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Business Process Outsourcing

Mon, 13 Apr 2009 20:13:23 GMT

The current global economic and market downturn has taken its toll on the IT Services group as a whole. The Business Process Outsourcing (BPO) companies were all under significant pressure even before the economic malaise, with a slowdown in its growth trajectory. In other words, the BPO companies were all trading with an early 2009 growth/recovery story in mind. However, this thesis is now undergoing some re-evaluation, given that overall recovery prospects are being pushed towards the latter half of 2009 or early-2010. The current financial market fallout adds further uncertainty to their growth picture, with roughly 50% of market cap already shaved off for the BPO companies since the fallout -- relative to its 52-week high, Cognizant Tech (CTSH, Hold) is down approx. 38%, [More...]

Cramdowns And Refis Won’t Need Appraisals

Thu, 29 Jan 2009 15:16:00 GMT

In November, the U.S. federal agencies which oversee the banking system proposed new guidelines for real estate appraisals. One would imagine that these guidelines would be in keeping with the new more stringent regulatory frame of mind the financial services sector. This is not the case. In fact, the new proposal appears to entirely eliminate mandated written appraisals in connection with cramdowns, refis, and Fannie/Freddie loans. The key verbiage is on pages 45-48 of the guidelines: In general, renewals, refinancing, and other subsequent transactions may be supported by evaluations rather than appraisals…. An institution may modify the terms of an existing credit without obtaining a new appraisal or evaluation. Such modifications should not involve any advancement of new funds, any material change in the borrower’s creditworthiness, any change to the borrower’s or guarantor’s[More...]

Banks Lead Markets Higher

Wed, 28 Jan 2009 17:13:00 GMT

Markets are having a strong day ahead of the FED meeting in the PM. Dow is up 128, advancers over decliners 6-1 & NAZ is up 41. Banks are leading the charge from their depressed lows. Wells Fargo (WFC), one of Berkshire Hathaway's big investments, rose 3.89 (24%) on what was considered a good report. They are a big home lender, which was responsible for their first loss in 8 years. The Wachovia acquisition also was a drag. But the stock gained 3.54 (20%) when WFC maintained the dividend & added it won’t need more federal aid. •Wells Fargo Has First Loss Since 2001; Shares Jump as Bank Keeps Dividend Their announcement lifted all bank stocks as shown below: S&P 500 FINANCIALS[More...]

Value Idea: BAM Preferred Shares

Sun, 30 Nov 2008 18:18:00 GMT

I have detailed my case for the Bookfiled Asset Management (BAM) preferred here. I will elaborate on some additional points on its investment merit. I have picked BAM.pr.b issue, which has the following characteristics: Floating rate issue, i.e., dividends change depending on the Canadian prime rate.The issue is redeemable at BAM option at $25 per share, i.e., the issue has face value of $25.Dividends are cumulative, i.e, if the BAM decides to skip a dividend payment then dividends would still owed to the investor.BAM's preferreds offer me an excellent opportunity to earn great return that I could not simply pass up. I have bought BAM.PR.B at $7.9 per share to earn a dividend yield of 10.5% annually.[More...]

Virtual Funds: Technology Fund's Ranking/Performance In Q3 '08 And Overall

Wed, 05 Nov 2008 13:53:00 GMT

Technology stocks have held relatively well, especially the blue chip companies. I think this sector's performance will be scattered all over the board, some companies will do well while others will suffer for a prolonged period of time. So, it's a good sector to sift through, but you have to carefully assess how the overall economic conditions may influence your picks' earnings power. Orange line in the chart below shows how my Technology Fund has performed relative to the m100 (a collective Marketocracy fund that uses picks from the top 100 members), S&P 500, Dow Jones Index, and Nasdaq. [More...]

Hewitt Associates - Bear Of The Day

Thu, 30 Oct 2008 15:41:00 GMT

Hewitt Associates Inc. is the clear leader in the emerging human resources BPO (business process outsourcing) market. But with the unemployment rate having risen to 6.1% in August, the expected economic weakness should hamper the financial results of employment-related companies such as Hewitt Associates. The Sell rating is maintained due to expected economic weakness in the next few quarters. Employment service companies generally participate in the later stage of economic recovery. Since management has been raising EPS guidance for fiscal 2008 based on the company's strong performance, earnings momentum investors have driven the stock to new highs. Any earnings disappointment should result in dramatic stock weakness. The target price is a 13 P/E multiple on trailing 12 month EPS. Given the minimal expected price appreciation, the stock is rated a Sell. [More...]

Analyst Comments: ValueClick, Nissan Motor, First Solar, Kellogg, AK Steel, DryShips, Hewitt Associates, Merck, Sara Lee, Jones Lang, Avis, Acorda Therapeutics, Georgia Gulf, Raytheon

Wed, 24 Sep 2008 13:07:00 GMT

We maintain a Hold rating on the shares of ValueClick, Inc. (VCLK), a Westlake Village, California-based online marketing services company. VCLK is currently trading at a P/E multiple of 13.5x our 2008 earnings per share estimate of $0.71, a discount to the industry median. Although over the long-term we are very positive on online advertising growth, current economic conditions are creating significant headwinds for ValueClick and others in the industry. Rising energy prices and falling housing prices have caused consumer confidence to drop, and consumer spending has fallen as a result. With decreased consumer spending, advertisers are cutting back budgets. This has caused what we consider a cyclical decline in Internet advertising dollars. Although there is likely upside to VCLK shares over the longer-term, we[More...]

Which Stocks to Own if Oil Hits $150?

Mon, 09 Jun 2008 23:26:24 GMT

Thomas Smicklas who writes a very interesting blog...[More...]

BAM / BPP Floater Credit Inversion

Fri, 23 May 2008 20:36:26 GMT

In the last edition of PrefLetter I pointed out a significant inversion in the floating rate sector, with BPO Properties Ltd. Fltg Rate Pr Series “J”, for instance (BPP.PR.J) trading at a higher price than Brookfield Asset Management Inc Cl A Pr Ser 13 (B[More...]

Observations and Stocks for Thursday - Apr 2 2008 6:22PM

Wed, 02 Apr 2008 22:17:12 GMT

I sent an email to All Access Pass holders today. In case it landed in your spam box, please read the Notice to All Access Pass Subscribers. The worksheets and charts will be delivered by EMAIL from now until month-end.[More...]

World Bank raises RP forecast

Thu, 05 Nov 2009 05:50:00 GMT

Nov. 5--STRONG remittances from overseas Filipino workers (OFWs) spared the Philippines from a recession this year, and would allow the country to undertake a slow recovery next year, the World Bank said.
In its Philippines Quarterly Update, the Washington-based lender projected that the Philippine economy, as measured by the country's gross domestic product (GDP), would grow 1.4 percent this year, better than an earlier forecast of a 0.5 percent contraction.
This was despite the estimated reduction by 0.1 to 0.4 percentage points that typhoons Ondoy and Pepeng would cause on Philippine GDP.

: iStockAnalyst.com Symbols Feed

Business Process Outsourcing

Cramdowns And Refis Won’t Need Appraisals

Banks Lead Markets Higher

Value Idea: BAM Preferred Shares

Virtual Funds: Technology Fund's Ranking/Performance In Q3 '08 And Overall

Hewitt Associates - Bear Of The Day

Analyst Comments: ValueClick, Nissan Motor, First Solar, Kellogg, AK Steel, DryShips, Hewitt Associates, Merck, Sara Lee, Jones Lang, Avis, Acorda Therapeutics, Georgia Gulf, Raytheon

Which Stocks to Own if Oil Hits $150?

BAM / BPP Floater Credit Inversion

Observations and Stocks for Thursday - Apr 2 2008 6:22PM

World Bank raises RP forecast

Brookfield Properties declares 14-cent dividend

Brookfield results slip on residential decline

US Problems Threat to Local Outsourcing

Financial Systems Need Time to Heal

BPO Space Oversupply Seen to Remain Until 2012

Philippine Economy All Set to Bounce Back

NEDA Predicts Even Higher Growth In Q3

Standard & Poor's Announces Changes in the S&P/TSX Canadian Indices

Bangko Sentral Ends Rate-Cut Cycle

Brookfield Properties Reports Third Quarter 2009 Results

Brookfield Properties Plans Early Adoption of International Financial Reporting Standards

Brookfield Properties Announces Recladding of First Canadian Place in Toronto

Brookfield Properties Corporation Renews Normal Course Issuer Bid

Standard & Poor's annonce des modifications a certains indices canadiens S&P/TSX

Brookfield Properties Announces Exercise By Underwriters of Entire Over-Allotment Option

Brookfield Properties Prices $900 Million Common Share Offering

Investment Industry Regulatory Organization of Canada - Trade Resumption - Brookfield Properties - BPO (all issues)

Brookfield Properties to Raise $900 Million in Common Share Offering