Showing posts from June, 2016

IB Net Payout Yields Model

Bank Of America: Stress Free Investment

Bank Of America passed the Fed stress test with flying colors. The bank is set to substantially increase capital returns without stressing the capital ratios. The stock is a screaming buy that now offers decent yield support. Based on the chart of  Bank Of America  (NYSE: BAC ), the market repeatedly stresses over the prospects of the large financial. The stock has taken repeated hits over the last year despite relatively stable earnings and strong capital ratios. Read the full article on Seeking Alpha Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Citigroup: Look For Capital Return Catalyst

Citigroup passes the 2016 stress test with flying colors. The bank stock took a huge hit due to Brexit. The bank is perfectly aligned to announce a big capital return increase as the stock hits recent lows. Despite strong CCAR results,  Citigroup  (NYSE: C ) ended down over 9% and is trading near recent lows around $40 due to Brexit. In essence, the bank is doing what it can but external events continue hammering the stock whether justified or not. Read the full article on Seeking Alpha.  Disclosure: Long C

Is Potash Finally Ready To Run?

Potash trades around multi-year lows as the fertilizer markets fail to meet expectations. Belarus and Russia signal a possible cooperation that might provide some relieve to the potash market. The stock has limited upside as the company fails to produce enough earnings to cover the dividend over the next couple of years. After nearly five years of declining stock prices,  Potash Corp. (NYSE: POT )  is finally showing some signs of stability. The foundations of any rally in the stock remain shaky as the long-term supply issues aren't resolved by production cuts. Read the full article on Seeking Alpha. Disclosure: No position. Please review the disclaimer page for more details. 

Unprecedented Airline Industry

Jamie Baker, JPMorgan Chase senior airline analyst, discusses how the airlines are fundamentally different now. The market continues of focus on every hurdle while the legacy stocks are extremely cheap. One can almost throw a dart at Delta Air Lines (DAL) , American Airlines Group (AAL) , and United Airlines (UAL) and win at these levels. Watch him take down the CNBC host on baggage fees. Disclosure: Long AAL. Please review the disclaimer page for more details.