The coming credit crisis in China is no secret.
China has $1 trillion or more in bad debts waiting to explode. These bad debts permeate the economy.
Some are incurred by Chinese provincial authorities trying to get around spending limitations imposed by Beijing. Some are straight commercial loans on bank balance sheets. Some are external dollar-denominated debts owed to foreign creditors.
The most dangerous type of debt involves a daisy chain of insolvent corporations buying debt from each other.
A single cash advance of $100 million can be passed from corporation to corporation in exchange for a new promissory note, used to extinguish an old unpayable promissory note. Repeated enough times, the $100 million can be used as window dressing to prop up $1 billion or even $2 billion of bad debts.
These kinds of accounting tricks will land you in jail in the U.S., but its an accepted practice in China as long as the corporate CEO is a Princeling (a politically connected Communist Party insider descended from the old guard) or an oligarch willing to pay bribes.
Best Bank Stocks To Watch For 2018: Huaneng Power International, Inc.(HNP)
- [By Lisa Levin]
In trading on Friday, utilities shares rose by just 0.5 percent. Meanwhile, top losers in the sector included TransAlta Corporation (USA) (NYSE: TAC), down 1 percent, and Huaneng Power International Inc (ADR) (NYSE: HNP), down 1 percent.
Best Bank Stocks To Watch For 2018: Franklin Resources, Inc.(BEN)
- [By WWW.GURUFOCUS.COM]
For the details of Gallagher Fiduciary Advisors, LLC’s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=Gallagher+Fiduciary+Advisors%2C+LLC
These are the top 5 holdings of Gallagher Fiduciary Advisors, LLCFifth Third Bancorp (FITB) – 7,424,558 shares, 43.91% of the total portfolio. New PositionUnited States Steel Corp (X) – 3,763,643 shares, 25.82% of the total portfolio. Franklin Resources Inc (BEN) – 1,825,092 shares, 15.42% of the total portfolio. Shares reduced by 2.44%Cleveland-Cliffs Inc (CLF) – 1,780,977 shares, 2.5% of the total portfolio. Shares reduced by 1.33%Finisar Corp (FNSR) – 349,639 shares, 1.39% of t
- [By Craig Jones]
Jim Strugger recommended on Bloomberg Markets a long position in Franklin Resources, Inc. (NYSE: BEN).
He said the company is in the assets management sector and he added that the market is probably getting into the period of higher dispersion, which is usually favorable for active managers. Speaking on the positive catalysts for the stock, Strugger said Franklin Resources is going to benefit from the cash repatriation.
- [By WWW.THESTREET.COM]
Franklin Resources (BEN) : “I’d rather see you in Morgan Stanley (MS) or E*TRADE Financial (ETFC) .”
Kinder Morgan (KMI) : “They are OK now, but there are better ones.”
Best Bank Stocks To Watch For 2018: Allegheny Technologies Incorporated(ATI)
- [By Dan Caplinger]
The stock market performed well on Tuesday, responding to steady improvement among many companies as earnings season kicked into high gear. Although political issues are likely to remain in the spotlight for some investors for the foreseeable future, many market participants are looking to economic and business issues in driving their investing decisions. Major market benchmarks finished the day with gains of 0.5% to 1%, but some stocks did much better. Among the best performers on the day were Allegheny Technologies (NYSE:ATI), II-VI (NASDAQ:IIVI), and Beazer Homes (NYSE:BZH). Below, we’ll look more closely at these stocks to tell you why they did so well.
- [By Lisa Levin]
Tuesday morning, the basic materials shares climbed by 0.95 percent. Meanwhile, top gainers in the sector included Allegheny Technologies Incorporated (NYSE: ATI), up 5 percent, and Mechel PAO (ADR) (NYSE: MTL), up 5 percent.
Best Bank Stocks To Watch For 2018: Surgical Care Affiliates, Inc.(SCAI)
- [By Lisa Levin]
Surgical Care Affiliates Inc (NASDAQ: SCAI) shares were also up, gaining 16 percent to $56.55 after UnitedHealth Group Inc. (NYSE: UNH) disclosed that its unit agreed to acquire Surgical Care Affiliates for around $2.3 billion.
Best Bank Stocks To Watch For 2018: American Airlines Group, Inc.(AAL)
- [By Douglas A. McIntyre]
In the past year, shares of American Airlines Group Inc. (NYSE: AAL) are up 69%. Shares of United Continental are up 81%. And shares of Southwest Airlines Co. (NYSE: LUV) are up 51%. The S&P 500 is higher by 17% over the same period.
- [By Chris Lange]
American Airlines Group Inc. (NASDAQ: AAL) will share its latest quarterly earnings on Thursday. The consensus estimates call for $0.90 in EPS and $10.56 billion in revenue. Shares ended last week at $58.06, in a 52-week range of $39.21 to $59.08. The consensus analyst target is $63.44.
- [By Ben Levisohn]
Shares of American Airlines (AAL) are soaring today after Stifel named the stock to Stifel Select List. But it’s the reason for Stifel’s optimism, more than the addition itself, that is eye catching.
Agence France-Presse/Getty Images
See, American Airlines has been under pressure this year–its dropped 11% so far in 2017–on fears that increased capacity would reduce its profitability. The same fears have also dented United Continental Holdings (UAL) and Delta Air Lines (DAL).
Stifel’s Joseph DeNardi and Matthew Rachal, however, argue that the increased capacity at American Airlines doesn’t matter thanks to a revenue stream that the market has ignored: The revenue from its frequent flier program. They explain why:
The consensus price target on American, excluding us at $95, of $54 reflects a fundamental misunderstanding of the source of American’s earnings, in our view. Within American is an operating segment that accounts for ~50% of EBIT, is growing revenue at ~10% per year with a 65%-70% operating margin with very low capital requirements and very high barriers to entry. We know it exists. American Airlines knows it exists. But the vast majority of the investment community does not or, at this point, is skeptical that it does. We attribute this to a lack of information supplied by the companies for investors to properly assess the size and profitability of airline loyalty programs. We are confident that this will change in the near-to-mid term as disclosures begin to improve over the next several months followed by the reporting of the business as its own operating segment in 12-18 months.
How big a deal could this be? DeNardi and Rachal argue that the AAdvantage program could generate about $2.7 billion in 2018, greater than the $2.5 billion in pre-tax earnings implied by the consensus estimate of $3.50 a share in 2018. They call it “an earnings stream immune from incremental capac
- [By Diane Alter]
The sector took off in November when 13F filings revealed Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK.A) bought shares in American Airlines Group Inc. (Nasdaq: AAL), United Continental Holdings Inc. (NYSE: UAL), Southwest Airlines Co. (NYSE: LUV), and Delta.
- [By Adam Levine-Weinberg]
A few years ago, Delta Air Lines (NYSE:DAL) introduced a new class of cheaper “basic economy” fares to help it compete with ultra-low cost carriers on certain routes. Last year, American Airlines (NASDAQ:AAL) and United Continental (NYSE:UAL) confirmed that they would introduce their own basic economy fares to stay competitive.
Best Bank Stocks To Watch For 2018: ClearSign Combustion Corporation(CLIR)
- [By William Romov]
Last Wednesday (Dec. 6), the company received a patent for certain methods of production of its phase 2 antidepressant, AV-101.
Penny Stock Current Share Price Dec. 4 – Dec. 8 Gain (as of Dec. 8)
VistaGen Therapeutics Inc. (Nasdaq: VTGN) $1.80 135%
FXCM Inc. (Nasdaq: GLBR) $1.12 124%
Neuralstem Inc. (Nasdaq: CUR) $2.00 75.44%
Ohr Pharmaceuticals Inc. (Nasdaq: OHRP) $1.49 75.29%
ClearSign Combustion Corp. (Nasdaq: CLIR) $3.50 53.85%
Astrotech Corp. (Nasdaq: ASTC) $4.21 51.99%
Burcon NutraScience Corp. (Nasdaq: BUR) $0.72 44%
LM Funding America Inc. (Nasdaq: LMFA) $3.72 42.53%
Second Sight Medical Products Inc. (Nasdaq: EYES) $1.75 42.28%
Globus Maritime Ltd. (Nasdaq: GLBS) $1.47 41.35%
As a result, its share price shot up from $0.92 to $2.52 on Wednesday. The stock pulled back to $1.80 by the end of the week, for a total gain of 135% for the week.