Following the onset of the Great Depression, our country was forced to re-evaluate the way the stock market operated. Realizing the need for an arm of the government to oversee our capital markets, the Securities and Exchange Commission was created in 1934. In its role, the federal body's goal is to ensure a competitive yet fair marketplace that's run in a smooth fashion. To help achieve this goal over the years, the SEC has launched myriad investigations into companies and their business and reporting practices.
These investigations are launched for all sorts of reasons, but one thing seems to have held true, at least in the fairly recent past: that SEC investigations, whether informal or formal, tend to have some seriously gravitational affects on stock prices in the near and potentially long term. �
Evidence of near-term underperformance
A study in 2005�by The Leonard N. Stern School of Business showed that a company's market share declined, on average, by 6.18% and 6.23%, respectively, following the announcement of an informal or formal investigation. It also displayed that the stocks typically underperformed the market for the following three months as uncertainty surrounding emerging information maintained its grasp. However, following those initial three months, the stocks tended to regress toward the mean, leading them to outperform the market. Data was compiled from more than 240 informal and formal investigations from 1998 to 2003.
Top 10 Rising Stocks To Invest In Right Now: Universal Corporation(UVV)
Universal Corporation, together with its subsidiaries, operates as a leaf tobacco merchant and processor worldwide. It engages in selecting, procuring, buying, processing, packing, storing, supplying, shipping, and financing leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products. The company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos; and provides value-added services, including blending, chemical and physical testing of tobacco, just-in-time inventory management, and manufacturing reconstituted sheet tobacco. Its flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes; and dark air-cured tobaccos are used in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. The company was founded in 1888 and is headquartered in Richmond, Virginia.
Advisors' Opinion:- [By Marc Bastow]
Leaf tobacco supplier Universal Corporation (UVV) raised its quarterly dividend 2% to 51 cents per share, payable on Feb. 10 to shareholders of record as of Jan. 13.
UVV Dividend Yield: 4.06%
Best Long Term Companies To Own For 2014: First Connecticut Bancorp Inc (FBNK)
First Connecticut Bancorp, Inc. (FCB) is a stock holding company. FCB has been formed in connection with the conversion of First Connecticut Bancorp, Inc. a mutual holding company (MHC), from the mutual to the stock form of organization. As of December 31, 2009, MHC owned all of the outstanding stock of Farmington Bank, a savings bank. The MHC will cease to exist as a result of the conversion, and FCB will own all of the common stock of Farmington Bank. As of December 31, 2009, FCB was not engaged in any business. Farmington Bank is a full-service, community bank with 15 full-service branch offices and four limited service offices, including its main office, located throughout Hartford County, Connecticut.
Farmington Bank provides a diverse range of commercial and consumer services to businesses, individuals and governments across Central Connecticut. Farmington Bank provides a range of banking services to businesses, individuals and governments in Central Connecticut. It also offers a range of residential mortgage loan services. Farmington Bank�� subsidiaries include Farmington Savings Loan Servicing, Inc., Village Investments, Inc., Village Corp., Limited, 28 Main Street Corp., Village Management Corp. and Village Square Holdings Inc.
Farmington Savings Loan Servicing, Inc. operates as Farmington Bank�� passive investment company (PIC). Village Investments, Inc. offers brokerage and investment advisory services through a contract with Infinex Financial Services, a registered broker-dealer. Village Corp., Limited was established to hold certain commercial real estate acquired through foreclosures, deeds in lieu of foreclosure, or other similar means. Village Square Holdings, Inc. holds certain commercial real estate of Farmington Bank, formerly used as Farmington Bank�� operations center prior to its relocation to One Farm Glen Boulevard, Farmington, Connecticut. As of December 31, 2009, 28 Main Street Corp and Village Management Corp were inactive.
Len! ding Activities
Farmington Bank�� primary lending activities consists of the origination of one-to-four family residential real estate loans that are primarily secured by properties located in Hartford County and surrounding counties in Connecticut. During the year ended December 31, 2009, the Bank originated $75.8 million of fixed-rate one-to-four family residential loans. The Bank also offers adjustable-rate mortgage loans for one-to-four family properties, with an interest rate that adjusts annually based on the one-year Constant Maturity Treasury Bill Index, after a one, three, four, five, seven or nine-year initial fixed-rate period. Its adjustable rate mortgage loans generally provide for maximum rate adjustments of 200 basis points per adjustment, with a lifetime maximum adjustment up to 6%, regardless of the initial rate. Its adjustable rate mortgage loans amortize over terms of up to 30 years. During 2009, it originated $49.2 million adjustable rate one-to-four family residential loans and purchased $33 million adjustable rate mortgages.
Farmington Bank originates commercial real estate loans and loans on owner-occupied properties used for a variety of business purposes, including office buildings, industrial and warehouse facilities and retail facilities. As of December 31, 2009, the Bank�� owner-occupied commercial mortgage loans constituted the largest portion of its commercial real estate portfolio. During 2009, commercial mortgage loans totaled $265.5 million and owner-occupied commercial real estate loans totaled $133.3 million of its commercial real estate portfolio.
Farmington Bank offers construction loans, including commercial construction loans and real estate subdivision development loans, to developers, licensed contractors and builders for the construction and development of commercial real estate projects and residential properties. During 2009, the Bank�� loans outstanding, including commercial and residential, totaled $68.7 million! . The Ban! k also originates construction loans to individuals and contractors for the construction and acquisition of personal residences.
Farmington Bank�� commercial business loan portfolio comprises both middle market companies and small businesses located primarily in Connecticut. Farmington Bank�� Resort (Timeshare) Loans include receivables loans, pre-sale loans, inventory loans, acquisition and development loans, and homeowner association loans. During 2009, its timeshare loans totaled $82.8 million. Farmington Bank also offers home equity loans and home equity lines of credit, both of which are secured by owner-occupied one-to-four family residences. At December 31, 2009, home equity loans and equity lines of credit totaled $66.7 million.
Farmington Bank also offers various types of consumer loans, including installment, demand, revolving credit and collateral loans, principally to customers residing in its primary market area with acceptable credit ratings. Its installment and collateral consumer loans generally consist of loans on new and used automobiles, loans collateralized by deposit accounts and unsecured personal loans.
Advisors' Opinion:- [By CRWE]
First Connecticut Bancorp, Inc. (Nasdaq:FBNK) reported that its Board of Directors has voted to pay a cash dividend in the amount of $0.03 per share on June 14, 2012 to all shareholders of record as of June 4, 2012.
Best Long Term Companies To Own For 2014: Kemper Corp (KMPR)
Kemper Corporation (Kemper), formerly Unitrin, Inc., incorporated in 1990, is a diversified insurance holding company, with subsidiaries that provide life, health, automobile, homeowners and other insurance products to individuals and small businesses. The Company is engaged, through its subsidiaries, in the property and casualty insurance, life and health insurance and automobile finance businesses. The Company conducts its operations through four operating segments: Kemper Preferred (Preferred), Unitrin Specialty (Specialty), Unitrin Direct (Direct) and Life and Health Insurance. On September 14, 2011, its subsidiary, Fireside Bank sold its loan portfolio to a subsidiary of Consumer Portfolio Services, Inc.
Property and Casualty Insurance Business
The Company's property and casualty insurance business operations are primarily conducted through the Preferred, Specialty and Direct segments. In addition, the Life and Health Insurance segment�� career agents also sell property insurance to its customers. Its insurance subsidiaries operating in the Preferred, Specialty and Direct segments provide automobile, homeowners, fire, and other types of property and casualty insurance to individuals and commercial automobile insurance to businesses. During the year ended December 31, 2011, automobile insurance in these segments accounted for 54% of its consolidated insurance premiums earned from continuing operations, and 47% of its consolidated revenues from continuing operations. During 2011, homeowners insurance in these segments accounted for 14% of its consolidated insurance premiums earned from continuing operations, and 11% of its consolidated revenues from continuing operations.
Preferred and Specialty segments distribute their products through independent agents who are paid commissions for their services. Direct segment distributes its products directly to consumers and through employer-sponsored voluntary benefit programs and other affinity relationships.! Preferred, based in Jacksonville, Florida, conducts business in 38 states and the District of Columbia. During 2011, the states, which provided over half of the premium revenues in Preferred segment included New York (19%), California (12%), North Carolina (13%) and Texas (10%). Preferred segment primarily sells preferred and standard risk automobile and homeowners insurance. During 2011, Preferred�� insurance products accounted for 53% of the aggregate insurance premium revenues of the Company�� property and casualty insurance business. Its products are marketed by approximately 2,700 independent insurance agents. Specialty, based in Dallas, Texas, conducts business in 21 states, principally in the southwest and western United States. During 2011, the states, which provided more than three-fourths of the premium revenues in Specialty segment included California (42%), Texas (18%), Washington (8%), Louisiana (4%) and Oregon (3%). Specialty provides personal and commercial automobile insurance. During 2011, Specialty�� insurance products accounted for 28% of the aggregate insurance premium revenues of the Company�� property and casualty insurance business. Specialty�� products are marketed through approximately 8,000 independent agents and brokers.
Direct, based in Chicago, Illinois, markets personal automobile, homeowners and renters insurance through a range of direct-to-consumer Websites, including its own Websites, marketing partners, employer and other affinity-sponsored relationships. The Direct segment�� automobile insurance products are available in 48 states and the District of Columbia. During 2011, the states, which provided approximately two-thirds of the premium revenues in Unitrin Direct segment included Florida (12%), New York (15%), California (10%), Texas (5%), Connecticut (5%), Michigan (8%), Pennsylvania (5%) and Georgia (5%). During 2011, Direct�� insurance products accounted for 14% of the aggregate insurance premium revenues of its property and casualty i! nsurance ! business.. Direct also offers homeowners and renters insurance across 47states and the District of Columbia, complementing its direct automobile insurance business. The Company manages its exposure to catastrophes and other natural disasters through a combination of geographical diversification, restrictions on the amount and location of new business production in certain regions, and reinsurance. To limit its exposures to catastrophic events, the Company maintains various primary catastrophe reinsurance programs for its property and casualty insurance businesses.
Life and Health Insurance Business
The Company�� Life and Health Insurance segment consists of Kemper�� wholly owned subsidiaries, United Insurance Company of America (United Insurance), The Reliable Life Insurance Company (Reliable), Union National Life Insurance Company (Union National Life), Mutual Savings Life Insurance Company (Mutual Savings Life), United Casualty Insurance Company of America (United Casualty), Union National Fire Insurance Company (Union National Fire), Mutual Savings Fire Insurance Company (Mutual Savings Fire) and Reserve National Insurance Company (Reserve National). As discussed below, United Insurance, Reliable, Union National Life, Mutual Savings Life, United Casualty, Union National Fire and Mutual Savings Fire (the Kemper Home Service Companies) distribute their products through a network of employee, or career, agents. Reserve National distributes its products through a network of exclusive independent agents. Both these career agents and independent agents are paid commissions for their services. During 2011, the states, which provided approximately two-thirds of the Life and Health Insurance segment�� premium revenues included Texas (21%), Louisiana (11%), Alabama (7%), Mississippi (6%), Illinois (4%), Florida (4%), Georgia (4%), Missouri (4%), and North Carolina (4%). During 2011, life insurance accounted for 18% of the Company�� consolidated insurance premiums earned from ! continuing! operations, and 16% of its consolidated revenues from continuing operations.
The Kemper Home Service Companies, based in St. Louis, Missouri, focus on providing individual life and health insurance products to customers of modest incomes who desire basic protection for themselves and their families. Their product is ordinary life insurance, including permanent and term insurance. Face amounts of these policies are lower than those of policies sold to higher income customers by other companies in the life insurance industry. Approximately 79% of the Life and Health Insurance segment�� premium revenues are generated by the Kemper Home Service Companies. The Life and Health Insurance segment�� career agents also distribute certain property insurance products. Reserve National, based in Oklahoma City, Oklahoma, is licensed in 35 states throughout the south, southwest and midwest, and specializes in the sale of Medicare Supplement insurance and limited health insurance coverages, such as fixed indemnity, dental and vision, and accident-only plans, primarily to individuals in rural areas where access to a multitude of health plan options is less prevalent.
The Company's life and health insurance companies utilize reinsurance arrangements. Included among the segment�� reinsurance arrangements is excess of loss reinsurance coverage specifically designed to protect against losses arising from catastrophic events under the property insurance policies distributed by the Kemper Home Service Companies��agents and written by Kemper�� subsidiaries, United Casualty, Union National Fire and Mutual Savings Fire, and reinsured by Kemper�� subsidiary, Trinity Universal Insurance Company (Trinity), or written by Capitol County Mutual Fire Insurance Company (Capitol), a mutual insurance company owned by its policyholders, and its subsidiary, Old Reliable Casualty Company (ORCC), and reinsured by Trinity.
Advisors' Opinion:- [By Rich Duprey]
The property and casualty business of insurance company Kemper� (NYSE: KMPR ) has a new bean counter.
On Monday, the Chicago-based insurance company�announced�that Elizabeth "Libbie" Bock�will take on the role of CFO for the P&C division, where she would be�responsible for all aspects of operations, reporting, control, planning and analysis, financial management, and competitive analysis.
Best Long Term Companies To Own For 2014: Fusion-io Inc (FIO)
Fusion-io Inc (Fusion) is a provider of datacenter solutions that accelerate databases, virtualization, cloud computing, big data, and the applications that help drive business from the smallest e-tailers to some of the largest data centers, social media leaders, and Fortune Global 500 businesses. The Company's integrated hardware and software platform enables the decentralization of data from legacy architectures and specialized hardware. The Company sells its solutions through a global direct sales force, original equipment manufacturers, or OEMs, including Cisco, Dell, HP, and IBM, and other channel partners. In August 2011, the Company acquired IO Turbine, Inc.,. Effective March 18, 2013, the Company acquired ID7.
Fusion-io's ioMemory hardware is a sub-system connecting a large array of industry-standard NAND Flash memory through the Company's data-path controller and its virtual storage layer, or VSL, software to create a high capacity memory tier that natively attaches to a server's PCI-Express peripheral bus (PCIe).
The Company's portfolio of storage memory products incorporates the Company's ioMemory hardware combined with its virtual storage layer (VSL) and caching software into its family of ioDrive, ioFX, and ioCache enterprise grade products. The Company's ioDrive products work in conjunction with the Company's directCache data-tiering software, ioTurbine virtualization software, ioSphere management system, and ION Data Accelerator software. The Company's latest ioDrive, ioFX, and ioCache product families are a line of PCIe standard form-factor storage memory platforms that combine one or more ioMemory sub-systems with the Company's VSL software.
The Company's directCache software extends the Company's ioMemory based platforms and permits interoperability with traditional direct-attached, network-attached, storage area network attached, and appliance attached backend storage systems. The Company's ioTurbine virtualization software extends the Company! 's ioMemory platform and permits host-based data acceleration to specifically address the demand for high-density, high-performance server, and desktop virtualization.
ioSphere is a suite of management software purpose-built for the Company's storage memory infrastructure and designed around its application acceleration platform. ioSphere software is accessible through a graphical user interface that enables datacenter administrators to centrally configure, monitor, manage, and tune all distributed ioMemory devices throughout the datacenter. In addition, this software offers real-time, predictive, and historical reporting of ioMemory's performance and wear.
The Company's ION Data Accelerator software transforms server platforms into application acceleration appliances that share Fusion ioMemory across applications. ION Data Accelerator delivers Fusion-io performance on open server platforms with software-defined storage, or SDS, for applications such as Oracle RAC, Microsoft SQL Server, MySQL, and SAP HANA, along with other applications where shared storage aids deployment. The Company's original equipment manufacturer�� (OEMs), including Cisco, Dell, HP, and IBM, sell branded storage memory solutions based on the Company's standard products as well as custom form-factor versions to fit specific applications.
The Company competes with EMC Corporation, Hewlett-Packard Development Company, L.P, Texas Memory Systems, Oracle, Adaptec, Inc., LSI Corporation, Sandisk, Corp, IBM, CA, Inc, Nagios Enterprises, LLC., Hitachi Data, Huawei Technologies, Co., Intel Corp., LSI Corporation, Marvell Semiconductor, Inc., Micron Technology, Inc., OCZ Technology Group, Inc., Samsung Electronics, Inc., SanDisk, Corp., Seagate Technology, STEC, Inc., Toshiba Corp., and Western Digital Corp.
Advisors' Opinion:- [By Evan Niu, CFA]
What: Shares of Fusion-io (NYSE: FIO ) soared by as much as 21% today after the company posted strong earnings with an encouraging outlook.
- [By Rich Duprey]
Facebook gets much of its flash memory from Fusion-io (NYSE: FIO ) , where it accounts for more than a third of the memory maker's total revenues, and it was buying up a lot more of its flash in the fiscal fourth quarter than Fusion-io had anticipated. While the current quarter is going to see a bit of a drop-off in demand from Facebook, the flash-memory maker expects to be able to keep the strong relationship going in the future. Whether it will be the one making the "worst possible flash" remains to be seen.
- [By Lee Jackson]
Fusion-io Inc. (NYSE: FIO) was busy going nowhere until Virident was bought by disc drive giant Western Digital Corp. (NASDAQ: WDC). Then all eyes on Wall Street started to focus on which company may be the next acquisition target. Many think the odds are good that Fusion-io is that candidate. The consensus price target is posted at $15. The high target on Wall Street is a staggering $29.
Best Long Term Companies To Own For 2014: Sirius XM Radio Inc.(SIRI)
Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.
Advisors' Opinion:- [By Anora Mahmudova]
In earnings news, Sirius XM Holdings Inc. (SIRI) fell 1.3% after the broadcasting firm posted a drop in fourth-quarter profit.
- [By WWW.DAILYFINANCE.COM]
Gene J. Puskar/AP DETROIT -- said its U.S. July auto sales rose 20 percent and that it expected the industry to show an 8 percent increase for the month. Both figures were below analysts' estimates. Nine analysts surveyed by Reuters had expected gains of 25.5 percent for Chrysler and 11 percent for the industry. However, Chrysler said last month was its best July since 2005, with sales of 167,667 vehicles. Gains in U.S. auto sales have been stronger than the overall economy since the recession. Still, the monthly figures also provide an early glimpse into consumer spending. Auto sales dropped to a low of 10.4 million vehicles in 2009 and have risen steadily since, reaching 15.6 million vehicles last year. They are on a pace for about 16.4 million this year, in part because of easier credit and loans of up to 84 months. In a posting on Twitter, Hyundai Motor said its U.S. July sales rose 1.5 percent to 67,011 vehicles, an all-time record for that month. General Motors (GM), which reports sales later Friday morning, is expected to show a gain of 11 percent, according to the analysts surveyed by Reuters. This month Toyota Motor (TM) is expected to nudge Ford Motor (F) for the No. 2 sales spot, behind GM. Analysts expect Toyota sales to rise 11 percent and Ford's to increase 9 percent. Toyota topped Ford in U.S. sales in July 2013, but Ford has held second place for all of last year and so far this year. On Friday in Turin, Italy, where Chrysler parent Fiat is headquartered for now, shareholders are expected to approve a merger that will create Fiat Chrysler Automobiles, to be registered in the Netherlands. Fiat has relied on the resurgence of Chrysler in North America since the No. 3 U.S. automaker's 2009 government-sponsored bankruptcy as Europe's auto sales flagged. Sales of Chrysler's Jeep SUV brand, which Fiat Chrysler sees as a linchpin in its global growth, showed sales up 41 percent in July, while Ram truck sales rose 14 percent. Chrysler bran
- [By Rick Munarriz]
Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ: SIRI ) moved sharply higher on the week, climbing 10% to close at $3.72. The media darling's gain was well ahead of the general market.
Best Long Term Companies To Own For 2014: Ishares Msci Singapore Ews (EWS)
iShares MSCI Singapore Index Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the aggregate in the Singaporean market, as measured by the MSCI Singapore Index (the Index).
The Index seeks to measure the performance of the Singaporean equity market. The Index is a capitalization-weighted index that aims to capture 85% of the (publicly available) total market capitalization. The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. iShares MSCI Singapore Index Fund's investment advisor is Barclays Global Fund Advisors.
Advisors' Opinion:- [By Doug Fabian]
The country seems to have been boosted by an unexpected rise in manufacturing and gains in the service sector. One way to invest in Singapore is through the iShares MSCI Singapore ETF (EWS).
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