By Patrick Watson

Today the Oklahoma ETF began trading on NYSE Arca under the symbol OOK. This is the first state-based ETF. If ETF investors had been asked a year ago which state would be first to have its own ETF, I doubt that Oklahoma would have been a popular guess. The Oklahoma based sponsors have plans for a similar Texas fund. Both will feature a portfolio of companies headquartered in their respective states.

I'll coin this term in order to explain the travesty that is being allowed in the banking industry. Institutions are literally paying little old ladies' less than a half a percent on their life savings and using said funds to gamble in the risk fraught derivatives market, with the risk being totally underwritten by the government through the:

1. FDIC (deposit insurance and bond insurance - although to date this expense has been born by the industry, the FDIC is insolvent and may very well have to tap the Treasury, ie. the taxpayer: see I'm going to try not to say I told you so...),
2. Treasury (via TARP and associate measures, see America, You have been outright lied to! Bamboozled! Swindled! Hoodwinked! The Worst Case Scenario) and
3. Federal Reserve (ZIRP, QE, and a whole slew of programs I only wish I knew about - see The Fed Believes Secrecy is in Our Best Interests. Here are Some of the Secrets).

A perfect example of how the big banks are carrying this arbitrage out is outlined in "The Next Step in the Bank Implosion Cycle???", but the global economy risking behemoths are not the only one's that arbitrage bank deposit funds via FDIC guarantees. Earlier this year, I featured research on a smaller bank, Bank of Oklahoma (BOKF), which I found participated in some pretty suspect accounting moves. Despite these "gimmicks" the stock floated higher with the general market and particularly the banking sector. OF course, this does nothing to cure the ills that they have been papering over.

10/28/09

The “Oklahoma Fund”, an exchange traded fund comprised of a basket of the Oklahoma state stocks, is set to be released tomorrow on the NYSE under the symbol (OOK). It will be interesting to see how well an ETF based primarily on state pride will be digested by the investment community.

Last week marked the busiest week for dividend increases in 2009 as several blue chip companies such as IBM, Costco (COST) and Exxon Mobil (XOM) raised their payouts. It is always bullish to see companies which have always rewarded shareholders with raised payouts continue operating in a shareholder friendly pattern of behavior.

ExxonMobil, which engages in the exploration, production, transportation, and sale of crude oil and natural gas, raised its quarterly dividend by 5% to $0.42 per share. Exxon Mobil is a dividend aristocrat, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 27 consecutive years. The stock of the largest energy company in the world currently yields only 2.40%. Check out my analysis of XOM.

IBM (IBM), a name once synonymous with blue-chip technology, faced a near-death experience in the early 1990’s when it misjudged the importance of PCs at a time when demand for mainframes was waning and corporate downsizing was in full swing. IBM has never been able to regain its technology bellwether crown from Microsoft (MSFT) and Intel (INTC), but it has taken steps to regain its leadership role.

Oklahoma is a land of innovation. After all, the first parking meter came out of this state. Today Oklahoma is a top producer of automobiles and planes. Centrally located, mild temperatures and low cost of living make Oklahoma a very attractive state. Here are some interesting facts about Oklahoma:

1. Oklahoma’s top exports are pumps for liquids, and liquid elevators.
2. Oklahoma offers an incentive program for new employers generating employment within the state. Its quality jobs program pays up to 5% of the total payroll expense for up to ten years.
3. The cost of doing business in Oklahoma is the tenth lowest in the country.
4. It is estimated that Oklahoma will be the second largest provider of wind power by 2030.
5. The state’s aerospace industry employs over 143,000 people.
6. There are four foreign trade zones within the state.
7. It is expected that service providing industries in Oklahoma will account for 99% of all new employment between 2004 and 2014.
8. By contrast, manufacturing is one the fastest declining industries in the state.
9. Oklahoma’s finance industry provides almost 4% of all jobs in the state.
10. Top industries in the state within the finance industry are: commercial banking and insurance agencies & brokerages.

The following companies are headquartered in Oklahoma: