|Bid||7.71 x 900|
|Ask||7.71 x 3200|
|Day's Range||7.67 - 7.73|
|52 Week Range||6.40 - 7.75|
|Beta (3Y Monthly)||0.56|
|PE Ratio (TTM)||10.85|
|Forward Dividend & Yield||0.80 (10.39%)|
|1y Target Est||N/A|
MFA Financial (MFA) delivered earnings and revenue surprises of 11.11% and -15.46%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
MFA Financial (MFA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
For many, the main point of investing is to generate higher returns than the overall market. But even the best stock...
We are still in an overall bull market and many stocks that smart money investors were piling into surged through October 17th. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 45% and 39% respectively. Hedge funds' top 3 stock picks returned 34.4% this year and beat the S&P […]
While New Residential's (NRZ) Q3 results will likely reflect benefits of strong originations and refinancing, credit risks related to residential mortgage loans might have made its earnings volatile.
On CNBC's "Mad Money Lightning Round," Jim Cramer said Paypal Holdings Inc (NASDAQ: PYPL ) is terrific. He sees a lot of upside if the company gets it right. Cramer likes NextEra Energy Inc ...
MFA Financial (MFA) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
SL Green Realty's (SLG) ground-up development, One Vanderbilt, reaches 1,401 feet pinnacle, becoming Midtown's tallest office building. It is presently 59% leased.
Every industry has its disruptors. The old and established leaders get comfortable doing things the same way -- it has worked for decades, so why change? Sometimes disruptors come with new ideas and approaches. Other times they have new technologies that can range from an app to a completely new means of operating.Source: Shutterstock One example that I use on a daily basis involves artificial intelligence (AI). I have a Bloomberg Terminal, which is a vital tool for pulling all sorts of data and information on any economy or market as well as any stock, bond or other security. It also comes with over 2,700 journalists around the globe that are generating news and other stories each and every day. But interestingly, Bloomberg has adopted AI which combs news releases and economic data releases. Then its army of robotic writers create an increasing percentage of its posted stories.There shouldn't be anything subjective in the robotic writing, but you never know how this will develop. By the way, I am not a robot.InvestorPlace - Stock Market News, Stock Advice & Trading Tips AI and Fintech StocksBanking is getting it worse. Financial technology (Fintech) companies continue to roll out non-bank payment, loan and deposit apps. These are increasingly making consumer banking with traditional banks less necessary, if not more costly. And even mortgages can be applied for or refinanced via apps.This has led many newer stocks to grab investor attention, including Square (NYSE:SQ) with its alternative mobile payment and point-of-sale services. It many be gathering new adopters, with revenue up over the trailing year by 49%, but it has negative operating margins running at -1.1% which in turn is delivering a loss on shareholder equity of -4.7%. * 7 Deeply Discounted Energy Stocks to Buy And dividends? Not with Square's cash burn. No wonder that in the trailing year, insiders have been reporting millions upon millions of shares sold, not bought. Bad indicator.Then there's Fiserv (NASDAQ:FISV) stock, which provides behind-the-scenes services and systems to alt-financial fintech companies. This company is a bit more responsible, with operating margins running at 30.1% which in turn is helping the return on equity to reach a current 35.6%. But its sales are anemic, with gains over the trailing year of only 2.2%.And it doesn't have much cash on hand, putting it in credit jeopardy in the short term. And the stock is valued at 16.4 times its book value which is has actually dropped by 42.6% to a current value of $6.48 per share from where it stood back in 2017.Again, no wonder that over the trailing year, that there were 20 sellers in management and the board -- again not a vote of confidence. And dividends? Not with the cash trouble and short-term credit woes. Instead, twice in the past 10 years, Fiserv has had to do two reverse 2 for 1 splits to keep the stock price up to avoid regulatory and market scrutiny. Better Alt-Financials With Better FintechFintech might be a good disrupter for beating traditional banks, but it's not so rewarding for investors -- especially without dividend income.But what is really beating banks comes from three obscure bits of Congressional legislation: The Investment Companies Act of 1940, The Small Business Investment Incentive Act of 1980 and The Cigar Excise Tax Extension Act of 1960.The Investment Companies Act established holding companies and funds, which allowed companies to own financial assets beyond just plant and equipment like operating companies. The Small Business Investment Incentives Act provided companies beyond banks to lend and own loans and other financing instruments from public and private companies, which brought needed loans to a stifled banking market. And the Cigar Excise Tax Extension Act had embedded in it the legal and tax structure which enabled real estate investment trusts (REITs). Business Development CompaniesBack in the late 1970's, inflation was out of control, driving interest rates to the moon and driving banks to be reticent about lending. So, the 1980 legislation allowed non-banks to operate as investment companies which could make loans and invest in loans. This began what is largely known as Business Development Companies (BDCs), which also do not have to pay traditional corporate income taxes.BDCs have been a very successful business model over the past many years. Banks have been strangled with low interest rates, which limit their net interest margins (NIM). This margin is the difference between what they pay in deposits against what they earn from loans. And regulations post 2007-2008 have stifled them with costly compliance. Even with relief over the past three years, much still needs to be done to unburden banks.Better than Banks: MVIS BDC Index Total Return Source MVIS & BloombergBDCs are outside much regulatory purviews and they don't do deposits. And lower interest rates enable them to fund themselves at lower rates through various non-banking means such as the bond and credit markets. And it shows in the performance of the MVIS BDC Index generating a return year to date of 21.53% including an average trailing tax-advantaged dividend yield of 9.72%.Moreover, BDCs also participate in the business loan market. And while there can be some shadows in this part of the credit market, the well-run and well-capitalized companies can participate in senior loans, which BDCs can participate in for their portfolio assets.Senior Loan Debt Index Source Palmer Square & BloombergSenior loans continue to perform well, even with some pullbacks. Such was the case with a drop in liquidity during the closing weeks of last year.In the model portfolios of my Profitable Investing, I have a great BDC in Hercules Capital (NYSE:HTGC). Hercules is based in Palo Alto, California, with offices around the nation. It focuses on working with technology companies and has a good track record of financing startups through to become bold-faced names in the tech market. It makes loans and provides other financing and also takes equity participation in its portfolio companies. It then works with them like bankers used to do by guiding them along to an exit strategy of being bought or through an IPO.Net interest margin (NIM) is ample at 8.9% and the efficiency ratio is good at 52.5% (the lower the ratio, the greater the profitability). Revenues are up 8.8% for the trailing year and it feeds a nice annual dividend stream including regular special distributions yielding 10.1%.The Profitable Investing portfolio also has Main Street Capital (NYSE:MAIN). This BDC focuses on more mundane small-to-middle-market companies with lending and other financing. It has wide financial margin and an efficiency ratio of an amazing 8.2%. and it pays an annual dividend, including regular special distributions, yielding 6.7%.Then there is my recommended TPG Specialty Lending (NYSE:TSLX). This company provides financing and capital to a variety of companies, including loan assets in its portfolio. Part of the famous TPG Capital formally called Texas Pacific Group which is one of the largest and more successful private equity firms in the world -- TPG Specialty draws great talent and resources from its affiliate.Revenues are up on a tear with the trailing year climbing by 24.2%. Its NIM is running at 10% and it keeps its efficiency ratio humming at a profitable 31.5%.TPG Specialty Lending (TSLX) Longer Term Total Return Source BloombergThe company has generated a return of 87.8% over the trailing five years for an average annual equivalent of 13.4%.It pays regular dividends quarterly, providing a yield of 7.5%. But it also regularly pays additional dividends from ongoing profits throughout the year for a current annual yield of 8.8%. Another Proven Bank DisruptorBanks used to be big in the mortgage business. That has been changing, particular post-2007-2008. Now others are in the market to originate and own mortgages. Inside my model portfolios of Profitable Investing, I have MFA Financial (NYSE:MFA) which is structured as a REIT under the Cigar Excise legislation noted above. MFA owns and runs a mortgage portfolio which in turn fuels an ample dividend yielding 11%. And it has proven itself to work during times of adversary including doing pretty well in the midst of the 2007-2008 financial crisis.Over the past 10 years, MFA has delivered a return of 213.48% for an average annual equivalent of 12.09%. Buy it in a taxable account as 20% of its dividends qualify as deductible from income tax liabilities thanks to the Tax Cuts & Jobs Act of 2017, making the payout distributions even more attractive after taxes.And now that I've presented my alternative Alt-Financials for more dividends and price gains, perhaps you might like to see more of my market research and recommendations for further safer growth and bigger reliable income. For more - look at my Profitable Investing. Click here to learn more: https://profitableinvesting.investorplace.com/Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post 4 Fintech Alternatives to Square & Fiserv with Big Dividends appeared first on InvestorPlace.
By now you've heard plenty of talking heads on television saying all sorts of scary things about the inverted yield curve for United States Treasury bonds. And if you missed the headlines, you'll be reading them popping up in news feeds and in the papers.Source: Shutterstock A yield curve is the plotting of bond maturities and their yields from shorter-to-longer-term. It shows how the market for any type of bond is being bought and traded. Normally, shorter-term bonds have lower yields than longer-term maturities.This is because the longer the maturity, the greater the risk of inflation baring its claws making for future interest payments. This also means that the eventual principal payment will be worth less in inflation-adjust terms. Longer-term yields tend to be lower because they must also price in credit risk. The longer the maturity, the greater time for credit in any given market sector to gyrate or deteriorate, putting future interest and principal payments at risk.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA normal yield curve should connect the dots of yield on the y-axis and maturities on the x-axis. It normally rises in yield as maturity dates stretch out. What Does Today's Yield Curve Mean?But an inverted yield curve is when shorter-term maturities are yielding more than longer-term maturities. And when it comes to the U.S. Treasury bond market, the generally accepted definition is when the 2-year Treasury yield is lower than the 10-year Treasury yield. * 10 Stocks Under $5 to Buy for Fall This kicked in early yesterday when the 2-year was at a little bit past 6:00 a.m. I was working to finish up my papers with my Bloomberg Terminal humming along. The 10-year dropped to 1.62% and the 2-year was sitting at 1.63%. This hasn't happened since 2007, when on Feb. 22 the spread was a negative 15.41 basis points, or 0.1541%.Today's Trading (In Yield%) for U.S. 2-and-10-Year TreasuriesHistory of Yield Spread between 2 and 10-Year U.S. Treasury Bonds Now since yesterday morning, the bond market has sent the spread back to positive, which is normal, for the 2-and-10-year maturity yields. Before I get into what this means, what is causing it, why you should care and what you need to do -- let's look at what the U.S. Treasury bond market has done over the trailing year.From Aug. 14, 2018 through to yesterday, Treasury yields outside of the 1-month bills have all dropped, and longer maturities have dropped even more.In the next graph I've plotted the curves for both dates and the resulting yield changes.U.S. Treasury Bonds (Actively Traded) Aug. 14, 2018 and YesterdayWhat has been causing this to occur? First up, the U.S. Treasury has been issuing more bonds with shorter maturities for some time as part of their funding for the U.S. government. This means more supply, which will influence market pricing. Second, inflation has been low and generally falling over the past many months.The Personal Consumption Expenditure Index, which is the prime gauge used by the the Federal Reserve and its Open Market Committee, has gone from bobbling around the 2% down to a current level of 1.6%. The PCE is a much better and more broad inflation gauge than the Consumer Price Index, as the PCE measures all consumption and not the contrived basket of goods and implied costs for other things including residential expenses.U.S. Core Personal Consumption Expenditure IndexAnd the core PCE, which is also calculated in quarterly Gross Domestic Product data, is running for the second-quarter data release at a rate of 1.4% in the deflator calculations of the GDP growth rate of 2.4%.So, inflation is low and down, and well below the stated target range of the FOMC of above 2% -- and even higher for what it deems as a healthy level for a growing economy.This means that while the FOMC has already reversed course with its target range for Fed funds at its July 31 meetings, I think it is likely that it will further ease in its meetings concluding on Sept. 18, Oct. 30 and Dec. 11 of this year. This reversal of target ranges for Fed funds is reminiscent of when it reversed in 1995-1996 and in 1998.This makes longer-term bonds all the more valuable to lock in yields for the longer term. Now normally, falling yields means falling GDP growth and a weakening economy. But that isn't as much the case right now. Growth in the U.S. economy remains good as just noted above for the most recent data, and there is good reason to see it continuing. U.S. consumer spending drives the vast majority of the economy. And my preferred gauge of consumers is the Bloomberg Consumer Comfort Index, which I refer to as the "Comfy Index."Bloomberg Comfy IndexSince late 2016, the Comfy Index has been climbing and is very well-positioned in the excellent range. This means that consumers should be eager to spend and have the ability to do so -- particularly as U.S. wage growth has continued to be multiples of core PCE inflation.And businesses continue to expect rising activity over the next six months, as I utilize the Federal Reserve Bank of New York's survey data for projections.U.S. Business Leaders Expected Business Activity (Six Months Forward)So, rather than the sickening economy that many are worried about, the U.S. economy continues to show better conditions. What Is Happening With the U.S. EconomyBut what really is happening is that the U.S. is the haven economy in a world where Europe is in trouble and the leading economies of Asia are slowing. And as a result, yields for government bonds from the leading issuers in Europe and Asia are increasingly heading into negative yields.Negative yield come as coupon rates (stated interest rates) are issued at low or near-zero rates. The markets at auction as well as the secondary market bids the bonds to prices above par ($100), which brings the yields below zero. Take for example a German bund (government bond) with a coupon of 0.5% and a maturity of Feb. 15, 2025. It has recently been trading in the market for $106.75 which means that for each bund you'll pay $1,067.50 euros along with $2.19 euros in accrued interest for an effective yield to maturity of -0.69%. That's because the bund will mature at $100, or $1,000 euros, which prices in a loss of $67.50 euros and offsets the coupons.Negative yields and interest rates around the world beyond the U.S. are rapidly becoming a growing problem as the amount of bonds with negative yields keeps climbing by the day to a current level of $15.8 trillion.Negative Yield Debt Around the GlobeThis in turn is making the U.S. bond market all the more attractive with positive yield, and is driving more buying from investors in the U.S. and beyond. And with more buying of longer-term bonds, yields are down and prices are up. Why Investors Should Care About the Inverted Yield CurveYou should care, because this is good -- for now -- for the U.S. economy. Lower interest rates and yields means lower borrowing costs for everyone from the government to corporations and individuals. And this in turn should further aid the growth of the U.S. economy, along with lower inflation pressures over time with lower borrowing costs.And this shows up in how well U.S. bonds are performing in total return from all bonds to my preferred markets in higher-yielding corporate bonds and municipal bonds.Look at the performance year to date for all U.S. bonds (in aggregate), corporate high yield and municipal bonds as tracked by Bloomberg Barclays.U.S. Aggregate Bond (White), U.S. High Yield Corporates (Orange) and Municipal Bonds Total ReturnOverall, U.S. bonds in aggregate have returned 8% year to date. Corporate high-yielding bonds have returned almost 10% and municipal bonds generated 7%. Securities to Focus OnNow, stocks have been choppy recently -- with trade tariff concerns and global economic trouble outside the U.S. But not all stocks have been in the crosshairs of sellers. I continue to guide my Profitable Investing subscribers to hone in on U.S.-focused stocks. This list includes real estate investment trusts such as my favorite W.P. Carey (NYSE:WPC) and utilities such as my favorite NextEra Energy (NYSE:NEE). And these sectors have been and should continue to benefit from lower U.S. interest rates and yields.And with mortgage loans climbing with rising property market values and consumer confidence, U.S. mortgage investment companies such as my MFA Financial (NYSE:MFA) should continue to deliver.But for U.S. bonds -- focus on the BlackRock Credit Allocation Income Trust (NYSE:BTZ) for corporate and other bonds trading at a discount to net asset value by 8.6% and yielding 5.9%. Investors should also focus on the Nuveen Municipal Credit Income Fund (NYSE:NZF) trading at a discount of 3.8% to net asset value and yielding a tax-equivalent yield of roughly 7.5%.The yield curve isn't a threat -- but simply a measure of market activities and developments as well as an indicator of expectations going forward. It is a tool for investors which should be used and not just feared.Now that I've presented my way to invest with an inverted yield curve, you might like to see more of my market research and recommendations. For more -- look at my Profitable Investing. Click here to learn more.In addition, if you find yourself in San Francisco Aug. 15-17, please join me at the MoneyShow. There I'll be presenting my economic and market analysis and my latest investment themes and recommendations.Neil George is the editor of Profitable Investing and does not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post What an Inverted Yield Curve Means (And What It Doesnat) appeared first on InvestorPlace.
MFA Financial (MFA) delivered earnings and revenue surprises of 11.11% and -14.20%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
MFA Financial (MFA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Looking for stocks with high upside potential? Just follow the big players within the hedge fund industry. Why should you do so? Let’s take a brief look at what statistics have to say about hedge funds’ stock picking abilities to illustrate. The Standard and Poor’s 500 Index returned approximately 12.1% in 2019 (through May 30th). Conversely, hedge […]