Warren Buffett may not have supported Donald Trump’s candidacy for president, but the 86-year-old billionaire certainly benefited from the unexpected outcome.
Stocks are up across the board since the presidential election, boosting the value of Berkshire Hathaway’s (NYSE:BRK-A) (NYSE:BRK-B) stock portfolio, but few stocks have rallied as much as Bank of America (NYSE:BAC).
The Bank of America building dominates the Dallas skyline. Image source: Getty Images.
In 2011, during the darkest days of Bank of America’s struggle to survive the fallout from the financial crisis, Buffett called the bank’s CEO Brian Moynihan with an idea. Buffett would inject $5 billion of Berkshire Hathaway’s cash into Bank of America, giving the bank a much-needed seal of approval.
But the deal had to be done on highly favorable terms to Berkshire Hathaway. Buffett demanded $5 billion worth of preferred stock yielding 6%, or $300 million a year. On top of that, the bank kicked in warrants to buy 700 million shares of Bank of America stock for $7.14 per share, exercisable at any time before the middle of 2021.
Hot Warren Buffett Stocks To Invest In Right Now: Primo Water Corporation(PRMW)
- [By Peter Graham]
A long term performance chart shows Sodastream International heading back up to previous highs while large cap Monster Beverage Corp (NASDAQ: MNST) has been range bound the last two years and small cap Primo Water Corporation (NASDAQ: PRMW)has been in a strong uptrend for the past few years with performance perhaps leveling off:
- [By Peter Graham]
A long term performance chart shows Sodastream International underperforming, but doing better last yearwhile the outperformance of large cap Monster Beverage Corp (NASDAQ: MNST) has leveled off and small cap Primo Water Corporation (NASDAQ: PRMW)has been in a strong uptrend for the past two years:
- [By Peter Graham]
A long term performance chart shows Sodastream International drifting higher while large cap Monster Beverage Corp (NASDAQ: MNST) has been range bound for almost three years and small cap Primo Water Corporation (NASDAQ: PRMW)has been in a strong uptrend for the past few years with that performancesomewhat leveling off:
Hot Warren Buffett Stocks To Invest In Right Now: Laredo Petroleum, Inc.(LPI)
- [By Ben Levisohn]
After a rally for the ages, the price of oil is back over $50. But the biggest threat to oil might be more production from exploration & production companies drilling in the U.S. shale, say Credit Suisse analyst Mark Lear and team, who cut their ratings on Carrizo Oil & Gas (CRZO), Laredo Petroleum (LPI) and Sanchez Energy (SN). They explain why:
Hot Warren Buffett Stocks To Invest In Right Now: SeaWorld Entertainment, Inc.(SEAS)
- [By Benzinga News Desk]
In the parched terrain just south of the United States border, the prices of food and other necessities follow the dollar, whose value has been climbing: Link
Industrial Production (MoM) for Feb 0.00% vs 0.20% consensus estimate; Manufacturing Outputs (MoM) for Feb 0.50% vs 0.40% consensus estimate.
The University of Michigan's consumer sentiment index for March is schedule for release at 10:00 a.m. ET.
The index of leading economic indicators for February will be released at 10:00 a.m. ET.
The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.
Wunderlich upgraded Adobe Systems (NASDAQ: ADBE) from Hold to Buy
FBR Capital upgraded L Brands (NYSE: LB) from Market Perform to Outperform
Morgan Stanley upgraded Dean Foods (NYSE: DF) from Neutral to Overweight
Baird downgraded Patheon (NYSE: PTHN) from Outperform to Neutral
Citigroup downgraded SeaWorld Entertainment Inc (NYSE: SEAS) from Neutral to Sell
Goldman Sachs downgraded Macerich (NYSE: MAC) from Neutral to Sell
This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here or email email@example.com.
- [By Jon C. Ogg]
SeaWorld Entertainment Inc. (NYSE: SEAS) was downgraded to Sell from Neutral and the price target was cut to $15 from $19 (versus an $18.88 close) at Citigroup.
- [By Rick Munarriz]
It’s time to see if SeaWorld Entertainment (NYSE:SEAS) can earn a treat by performing a fancy trick above water. The struggling theme park operator has a media event slated for Thursday morning at its flagship SeaWorld Orlando park. Speculation centers around the unveiling of a new sea-rescue-themed attraction, but some brand bashers hope that SeaWorld will be taking additional steps to wean itself from live marine-life entertainment.