SAN FRANCISCO (MarketWatch) ��Gold prices climbed Wednesday, rebounding after a three-session loss of nearly 4% as uncertainty surrounding the U.S. budget and debt ceiling lured some investors back to the precious metal.
December gold (GCZ3) �rose $17.60, or 1.3%, to $1,333.90 an ounce on the Comex division of the New York Mercantile Exchange. After losing $10.70, or 0.8%, on Tuesday, prices had tallied a three-session loss of 3.9%.
AFP/Getty Images Gold futures head higher after a three-session drop.Jeffrey Wright, managing director at H.C. Wainwright LLC, said gold found support Wednesday from short covering, a weaker dollar (DXY) �and the ��ooming U.S. fiscal scenario��that�� weighing on the dollar and boosting gold.
Top 5 High Tech Stocks To Buy For 2015: Medley Capital Corporation (MCC)
Medley Capital Corporation is a business development company. The fund seeks to invest in privately negotiated debt and equity securities of small and middle market companies. It targets private debt transactions ranging in size from $10 million to $50 million to borrowers principally located in North America. It structures its investments as first lien senior secured loans, second lien senior secured loans, senior secured notes, senior subordinated notes, unitranche loans, and seeks warrants or other equity participation. The fund may take a board seat on its investee companies and exits its investments between three years and seven years.
Advisors' Opinion:- [By Nathan Slaughter]
All of this is to say that while I strive to hunt down and recommend attractive securities with double-digit yields -- and own a few, like Medley Capital Corp. (NYSE: MCC) -- they are the exception in this environment, not the rule.
Best Diversified Bank Stocks To Watch Right Now: Ellington Financial LLC (EFC)
Ellington Financial LLC (EFC) is a specialty finance company, which specializes in acquiring and managing mortgage-related assets. As of December 31, 2011, its targeted assets included residential mortgage-backed securities (RMBS), backed by prime jumbo, Alternative A-paper (Alt-A), manufactured housing and subprime residential mortgage loans (non-Agency RMBS); RMBS for which the principal and interest payments are guaranteed by a United States Government agency or a United States Government-sponsored entity (Agency RMBS); mortgage-related derivatives; commercial mortgage-backed securities (CMBS), commercial mortgage loans and other commercial real estate debt, and corporate debt and equity securities and derivatives. It also acquires and manages other types of mortgage-related assets and financial assets, such as residential whole mortgage loans, asset-backed securities (ABS), backed by consumer and commercial assets, non-mortgage-related derivatives and real property.
Non-Agency RMBS
The Company acquires non-Agency RMBS backed by prime jumbo, Alt-A, manufactured housing and subprime residential mortgage loans. Its non-Agency RMBS holdings include investment-grade and non-investment grade classes. Non-Agency RMBS are debt obligations issued by private originators of or investors in residential mortgage loans. Non-Agency RMBS are issued as CMOs and are backed by pools of whole mortgage loans or by mortgage pass-through certificates. Non-Agency RMBS are securitized in senior/subordinated structures, or in excess spread/over-collateralization structures. In senior/subordinated structures, the subordinated tranches absorb all losses on the underlying mortgage loans before any losses are borne by the senior tranches.
Agency RMBS
The Company�� assets in this asset class consist of whole pool pass-through certificates, the principal and interest of which are guaranteed by Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Cor! poration (Freddie Mac), or Government National Mortgage Association (Ginnie Mae), and which are backed by adjustable rate mortgages (ARMs), hybrid ARMs or fixed-rate mortgages. Mortgage pass-through certificates are securities representing undivided interests in pools of mortgage loans secured by real property where payments of both interest and principal, plus pre-paid principal, on the securities are made monthly to holders of the security, in effect passing through monthly payments made by the individual borrowers on the mortgage loans that underlie the securities, net of fees paid to the issuer/guarantor and servicers of the securities. Whole pool pass-through certificates are mortgage pass-through certificates that represent the entire ownership of a pool of mortgage loans.
In addition to investing in specific pools of Agency RMBS, the Company utilizes forward-settling purchases and sales of Agency RMBS where the underlying pools of mortgage loans are to be announced mortgage-backed securities (MBS) (TBAs). Pursuant to these TBA transactions, it agrees to purchase or sell, for future delivery, Agency RMBS with certain principal and interest terms and certain types of underlying collateral. It uses TBAs for hedging purposes. It engages in TBA transactions for purposes of managing certain risks associated with its long Agency RMBS and its non-Agency RMBS.
Mortgage-Related Derivatives
The Company takes long and short positions in various mortgage-related derivative instruments, including credit default swaps. A credit default swap is a credit derivative contract in which one party (the protection buyer) pays an ongoing periodic premium (and often an upfront payment as well) to another party (the protection seller) in return for compensation for default (or similar credit event) by a reference entity. In this case, the reference entity can be an individual MBS or an index of several MBS, such as an ABX Index, PrimeX or a CMBX Index.
CMBS
CMBS ar! e mortgage-backed securities collateralized by loans on commercial properties. CMBS issued are fixed rate securities backed by fixed rate loans made to multiple borrowers on a range of property types, though single-borrower CMBS and floating-rate CMBS have also been issued. Commercial mortgage loans are loans secured by liens on commercial properties, including retail, office, industrial, hotel and multifamily properties. Commercial real estate loans may also be structured into more complicated senior/subordinate structures, including those providing for multiple B-Note or multiple mezzanine loan senior/subordinate components.Corporate Debt and Equity Securities and Derivatives
For hedging purposes, the Company takes short positions in corporate debt and equity (including indices on corporate debt and equity) by entering into derivative contracts, such as credit default swaps, total return swaps and options. These hedges reference corporations (such as financial institutions that have substantial mortgage-related exposure) or indices whose performance has a degree of correlation with the performance of its portfolio. Given this correlation, a short position with respect to such corporations or indices provides a hedge to its portfolio of MBS as a whole.
Other Assets
The Company from time to time acquires other mortgage-related and financial assets, which include residential whole mortgage loans, ABS backed by consumer and commercial assets and real property. It also acquires real property interests, such as single family and multifamily residential properties.
Advisors' Opinion:- [By Luke Jacobi]
Ellington Financial LLC (NYSE: EFC) was down, falling 4.4 percent to $23.53 after the company priced 8 million shares at $23.92 per share.
CommoditiesAlthough equities have been flat, the same cannot be said for the commodity market. Crude futures shot higher Wednesday, following yesterday’s sharp sell off. At last check, WTI futures were up 2.7 percent to $95.37 and Brent futures gained 2.1 percent to $102.45.
Best Diversified Bank Stocks To Watch Right Now: SPDR S&P 500 ETF Trust (SPY)
SPDR Trust, Series 1 (the Trust) is a unit investment trust. The Trust is an exchange-traded fund created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks, in substantially the same weighting, which comprise the Standard & Poor's 500 Composite Price Index (the S&P Index). Each unit of fractional undivided interest in the Trust is referred to as a Standard & Poor's Depositary Receipt (SPDR).
The Trust utilizes a full replication approach. With this approach, all 500 securities of the Index are owned by the Trust in their approximate market capitalization weight.
Advisors' Opinion:- [By Chris Ciovacco]
Investment Implications
The Fed's desire to taper their bond purchases is concerning and something that we will monitor closely. However, the known desire to taper has not yet shown up in the credit markets in the form of risk aversion as it did in 2007 and 2011 prior to sharp declines in stocks. As long as that is the case, we will continue to favor stocks (SPY) over bonds (AGG). We will also hold our positions in leading sectors such as financials (XLF), technology (QQQ), and small caps (IWM). If the messages from the markets change, we are happy to migrate toward a more conservative stance. - [By Tom Aspray]
The stock market bottom in June 2012 is an example of typical pattern, as the Spyder Trust (SPY) retested its highs in early May, before dropping sharply to the May 18 low of $126.06 (see arrow). The SPY then rebounded sluggishly for the next seven days and came close to the 20-day EMA at $130.56. It was also unable to move above the 38.2% Fibonacci retracement resistance before the SPY turned lower. It eventually dropped to a low of $123.72 in early June, which was accompanied by the formation of bullish divergences, as shown on the chart.
- [By Luke Jacobi]
Volume was slightly down to end the week. Only 99 million shares of the SPDR S&P 500 ETF (NYSE: SPY) traded hands, compared to the ten day average of 140 million.
Best Diversified Bank Stocks To Watch Right Now: Radian Group Inc.(RDN)
Radian Group Inc., through its subsidiaries, operates as a credit enhancement company in the United States. The company offers credit-related insurance coverage, primarily through private mortgage insurance, and risk management services to mortgage lending institutions. Its private mortgage insurance protects the holders of the company?s insurance from default-related losses on residential mortgage loans made generally to home buyers, as well as facilitates the sale of these mortgage loans in the secondary mortgage market. The company primarily serves mortgage originators, such as mortgage bankers, mortgage brokers, commercial banks, savings institutions, credit unions, and community banks. Radian Group Inc. was founded in 1977 and is headquartered in Philadelphia, Pennsylvania.
Advisors' Opinion:- [By Amanda Alix]
Hot on the heels of a $15 million Consumer Financial Protection Bureau settlement with mortgage insurers Genworth Financial (NYSE: GNW ) , MGIC Investment (NYSE: MTG ) , Radian Group (NYSE: RDN ) , and United Guaranty, a subsidiary of AIG (NYSE: AIG ) , over kickbacks�paid to banks for mortgage insurance, comes some bad news in the same vein -- this time, for Bank of America (NYSE: BAC ) .
- [By Markos Kaminis]
I come to the real unemployment rate and the real underemployment rate (U-6 figure) by switching this month's labor force participation rate with the rate that existed in the healthier economy of November 2006. Some would argue that participation level was inflated by the real estate bubble, with a good many Americans lucky to be working in mortgage finance at Bank of America's (BAC) Countrywide Financial, or in construction or housing sales at Toll Brothers, and other ancillary jobs tied to housing like in mortgage insurance at Radian Group (RDN). While I give that argument some credence, I also suggest that given the humming economy of the time on various drivers, those Americans could also have found other work or founded businesses.
- [By James Brumley]
While it’s still not clear if the turnaround effort will take hold before�JCPenney runs short of cash again, the market looks willing to at least give JCP the benefit of the doubt long enough to let the stock make progress — if that’s what’s indeed in the cards.
Radian Group (RDN)12/2 Price: $14.37
- [By Lisa Levin]
Radian Group (NYSE: RDN) dropped 5.09% to $13.81 after the company provided a comment on the proposed GSE requirements for private mortgage insurer eligibility.
Best Diversified Bank Stocks To Watch Right Now: Cannabis Science Inc (CBIS)
Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).
The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.
Advisors' Opinion:- [By John Udovich]
Small cap marijuana stocks Medical Marijuana Inc (OTCMKTS: MJNA), Cannabis Science Inc (OTCMKTS: CBIS), Medbox Inc (OTCMKTS: MDBX), Growlife Inc (OTCBB: PHOT) and HEMP, Inc (OTCMKTS: HEMP) were all surging by double digits yesterday thanks in part to legal sales of pot beginning in Colorado.
- [By Dan Burrows]
But it doesn’t end there. Investors should run away from all OTC marijuana stocks, including Medical Marijuana (MJNA), Cannabis Science (CBIS), CannaVest (CANV), MediSwipe (MWIP) and GreenGro Technologies (GRNH). As the SEC warns:
- [By Bryan Murphy]
Much like Nuvilex, Cannabis Science Inc. (OTCMKTS:CBIS) appears to simply be another conventional biotech outfit. And, truth be told, that's what CBIS is. It just happens to be developing two drugs based on cannabinoids... one to reat HIV/AIDS, and the other to treat cancer. Both drugs are in preclinical trials right now, so an actual marketable product is still years down the road for Cannabis Science Inc. But, as a legitimate biotechnology that isn't aiming to simply fuel tokers' needs, it's not going to hit any regulatory or law-enforcement roadblocks.
Best Diversified Bank Stocks To Watch Right Now: Creston PLC (CRE)
Creston Plc is a United Kingdom-based company engaged in insight and communications services. The Company operates in three divisions: Communications division, which offers clients an integrated approach to their marketing and communication strategy, offering a range of services, which include advertising, brand strategy, channel marketing, customer relationship marketing, digital marketing, direct marketing, local marketing, social media marketing and public relations; Health division, which provides an integrated communications solution to the healthcare and pharmaceutical sector and offers services, which include advertising, advocacy, digital and direct marketing, public relations, issues and reputation management and medical education; Insight division, which performs a range of market research services on behalf of its clients, through both qualitative and quantitative means, using face-to-face, telephone and online data collection techniques. Advisors' Opinion:- [By Investment Biker]
Over the years, WAL has changed its loan origination strategy. Post crisis, WAL's i) loan growth has been driven by commercial real estate (CRE) and Commercial & Industrial loans (C&I), ii) Construction and development share of loans has reduced from 24% in 2005 to 7% in 1Q'2013 and iii) completely cessation of new loan origination in the residential mortgage segment.
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