Seeking Alpha
  • Today - Saturday, March 28, 2015

  • 4:33 PM
    • Barron's notes shares of JPMorgan (NYSE:JPM) trade at just 10x earnings, one of the lowest P/E ratios among big U.S. banks.
    • At just 12x 2016 estimated earnings, shares could approach $80 next year - a 30% gain, still a steep discount to the S&Ps 500's P/E ratio of 16x.
    • The stock yields 3%, tops among its peers.
    • Barron's says investors haven't yet recognized that JPM has built several market-leading companies, including the country's No. 1 credit-card company; the No. 1 investment bank; the top private bank; and the third-largest asset manager. CLSA analyst Mike Mayo, a onetime skeptic who turned bullish in late 2014, carries a Buy rating and $70 price target. "In addition to a discounted valuation, JPMorgan has adapted to the changing landscape, grown its market share, and reinvested back in the business," another analyst says.
    • Previously: JPMorgan holds on to top investment banking spot,  (Mar. 27)
    • Previously: Gasparino: Sizable cuts coming at JPMorgan investment and commercial banks (Mar. 19)
    • Previously: JPMorgan formally authorizes $6.4B buyback, boosted dividend next quarter (Mar. 17)
    | 11 Comments
  • Friday, March 27, 2015

  • 6:33 PM
    • Realty Income (NYSE:O) is up 3.3% in after-hours trade as it's set to join the S&P 500, replacing Windstream Holdings (NASDAQ:WIN), itself down 5.1% today and -0.5% after hours.
    • Windstream -- spinning off assets into a REIT -- will head to the S&P MidCap 400 to replace International Game Technology (NYSE:IGT), which is being acquired by GTECH. Meanwhile, Douglas Emmett (DEI, up 2.1% after hours) will replace Realty Income in the MidCap 400 after trading on April 6.
    • In other moves, Gentherm (THRM, +1.8% late) replaces buyout target Aviv REIT (NYSE:AVIV) in the S&P SmallCap 600 after trading on April 1; and Echo Global Logistics (ECHO, +1.9% late) will replace C&J Energy Services (NYSE:CJES) in the SmallCap 600 after trading April 1, as C&J is merging with part of Nabors.
    | 9 Comments
  • 3:41 PM
    • Between 1994 and 2013, there have been nine distinct periods in the U.S. of rising interest rates (defined as the 10-year Treasury yield rising more than 100 basis points), says Franklin Real Asset Advisors' Wilson Magee (see chart here). During six of those periods REITs provided positive returns, and in three, negative.
    • In those three negative return occasions, REIT performance also fell shy of the broader market, and in two of those cases significantly so. Of the six positive return outcomes, REITs outperformed the S&P 500 twice.
    • Ultimately, says Magee, as long as rising interest rates reflect a healthy, growing economy (and rise gradually instead of spiking), it should be good for both stocks in general and REITs.
    • Source: Valuewalk
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, IFNA, WREI, FREL
    | 2 Comments
  • 3:12 PM
    | 2 Comments
  • 2:48 PM
    • Oaktree Capital (NYSE:OAK), along with other founding investors are expected to buy 25% of the common equity of Fidelis Insurance Holdings, a Bermuda insurer led by former Lancashire Holdings CEO Richard Brindle.
    • The company's edge against reinsurance rivals like those set up by Dan Loeb (NYSE:TPRE) and David Einhorn (NASDAQ:GLRE), according to its pitch, is its plan to profit when prices for coverage are high, but to focus on investing during other periods.
    • Investors today, says the pitch, will have the opportunity to cash out through an IPO in 3-5 years.
    • Source: Bloomberg
    | Comment!
  • 2:39 PM
    • Central Federal Corporation (NASDAQ:CFBK): Q4 EPS of $0.01 vs. $0.05 in 4Q13
    • Revenue of $2.92M (+3.5% Y/Y).
    • Press Release
    | Comment!
  • 12:55 PM
    • First, says analyst Richard Shane, the stock trades at 14.6x this year's estimated earnings, roughly inline with post-crisis levels. Second, American Express (AXP -0.8%) is facing limited earnings growth over the next one to two year, and finally - while the long-term EPS growth target of 12-15% is achievable - the long-term revenue growth target of 8% may not be realistic given the maturity of AmEx's core business and the limited impact of new products and initiatives.
    • Previously: Seeing the "silver lining" of losing Costco (March 26)
    | Comment!
  • 11:40 AM
    • "There is evidence of diseconomies of scale," writes longtime Bank of America (BAC -0.6%) bear Mike Mayo, arguing the lender would be worth 25% more if broken up.
    • "We do not see the downside for investors in supporting greater transparency," says Mayo, applauding the SEC's forcing the bank to allow a vote on a proposal calling for the spinoff of its investment banking operation.
    • Mayo notes recent accountability issues like BofA being the only U.S. lender called out by the Fed in its stress tests this year, and last year's $4B accounting boner, after which the bank was forced to suspend its capital return plans.
    | 50 Comments
  • 11:18 AM
    • The $33.3M mortgage loan is for the 232-room Marriott Memphis East hotel. The loan is interest-only at a rate of Libor +4.95%, with no Libor floor. The paper has a two-year term and three one-year extension options.
    • "Another example of our team's ability to access debt capital on favorable terms," says Ashford Trust (NYSE:AHT) CEO Monty Bennett.
    • Source: Press release
    | Comment!
  • 11:09 AM
    • Continuing a plan to exit nearly all of its commercial office and retail property portfolios, Investors Real Estate (IRET +1.6%) closes on the sale of four office showroom properties in the Twin Cities for $26.6M. Separately, the company also sold a 26K square foot office showroom building for $2.725M and a 14.82K square foot Walgreens for $5.335M.
    • The company earlier this month purchased a 119-unit apartment property in Bismarck for $15M.
    • Source: Press Release
    | Comment!
  • 10:29 AM
    | 22 Comments
  • 10:03 AM
    • It's not a major surprise, but the Macerich (MAC -1.2%) board looks set to reject Simon Property Group's (SPG +0.3%) best and final buyout offer of of $95.50 per share, reports David Faber.
    • Investors have prepped for this: Macerich has been trading well south of $95.50 ever since the Simon ultimatum. It's currently at $85.93. Macerich was a $70 stock prior to Simon getting involved.
    • Previously: Investors bet Simon Property will walk away from Macerich (March 20)
    • Previously: Simon Property sweetens Macerich offer (March 20)
    | Comment!
  • 9:28 AM
    • Atlantic American Corporation (NASDAQ:AAME): Q4 EPS of $0.06
    • Revenue of $40.92M (+0.2% Y/Y)
    • Press Release
    | Comment!
  • 9:25 AM
    • The industrial property in Union City, CA consists of one rear-load industrial building of about 65K square feet on 3 acres across the street from another Terreno Realty (NYSE:TRNO) property.
    • The estimated stabilized cap rate is 5.5%.
    • Source: Press Release
    | Comment!
  • 9:22 AM
    | Comment!
  • 9:17 AM
    • Returning to a focus on making loans to smaller and mid-sized companies close to its Rust Belt base, KeyBank (NYSE:KEY) grew commercial and industrial loans on its balance sheet by 12.3% in 2014, outpacing regional bank peers like Fifth Third (NASDAQ:FITB) and PNC Financial (NYSE:PNC), where they grew 4% and 10% respectively.
    • The home-turf focus has helped the stock price - up 68% since the start of 2013 vs. 40% for the KBW Bank Index (ETF: KRE).
    • “We’ve learned our lessons from the downturn,” says CEO Beth Mooney. "We value good execution over fancy strategies ... We want to be where we matter and can get paid for it ... and a predictable earner."
    • Risks? The crash in energy prices could threaten at least part of the Midwest's industrial expansion, but analysts say the risk is less that the loans go bad and more than the bank's strong loan growth slows.
    • Source: The WSJ's James Sterngold
    | Comment!
  • 8:36 AM
    • Washington Square is a 261.6K square foot shopping center in Washington, NC. Wheeler (NASDAQ:WHLR) is buying for $20M or $76.46 per square foot, using a combination of cash and debt.
    • Built in 1971 and 100% leased, Washington Square is anchored by a Piggly Wiggly and shadow-anchored by a Wal-Mart Supercenter. Food Lion has signed a lease to replace the Piggly Wiggly when its lease expires in 2017.
    • Source: Press Release
    | Comment!
  • 8:02 AM
    • DuPont Fabros (NYSE:DFT) is lower by 1.9% premarket after Goldman starts it with a Sell rating and $29 price target on concern about customer concentration, repricing risk, and limited visibility into future growth.
    • Digital Realty (NYSE:DLR) and Equinix (NASDAQ:EQIX) are started at Neutral, and QTS Realty (NYSE:QTS) rates a Buy.
    | 3 Comments
  • 7:34 AM
    • The mortgage REIT sector finds a little sell-side love as Ladenburg Thalman upgrades Hatteras Financial (NYSE:HTS) to Buy from Neutral, noting the enticing valuation.
    • Yesterday's close of $17.94 is a 18.6% discount to Dec. 31 book value. The company held steady its $0.50 dividend this quarter for an annualized yield of 11.1%.
    | 1 Comment
  • 7:04 AM
    • 1347 Property Insurance (NASDAQ:PIH): Q4 EPS of $0.11
    • Revenue of $5.43M (+112.1% Y/Y)
    • Press Release
    | Comment!
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