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Featured Advisors
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Thursday January 10, 2013
by Jack Adamo, editor Insiders Plus Our top pick for more conservative investors is a stock everyone can feel safe about owing, without sacrificing above-market returns and a steady, substantial dividend.
M&T Bank Corp. ( MTB) is a financial holding company headquartered in Buffalo, New York. M&T has been profitable in each and every quarter for the last 37 years.
It is the only major American bank that didn’t cut its dividend in 2008 - 2009. Dividend growth has been nil since 2007 while it integrated acquisitions of banks it bought at fire sale prices during the banking crisis, but for the prior 5 years, dividend growth was a spectacular 22.9% per annum, compounded. Third quarter earnings clearly showed the benefits of the acquisitions, so I don't mind the temporary stall in dividend growth. The current yield on the shares is 2.8%, but there's a chance it will break the 3% barrier on a pullback, if the market continues to struggle. Here's a partial list of M&T's great Q3 results: - Average core deposits were up 13% compared to last year's third quarter.
- Fully diluted EPS were $2.17 up 64% from 2011.
- Earnings rose 27% just from Q2 to Q3 2012.
- Average return on equity was 21.5%. Warren Buffett likes stocks with an ROE above 15%. This is comfortably above that mark, which is probably why Buffett owns so much M&T stock.
- Net interest margin expanded during the third quarter, increasing to 3.77% from 3.74% in Q2. These are both excellent numbers, particularly in the current low interest rate environment.
As for the balance sheet, loans grew at an annualized 10% rate. This runs circles around the other big banks. M&T's write-offs and non-performing loans, which were already among the lowest in the industry, continued to improve. All this is what happens when good old-fashioned, smart, responsible bankers run a company for the benefit of its shareholders. Goldman Sachs, Morgan Stanley and JP Morgan should take a lesson from this. Super bank analyst Meredith Whitney and Bloomberg economist Tom Keene both say that M&T is the best run large American bank. I agree. M&T Bank Corp. is a buy up to $104. Learn more about this financial newsletter at Jack Adamo's Insiders Plus.Related articles
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News Flash
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Friday May 17, 2013
United Natural: A play on Whole Foods |
by Mark Skousen, editor Hedge Fund Trader Alert
We’ve recommended Whole Foods Market (WFM) from time to time, and the stock has moved up sharply in the past three years, but I’d like to suggest an alternative -- one of Whole Foods’ primary suppliers, United Natural Foods (UNFI).
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Thursday May 16, 2013
Timing expert eyes India |
by Sy Harding, editor Street Smart Report
The money flow and momentum reversals in India's Bombay Index have now been enough to trigger buy signals on intermediate-term indicators. With this new buy signal, we have added a position in the iShares India 50 ETF (INDY) to our portfolio.
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Wednesday May 15, 2013
Value investor goes with Guess |
by Charles Mizrahi, editor Hidden Values Alert
Guess?, Inc. (GES) is a holding in our special situation portfolio; its strong product quality has created brand name recognition and a loyal consumer following.
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Wednesday May 15, 2013
MGAM: Bingo, lotteries, casinos |
by Jim Oberweis, Jr., editor The Oberweis Report
Multimedia Games Holding Company (MGAM) makes innovative gaming systems for Native American and commercial casino operators in North America, lottery operators, and charity and commercial bingo operators.
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Tuesday May 14, 2013
Fidelity expert: Bowers' bond bets |
by Jack Bowers, editor Fidelity Monitor & Insight
If you’ve been worried that the bond market might take a big hit, you can relax. Indeed, while bond funds may lag stock funds over the next 5-10 years, they still have a decent shot at keeping up with inflation, and they remain an excellent way to cut risk in a blended portfolio.
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Tuesday May 14, 2013
Tesla: 'Out of the ball park' |
by Timothy Lutts. editor Cabot Stock of the Month
Tesla (TSLA), our previously featured Stock of the Month and our top stock pick for 2013, knocked the ball out of the park in its latest quarter. The company exceeded analysts' expectations on all counts: cars sold, revenues, earnings, gross margins and more.
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Monday May 13, 2013
5 ways to speculate on Cuba |
by Jim Powell, editor Global Changes & Opportunities Report
With the death of Hugo Chavez in March, and Venezuela’s economic decline, the heavily subsidized oil lifeline is likely to be cut or sharply reduced. I think the resulting energy squeeze will force Cuba to allow greater foreign trade and investment.
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Monday May 13, 2013
Big gains in nanotechnology? |
by Doug Fabian, editor Making Money Alert
The nanotechnology niche focuses on very small, even microscopic, technology. Nanotech has produced technological developments in medicine (lasers), electronics (ink jet systems) and biomaterials (chemical and bio-detectors).
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Friday May 10, 2013
Gold: Reasons for continued caution |
by Jim Stack, editor Investech Market Analyst
In October 2011, we questioned the run-up in gold prices to $1,895 an ounce and called prices “bubblish”. We were criticized for not understanding the new paradigm. Nonetheless, the price of gold has fallen significantly, and I feel more comfortable sharing my personal perspective of what lies ahead.
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Thursday May 09, 2013
Buffett's Berkshire is still a buy |
by Geoffrey Seiler, editor BullMarket.com
Recommended List selection Berkshire Hathaway (BRK.B) reported a 51% increase in net income for the first quarter, powered by profits from its extensive insurance businesses and strong results from the railroad unit.
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