SIFMA’s Economic Advisory Roundtable says the U.S. economy should grow 2.2% this year, a slower pace than the group’s earlier full-year estimate of 2.7%. Still, U.S. growth could hit 3.1% next year, the Securities Industry and Financial Markets Association adds.
“We believed we could recoup from weather-related losses” of economic growth earlier this year, explained Diane Swonk, chairwoman of the Roundtable, on a call with the press Tuesday.
“This will not happen because of intensifying geopolitical risks,” added Swonk, who is chief economist of Mesirow Financial in Chicago. She pointed to rising oil prices from the deteriorating situation in Iraq.
(SIFMA’s economic survey includes the views of some 20 economists; it was conducted between May 28 and June 10.)
Released one day before a meeting of the Federal Open Market Committee (FOMC), the SIFMA report notes that the Federal Reserve is likely to keep its current zero to 0.25% target federal funds rate through mid-2015. Half of respondents anticipate the first rate hike in Q2'15, while 40% say such a hike will come in the second half of 2015; the remaining 10% see it taking place in Q1'16.
U.S. Bancorp, a financial services holding company, provides various banking and financial services in the United States. It generates various deposit products, including checking accounts, savings accounts, money market savings, and time certificates of deposit accounts. The company originates a portfolio of loans comprising commercial loans and lease financing; commercial real estate; residential mortgage; and retail loans consisting of credit cards, retail leasing, home equity and second mortgages, and other retail loans. It also offers wholesale lending, equipment finance, small-ticket leasing, depository, treasury management, capital markets, foreign exchange, and international trade services to middle market, large corporate, commercial real estate, and public sector clients. In addition, U.S. Bancorp provides telebanking and automated teller machine (ATM) services, as well as cash management services. The company, through other subsidiaries, provides trust, private banking, financial advisory, investment management, retail brokerage services, insurance, and custody and fund services; and payment services, including consumer and business credit cards, stored-value cards, debit cards, corporate and purchasing card services, consumer lines of credit, and merchant processing. U.S. Bancorp primarily serves individuals, estates, foundations, business corporations, and charitable organizations. It operates a network of approximately 3,031 banking offices and 5,310 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.
Advisors' Opinion: - [By Dan Caplinger]
Finally, with the agencies allowing these loans, lenders will have every incentive to make these loans, knowing they can then resell them to the agencies. Already, rising rates have led to fears of declines in refinancing volume at Wells Fargo (NYSE: WFC ) , JPMorgan Chase (NYSE: JPM ) , and US Bancorp (NYSE: USB ) , as well as a number of smaller lenders across the nation. Without addressing the moral hazard involved in these loans, new rules from Fannie and Freddie could easily do more harm than good to retirees.
- [By Nicole Seghetti]
US Bancorp (NYSE: USB )
A top holding of Warren Buffett's Berkshire Hathaway, it's what US Bancorp has avoided that makes it appealing for investors: The bank didn't aggressively lend to the extent of its too-big-to-fail counterparts. The conservative nature of this regional bank has helped it return healthy shareholder value during the past several decades. The stock pays a 2.3% dividend yield and boasts a forward P/E ratio of 10.�
- [By Amanda Alix]
Banks are anxious to make money off of their mobile customers, but they don't relish�the type of backlash B of A experienced. Yet, banks have a point. Downloadable apps cost money to create, with estimates of between $1 million and $5 million for each project.�Surely, banks can be excused for wanting to recoup some of that investment in research and development. Some already do --�U.S. Bancorp (NYSE: USB ) has been charging $0.50 per mobile check deposit for over two years, and Regions Financial (NYSE: RF ) charges for this service, too. U.S. Bancorp notes that customers have willingly paid for this amenity, and Regions plans to further monetize its mobile banking services platform.
Best Managed Healthcare Companies To Buy For 2014: Civeo Corp (CVEO)
Civeo Corporation is a wholly owned subsidiary of Oil States International, Inc. The Company operates in active oil, coal, natural gas and iron ore producing regions, including Canada, Australia and the United States. The Company is engaged in providing an integrated service offering to its customers, which include independent oil and natural gas companies, mining companies and oilfield and mining service companies. The Company�� premium accommodations services allow its customers to outsource their accommodations needs to a single supplier, maintaining employee welfare and satisfaction while focusing their investment on their core resource development efforts. In June 2014, Oil States International Inc completed spin-off of the Company.
The Company�� primary focus is on providing premium accommodations to natural resource companies at its properties, which the Company refers to as lodges in Canada and villages in Australia. The Company has 17 lodges and villages in operation, with an aggregate of more than 20,000 rooms. In addition, in the United States and Canada, the Company has eleven smaller open camp properties, as well as a fleet of mobile accommodation assets.
The Company competes with ATCO Structures & Logistics Ltd., Black Diamond Group Limited, Horizon North Logistics Inc., Clean Harbors, Inc., Aramark Corporation, Ausco Modular (a subsidiary of Algeco Scotsman), Fleetwood Corporation, Sodexo, Compass Group PLC, Stallion Oilfield Holdings, Inc. and Target Logistics Management LLC (a subsidiary of Algeco Scotsman Global S.a.r.l.).
Advisors' Opinion: - [By Johanna Bennett]
In corporate news, Civeo (CVEO) tumbled 55.2% to close at $3.92 after the company said it would slash spending and suspend its quarterly dividend amid the slide in oil prices.
- [By Teresa Rivas]
Shares of Civeo (CVEO) were down nearly 25% in after hours trading Monday, following the firm�� disappointing 2015 guidance and news it is suspending its dividend.
The firm, which provides accommodations for energy workers, said it expects 2015 revenues between $540 million and $600 million, well below the $815 million analysts were expecting. Its first quarter revenue guidance, a range of $160 million to $175 million, also came in far short of expectations of $228 million.
The company blamed a slowdown in oil sands projects in Canada amid an environment of low oil prices for the shortfall, while also noting that low coal prices in Australia are also hurting sales.
In response to a “potentially protracted period of lower prices”�Civeo said it would adjust its cost structure (after already cutting 30% and 45% of its Canadian and U.S. employees) and would limit its capital expenditures going forward��o a range of $75 million to $85 million, from $260 million to $280 million this year��including suspending its dividend.
The plunge comes after Civeo hit a 52-week low of $6.81 Dec. 17, a fall of more than 75% from its June highs.
Update: As of 5:15 the shares were off more than 28%. Also,��D.E. Shaw & Co disclosed 5.1% passive stake in the firm.
- [By Johanna Bennett]
The bear market in crude oil has claimed yet another victim.
Late Monday, Civeo (CVEO), the provider of temporary and long-term accommodation to oil projects, issued a steep profit warning and suspended its dividend payment. Tuesday, the stock cratered, falling more than 50% to $4.11.
The firm said it expects 2015 revenues between $540 million and $600 million, well below the $815 million analysts were expecting. Its first quarter revenue guidance, a range of $160 million to $175 million, also came in far short of expectations of $228 million.
The company blamed a slowdown in oil sands projects in Canada amid an environment of low oil prices for the shortfall, while also noting that low coal prices in Australia are also hurting sales.
In response, Sterne Agee analysts Stephen Gengaro and Ivan Suleiman wrote:
Civeo�� near-term strategy of suspending its dividend and paying down debt is prudent and will enable the company to remain compliant with its debt covenants. Management expects 2015 capital spending of $75-85 million versus $260-280 million in 2014, including $55-60 million of maintenance. With about $250 million in cash on its balance sheet and our expectation the company is cash flow positive in 2015 even with depressed expectations, the company should be able to lower its debt levels to $450-500 million.
Civeo�� share price was already under severe pressure before the profit warning. The shares hit a previous 52-week low of $6.81 on Dec. 17, a fall of more than 75% since it hit a high in June following its spinoff from Oil States International (OIS).
Best Managed Healthcare Companies To Buy For 2014: inContact Inc.(SAAS)
inContact, Inc. provides cloud-based contact center software services and network connectivity in the United States. Its solutions include inContact ACD, an automatic call distributor; inContact CTI, a computer telephony integration that integrates with customer data servers to provide agents pre-populated customer data; inContact IVR, an interactive voice response solution to create specialized call flows; and inContact Integrations for integration of various hardware and software solutions already in place at customer sites. The company also offers inContact ECHO that gathers the opinion of the customer and presents the analysis of the feedback directly to supervisors and agents; inContact Workforce Management, which forecasts demand, schedules workforce, analyzes and optimizes staffing, and reports real-time adherence in contact centers; inContact Quality Monitoring that provides insights into agent performance and customer satisfaction; and InContact Screen Recording, which provides compliance level screen recording functionality for voice channel interactions. In addition, it provides inContact eLearning that offers targeted, prioritized training, communications, and testing to the agent?s desktop during dips in call volumes; and inContact Network Connectivity, which includes time division multiplexing and voice over Internet protocol (VoIP) connectivity, and toll-free and local-number services. Further, inContact, Inc. offers professional services, as well as operates as a domestic and international long distance reseller and aggregator. The company was formerly known as UCN, Inc. and changed its name to inContact, Inc. in January 2009. inContact, Inc. was founded in 1994 and is headquartered in Salt Lake City, Utah.
Advisors' Opinion: - [By jaggom]
Approximately 35% of the respondents cited that the internal or private cloud projects still dominated cloud-related activity. The public cloud services such as infrastructure as a service (IaaS) and software as a service (SaaS) activity in enterprises also doubled in the range of 30% and 33% in just the past six months.
- [By James Miller Phd]
Within the cloud computing applications, Salesforce has become a leading supplier and platform vendor, positioning itself in a strong position among other cloud application providers. Currently, through Sales Cloud, the company�� most popular product, it has succeeded in expanding its addressable market towards the purchase of Service Cloud as well. Providing different on-demand Software-as-a-Service (SaaS), such as the Sales Cloud, Service Cloud and Chatter applications, it allows customers to improve communication and sales to their respective customers. Moreover, it offers other platforms such as The Force.com Platform, or Heroku Platform, and developer tools like Database.com and The AppExchange, enabling its users to customize its applications.
Best Managed Healthcare Companies To Buy For 2014: Reservoir Minerals Inc (RMC)
Reservoir Minerals Inc. (Minerals) is an international mineral exploration and development company with a portfolio of precious and base metal exploration properties in Serbia. On October 14, 2011 the Company completed the terms of the arrangement, which was regarding the re-organization of Minerals�� business components into two separately listed public corporations by the spin-out of certain Serbian mineral exploration permits (the Mining Assets), which received shareholder approval, on October 11, 2011. The Spin-out Transaction was effected by the transfer to Minerals of three indirectly held subsidiaries of Reservoir that hold such permits. Reservoir Exploration (BVI) Ltd. owns Deli Jovan Exploration and Mining D.o.o., which owns the Deli Jovan exploration permit, Reservoir Consulting (BVI) Inc. owns Balkan Exploration and Mining D.o.o., which owns the Lece, Plavkovo, Stara Planina, Parlozi and Bobija exploration permits. Its subsidiary also includes Rakita (BVI) Ltd.
Advisors' Opinion: - [By Holly LaFon]
Whitney George is Director of Investments, Managing Director, and a Portfolio Manager of Royce & Associates, LLC, investment advisor to The Royce Funds. He serves as portfolio manager for Royce Premier Fund (RPR), Royce Low-Priced Stock Fund (RLP), Royce Global Value Fund (RGV), Royce SMid-Cap Value Fund (RSV), and Royce Focus Trust (FUND). He also serves as assistant portfolio manager for Royce Micro-Cap Fund (RMC), Royce Value Fund (RVV), Royce Value Plus Fund (RVP), Royce Focus Value Fund (RFV), and Royce Capital Fund ��Micro-Cap Portfolio (RCM). Mr. George's thoughts in this interview concerning the stock market are solely his own and, of course, there can be no assurance with regard to future market movements.