Markets End 2nd Quarter in the Red, Slide Continues to Start July
|
The market fell every day this week, on Tuesday as the Dow fell 265.87 points, or 2.62%, while the S&P 500 fell 33.20 points, or 3.1%. The rest of the week was not much better as the drop continued heading into the long weekend. Stocks tumbled Thursday after worse-than-expected reports on manufacturing, housing and the labor market fueled fears that the economy is heading for another recession. On the unemployment front, the number of Americans filing new unemployment claims last week rose to 472,000 from an estimated 459,000 in the previous week. In housing, The National Association of Realtors said its pending home sales index plunged 30% in May, reflecting the end of the tax rebates for homebuyers.
|
|
|
| |
|
|
There are several industries I like investing in no matter what the market is doing, and the financial industry is one of them. Yes, some US banks have been hit hard by poor mortgage lending practices and the overall economy but the global financial industry as a whole is not only thriving, it's absolutely necessary for living. In my books, that makes financial stocks a pretty good bet. In this week's issue, I found 3 gurus who were bullish on a variety of financial stocks, giving you a good cross section of financial companies, and I found 1 guru who offered some scathing insight on one financial stock to steer clear of.
|
|
 LNB Bancorp (LNBB) - While larger banks have eroded in value due to poor lending practices and bureaucratic over-spending, we see a lot of regional banks doing really well. Ohio's LNB Bancorp is one of them, according to the blogger at Variant Perceptions. LNBB has a low delinquent loan rate, growing deposits, and it's well capitalized. There's more good news, too. Read more about LNB Bancorp by PlanMaestro (at VariantPerceptions).
Full Story
|
Banco De Chile (BCH) - Banco De Chile provides financial services to its customers in Chile and the US. Like every other company in the world, Banco De Chile bottomed out in early 2009, according to Michael Vodicka of Zacks Investment Research, but it's been on the rise ever since. Their earnings have out-performed estimates at surprising levels. Read more about Banco De Chile by Vodicka (at Zacks).
Full Story
|
Arthur J. Gallagher (AJG) - Insurance is another way to play banking and although people hate to buy insurance, it's often considered a necessity. We can all probably name the top insurance companies but there are many mid-level companies that are chugging along. Many insurance companies were predictably hurt by last year's economy Darren Fonda reports in SmartMoney that the cycle could be changing. He points to Arthur J. Gallagher, a company that provides brokerage and claims services, as an optimistic play in a recovering part of the financial industry. Read more about Arthur J. Gallagher by Fonda (at SmartMoney).
Full Story
|
|
 City Holdings (CHCO) - Payday loan companies are frequently trashed in the newsmedia because of seemingly unethical lending practices to in-debt consumers. The guru who goes by the handle "Shareholder Watchdog", points out that City Holdings generates a huge 60% to 70% of its earnings from steep overdraft fees, which the guru believes is no different than a high interest payday loan. As of July 1st, 2010, a new overdraft rule was put in place requiring account holders to opt in to overdraft fees. Shareholder Watchdog believes that this will have a negative effect on City Holding's earnings. Read more about City Holdings by Shareholder Watchdog (at SeekingAlpha).
Full Story
|
|
|
Previous Issues |
June, 2010 |
|
|
|
|
|
May, 2010 |
|
|
|
|
|
April, 2010 |
|
|
|
|
|
|
March, 2010 |
|
|
|
|
|
February, 2010 |
|
|
|
|
|
January, 2010 |
|
|
|
|
|
December, 2009 |
|
|
|
|
|
November, 2009 |
|
|
|
|
|
October, 2009 |
|
|
|
|
|
|
September, 2009 |
|
|
|
|
|
August, 2009 |
|
|
|
|
|
July, 2009 |
|
|
|
|
|
|
June, 2009 |
|
|
|
|
|
May, 2009 |
|
|
|
|
|
|
April, 2009 |
|
|
|
|
|
March, 2009 |
|
|
|
|
|
|
|
|
