All Posts Tagged With: "NCC"

Beware the Dividend Trap

For years, investors have bemoaned the low dividend yield on stocks. But with the market down roughly 20%, the yield on the S&P 500 Index is up to 2.25%. That doesn’t sound terribly rich, I know, but it is only slightly less than the average money market is paying right now.

Global Investing Roundups Wednesday, July 16th, 2008

Banking Shares Plummet; Crude Drops on Curbed Demand; Citigroup Stock Slumps to Inception Levels; Volkswagen Chooses Chattanooga; J&J Reports 8% Jump in Profit; SEC Restricts Short Selling; 3-Year European Closing Low; Foolhardy ViroPharma Bid?

Whitney Slashes Wachovia Rating on ‘Bleak’ Shareholder Prospects Highlighting Ongoing Banking Crisis

Meredith Whitney, the Oppenheimer & Co. (OPY) analyst famous for her prescient financial sector calls during the ongoing banking crisis, has downgraded Wachovia Corp. (WB) to “underperform,” saying prospects are “bleak” for shareholders of the Charlotte-based commercial bank.

Home Prices and Consumer Confidence Plunge

Jason Simpkins at Money Week provides some more detail on yesterday’s gloomy data releases

Home prices as measured by the S&P/Case Shiller composite index of 20 metro areas fell 1.4% in April from March and slumped by a record 15.3% over the year. The group’s composite index of 10 metro areas dropped 1.6% in April, making for a record 16.3% annual drop.

According to the S&P, 13 of the top 20 metro areas are still posting record annual declines with price losses in the double digits for half of the areas.

The potential is a vicious cycle which we may already be experiencing. Falling home prices are leading to more foreclosures, which cause a further decline in prices,” Richard DeKaser, chief economist at National City Corp. (NCC) in Cleveland, told Reuters.

The only bright spot to be found in the data was that the 20-city month-over-month decline was the smallest drop since the August-September 2007 period.

“If there is anywhere to look for possible improvement, it would be that the pace of monthly declines has slowed down for most of the markets,” David Blitzer, chairman of the Index Committee at Standard & Poor’s, said in a statement.

Meanwhile a separate report from the Conference Board indicated consumer confidence had hit its lowest level in 16 years.

The Conference Board said its overall monthly index tumbled to 50.4 this month, its lowest point since hitting 47.3 in February 1992. The index measured a revised 58.1 in May.

Most analysts agree that consumer spending has held up relatively well in recent months, but that is easily attributable to the $50 million in economic stimulus payments the U.S. government sent out in May. Also, annual tax refunds have been coming in after the April tax season.

Getting both [checks] at this time of year has led to an increase in household spending, but I expect this to be temporary. I’m looking for spending to trail off in the latter part of the summer,” Bernard Baumohl, an economist at the Economic Outlook Group, told CNNMoney. “If consumers are not spending, then the economy is in serious trouble. I think we’re in a recession right now.”

Source: Home Prices and Consumer Confidence Traverse Record Lows

Here’s the Best Stock Buy in 10 Years

Banking. The list of banking stocks posting losses in excess of 50% grows with each selloff. Long-time shareholders have lost billions.

Calpine Rejects NRG Takeover Bid

A merger that would have united the two largest U.S. independent power producers has hit a roadblock.

Global Investing Roundups: Tuesday, April 22nd, 2008

Merck Doubles Profit; Arch Coal Heats Up First Quarter; Northwest Bankcorp Bolstered by Visa IPO; Profit Dives for Bank of America; National City Posts Loss, Slashes Dividend; Mattel Profit Drops; Strong Hasbro Results; Lowered Expectations for MF Global.

Weakened Financials Strut Their Visa IPO Profits

Visa Inc.’s (V) record-setting $17.86 billion initial public offering (IPO) last month provided a much-needed dose of good news to the economic mire we’re in.

National City Courted by Fifth Third, KeyCorp

Fifth Third Bancorp (FITB) is eying larger rival National City Corp. (NCC), the ninth-largest U.S. bank with approximately $150 billion in assets, as a potential acquisition target, according to several media reports.

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