next several years at a similar rate in 2019.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 5 Value Stocks With Fast-Growing Dividends appeared first on InvestorPlace.
Investing.com – General Electric (NYSE:GE) surged on Friday, clawing back some its losses from a day earlier after its CEO Larry Culp bought shares and analysts downplayed allegations that it was involved in financial foul play.