Large regional bank Synovus Financial (NYSE: SNV ) has released its second-quarter earnings report, a week earlier�than previously stated. The report contained much good news for the troubled bank, but the early release was likely timed to coincide with an exciting announcement: The bank also revealed that it has a plan to finally repay its nearly $1 billion portion�of Troubled Asset Relief Program funds.
Lagging behind peers
Synovus isn't the only bank�that still has TARP money on its books, but it does owe the greatest amount. The financial crisis hit Synovus particularly hard, because it had a greater concentration of problematic commercial loans�on its balance sheet than bigger banks.
Megabanks�like Bank of America, Citigroup, and Wells Fargo, anxious to escape the additional scrutiny that accompanied bailout funds, received the green light in late 2009 to repay their own TARP debt. Fellow regional BB&T Corp. was able to repay its bailout money earlier that year, probably due to its unusually healthy�crisis-era balance sheet.
Hot Gas Utility Stocks To Invest In 2015: TECO Energy Inc.(TE)
TECO Energy, Inc., an electric and gas utility company, through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electric energy. It provides retail electric service to approximately 672,000 customers in West Central Florida with a net winter system generating capability of 4,684 megawatts. The company also engages in the purchase, distribution, and marketing of natural gas. It serves approximately 336,000 residential, commercial, industrial, and electric power generation customers in Florida. In addition, the company owns mineral rights, owns or operates surface and underground mines, and owns interests in coal processing and loading facilities. TECO Energy, Inc. was founded in 1899 and is headquartered in Tampa, Florida.
Advisors' Opinion:- [By Justin Loiseau]
AEP relies on coal for about 66% of its generating capacity, comparable to TECO Energy's (NYSE: TE ) 61% coal capacity. TECO takes its coal cravings a step further with vertical integration, pulling 9 million tons of solid black gold annually from its Appalachian mines.
- [By Justin Loiseau]
1. Existing power plants aren't protected
The biggest news for the utilities sector came from the inclusion of one word: existing. The Edison Electric Institute made special mention of this in its response statement, noting that new policies and regulations should be "achievable" and "consistent with ongoing investments to transition." EEI might've been describing any number of transitioning traditional fuel utilities. TECO Energy (NYSE: TE ) currently relies on coal for 61% of its regulated generation capacity, and also owns and operates coal mines capable of processing nine million tons annually. Just last month, TECO announced that it is spending $950 million to acquire a New Mexico regulated natural gas utility���but its moves may not be fast enough if Obama gets anxious. - [By Justin Loiseau]
Who's missing?
Utilities aren't obligated to make Earth Day announcements ��and they shouldn't be. But investors shouldn't expect TECO Energy (NYSE: TE ) to be talking green anytime soon. The company's more coal-centric than any other utility. Not only does 61% of its generation capacity come from coal, but the utility also owns and operates coal mines capable of producing 9 million tons annually. While coal might boost this dividend stock in the short term as rising natural gas prices make coal more cost effective, TECO will need major improvements in clean coal technology or a massive modernization project to keep it competitive in the years to come.
Top 5 Regional Bank Stocks To Invest In Right Now: United Technologies Corporation(UTX)
United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The company?s Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways, as well as provides maintenance and repair services. Its Carrier segment offers heating, ventilating, air conditioning, and refrigeration systems, controls, services, and energy-efficient products for residential, commercial, industrial, and transportation applications. The company?s UTC Fire and Security segment provides electronic security products comprising intruder alarms, and access control and video surveillance systems; fire safety products, such as specialty hazard detection and fixed suppression products, fire extinguishers, fire detection and life safety systems, and other firefighting equipment; systems integration, video surveillance, installation, maintenance, and inspection services; and mon itoring, response, and security personnel services. Its Pratt and Whitney segment supplies aircraft engines for the commercial, military, business jet, and general aviation markets; industrial gas turbines; geo thermal power systems; and space propulsion systems, as well as provides fleet management, maintenance, repair, and overhaul services. The company?s Hamilton Sundstrand segment supplies aerospace products, such as power generation, management and distribution, flight control, engine control, environmental control, auxiliary power units, and propeller systems; and industrial products, including air compressors, metering pumps, and fluid handling equipment under the Sullair, Sundyne, and Milton Roy names. Its Sikorsky segment manufactures military and commercial helicopters, as well as offers aftermarket helicopter and aircraft parts and services. United Technologies Corporation was founded in 1934 and is based in Hartford, Connecticut.
Advisors' Opinion:- [By Chuck Saletta]
Speaking of results ...
United Technologies (NYSE: UTX ) reported decent numbers, with net earnings ahead of expectations but growth driven more by acquisitions than by organic improvements in its existing businesses. Given the company's conglomerate setup, growth by bolt-on acquisitions isn't surprising, but over the long haul, it'd be better to see its businesses growing internally as well as through acquisitions. The news at Mine Safety Appliances (NYSE: MSA ) wasn't quite as good, with both revenues and net earnings falling from year ago levels on a tough environment for the mining businesses it supports. That's a risk well known to the company and its shareholders, though, and while the weaker results did knock the company's stock down, the business has ridden through tough cycles before. It looks capable of riding through this one, too. Hasbro (NASDAQ: HAS ) , on the other hand, reported earnings that beat expectations on an operating basis, before restructuring charges knocked it down to a net loss. Given that the company is in the very seasonal toy business, that loss in an off-peak quarter is much less of a concern than it would have been in the make-or-break holiday quarter. UPS (NYSE: UPS ) kept on trucking, with a better-than-expected January and strength from eCommerce helping the company turn in an 8% growth in net reported earnings per share. Overall, UPS is operating efficiently, though its future success is tied to its ability to continue delivering more packages. As long as its e-commerce business continues to grow, though, UPS is wel
Right now, quarterly earnings season is well under way, which provides a perfect opportunity for one of those "check in from time to time" moments. While the iPIG portfolio did nothing last week, several of its picks did report, and those quarterly confessionals can help determine whether the companies are still worth owning. To summarize key results: - [By Matt Thalman]
The other big winner was United Technologies (NYSE: UTX ) , which rose in value by 1.92%. Once again, the bulk of this move came on Monday, when the stock closed the day up almost 2%. My colleague Dan Caplinger noted at the time that the company is well positioned to benefit from a recovering economy; but perhaps, even more so, it will benefit from a recovering construction industry because of its elevator, heating, and air-conditioning units. But, while the company waits for construction to really heat up, its aerospace division, and recently purchased Goodrich division, should help push growth�
- [By Paul Ausick]
Another defense contractor, United Technologies Corp. (NYSE: UTX), cancelled its announced plan to furlough 2,000 employees due to the government shutdown.
Top 5 Regional Bank Stocks To Invest In Right Now: Potlatch Corporation(PCH)
Potlatch Corporation operates as a real estate investment trust (REIT) that owns and manages timberlands located in Arkansas, Idaho, Minnesota and Wisconsin in the United States. The Resource Management Division manages its timberlands, harvests timber, procures other wood fiber, sells logs and leases land for hunting and other recreational activity. The Real Estate Division develops and sells land parcels, as well as invests in timberlands. The Wood Products Division manufactures lumber, plywood, and particleboard in Arkansas, Idaho, Michigan, and Minnesota. This segment's products are sold to wholesalers primarily for use in home building and other construction activities. Potlatch was founded in 1903 and is headquartered in Spokane, Washington.
Advisors' Opinion:- [By Dividends4Life]
Potlatch Corporation (PCH) operates as a real estate investment trust (REIT) that owns and manages timberlands located in Arkansas, Idaho, Minnesota and Wisconsin. December 6th the company increased its quarterly dividend 13% to $0.35 per share. The dividend is payable December 31, 2013 to stockholders of record on December 17, 2013. The yield based on the new payout is 3.5%.
- [By Dan Caplinger]
In Weyerhaeuser's report, watch for the company to discuss any plans for potential buyout activity. With tight supplies, smaller rivals Louisiana-Pacific (NYSE: LPX ) or Potlatch (NASDAQ: PCH ) might make good targets for the larger Weyerhaeuser or Plum Creek to look at for expansion. Even though those companies have seen their shares rise dramatically as well, it might be worth paying up in order to secure long-term assets that could produce strong growth for Weyerhaeuser.
- [By Saibus Research]
WY and the majority of the timber, forest and paper products companies have a track record of unimpressive returns on capital, cyclical revenue and profit trends, heavy use of capital expenditures, and significant environmental regulation. We also think that WY's conversion to a REIT was a mistake. Morningstar Investment Research's Timber, Forest and Paper Products analyst Dan Rohr said it best when he rated WY and its Timber REIT peers Rayonier (RYN), Potlatch (PCH) and Plum Creek (PCL) as not possessing any economic moat. That probably explains why we only have an ancillary exposure to this industry for our proprietary portfolio based on our holdings in Brookfield Infrastructure (BIP) and Cintas (CTAS). Brookfield's Timber segment only accounts for 5% of its Fund Flows from operations and Cintas's document management business is suffering from reduced prices on recycled paper. At least Cintas Document Management only accounts for 8% of Cintas's revenue.
Top 5 Regional Bank Stocks To Invest In Right Now: Great Northern Iron Ore Properties (GNI)
Great Northern Iron Ore Properties, a conventional nonvoting trust, owns and leases mineral and non-mineral properties on the Mesabi Iron Range in northeastern Minnesota. It owns mineral interests on the Mesabi Iron Range formation that represent 12,033 acres, including approximately 9,895 acres are under lease and 2,138 acres are unleased. The company was founded in 1906 and is based in Saint Paul, Minnesota.
Advisors' Opinion:- [By Aaron Levitt]
PrairieSky won�� actually be drilling for oil or natural gas on its properties, nor will it be transporting it through pipelines. That’s because a�royalty trust is an entity�that own the production rights on oil wells, natural gas fields or, as in the case of Great Northern Iron Ore Properties (GNI),�iron ore mines.
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