While inflation in the United States remains subdued overall, there are some goods and services which have experienced exponential price growth over the past several years, not the least of which is health care.
Data from the World Health Organization shows that our annual per capita health care spending runs at just more than $8,600. That amounts to more than 17 percent of our gross domestic product (GDP) with direct spending of $3.8 trillion last year. If you also factor in indirect costs as well as salaries and benefits for health care workers, the US health care sector generates about $5 trillion worth of economic activity.
Given the sheer size of the health care industry and that spending is likely only to grow as our population ages, health care inflation is a closely watched metric by economists and policymakers. In the three decades before the Great Recession, health care inflation outpaced overall price increases largely because consumers had little incentive to comparison shop. Low co-pays across a relatively large pool of insured patients meant that most health care consumers simply opted for the most convenient options rather than looking for the cheapest ones.
Top 10 Telecom Stocks To Invest In 2015: American Capital Mortgage Investment Corp (MTGE)
American Capital Mortgage Investment Corp., incorporated on March 15, 2011, is a real estate investment trust (REIT). The Company�� investment objective is to provide risk-adjusted returns to its investors over the long-term through a combination of dividends and capital appreciation. It invests to achieve this objective by selectively constructing and managing a mortgage investment portfolio consisting of asset classes that, when properly financed and hedged, are designed to produce risk adjusted returns across a variety of market conditions and economic cycles. In December 2013, American Capital Mortgage Investment Corp, through its subsidiary acquired Residential Credit Solutions, Inc.
The Company is externally managed and advised by American Capital MTGE Management, LLC. American Capital MTGE Management, LLC is an indirect subsidiary of American Capital, LLC, which is a wholly portfolio company of American Capital, Ltd.
Advisors' Opinion:- [By Dan Caplinger]
But those fears continued to expand in the second quarter, and the bond market finally made significant moves that hurt bond prices and sent yields soaring. In response, many mortgage REITs expanded their purview to go beyond their traditional agency-backed securities. Annaly Capital (NYSE: NLY ) , for instance, started adding securities backed by commercial mortgages, while Armour Residential (NYSE: ARR ) set the stage for a shift by changing its charter to allow non-agency purchases. But because American Capital Agency has a sister REIT, American Capital Mortgage (NASDAQ: MTGE ) , that has a broader scope, CIO Gary Kain plans to keep American Capital Agency's investing strategy true to its name by staying focused on agency-backed bonds.
- [By Matt Koppenheffer and David Hanson]
After an incredible run-up this year, the broader market trend was downward this week, to the tune of 1.6%, but some of the stocks out there were hit particularly hard. In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson take a look at what was behind three big dives this week:�National Bank of Greece� (NYSE: NBG ) ,�Newcastle Investment� (NYSE: NCT ) , and�American Capital Mortgage Investment� (NASDAQ: MTGE ) .�
- [By Amanda Alix]
2. Congress is eyeballing the REIT sector's special tax status
The U.S. Congress is currently going over the tax code with a fine-tooth comb looking for loopholes, and the REIT industry's special tax status is coming under review. Though The Wall Street Journal�notes that a change in the law that allows REITs to avoid corporate taxes on income as long as they pay out 90% of earnings isn't certain, neither is it out of the realm of possibility -- possibly making dividends like those paid by American Capital Agency and its hybrid cousin American Capital Mortgage (NASDAQ: MTGE ) a lot less hefty.
10 Best Cheapest Stocks To Watch Right Now: Templeton Emerging Markets Fund (EMF)
Templeton Emerging Markets Fund (the Fund) is a diversified, closed-end investment company. The Fund seeks long-term capital appreciation by investing at least 80% of its net assets in emerging country equity securities. It makes investments in China, Brazil, South Korea, Turkey, Russia, Thailand, India, Taiwan, Hungary and South Africa. The Fund invests in sectors, such as metals and mining, commercial banks, diversified financial services, semiconductors and semiconductor equipment, wireless telecommunication services, and oil, gas and consumable fuels.
Templeton Asset Management Ltd. (TAML) serves as the Fund�� investment manager. Its administrative manager is Franklin Templeton Services, LLC. The Fund may invest in the Franklin Institutional Fiduciary Trust Money Market Portfolio (the Sweep Money Fund), an open-end investment company managed by Franklin Advisers, Inc. (an affiliate of TAML).
Advisors' Opinion:- [By George Putnam, Editor, New Generation Research, Inc.]
Templeton Emerging Markets Fund (EMF) is also actively managed. Currently, the fund is Asian-centric with about 71% of assets from Asian markets, mostly China and Thailand.
10 Best Cheapest Stocks To Watch Right Now: Denny's Corporation(DENN)
Denny's Corporation, through its subsidiaries, engages in the ownership and operation of a chain of family-style restaurants. The company operates traditional American-style food restaurants under the Denny?s brand name. As of December 28, 2011, it had 1,479 franchised/licensed restaurants and 206 company-owned and operated restaurants in the United States, Canada, Costa Rica, Mexico, Honduras, Guam, Puerto Rico, and New Zealand. The company was founded in 1980 and is headquartered in Spartanburg, South Carolina.
Advisors' Opinion:- [By Jae Jun]
1. Turnaround Story of Denny�� (DENN): Denny�� owns and is a franchiser of family diners. The company controls about 9% of the family dining market and competes directly with IHOP which controls 11%.
- [By Ben Levisohn]
Shares of Cracker Barrel have gained 0.9% to $113.29 and�Biglari Holdings (BH), Sandar Biglari’s holding company, has fallen 0.4% to $516.96, on a day when DineEquity has advanced 1% to $85.03, Red Robin Gourmet Burgers (RRGB) has risen 0.5% to $76.64 and Denny’s (DENN) is up 0.7% at $7.45.
- [By Peter Graham]
The Q4 2014 earnings report for restaurant stock Bob Evans Farms Inc (NASDAQ: BOBE), a potential peer of Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL), Denny's Corporation (NASDAQ: DENN) and DineEquity Inc (NYSE: DIN), is scheduled for after the market closes on Tuesday. Aside from the Bob Evans Farms report, it should be said that Cracker Barrel Old Country Store, Inc reported Q3 2014 earnings on May 28th (revenues and profit�rose on�lower expenses); Denny's Corporation reported Q1 2014 earnings on April 28th (they had their strongest quarter of same-store sales at company restaurants in over seven years); and DineEquity Inc reported Q1 2014 on May 1st (earnings rose on stronger sales). However, Bob Evans Farms�recently replaced�three board members with new independent directors after�facing criticism from shareholder Sandell Asset Management Corp.
10 Best Cheapest Stocks To Watch Right Now: Triad Guaranty Inc (TGICQ)
Triad Guaranty Inc., incorporated in 1993, is a holding company which, through its wholly-owned subsidiary, Triad Guaranty Insurance Corporation (TGIC), is a nationwide mortgage insurer. During the year ended December 31, 2011, Collateral Mortgage, Ltd. (CHL) owns 16.8% of the common stock of TGI. The Company has historically provided Primary and Modified Pool mortgages guaranty insurance coverage on United States residential mortgage loans.
Primary insurance provides mortgage default protection to lenders on individual loans and covers a percentage of unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure (collectively, the insured amount or claim amount). Primary insurance was written on both flow and structured bulk transactions. Flow transactions consisted of loans originated by lenders that were submitted to the Company on a loan-by-loan basis, whereas structured bulk transactions involved underwriting and insuring a group of loans with individual coverage for each loan. Insurance on primary policies consists of 80% of the Company's total insurance in force at December 31, 2011.
Modified Pool insurance was written only on structured bulk transactions. Policies insured as part of a Modified Pool transaction have individual coverage, but an aggregate stop-loss limit applies to the entire group of insured loans. In addition, some of the Modified Pool transactions included deductibles representing a percentage of the total risk originated under which the Company pays no claims until the losses exceed the deductible amount. Modified Pool insurance consists of 20% of the Company's total insurance in force at December 31, 2011.
Advisors' Opinion:- [By Zachary Tracer]
Mortgage insurers PMI and Triad Guaranty Inc. (TGICQ) filed for bankruptcy after housing crashed. Old Republic International Corp. also retreated from the mortgage guaranty business.
10 Best Cheapest Stocks To Watch Right Now: Horizon Technology Finance Corporation (HRZN)
Horizon Technology Finance Corporation, a specialty finance company, lends to and invests in development-stage companies in the United States. It provides secured loans to companies backed by established venture capital and private equity firms in the technology, life science, healthcare information and services, and cleantech industries. Horizon Technology Finance Corporation was founded in 2008 and is based in Farmington, Connecticut.
Advisors' Opinion:- [By BDC Buzz]
I believe investors should look past the current low dividend yields and relatively higher multiples of NAV per share for BDCs such as FDUS, MAIN, and TCAP, but should consider the total return for these companies. The table below compares FDUS and MAIN to both ACAS which does not pay dividends and Horizon Technology Finance (HRZN) that pays a higher than average dividend but after taking into account dividend growth, special dividends, and NAV per share growth (using last twelve months actual for projection purposes) it is clear that the expected investor return is based on more than the current dividend yield.
10 Best Cheapest Stocks To Watch Right Now: Crumbs Bake Shop Inc (CRMB)
Crumbs Bake Shop, Inc., formerly 57th Street General Acquisition Corp., incorporated on October 29, 2009, is owner of Crumbs Holdings LLC (Crumbs), a neighborhood bakery and a retailer of cupcakes. As of November 1, 2011, Crumbs had 43 locations, including 29 locations in the New York Metro area, nine locations on the West Coast, three locations in Washington, D.C., one location in Virginia and one location in Chicago. The specialty of the house is cupcakes; however, the menu also includes a blend of baked goods. On May 5, 2011, the Company merged with Crumbs.
The Company offers a range of Signature and Taste size cupcakes. Signature cupcakes are ordered in increments of six. One can create its own individual six packs or choose a pre-selected assortment. Its Taste size cupcakes are offered by the dozen in pre-selected favorites assortments. There are more than 60 varieties of cupcakes baked fresh daily with a new cupcake of the week debuting each Monday.
Advisors' Opinion:- [By Jack Kramer and Nick Martell]
2. Crumbs Cupcake stock continues to drop
Pour some sugar on me, baby, because the recent performance of cupcake-makin' chain Crumbs Bake Shop (NASDAQ: CRMB ) hasn't tasted good for investors. The stock has fallen nearly 30% in the past month, dropped 13.4% in the last week, and dipped almost 2% Monday on growing doubts the company can even stay in business.
10 Best Cheapest Stocks To Watch Right Now: Banco Santander Brasil SA (BSBR)
Banco Santander (Brasil) S.A. (Santander Brasil), incorporated on August 9, 1985, is a full-service bank in Brazil. The Bank operates its business along three segments: Commercial Banking, Global Wholesale Banking and Asset Management and Insurance. Through its Commercial Banking segment, the Bank offers traditional banking services, including checking and savings accounts, home and automobile financing, unsecured consumer financing, checking account overdraft loans, credit cards and payroll loans to mid- and high-income individuals and corporations (other than to its Global Banking and Markets clients). Its Global Wholesale Banking segment provides financial services and solutions to a group of approximately 700 local and multinational conglomerates, offering such products as global transaction banking, syndicated lending, corporate finance, equity and treasury. Through its Asset Management and Insurance segment, the Company manages fixed income, money market, equity and multi-market funds and offers insurance products complementary to its core banking business to its retail and small- and medium-sized corporate customers.
Lending Activities
As of December 31, 2010, the Bank�� total loans and advances to customers equaled R$160.6 billion (42.9% of its total assets). Net of allowances for credit losses, loans and advances to customers equaled R$151.4 billion as of December 31, 2010 (40.4% of its total assets). In addition to loans, it had outstanding R$93.5 billion as of December 31, 2010.
Substantially all of its loans are to borrowers domiciled in Brazil and are denominated in reais. Its commercial, financial and industrial loans include primarily loans to small and medium-sized enterprises (SMEs) in its Commercial Banking segment, and to Global Banking and Markets corporate and business enterprise customers in its Wholesale Global Banking segment. The principal products offered to SMEs in this category include revolving loans, overdraft facilities, installme! nt loans, working capital and equipment finance loans. Credit approval for SMEs is based on customer income, business activity, collateral coverage and internal and external credit scoring tools. Collateral on commercial, financial and industrial lending to SMEs generally includes receivables, liens, pledges, guarantees and mortgages, with coverage generally ranging from 100% to 150% of the loan value depending on the risk profile of the loan. Its Wholesale Global Banking customers are offered a range of loan products ranging from typical corporate banking products (installment loans, working capital and equipment finance loans) to more sophisticated products (derivative and capital markets transactions).
The Bank�� Real estate-construction loans include construction loans made principally to real estate developers that are SMEs and corporate customers in its Wholesale Global Banking Segment. Loans in this category are generally secured by mortgages and receivables, though guarantees may also be provided as additional security. Real estate-mortgage loans include loans on residential real estate to individuals. All loans granted under this category are secured by the financed real estate. Installment loans to individuals consist primarily of unsecured personal installment loans (including loans whose payments are automatically deducted from a customer�� payroll), revolving loans, overdraft facilities, consumer finance facilities and credit cards. Lease financing includes primarily automobile leases and loans to individuals. The vehicle financed acts as collateral for the particular loan granted.
Investment Activities
The Bank�� investments include Government securities-Brazil, Government securities-other countries and other debt securities. As of December 31, 2010, the book value of the investment securities was R$84.7 billion (representing 22.6% of its total assets). Brazilian government securities totaled R$55.8 billion, or 65.9% of the Bank�� investment! securiti! es as of December 31, 2010. As of December 31, 2010, the Bank held no securities of single issuers or related group of companies whose aggregate book or market value exceed 10% of stockholders��equity, other than Brazilian government securities, which represented 76.9% of its stockholders��equity.
Sources of Funds
The Bank offers its customers a variety of deposit products, such as current accounts (also referred to as demand deposits), which do not bear interest; traditional savings accounts, which earn the Brazilian reference rate for savings accounts (taxa referencial) plus 0.5% per month, as set by the federal government, and time deposits, which are represented by certificates of bank deposits (CDBs), which normally have a maturity of less than 36 months and earn interest at a fixed or floating rate. In addition, it accepts deposits from financial institutions as part of its treasury operations, which are represented by certificates of interbank deposit CDIs, and which earn the interbank deposit rate.
Advisors' Opinion:- [By Jake L'Ecuyer]
Banco Santander (Brasil) SA (NYSE: BSBR) shares were also up, gaining 15.74 percent to $6.69 on Q1 results. The company reported Q1 recurring net income of 1.427 billion reais ($637 million).
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