NEW YORK (TheStreet) -- On Wednesday I profiled 90 publicly-traded community banks in Community Banks With CRE Loan Exposures. My message to these banks is that they should take action to raise capital, trim noncurrent loans or consider merger opportunities.
On Thursday premarket we learned that the Portland, Ore., community bank Umpqua Holdings (UMPQ) will acquire the Spokane, Wash., savings and loan Sterling Financial (STSA) in a $2 billion deal.
Sterling is partially owned by private-equity firms Thomas H. Lee Partners LP and Warburg Pincus LLC with both having stakes of about 20.8%.
The deal is a combination of cash and stock valuing Sterling stock at a premium of 26% above its share price of Aug. 30 which was $24.20 and $2.18 in cash. A 26% premium puts the stock at $30.49. According to the FDIC Quarterly Banking Profile for the second quarter of 2013 Umpqua Holdings ended the second quarter with $11.79 billion in assets, a commercial real estate (CRE) to risk-based capital ratio of 376.8% and with their CRE loan commitments 55.3% funded. At the end of 2010 Umpqua had $11.67 billion in assets, a CRE to risk-based capital ratio of 423.9% with their CRE loan commitments a stressed out 86% funded. This bank has thus done a good job in reducing CRE exposures and in raising assets. [Read: Will Twitter Sell Its Soul Like Facebook Did?] Umpqua ($16.14) has a hold rating according to ValuEngine with fair value at $12.66, which makes the stock 27.5% overvalued with the stock just below its one-year price target at $16.44. The daily chart profile is negative with the stock trading below its 50-day simple moving average at $16.60. My annual and quarterly value levels are $15.37 and $14.18 with a monthly pivot at $16.72 and semiannual risky level at $18.02. According to the FDIC Quarterly Banking Profile for second quarter of 2013 Sterling Financial ended the quarter with $9.25 billion in assets, a CRE to risk-based capital ratio of 346.5% and with their CRE loan commitments 68.2% funded. [Read: Expiring Tax Benefits] At the end of 2010 Sterling had $9.5 billion in assets, a CRE to risk-based capital ratio of 349.8% with their CRE loan commitments a stressed out 91.8% funded. This bank has not grown since the end of 2010, but their CRE loan commitment pipeline is better managed.
Best Electric Utility Companies To Own For 2015: Steelcase Inc.(SCS)
Steelcase Inc. designs, manufactures, and distributes furniture systems and seating products, user-centered technologies, and interior architectural products primarily in North America, Europe, and Asia. Its furniture systems portfolio consists of panel-based and freestanding furniture systems; and complementary products, such as storage, tables, and ergonomic worktools. The company also provides seating products, including ergonomic chairs; seating for collaborative or casual settings; and specialty seating for specific markets comprising healthcare and education. In addition, its interior architectural products include full and partial height walls and doors. Further, the company offers workplace strategy consulting, lease origination, and furniture and asset management services. Additionally, it designs, manufactures, and sells visual communication products, such as static and interactive electronic whiteboards to primary and secondary education markets, as well as manu factures and sells steel and ceramic surfaces to third-party fabricators for use in the manufacture of static whiteboards. It also designs and sells surface materials comprising textiles, wall coverings, shades, screens, and surface imagings primarily to architects and designers for use in business, residential, healthcare, and hospitality applications. It sells its products to corporate, government, healthcare, education, and retail customers through the Steelcase, Turnstone, Details, and Nurture brands; and Coalesse and Designtex brands. The company markets its products and services through a network of independent and company-owned dealers, as well as directly to end-use customers. The company was founded in 1912 and is headquartered in Grand Rapids, Michigan.
Advisors' Opinion:- [By Shauna O'Brien]
Office furniture company Steelcase Inc. (SCS) announced on Thursday that it has named James Keane as its CEO.
Keane will take over the role of CEO in March 2014, replacing long term CEO James Hackett. Currently, Keane is the company’s president and Chief Operating Officer where he works with product development, manufacturing, marketing, sales and distribution.
Steelcase shares were mostly flat during Thursday morning trading. The stock is up 20% YTD.
Best Electric Utility Companies To Own For 2015: priceline.com Incorporated(PCLN)
priceline.com Incorporated, together with its subsidiaries, operates as an online travel company. The company provides price-disclosed hotel reservation services on a worldwide basis primarily under the Booking.com, priceline.com, and Agoda brand names; and price-disclosed rental car reservation services in approximately 80 countries through TravelJigsaw brand name. It also offers its customers the ability to purchase other travel services, including retail airline tickets; rental car days; vacations packages consisting of airfare, hotel, and rental car components; cruise trips; and destination services, including parking, event tickets, ground transfers, and tours through its ?Name Your Own Price? demand-collection system in the United States. In addition, the company offers an optional travel insurance package that provides coverage for trip cancellation, trip interruption, medical expenses, and emergency evacuation, as well as for loss of baggage, property, and travel d ocuments for air, hotel, and vacation package customers; and collision damage waiver insurance for rental car customers in the United States. The company?s other brands include Lowestfare.com, rentalcars.com, Breezenet.com, MyTravelGuide.com, Travelweb, hotelroom.com, and Car Hire 3000. priceline.com Incorporated was founded in 1997 and is headquartered in Norwalk, Connecticut.
Advisors' Opinion:- [By Laura Brodbeck]
Thursday
Earnings Expected From: Priceline.com Incorporated (NASDAQ: PCLN), Ubiquiti Networks, Inc. (NASDAQ: UBNT), Bristow Group Inc. (NYSE: BRS), Groupon, Inc. (NASDAQ: GRPN), Scotts Miracle Gro Company (NYSE: SMG) Economic Releases Expected: US GDP, US Consumer CreditFriday
- [By Rick Munarriz]
Briefly in the news
The future of smartphones may be a battle of megapixels. Nokia (NYSE: NOK ) formally unveiled the Lumia 1020, a Windows Phone making waves for its 41-megapixel lens. The sky's the limit for priceline.com (NASDAQ: PCLN ) . Morgan Stanley analyst Scott Devitt upgraded the fast-growing travel website operator, boosting his price target to $1,010. It's the first analyst to cross the four figures in setting a goal for Priceline. Tesla Motors (NASDAQ: TSLA ) was tapped to fill next week's vacancy in the Nasdaq 100. The electric-car maker has tripled in recent months, making it one of the 100 largest non-financial stocks in the exchange.
And now let's take a quick look at some of the other stories that shaped our week. - [By Dan Burrows]
It’s hard to believe Priceline.com (PCLN) is one of the most expensive stocks by face value. After all, the online travel company was a classic example of the dot .com boom-and-bust.
5 Best Casino Stocks To Watch Right Now: Carbon Energy Ltd(CNX.AX)
Carbon Energy Limited focuses on producing clean energy and chemicals feedstock from Underground Coal Gasification (UCG) syngas. UCG is an alternative coal mining method that converts coal into gas underground using a series of boreholes operated remotely from the surface. The company also holds the right to explore and lease coal tenements in Wyoming, the United States, and Montana/North Dakota, the United States. In addition, it has a joint venture with Hema Endustri to develop UCG projects in the Amasra coal tenements located on the coast of the Black Sea in northern Turkey. The company was formerly known as Metex Resources Ltd and changed its name to Carbon Energy Limited in June 2008. Carbon Energy Limited is headquartered in Milton, Australia.
Best Electric Utility Companies To Own For 2015: China Mobile(Hong Kong)
China Mobile Limited, an investment holding company, provides mobile telecommunications and related services primarily in the Mainland China. It offers various services comprising local calls, domestic long distance calls, international long distance calls, domestic roaming, and international roaming. The company also provides voice value-added services, including caller identity display, caller restrictions, call waiting, call forwarding, call holding, voice mail, and conference calls; customer-to-customer messages and corporate short message services; and mobile Internet access services. In addition, it engages in other data businesses, which primarily include multimedia messaging services; color ring services that enable users to customize the answer ring tone from various selection of songs, melodies, sound effects, or voice recordings; and mobile reading, mobile gaming, mobile video, mobile payment/wallet, mobile TV, mobile market, and Internet data center services. F urther, the company offers telecommunications network planning, design, and consulting services; roaming clearance services; technology platform development and maintenance services; and mobile data solutions, and system integration and development services, as well as operates a network and business coordination center. Additionally, China Mobile Limited sells mobile phone handsets and devices. As of March 31, 2011, it served approximately 600.8 million customers. The company was formerly known as China Mobile (Hong Kong) Limited and changed its name to China Mobile Limited in May 2006. China Mobile was founded in 1997. The company is based in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Mobile Limited is a subsidiary of China Mobile Hong Kong (BVI) Limited.
Best Electric Utility Companies To Own For 2015: Assured Guaranty Ltd(AGO)
Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The company offers insurance, reinsurance, and credit derivative products that protect holders of debt instruments and other monetary obligations from defaults in scheduled payments, including scheduled interest and principal payments. It provides policies issued directly to the holders of insured obligations at time of issuance and those issued in the secondary market; and assumed reinsurance contracts written to third parties. The company insures various types of securities, including taxable and tax-exempt obligations issued by the United States or municipal governmental authorities, utility districts, or facilities; notes or bonds issued to finance international infrastructure projects; and asset-backed securities issued by special purpose entities. Assured Guaranty Ltd. markets its credit protection products directly to issuers and underwriters of public finance, infrastructure, and structured finance securities, as well as to investors in such debt obligations. The company was founded in 2003 and is based in Hamilton, Bermuda.
Advisors' Opinion:- [By Sue Chang]
Assured Guaranty Ltd. (AGO) �is forecast to post third-quarter earnings of 63 cents a share.
- [By Lauren Pollock]
Assured Guaranty Ltd.'s(AGO) third-quarter profit more than doubled as the bond insurer recorded a gain tied to credit derivatives that masked a decline in net premiums earned. Shares rose 4.7% to $22.75 premarket.
Best Electric Utility Companies To Own For 2015: Gobimin Inc. (GMN.V)
GobiMin Inc., together with its subsidiaries, engages in the exploration, development, and exploitation of mineral properties primarily in Xinjiang, the People�s Republic of China. It principally explores for gold, copper, and nickel. The company holds a 70% equity interest in the Sawayaerdun gold project covering an area of approximately 1.7094 square kilometers in Xinjiang; and an 8% equity interest in the Yanxi copper property covering an area of approximately 21.67 square kilometers in Xinjiang. The company is based in Toronto, Canada.
Best Electric Utility Companies To Own For 2015: Opmedic Group Inc Com Npv (OMG.TO)
OPMEDIC Group Inc. provides healthcare related services primarily in Canada. It offers professional fertility services; laboratory and genetic services; diagnostic laboratory services, primarily prenatal screening; cytogenic tests designed to improve healthcare as an aid to prenatal screening and can be performed on peripheral blood, amniotic fluid, and bone marrow; and other cytology and genetic testing. The company also provides surgical and endoscopic services, such as general surgery, otorhinolaryngology, gynecology, urology, digestive endoscopy, and plastic and cosmetic surgery; and facilities for patients and surgeons. In addition, it offers sperm banking services. The company was formerly known as Repro Clinics Inc. and changed its name to OPMEDIC Group Inc. in October 2005. OPMEDIC Group Inc. was founded in 2001 and is headquartered in Mount-Royal, Canada.
Best Electric Utility Companies To Own For 2015: MELA Sciences Inc(MELA)
MELA Sciences, Inc., a medical device company, focuses on the design and development of a non-invasive, point-of-care instrument to assist in the detection of early melanoma. The company?s principal product, MelaFind, features a hand-held imaging device that emits multiple wavelengths of light to capture images of suspicious pigmented skin lesions and extract data. This product uses automatic image analysis and statistical pattern recognition to help identify lesions to be considered for biopsy to rule out melanoma. It consists of hand-held imaging device, which employs high precision optics and multi-spectral illumination; database of pigmented skin lesions; and lesion classifiers, which are mathematical algorithms that extract lesion feature information and classify lesions. MELA Sciences submitted the MelaFind pre-market approval application with the U.S. Food and Drug Administration (FDA) in June 2009 and is under review at the FDA. The company was formerly known as E lectro-Optical Sciences, Inc. and changed its name MELA Sciences, Inc. in April 2010. MELA Sciences, Inc. was founded in 1989 and is based in Irvington, New York.
Best Electric Utility Companies To Own For 2015: Saunders International Ltd(SND.AX)
Saunders International Limited designs, constructs, and maintains steel bulk liquid storage tanks and reservoirs in Australia. It constructs water reservoirs and petroleum tanks, as well as acid, bitumen, and chemical tanks. The company also offers facilities maintenance services, including risk based maintenance prioritizing, QA compliant inspection, decommissioning and recommissioning, in-house engineering analysis and workshop fabrication, mechanical repair, and preventative maintenance services. In addition, it provides steel fabrication services, which consists of rolling, pressing, abrasive blasting, and painting. The company offers its products to companies operating in petroleum, mining, mineral processing, manufacturing, water, and waste water sectors. Saunders International Limited was founded in 1951 and is headquartered in Condell Park, Australia.
Best Electric Utility Companies To Own For 2015: Dios Exploration Inc (DOS.V)
Dios Exploration Inc., a mineral research company, operates as a mining exploration and evaluation company in Canada. It focuses on exploring gold, uranium, diamonds, and a carbonatite with rare earth and niobium metals. The company holds interests in various properties comprising 5,300 mining claims covering approximately 2,750 square kilometers in the areas of central Quebec and the Otish Mountains. Dios Exploration Inc. is based in Montreal, Canada.
Best Electric Utility Companies To Own For 2015: Blackrock MuniYield Quality Fund Inc. (MQY)
BlackRock MuniYield Quality Fund, Inc. is a close ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Investment Management LLC and BlackRock Advisors, LLC. The fund invests in fixed income markets. It invests in long-term municipal obligations the interest on which is exempt from federal income taxes. The fund also invests in short-term securities. BlackRock MuniYield Quality Fund, Inc. was formed in 1992 and is domiciled in United States.
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