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Mortgage Delinquencies Still Rising – Analyst Blog

Dirk Van Dijk — Tue, 17 Nov 2009 20:20:13 +0000

This morning Trans Union, the big credit bureau, released its quarterly report on mortgage delinquencies, and it was not pretty. Nationwide, 6.25% of all residential mortgages were at least 60 days past due in the third quarter, up from 5.81% in the second quarter and 3.96% a year ago. This was the 11th straight quarter that delinquencies increased.

Mortgage delinquencies are the first step in a house eventually going into foreclosure, so look for those to start heading up again. Foreclosures have been held down by trial modifications under the HEMP program, but very few of those have gotten to the stage of being final modifications. And even when mortgages are modified, there is a strong tendency for those people to again find themselves in financial trouble. Clearly people not paying on their mortgages is not good news for the big banks like Bank of America (BAC) and Wells Fargo (WFC) that lent them the money.

If there is a silver lining in the data, it is that the rate of increase seems to be slowing. The third quarter increase was "only" 7.6%, which is down from an 11.3% increase in the second quarter and a 14.0% increase in the first quarter. Of course, as the base increases, each additional percentage of increase means a bigger absolute number of delinquent mortgages.

There are huge regional disparities in the rate of mortgage delinquencies. The former bubble states continue to suffer mind-bogglingly high rates of delinquencies -- 14.5% of all mortgages in Nevada and 13.3% of all homeowners in Florida are at least two months behind on their mortgages. That is almost one in seven in Nevada and about two in every fifteen in Florida.

In contrast, states where very few people live are experiencing very low rates of delinquencies. North Dakota is holding up best, as it is on a number of economic indicators with a rate of only 1.7%. South Dakota is not faring all that much worse at 2.3% and in Vermont the rate is only 2.6%.

However, the gap is starting to close, and not in a good way. The fastest growth in delinquencies is now coming from areas where there was no real housing bubble. The biggest jump came in Wyoming where delinquencies jumped by 17.9% in the quarter, followed by Kansas at 17.4% and North Dakota at 16.0%. Still, it would take a long time for North Dakota to catch up to Nevada.

There are two key forces that are leading to people not paying their mortgages. One goes to a lack of desire to do so, and the other goes to lack of ability to do so. If your house is substantially underwater, i.e. your mortgage is for a lot more than the house is worth, it is not economically rational to continue to pay your mortgage. After all, most mortgages are non-recourse, which means that the worst thing that happens is that the house gets foreclosed on and you go rent.

At one point, there was a huge social stigma to being foreclosed upon, but as it becomes more common, the stigma diminishes. There are, of course, some non-economic costs associated with not paying and just living rent- or mortgage-payment-free for awhile, and in many areas of the country that can now be well over a year. Your kids might be upset with you since they would have to change schools and leave all their friends if you can’t rent in the same school district. People also develop emotional attachments to their houses. Those factors might be worth a $5,000 or $10,000. However, if the house is underwater by $100,000, most people will just tell little Billy that he will make new friends at his new school.

The second reason for rising delinquencies is unemployment. Quite simply, with no paycheck, it is harder to write the mortgage check. It is not a coincidence that states like Nevada, Florida and California, which have very high delinquency rates, also rank near the top in terms of unemployment -- and the Dakotas and Vermont have unemployment rates that are well below the national average. For the delinquency rate to start to fall significantly, we will need to see progress on both the employment front and on the housing price front.

The government has been doing everything in its power to re-inflate the value of houses. It is throwing money at homebuyers in the form of tax credits. Under the recent extension, you don’t even have to be a first-time home buyer to benefit from Uncle Sam’s generosity. Of course, giving money away to move up buyers does not even reduce the inventory of unsold homes, since for each one bought, another one goes on the market.

The Fed has been artificially depressing mortgage rates by buying up $1.25 trillion of mortgage-backed securities. In the absence of that program, rates on a 30-year fixed rate mortgage would probably be at least a full percentage point higher. The Federal government has also assumed the role of subprime mortgage lender through the FHA, which is offering mortgage loans with only 3.5% down, and the tax credit can be used for the down payment. That is exactly the same sort of behavior that got New Century Financial and Washington Mutual into trouble. It just goes to prove the power of a good lobby over economic rationality.

This gift to the realtors of the country is eventually going to come back and bite the country on the behind, resulting in a massive -- think Fannie Mae (FNM)- and Freddie Mac (FRE)-sized bailout -- of the FHA.

The massive actions have had some effect, and the Case Schiller index has shown some improvement in housing prices over the last few months. Also, housing prices are much closer to normal, relative to incomes and rents, than they were a few years ago at the peak of the bubble.

Notice that I said "closer to normal," not "below normal." In the absence of this extraordinary government support, there is still room for housing prices to fall without them becoming undervalued based on historical relationships. The fact that incomes are not growing much due to high unemployment, and rents are falling due to record high vacancy rates, does not help the situation.

This poses a bit of a dilemma, since new housing starts typically lead changes in unemployment. This can be seen in the first graph below (from http://www.calculatedriskblog.com/). In the graph, the unemployment rate is inverted to better show the relationship between it and the rate of housing starts, as well as the lag involved. The dot.com crash-induced recession of 2001 is the one case where the relationship does not seem to hold.

The good news is that it looks like we have seen the bottom for housing starts this cycle back in January. Based on the historical relationship, that means we might start to see some improvement in the unemployment rate by this coming spring.

The bad news, though, is that new housing right now is a classic case of mal-investment. With lots of vacant housing, the last thing we need as a country is more housing units. The second graph below (also from http://www.calculatedriskblog.com/) shows that the dramatic decline in housing starts has not yet begun to make a dent in the number of houses and apartments that are sitting vacant. Thus it seems unlikely that we will see housing starts return to anything like the 1.1 million a year that has historically been about normal for the country.

More likely the rebound will stall out around the levels that marked the bottom for new housing starts in past cycles of around 600,000 a year. Yes, that is a nice percentage gain from the lows of under a 400,000 rate, but it does not suggest a robust recovery.

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Casey’s General Stores – Growth And Income – Zacks Rank Buy

Alex Kolb — Tue, 17 Nov 2009 05:00:00 +0000

Casey's General Stores Inc. (CASY) is watching analysts boost estimates ahead of reporting fiscal second quarter results in early December. For the year ending April 2010, the Zacks Consensus Estimate jumped from $2.19 to $2.21 per share in 1 month's time.

Company Description

Casey's General Stores, Inc. together with its subsidiaries, operate convenience stores under the Casey's General Stores name in the Midwest states. It has operations in Iowa, Missouri, Illinois Kansas, Minnesota, Nebraska, South Dakota, Wisconsin, and Indiana. The company was founded in 1959 and is headquartered in Ankeny, Iowa.

Earnings Projections are on the Rise

The company is watching analysts boost estimates ahead of reporting fiscal second quarter results in early December. For the year ending April 2010, the Zacks Consensus Estimate jumped from $2.19 to $2.21 per share in 1 month's time.

For the following year, analysts polled by Zacks are calling for earnings of $2.25 per share, up from last month's $2.21.

The second-quarter Zacks Consensus Estimate of 60 cents per share was increased from 57 cents over the past 90 days.

A Solid First Quarter

The company announced fiscal first-quarter results in early September. Earnings of 87 cents per share, exceeded the Zacks Consensus Estimate by 45% and topped the year-prior total. During the past 4 consecutive quarters, Casey's delivered an average upside earnings surprise of 17.5%.

The company also declared a dividend of $0.085 per share, which translates into a an industry-leading yield of 1%. The dividend was paid out on November 2.

Beating the Benchmarks

Fundamentally, Casey's is leading the industry. The company's return on equity (ROE) of 14% doubles the industry average of 7%. Its net profit margin of 2% tops the industry average of 0.44%.

Casey's has also outperformed technically lately as shares have doubled the market's return over the past 3 months. Zacks Investment Research

The GOP’s Health Care Plan – Analyst Blog

Dirk Van Dijk — Wed, 04 Nov 2009 22:01:17 +0000

Recently, Rep. Alan Grayson (D-FL) quipped on the floor of the House that the GOP health care plan amounted to: "1) Don’t get sick, and 2) If you do get sick, die quickly." Yesterday, John Boehner (R-OH), the top GOP man in the House, finally unveiled the official GOP plan...and did little to disprove Rep. Grayson.

The GOP plan would allow firms like WellPoint (WLP) and Aetna (AET) to continue to deny coverage based on pre-existing conditions. It would not offer any subsidies to the working poor to help them get covered, and would not require people to buy health insurance, or for employers to offer it.

It would make it harder for people to sue if they are injured by medical malpractice. The use of contingency fees by lawyers in malpractice suits would be strictly limited. Thus, for example, if the doctor misread your chart and amputated the wrong leg, you would have to be rich enough to pay the $150 an hour than most lawyers charge -- and a case like that would take many hours. After it is all done, damages would be limited to $250,000 for non-economic damages. So a low-wage worker would get far less than someone who has a higher income. Punitive damages would be almost impossible to win.

It would however, allow small businesses to band together to buy health insurance so they could get rates more in line with what large employers pay, which is a useful idea. It would also allow people to buy insurance from companies in other states. These policies would be regulated not in the state where the person lives, but in whatever state the insurance company decides to set up shop in. State insurance commissioners in the states where the policies were sold would have no enforcement power over consumer protection.

Since the credit card industry has done such a bang-up job in consumer protection, the GOP decided that it would apply the same model to health insurance. If in the extremely unlikely chance that this ever became law, look for some small state determined to not regulate the industry at all to become the new insurance capital of the country, just like South Dakota is the leading state when it comes to credit cards.

The plan would offer up to $50 billion in "incentive payments" to states that manage to bring down the number of uninsured, and would offer up to $15 billion to help states establish high risk pools and reinsurance programs. Those figures, however, are not per year, but totals over the next ten years -- or $5 billion a year in incentive payments spread among the 50 states and $1.5 billion per year for support of the high risk pools. With 47 million uninsured people in the country (and rising fast due to lay-offs when most health insurance is employment-based), that is nowhere close to adequate.

It also makes available another area where the wealthy can invest their money tax-free through expanded medical savings accounts. That is not going to help the working poor, the people who might be working two or three jobs, none of which offer health coverage. Few of them are even able to take advantage of the existing tax advantaged savings accounts like IRA’s and 401-k’s. Nice little perk though, for those earning well into the six figures who would like to shelter more of their income.

With health insurance costs rising at well over 2x the rate of inflation over the last 20 years, there is nothing in this bill that would force that to change. The reduction in the number of uninsured people in the country would be minuscule. Recently, a Harvard study estimated that 46,000 Americans die each year because they do not have access to health insurance. That is equal to more than another 9-11 every month.

All in all, this bill would be substantially worse than doing nothing. Doing nothing will bankrupt the country within a few decades.
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Casey’s General Stores – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 16 Oct 2009 05:00:00 +0000

Casey's General Stores Inc. (CASY) saw fiscal first-quarter earnings of 87 cents per share, exceeding the Zacks Consensus Estimate by 45% and topping the year-prior total. The company also declared a dividend of $0.085 per share, which translates into a an industry-leading yield of 1%.

Company Description

A Solid Quarter

"Strong gas margins and enhanced profitability inside the stores were the primary reasons for the record quarter," said President and CEO Robert J. Myers. "Lower retail fuel prices also brought about significant relief in our operating expenses."

The company also declared a dividend of $0.085 per share, which translates into a an industry-leading yield of 1%.

The dividend is payable Nov 16 to shareholders of record on Nov 2.

Bullish Forecasts and Strong Momentum

The company is seeing higher Zacks Consensus Estimates and a share price surge after reporting. For the year ending April 2010, forecasts of $2.19 per share are up a penny over the past month and are 21 cents higher than the projections of 2 months ago. The most accurate Zacks Consensus Estimate is more bullish at $2.28 per share.

The Zacks Consensus Estimate for the fiscal second quarter stands at 60 cents per share, versus the 2 months-ago level of 57 cents.

Shares of CASY have more than doubled the market's return after reporting first quarter results. Zacks Investment Research

Titan Machinery, Inc. – Value – Zacks Rank Buy

Tracey Ryniec — Mon, 28 Sep 2009 05:00:00 +0000

Titan Machinery Inc. (TITN) reported fiscal second results on Sep 9 that surprised on the Zacks Consensus Estimate by 50%. The agriculture equipment retailer also confirmed its prior fiscal 2010 earnings guidance.

Earnings per share rose to 27 cents from 19 cents a year ago. The Zacks Consensus Estimate called for 18 cents per share.

Revenues jumped 43.2% to $193.2 million from $134.9 million in the year ago period. All three of the company's segments saw growth in the quarter. Equipment sales jumped 44.3% to $141.1 million from $97.8 million last year. Parts sales climbed 37.7% and service revenues grew 44.4% to $15.6 million from $10.8 million in the second quarter of last year.

For the first six months of the year, revenues grew 25% compared to fiscal 2009.

The agriculture equipment business remained strong as the company's customers continued to have access to credit and were investing in equipment. They continue to purchase large tractors and combines. The construction equipment side of the business continued to be soft and was a reflection of the recession and a slowdown in the construction industry.

Titan added 2 agriculture equipment dealerships during the quarter. It also had $86 million in cash and cash equivalents as of July 31 and only $39.6 million in long-term debt.

Titan now operates a network of 68 agriculture and construction dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska, and Wyoming.

Reaffirmed Guidance

Titan still likes what it sees for the rest of fiscal 2010. It reaffirmed revenue and EPS guidance for the year. Revenue is expected in the range of $750 to $790 million. Earnings per share are projected between 92 cents and $1.04 per share.

Covering analysts moved to adjust their estimates based on the recent results. The third quarter Zacks Consensus Estimate fell 4 cents to 32 cents from 36 cents with 3 out of 4 analysts lowering in the last 30 days.

However, the full year Zacks Consensus Estimate jumped 4 cents to 96 with all 4 analysts raising during that time.

Value Fundamentals

Titan Machinery is now a Zacks #2 Rank (buy) stock. It is still an attractive value stock, trading at 12.5x forward earnings. Its price-to-book ratio is now 1.2. The company has a solid 1-year return on equity of 10.27%.

Read the Feb 10, 2008 article.

Update to Previous Value Zacks Rank Buy Stocks

Tech Data Corporation (TECD) beat the Zacks Consensus Estimate for the third straight quarter in August and sees IT spending stabilizing in the Americas in the upcoming quarter. TECD trades at 14.9x forward earnings. Read the full article.

RockTenn Company (RKT) has surprised on the Zacks Consensus Estimate 3 out of the last 4 quarters and has posted record earnings in both the first and third quarters. Can the company do it again when it reports fourth quarter in November? Read the full article.

Bucyrus International (BUCY) surprised on estimates for the second quarter in a row in July. Analysts forecast 10.6% year over year earnings growth in 2009 despite the global recession. BUCY isn't very expensive, trading at just 10.8x forward earnings. Read the full article.

GOL Linhas Aéreas Inteligentes S.A. (GOL) is finding profit in being Brazil's largest low-cost airline. The company has surprised on estimates the last 2 quarters. The stock is cheap, trading at 9.7x forward earnings. Read the full article.

Zacks Investment Research

Corus Bank Fails – 92 So Far in ‘09 – Analyst Blog

Zacks Market Commentaries — Mon, 14 Sep 2009 13:56:29 +0000

Regulators shut down 3 more banks including Corus; total failed banks in '09 reach 92

Three more banks including Corus Bank NA, a subsidiary of Corus Bankshares (CORS), were shuttered by the U.S. regulators on Friday as the recession continues to take its toll on banks. This takes the total number of failed federally insured banks in this year to 92, compared to 25 in 2008 and 3 in 2007.

Based in Chicago, the Corus Bank was a major lender to condominium, office and hotel projects. Corus is one of the largest banks to fail this year, with about $7 billion in total assets, $7 billion in deposits and 11 branches.

Two other small banks were Lacey, WA-based Venture Bank, with $970 million in assets and $903 million in deposits and Woodbury, MN-based Brickwell Community Bank, with $72 million in assets and $63 million in deposits.

The failure of these institutions represents another sizable impact on the Federal Deposit Insurance Corporation’s (FDIC) fund for protecting customer accounts, as it has been appointed the receiver for these banks. The failure of these three banks is expected to cost the deposit insurance fund an estimated $2 billion. The failure of Corus alone is expected to cost about $1.7 billion.

The FDIC insures deposits at 8,195 institutions with roughly $13.5 trillion in assets. When a bank fails, it reimburses customers for deposits of up to $250,000 per account. The outbreak of failing financial institutions has significantly stretched the regulator’s deposit insurance fund. At Jun 30, 2009, the fund corpus fell to $10.4 billion, the lowest since 1993, from $13.0 billion in the prior quarter.

The FDIC sold all of the deposits and $3 billion of Corus’ assets to MB Financial Bank, a subsidiary of MB Financial (MBFI). Much of Corus' assets are condominium loans backed by developments, and the FDIC is expected to sell them off within the next 30 days. This acquisition follows MB Financial's takeover of the failed InBank of Oak Forest, Illinois, last week.

Raleigh, North Carolina-based First-Citizens Bank & Trust Company will assume all of the deposits and $874 million of the assets of Venture Bank. FDIC and First-Citizens Bank agreed to share losses on about $715 million of Venture Bank’s assets. The FDIC said it will retain the remaining assets for disposal later.

Brickwell's $63 million deposits and all of its $72 million assets have been assumed by Mitchell, South Dakota-based CorTrust Bank.

In the second quarter of 2009, the number of banks on the FDIC's list of problem institutions grew to 416 from 305 in the first quarter. This is the highest since the savings and loan crisis in 1994. Increasing loan losses on commercial real estate are expected to cause hundreds more bank failures in the next few years. The FDIC anticipates the bank failures to cost about $70 billion over the next five years.

Recently, the FDIC allowed private investors to buy failed financial institutions. The regulator’s board voted to reduce the cash that private equity funds must maintain in banks they acquire.

The FDIC has no immediate plans to borrow money from the government to replenish the deposit insurance fund. However, it may increase the fees for U.S. banks this year to strengthen the fund. The agency has already raised $5.6 billion through an added assessment.

On August 14, banking operations of Colonial BancGroup were seized by the FDIC. Colonial’s deposits and assets were sold to BB&T Corporation (BBT). Following this, Guaranty Bank failed on Aug 21. The FDIC sold all of Guaranty Bank’s deposits and $12 billion of the assets to BBVA Compass, the U.S. division of Spain’s second-largest bank Banco Bilbao Vizcaya Argentaria (BBV). Colonial is the largest and Guaranty the second-largest bank failure so far this year, and the sixth and tenth-largest, respectively, in the U.S. history.

The failure of Washington Mutual last year is the largest bank failure in U.S. history. It was acquired by JP Morgan Chase (JPM). The other major acquirers of failed institutions since 2008 include Fifth Third Bancorp (FITB), U.S. Bancorp (USB), Zions Bancorp (ZION), SunTrust Banks (STI), PNC Financial (PNC) and Regions Financial (RF).

The failed banks are the victims of recession and rising loan losses. As a result of the ongoing market turmoil, these institutions experienced massive capital erosion stemming from losses arising from a significant exposure to collateralized mortgage obligations, commercial real estate loans and other commercial and industrial loans. All these factors were responsible for a drag on profitability and write-downs. According to the FDIC, U.S. banks overall lost $3.7 billion in the second quarter of 2009, compared to a profit of $7.6 billion in the prior quarter.

The current year has been difficult for consumers to pay off debt as a result of high unemployment, falling home prices and declining personal wealth.

However, on Thursday, U.S. Treasury Secretary Timothy Geithner said that the government won't provide additional funds to stabilize the financial markets and the government’s economic team has removed a $750 billion line item from the federal budget projections, since it is unlikely to be necessary.

But we think that although the economy is in a far better shape now than a year ago, there are persistent problems which need to be addressed by the government before shifting the strategy to growth. We believe that the U.S. economy will regain the growth momentum once these issues are resolved.

Most of the taxpayer-provided money was provided to financial institutions as these are the backbone of the economy and the primary victims of the recession. However, we continue to face further bank failures.

There are lingering concerns related to the banking industry as well as the economy. As a result, in its latest banking industry update, Moody's Investor Service (MCO) repeated that the U.S. banking system will continue to suffer at least through the end of the next year. We expect loan losses on commercial real estate portfolio to remain high for banks that hold large amounts of high-risk loans.
Read the full analyst report on "CORS"
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Read the full analyst report on "MCO"
Zacks Investment Research

Casey’s General Stores Inc. – Growth And Income – Zacks Rank Buy

Alex Kolb — Thu, 20 Aug 2009 05:00:00 +0000

Casey's General Stores Inc. (CASY) is seeing higher Zacks Consensus Estimates ahead of reporting fiscal first-quarter results in early September. During the past 3 months, forecasts climbed 9% for the year ending April 2010.

Company Description

Bullish Forecasts

The company is seeing higher Zacks Consensus Estimates ahead of reporting fiscal first-quarter results. During the past 3 months, forecasts of $1.97 per share climbed from $1.80 for the year ending April 2010.

For the following year, the Zacks Consensus Estimate was increased from $1.95 per share to $1.97 over the past 3 months.

The Zacks Consensus Estimate for the fiscal first quarter stands at 60 cents per share, versus the 3 months-ago level of 55 cents.

First quarter results are scheduled for release on September 9.

Record Results

The company's fiscal fourth-quarter and full-year report included record earnings for the year of $1.69 per share. Last year, Casey's earned $1.68 per share.

Fourth-quarter earnings of 31 cents per share topped the previous year's 28 cents but missed the Zacks Consensus Estimate of 36 cents.

In fiscal 2010, the company said it plans to increase same-store sales of gas, groceries and prepared food. The company also increase its number of stress by 4%.

Casey's hiked its dividend to $0.085 per share, which was paid out on August 17. CASY's dividend yield tops the industry average at 1.3%.

Solid Fundamentals

The company offers a return on equity (ROE) of 12.5%, surpassing the industry average of 10%. The company's net profit margin of 2% is ahead of the industry average of 1%. Zacks Investment Research

Casey’s General Stores – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 24 Jul 2009 05:00:00 +0000

Casey's General Stores, Inc. (CASY) recently released its fiscal fourth-quarter report, which included record earnings for the year. The company also hiked its dividend to $0.085 per share. CASY's dividend yield tops the industry average at 1.1%.

Company Description

Record Results

The company recently released its fiscal fourth-quarter report, which included record earnings for the year of $1.69 per share. Last year, Casey's earned $1.68 per share.

Fourth-quarter earnings of 31 cents per share topped the previous year's 28 cents but missed the consensus estimate of 36 cents.

In fiscal 2010, the company said it plans to increase same-store sales of gas, groceries and prepared food. The company also increase its number of stress by 4%.

Casey's hiked its dividend to $0.085 per share, noting that it is payable August 17 to shareholders of record on August 3. CASY's dividend yield tops the industry average at 1.1%.

CASY has been trading ahead of market since reporting in mid-June, and stock is beating the market by more than 30% over the past year.

Bullish Forecasts

Analysts' earnings estimates for the year ended April 2010 are at $1.97 per share, above the 2 months-ago level of $1.80.

For the following year, analysts are calling for earnings of $1.97 per share, an increase from the 2 months-ago level of $1.95. Zacks Investment Research

Do We Cheer Banks’ Earnings? – Analyst Blog

Zacks Market Commentaries — Mon, 20 Jul 2009 15:19:07 +0000

Last week, after a round of “positive surprises" delivered by some of the major banks, we had “not so surprising" news of closure of five more banks, bringing to 57 the number of federally insured banks closed this year.

It appears that the divide in the banking landscape between the “haves" and “have-nots" is increasing. Even among the big banks, there is now a clear two-tier system.

On one hand, we have Goldman Sachs (GS) and JP Morgan (JPM), which delivered record profits from their trading and investment banking revenues. There is no doubt that these two managed their affairs well, have increased their market share after the collapse of Lehman and Bear Stearns and also have benefitted tremendously from the various programs by the Treasury and the regulators. And, we should not forget the generous AIG (AIG) payout to Goldman.

On the other hand, the second-quarter profits of Bank of America (BAC) and Citigroup (C) were reliant on several one-time gains, resulting from asset sales etc, while weaknesses in some businesses and continued credit deterioration showed that there is more pain to come.

Bank of America’s credit-card unit lost $1.6 billion amid rising delinquencies, compared with a year-ago profit of $582 million. Its home-loan and insurance unit lost $725 million. The bank reported $8.7 billion in credit losses, up from $3.6 billion in the year-ago quarter. Its nonperforming loans jumped to 3.3%, up from 1.1% a year ago.

Like Goldman and JP Morgan, Bank of America’s results were aided by strong investment-banking and trading income following the merger with Merrill Lynch. But Citigroup saw decline in investment banking profits and it appears to be losing market share to stronger rivals.

Citigroup reported $8.4 billion in net credit losses, nearly double the loss from a year ago. Incidentally, the CEO of Citigroup -- after the bank had posted a sixth quarter of loss ($2.4 billion net loss on operational basis) in the last seven quarters -- sounded most optimistic during the conference call, saying "the rate of growth in these consumer losses may be moderating." Obviously he was trying to put on a brave face as the bank still faces an uncertain future.

With spiking unemployment, these banks will face increasing credit card losses. Housing and Commercial Real Estate prices are still on a downward spiral and will cause more losses in the coming quarters. On the other hand, mortgage refinancing, which was one of the main reasons for supporting the revenues in the last two quarters, is expected to taper off as the rates are creeping up now.

The smaller banks that do not enjoy the privilege of being “too big to fail" continue to struggle. The regulators shut two banks in California and two smaller banks in Georgia and South Dakota on Friday (something that has become the rule rather than the exception for Fridays).

The 57 bank failures this year compare with 25 last year and just three in 2007. The latest round of failures is expected to cause a loss of $1.1 billion to the FDIC and bring the total cost of failures this year to $13.4 billion. And unfortunately, this trend is expected to continue for some time.
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State Budgets Are Anti-Stimulus – Analyst Blog

Dirk Van Dijk — Tue, 30 Jun 2009 15:54:00 +0000

Today is the end of the 2009 fiscal year, and many states are still scrambling to get budgets in place for the 2010 fiscal year.

It is not easy since when the economy turns south, so do tax revenues, and states are not allowed to run deficits or borrow for operating needs. Some states have managed to cut costs or raise taxes enough to close their deficits for the upcoming year. The only two states without a budget problem are Montana and North Dakota.

As shown in the table below (from http://www.cbpp.org/cms/index.cfm?fa=view&id=711), the total spending cuts or revenue increase needs to be $166 billion or 24% of the projected budget. To some extent states have used "rainy day funds" and the money from the Federal Stimulus bill to close some of the gap. Still the problem is very severe with 5 states (CA, AZ, NV, IL, NY) facing shortfalls of greater than 30%. California is in the worst shape with a gap of 58.2%.

STATES WITH PROJECTED FY2010 BUDGET GAPS
State	FY2010 pre-budget	FY2010 mid-year gap	FY2010 Total	FY2010 Total % of Budget
Alabama	$1.2 billion	0	$1.2 billion	16.70%
Alaska	$1.3 billion	0	$1.3 billion	30.00%
Arizona	$4.0 billion	0	$4.0 billion	41.10%
Arkansas	$146 million	0	$146 million	3.20%
California*	$34.2 billion	$19.5 billion	$53.7 billion	58.20%
Colorado	$1.0 billion	$384 million	$1.4 billion	18.60%
Connecticut	$4.1 billion	0	$4.1 billion	23.20%
Delaware	$557 million	0	$557 million	17.60%
District of Columbia	$650 million	$150 million	$800 million	12.70%
Florida	$5.9 billion	0	$5.9 billion	22.80%
Georgia	$3.1 billion	$750 million	$3.9 billion	22.30%
Hawaii	$682 million	$297 million	$978 million	19.10%
Idaho	$411 million	0	$411 million	16.40%
Illinois	$9.2 billion	0	$9.2 billion	33.00%
Indiana	$1.1 billion	0	$1.1 billion	7.50%
Iowa	$779 million	0	$779 million	13.20%
Kansas	$1.4 billion	Yes, DK size	$1.4 billion	22.60%
Kentucky	0	$1.1 billion	$1.1 billion	11.30%
Louisiana	$1.8 billion	0	$1.8 billion	21.60%
Maine	$640 million	0	$640 million	21.40%
Maryland	$1.9 billion	Yes, DK size	$1.9 billion	13.60%
Massachusetts	$5.0 billion	0	$5.0 billion	17.90%
Michigan	$2.4 billion	0	$2.4 billion	12.00%
Minnesota	$3.2 billion	0	$3.2 billion	21.00%
Mississippi	$480 million	0	$480 million	9.60%
Missouri	$923 million	0	$923 million	10.30%
Nebraska	$150 million	0	$150 million	4.30%
Nevada	$1.2 billion	0	$1.2 billion	37.80%
New Hampshire	$250 million	0	$250 million	16.20%
New Jersey	$8.8 billion	0	$8.8 billion	29.90%
New Mexico	$345 million	0	$345 million	6.30%
New York	$17.9 billion	0	$17.9 billion	32.30%
North Carolina	$4.6 billion	0	$4.6 billion	21.90%
Ohio	$3.3 billion	0	$3.3 billion	12.30%
Oklahoma	$600 million	0	$600 million	10.50%
Oregon*	0	0	0	0.00%
Pennsylvania	$4.8 billion	0	$4.8 billion	18.00%
Rhode Island	$590 million	0	$590 million	19.20%
South Carolina	$725 million	0	$725 million	12.50%
South Dakota	$32 million	0	$32 million	2.90%
Tennessee	$1.0 billion	0	$1.0 billion	9.70%
Texas	$3.5 billion	0	$3.5 billion	9.50%
Utah	$721 million	$279 million	$1.0 billion	19.80%
Vermont	$278 million	0	$278 million	24.80%
Virginia	$1.8 billion	Yes, DK size	$1.8 billion	10.90%
Washington	$3.4 billion	$195 million	$3.6 billion	23.30%
West Virginia	$200 million	0	$200 million	5.30%
Wisconsin	$3.2 billion	0	$3.2 billion	23.20%
Wyoming	0	$32 million	$32 million	1.70%
Total	$143.2 billion	$22.7 billion	$165.9 billion	24.40%

This will lead to very drastic cuts in state budgets. Access to medical care by the poor will likely be one of the first things to be cut.

Education budgets will also probably be pared. This could be decreased spending on new textbooks, which would not be good news for publishers like McGraw-Hill (MHP) and Scholastic (SCHL).

Another area that is likely to be hit is new equipment at the municipal level. For example, I would not expect Oshkosh (OSK) to have a very good year selling new fire engines and snow removal equipment to municipalities.

Layoffs of state and municipal workers will simply add to the already high and rising unemployment rate. In short, a big part of the federal stimulus spending is being offset by (legally mandated) anti-stimulus actions at the state level.

As the graph shows, state fiscal problems tend to persist well after the recession is officially over. Indeed the problem is usually worse in the second or third year since by then the "rainy day funds" have already been used up.

Following the last recession, states collectively had their worst year in 2004 with a shortfall of $80 billion (or less than half what they face for fiscal 2010), which was well after the recession officially ended. Thus 2011, and possibly even 2012, will be a very lean year at the state level as well.

Read the full analyst report on "MHP"
Read the full analyst report on "SCHL"
Read the full analyst report on "OSK"
Zacks Investment Research

Casey’s General Stores Inc. – Growth And Income – Zacks Rank Buy

Alex Kolb — Thu, 14 May 2009 05:00:00 +0000

Casey's General Stores Inc. (CASY) outperformed the broader market over the past year, receiving an extra boost in early March on a strong third quarter. The company's solid fundamentals include an industry-leading dividend yield of 1.2%.

Company Description

Stellar Earnings

The company saw a solid third quarter. Earnings per share of 28 cents came in 47% ahead of the consensus estimate.

"We are pleased with the execution of our strategy," said President and CEO Robert J. Myers. "We were able to exceed third quarter earnings from a year ago despite a gas margin decline of over 3.5 cents per gallon."

The company has outperformed the market over the past year, receiving an extra boost after delivering the strong third-quarter results.

Wall Street is Bullish on CASY

Current fiscal year earnings projections of $1.74 per share are above the 2 months-ago level of $1.66. For the following year, earnings expectations of $1.80 were increased from last month's $1.74 and $1.70 of 2 months ago.

CASY's fiscal year ends in April, and the fourth-quarter report is scheduled for release on June 10.

Favorable Comparisons

CASY's return on equity (ROE) of 13% is in line with the industry average. The company's dividend yield of 1.2% stands out as most of CASY's industry peers pay no income. Its net profit margin of 2% is also in line with the industry average.

Zacks Investment Research

Casey’s General Stores Inc. – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 17 Apr 2009 05:00:00 +0000

Casey's General Stores Inc. (CASY) continues to crush the broader market while watching analysts boost estimates. Current fiscal year earnings projections of $1.73 per share are above last month's $1.66.

Company Description

Wall Street is Bullish on CASY

Current fiscal year earnings projections of $1.73 per share are above last month's $1.66. For the following year, earnings expectations of $1.76 were increased from last week's $1.74 and last month's $1.72. CASY's fiscal year ends in April.

Favorable Comparisons

CASY's return on equity (ROE) of 13% is in line with the industry average. The company's dividend yield of 1.1% stands out as most of CASY's industry peers pay no income. Its net profit margin of 2% is also in line with the industry average.

Solid Quarter

The company recently reported favorable results for the fiscal third quarter. Earnings per share of 28 cents came in 47% ahead of the consensus estimate.

The company has outperformed the market over the past year, receiving an extra boost after delivering the stellar results. Zacks Investment Research

The Geography of the Recession – Analyst Blog

Dirk Van Dijk — Thu, 12 Mar 2009 21:45:49 +0000

Highlights include Nordstrom, Inc. (JWN), Cost Plus, Inc. (CPWM) and BRE Properties (BRE).

What do Iowa, Nebraska, North Dakota, South Dakota, Utah and Wyoming have in common? Low population densities and agricultural-based economies to be sure -- but what else?

How about California, Indiana, Michigan, Nevada, North Carolina, Oregon, Rhode Island and South Carolina? Not much at first blush.

The answers are, the first group has unemployment rates under 5%, while the second group has unemployment rates above 9%. The graph below (larger version available at http://www.calculatedriskblog.com/) shows that the unemployment rate is higher now than a year ago for every state in the Union. However, there are very real regional differences in the impact so far. Perhaps noteworthy by their absence from the list of the worst unemployment rates are two of the "rust belt" states, Ohio and Pennsylvania.

I'm not sure there are any publicly traded stocks that have consumer demand in the Dakotas as being a significant driver for their sales. However, this does give you a point of reference of places to avoid. For example, Retailers with a heavy exposure to California such as Nordstrom (JWN) and Cost Plus (CPWM) would seem particularly vulnerable. The same is true of Real Estate Companies with heavy exposure to California like BRE Properties, Inc. (BRE).

Read the full analyst report on "JWN"
Read the full analyst report on "CPWN"
Read the full analyst report on "BRE"
Zacks Investment Research

DIA: If You Liked It At $100, You’ll Love It At $71!

Jim Wiandt — Tue, 24 Feb 2009 15:57:59 +0000

In a market sitting at 1997 levels, I'm asking myself inturn, "Which ETFs should I buy?" and "How are real estate prices looking in South Dakota?" (for my bunker/potato farm).

Are you scared yet? I suppose at this point it's probably more like beaten and whimpering. This is an ugly, UGLY market, and it feels like capitulation now, with maybe one last freefall in front of us. So hold onto your stomach and keep your wits, because if you happen to have anything to put into the market, anywhere around these depths is going to be looking great somewhere down the line (though maybe way WAY down the line).

Matt said in late-2008 that we'd see 15,000 before we saw 6,000 for the Dow, and I said don't be so sure. Now look at us, inching down towards 7,000 with an eye to go lower.

But I'm not excused from this either: Look at my bet on the Select Sector SPDRs Financials (NYSE Arca: XLF). Failing to heed my own advice to make sure the market found a hard bottom before plunging in, I bought XLF in the early winter, thinking it was a steal. I've seen that ill-advised investment shrink 50% since.

So, let's say you are a capitulation theorist, a reversion-to-the-mean partisan. What is the play from here? And if you're shaking in your boots and just looking to preserve a little of what's left, where should you be?

DIA or GLD? XLF or SHY? (Great ticker in this market, btw.) Honestly, I think it's prudent to try to find a bottom before jumping in. And that probably means a market that's 20% up from whatever low we hit. Otherwise, you're trying to catch a falling knife. Of course, just when people are beginning to feel extremely shy about coming back into the market is about where the bottom is usually ... the capitulation point. And I'm guessing we're not far.

All the funds I've liked in terms of scaling into, I still do. The S&P 500 SPDRS (NYSE Arca: SPY), iShares S&P 500 (NYSE Arca: IVV) or the Vanguard Total Market Index Fund (NYSE Arca: VTI) are all going to be good possible bets. You might be even smarter to tilt a bit away from the dollar (which is likely to collapse once we get through all of this) and make a bet on say the iShares FTSE/Xinhua 25 (NYSE Arca: FXI) or the WisdomTree Chinese Yuan ETF (NYSE Arca: CYB), or more broadly on the iShares MSCI Emerging Markets ETF (NYSE Arca: EAFE) or the Vanguard Emerging Markets ETF (NYSE Arca: VWO), say. For the ultimate contrarian play, there's the upcoming new PowerShares Mortgage Backed Securities toxicETF.

Look for more from us on that soon, because we do think maybe an ETF can save the world.

So once more - take a deep breath. This is no fun for any of us. But pragmatically looking at these markets, you've got to love the opportunities.

Before I go, speaking of Dow Diamonds (NYSE Arca: DIA), here's the quick review of the carnage from Dow Jones:

Dow Jones Industrial Average

As of February 23, 2009

DJIA, down 250.89 points, or -3.41% to 7114.78

Fell three straight and eight of the last 10 sessions
Down -14.08% over the 10-day period.
Lowest close since May 7, 1997.
Hit an intraday high of 7441.02 at 09:39:49 today, up 75.35 points, or 1.02%.
Hit an intraday low of 7105.94 at 15:52:53 today, down 259.73 points, or -3.53%.
Lowest intraday level since October 28, 1997 at 6971.32.
2 of the 30 stocks rose, 27 fell, 1 was unchanged.
Today's top contributors to the Dow's movement and their point contribution: C (1.51), BAC (0.96), GM (0.00), MRK (-1.75), JPM (-3.11).
Today's lagards and their point contribution: IBM (-35.20), CVX (-16.96), HPQ (-15.61), XOM (-15.37), BA (-14.73).
Traded in negative territory for 88 percent of the day.
The market capitalization of the DJIA fell $77.1B today.
Off 7049.75 points, or -49.77% from its record close of 14164.53 hit on October 9, 2007.
Off -43.40% over the past 52 weeks.
Down -11.07% so far this month. In January the DJIA closed down -8.84%.
Year-to-date, it is down -18.93%.

Titan Machinery, Inc. – Value – Zacks Rank Buy

Tracey Ryniec — Tue, 10 Feb 2009 00:00:00 +0000

Titan Machinery, Inc. (TITN), the agriculture equipment retailer, continues to expand its network after acquiring 10 more agriculture stores in the Wyoming, Montana, and Minnesota. The company has surprised on estimates 3 out of the last 4 quarters by an average of 69.14%. TITN has a forward P/E of 10.2.

Company Description

Titan Machinery operates a network of 63 full service agricultural and construction equipment stores in North Dakota, South Dakota, Minnesota, Iowa, Nebraska, Wyoming and Montana. Two of the stores are outlet stores. The company represents various brands including, among others, Case IH, New Holland Agriculture, New Holland Construction, and Case Construction.

Titan has been on an acquisition streak in recent weeks.

On Dec 23, the company announced it had acquired Anderson Power and Equipment, Inc., an agriculture equipment dealership in Thief River Falls, Minnesota. Anderson Power, which had been operating since 1972, had reported revenues of $8.6 million for the fiscal year ending March 31, 2008. Titan closed the deal on Dec 22, 2008.

On Jan 23, Titan also reported it had closed on the previously announced acquisition of Western Plains Machinery Co. and WP Rentals. Western Plains and WP Rentals, between them, had 9 construction equipment stores in Montana and Wyoming. The deal closed on Jan 1.

Combined, both companies generated revenues of $48.9 million in fiscal year 2007 which ended Dec 31, 2007, the most recently reported period.

Revenue Jumped 62% in the Third Quarter of 2009

On Dec 15, Titan announced its third quarter 2009 results which easily beat Wall Street estimates by 95.65%, or 22 cents per share. Net income surged 204% to $8.2 million from $2.7 million in the year ago period.

Revenue climbed 62% to $214 million from $132.2 million a year ago. Growth was primarily due to the continued strength of the agriculture economy, acquisitions, and organic growth.

Titan Raises 2009 Guidance

In December, the company was bullish on the rest of 2009 as it saw a strong pipeline for acquisitions, which came to fruition, as well as organic growth.

For the fiscal year 2009, ending on Jan 31, 2009, Titan raised its revenue forecast in the range of $635 million to $675 million compared to the previous guidance of $590 million to $635 million.

Earnings per share climbed to a range of $1.07 to $1.11 from prior guidance of 89 to 94 cents.

Consensus Estimates Rise

Given the strong third-quarter results, 2009 consensus estimates have moved sharply higher in the last 2 months to $1.11 from 93 cents. That is now at the high end of the guidance range.

2010 consensus estimates are also up 11 cents to $1.16 per share in the last 60 days.

Analysts still expect aggressive growth from the company, with a 5-year earnings growth projection of 24%.

Value Fundamentals

Titan Machinery is a Zacks #1 Rank (strong buy). It has surprised 3 out of 4 quarters by an average of 69.14%.

The company is trading at 10.2x forward earnings. It has a price-to-book of 1.22. TITN is scheduled to report fourth-quarter earnings on Mar 17.

"TITN" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

VeraSun Energy De-Listed – Analyst Blog

Zacks Market Commentaries — Mon, 26 Jan 2009 15:26:05 +0000

VeraSun Energy (VSUNQ): Ain't No Sunshine When the Money is Gone

We remain bearish on VeraSun Energy (VSUNQ), which filed for Chapter 11 bankruptcy protection in October 2008, precipitated by after-shocks of significant hedging losses, weak ethanol prices and higher financing costs. Subsequently, the stock was de-listed from the NYSE.

However, the company was able to procure commitments for approximately $197 million in debtor-in-possession financing. With 12 of its 16 plants sitting idle, the company procured court approval for the sale of 7 of its plants as part of a new bankruptcy financing agreement.

VeraSun Energy on October 31, 2008 filed for Chapter 11 bankruptcy protection as a result of significant hedging losses and higher financing cost precipitated by expansion activities.
VeraSun Energy shares have moved from trading on the NYSE (VSE) to the OTC (VSUNQ).
VeraSun Energy received interim approval from a Delaware bankruptcy court judge to auction by the end of March 2009, seven of the eight U.S. BioEnergy plants it bought in April 2008.
The company received final approval for $196.6 million in debtor-in-possession financing from undisclosed holders of its 9.875% senior secured notes (due 2012) and AgStar Financial Services led lenders group.
In the 3rd quarter of 2008, VeraSun Energy's revenue increased nearly five-fold and surpassed the one billion dollar mark. However, net loss rose to $476.1 million compared to net income of $7.8 million in the year-ago quarter.
VeraSun Energy acquired U.S. BioEnergy in an all-stock acquisition, paying 0.81 shares of VeraSun Energy for each share of USBE. This represents an 11.1% premium to USBE shareholders based on November 23, 2007 closing prices. The transaction closed effective from April 1, 2008.
In June of 2006, VeraSun completed its IPO, raising net proceeds of $236 million. The company produces corn-based ethanol and its co-product, distillers' grains.

VeraSun Energy is an industry-leading ethanol producer in the USA. The company went public in June of 2006 raising net proceeds of $236 million. VeraSun, with the completion of its merger with US BioEnergy on April 1, 2008, had eleven facilities in operation with a combined yearly ethanol production capacity of 1.1 billion gallons.

With fourteen operational facilities, the company has a total production capacity of 1.42 billion gallons of ethanol and more than 4.5 million tons of distillers' grains per year. As of November 6, 2008, VeraSun Energy's ethanol production capacity represented approximately 13% of the total ethanol production capacity in the USA, according to the RFA. The company also sells ethanol co-products, such as distillers' grains, and markets its branded E85 fuel, VE85 (85% ethanol and 15% gasoline) at more than 150 retail locations.

VeraSun is also planning to launch another fuel blend variant (30% ethanol and 70% gasoline) VE30. The company also entered into corn oil production. It began construction of a corn oil extraction facility at its plant in Aurora, South Dakota in December 2007.

On October 31, 2008, VeraSun and 24 of its subsidiaries filed for relief under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the District of Delaware in Wilmington. Subsequent to that the company received interim approval from a Delaware bankruptcy court judge to auction by the end of March 2009, seven of the eight U.S. BioEnergy plants that it had previously acquired, with the exception of Marion, South Dakota plant.

"VSUNQ" Free Stock Analysis: Buy? Sell? Hold?
"USBE" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Northwestern Corp. – Momentum – Zacks Rank Buy

Michael Vodicka — Tue, 20 Jan 2009 00:00:00 +0000

Northwestern Corp. (NWE) has been on the move since mid December, climbing from just above $17 to a recent high above $23. Analysts are bullish on the company, with the next-year estimate projecting 11% earnings growth.

Company Description

Northwestern Corp., together with its subsidiaries, provides electricity and natural gas in Montana, South Dakota and Nebraska. The company was founded in 1923 and has a market cap of $852 million.

Third-Quarter Results

On Oct 30, NorthWestern reported third quarter results that were ahead of analyst estimates. Net income rose 1.5% to $13.4 million, or 35 cents per share, from $13.2 million, or 35 cents per share, in the third quarter 2007. Analysts were expecting 29 cents.

Gross margin on regulated electric rose 2.7% in the third quarter to $94.7 million from $92.2 million in 2007, mainly due to a rate increase.

Analyst Estimates

Since the solid quarter, analyst estimate have ticked higher. The current-year estimate is up 4 cents in the last 60 days to $1.81 per share. The next-year estimate is bullish, pegged at $2.00, an 11% earnings growth projection.

Valuations

Baaed upon the current-year estimate this stock has a forward P/E multiple of 13X, in range with the overall market.

The Chart

As previously mentioned, shares of NWE have been rallying since November of last year, recently setting a new 52-week and all-time high. Some short-term resistance has developed in this area, take a look at the chart below.

"NWE" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Bulletproof REIT Bargains: How to Profit From the Inevitable Real Estate Recovery

Investment U — Thu, 08 Jan 2009 22:38:38 +0000

Bulletproof REIT Bargains: How to Profit From the Inevitable Real Estate Recovery by Robert Williams, Advisory Panelist, The Oxford Club Thursday, January 8, 2009: Issue #912 Editor’s Note: Our colleagues at The Oxford Club have been sorting through the debris from the mortgage and credit crisis. Robert Williams has found a company that’s been bucking the trend, profiting [...]

Keeping TEF A Hold – Analyst Blog

Zacks Market Commentaries — Fri, 26 Dec 2008 11:59:34 +0000

We maintain our Hold rating for Telefonica S.A. (TEF), the largest telecommunications company in Spain and Latin America. The company's latest quarterly performance reflected modest revenue improvement with lower contributions from domestic and European regions, offset by respectable growth in its Latin American segment.

On a positive note, strong business momentum across wireless, broadband, and Pay TV operating segments coupled with healthy contributions from Latin America boosted solid net subscriber additions. Telefonica continues to dedicate a significant portion of its strong free cash flow to remunerate shareholders through respectable dividend payouts and share repurchase initiatives.

However, the environment remains challenging with intensifying competition and we are exercising caution with regard to the company's aggressive acquisition strategy. Additionally, reduced tariff rates imposed by Spanish and European regulations are tightening wireless revenue per user and stagnation in the domestic wireline business is expected to continue in future reporting periods. There is also the possibility of cur currency exchange weakness, associated with the Euro versus U.S.D.

Telefonica is trading at 8.3x our 2009 earnings estimate, which is at a discount to the industry average as well as to the S&P 500 metric. We are reducing our six-month price target to $72 per ADS based on 9x our 2009 EPADS estimate.

Anindya Barman contributed to the report.

Read the full analyst report on TEF

"TEF" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

NorthWestern Corporation – Value – Zacks Rank Buy

Tracey Ryniec — Tue, 23 Dec 2008 00:00:00 +0000

NorthWestern Corporation (NWE) raised 2008 guidance in October as electricity rates have risen compared to 2007. The company currently pays a dividend with a solid 6.00% yield. It is trading with a forward P/E of 11.

Company Description

NorthWestern Energy provides electricity and natural gas to the Upper Midwest and Northwest. The company services over 640,000 customers in Montana, South Dakota and Nebraska.

NWE Beat Wall Street Estimates for the Third Quarter by 20.69%

On Oct 30, NorthWestern reported third quarter earnings that surprised on Wall Street estimates by 6 cents per share. Net income rose 1.5% to $13.4 million, or 35 cents per share, from $13.2 million, or 35 cents per share, in the third quarter 2007. Analysts were expecting 29 cents.

Gross margin on regulated electric rose 2.7% in the third quarter to $94.7 million from $92.2 million in 2007, mainly due to a rate increase.

Volumes in the regulated retail electric segments fell 1.5% because of cooler summer weather over the third quarter of 2007.

Gross margin for regulated natural gas increased to $22.8 million from $20.8 million in the third quarter of 2007 due to rate increases and higher volumes as customer volume grew 1.0%.

NorthWestern Has Cash

NWE finds itself in an enviable position during this credit crisis, as the company had cash and cash equivalents of $8.6 million at the end of Sep 30, 2008. That is up from $4.7 million at the end of Sep 30, 2007.

The company also had a $120.3 million revolver available at the end of September compared with $156.6 million a year ago. The decrease was the result of a $78 million share buyback that was completed in the third quarter.

2008 Guidance Increased

NorthWestern is bullish about the remainder of the year as the company raised full year 2008 guidance to the range of $1.65 to $1.80 from $1.60 to $1.75 it reported on July 31. The forecast assumes normal weather in the company's electric and natural gas service territories for the fourth quarter of 2008.

Consensus Estimates Rise

After the solid third quarter, covering analysts have been raising 2008 and 2009 estimates. Consensus estimates for 2008 rose 4 cents to $1.81 per share in the last month. 2009 consensus estimates jumped 17 cents to $2.00 per share in the last 30 days.

Analysts project 5-year earnings growth of 10%.

Value Fundamentals

NorthWestern is a Zacks #1 Rank (strong buy) stock. It has surprised on estimates 2 out of the last 4 quarters by an average of 23.77%.

NWE is trading at 11x forward earnings. It has a price-to-book of 1.04. As an added bonus, it pays a dividend with a current yield of 6.00%.

"NWE" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Casey’s General Stores – Growth And Income – Zacks Rank Buy

Alex Kolb — Wed, 17 Dec 2008 00:00:00 +0000

Casey's General Stores, Inc. (CASY) recently delivered a solid fiscal second quarter in the face of a difficult environment. Analysts are hinting toward more growth going forward. For the third quarter, analysts upped the earnings per share forecast by a penny over the past week to 24 cents. For the year ending April 2009, earnings projections have held relatively steady lately at about $1.58 per share.

Company Description

CASY Saw Revenue Growth during a Challenging Quarter

The company recently delivered a solid fiscal second quarter in the face of a difficult environment. President and CEO Robert J. Myers said, despite the challenging economic environment, same store sales in all three categories were positive for the quarter and customer traffic remained solid.

On a year-over-year basis, second-quarter revenue increased by about 17%. Earnings per share of 54 cents were even with the year-ago result.

Analysts are hinting toward more growth going forward. For the third quarter, analysts upped the earnings per share forecast by a penny over the past week to 24 cents. For the year ending April 2009, earnings projections have held relatively steady lately at about $1.58 per share.

Competitive Income

Casey's also declared a quarterly dividend of $0.075 per share, noting that it is payable on February 16 to shareholders of record on February 2. The company's dividend yield of 1.3% is well ahead of the industry average.
"CASY" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Can We Indeed?

Jim Wiandt — Wed, 05 Nov 2008 16:41:00 +0000

Should we be excited or scared for our portfolios on the face of an Obama presidency?

First of all, let's take a deep breath, because this was a truly historic election. And while I was disappointed in the general lack of substance from both candidates over the course of the campaign, there are two things that this election has done for the United States on the most broad level that are undeniable. First, despite the focus on the negative dimensions of the campaigns, the tone of the debate was a fundamental shift toward less partisan rancor and more the interest of the nation. We had gotten ourselves in a Bush/Clinton rut that was fundamentally dysfunctional. And hopefully the U.S. is back on track now and can focus more clearly on the national, as opposed to the partisan interest.

Second, this election will be a boon to how the United States is viewed abroad. Many Americans have no idea of how the U.S. is regarded overseas. Let's just say, of late, the answer has been "not so positively." But I think an Obama election changes that overnight (particularly in Europe and the Middle East). If you don't believe that, take a gander at the headlines from abroad this morning:

http://www.elpais.com/global/

http://www.timesonline.co.uk/tol/news/

http://www.lemonde.fr/

http://www.arabnews.com/

http://www.spiegel.de/

I think it is fair to say that at least for a time, there will be a bit of a honeymoon for the U.S. abroad, and for Obama internally. But very soon, the reality of enormous fiscal and political crises at home and abroad will strike home.

There was nary a mention of the looming $13 trillion deficit during the election, save perhaps McCain's claim that he'd cut spending on "everything" but the most popular (and biggest-ticket) items in the budget. No numbers, no specifics from either. But both were beating the drums of cutting taxes.

Don't count on that promise to hold.

I think that to the degree that there's much of a difference on fiscal policy with Obama vs. McCain, it will include more spending. I do hope some responsibility creeps into the budget, because right now, the U.S. is like a 12-year-old kid with a credit card, completely out of control. And we've basically put our fate in the hands of other countries, who, if they decide to stop funding our binge spending, could send the U.S. dollar into a money-printing, hyperinflationary, dollar-crashing spiral.

So yes, Matt, in that instance, I'd stock those gold bars and Campbell's soup (with maybe some Chinese yuan) in your South Dakota bunker overlooking your potato field and vegetable garden.

Specifically for our portfolios? Here are some thoughts (mostly pretty obvious):

Alternative energy. This sector should experience a boon if Obama pushes for a "Manhattan Project" on energy à la T. Boone Pickens.
Traditional energy. With focus on the American consumer, don't be surprised if Obama puts the brakes on profits for U.S. energy companies if oil prices again rise. Think "windfall profits tax."
John Dvorak also thinks that will translate to foreign energy companies doing better in his "How to Obama-proof your portfolio" article.
Generally, looking at currencies, consensus certainly at our commodities conference, was that we are entering a seriously dollar-bearish environment after perhaps a bit more de-leveraging.
U.S. pharmaceuticals and Health Care may take a bit of a breather on the road to nationalization. But I still wouldn't get in the way of that demographic freight train.
Real Estate and Financials—who knows? I'm not sure I understood EITHER candidate's policies on dealing with the crises. Regardless, it feels to me like we've got a tough road ahead of us near term, but that things will stabilize. Don't think that an Obama administration will be shy about bringing down the regulatory hammer on Financials. So, though it's been pulverized already, you'd have to be more bearish on that sector under Obama than McCain. But really, who knows—it depends what team he brings in and how competently they address our issues.

In short, it's a breathtaking day for America, and for the world. But there are a lot of very serious challenges ahead for Obama and for the United States of America.

Global Investing Roundups Friday, October 31st, 2008

Contrarian Profits — Fri, 31 Oct 2008 15:55:02 +0000

AmEx Cuts 7,000 Jobs; Oil Down on GDP; Governors Lobby Gov. on Auto Industry; Motorola Downsizes; Kodak Results Less Than Picture Perfect; Waste Management Recession Resistant

American Express Co. (AXP) said yesterday (Thursday) that it plans to cut 7,000 jobs, or 10% of its global work force, in an effort to reduce costs by $1.8 billion in next year, The Associated Press reported. The company will also suspend management-level salary increases next year and institute a hiring freeze. American Express has reported four straight quarters of profit declines.

Oil prices fell more than 2% yesterday (Thursday), after economic data showed a 0.3% decline in gross domestic product (GDP). Light, sweet crude fell $1.54 at settle $65.96 a barrel, after trading as high as $70.60…

Global Investing Roundups Friday, October 31st, 2008

Contrarian Profits — Fri, 31 Oct 2008 15:55:02 +0000

AmEx Cuts 7,000 Jobs; Oil Down on GDP; Governors Lobby Gov. on Auto Industry; Motorola Downsizes; Kodak Results Less Than Picture Perfect; Waste Management Recession Resistant

American Express Co. (AXP) said yesterday (Thursday) that it plans to cut 7,000 jobs, or 10% of its global work force, in an effort to reduce costs by $1.8 billion in next year, The Associated Press reported. The company will also suspend management-level salary increases next year and institute a hiring freeze. American Express has reported four straight quarters of profit declines.

Oil prices fell more than 2% yesterday (Thursday), after economic data showed a 0.3% decline in gross domestic product (GDP). Light, sweet crude fell $1.54 at settle $65.96 a barrel, after trading as high as $70.60…

Casey & General Stores – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 17 Oct 2008 00:00:00 +0000

Casey & General Stores (CASY) has been trading ahead of the broader market amid recent turmoil and over the long-term. While grocers and food retailers have been slowing down, convenience stores like CASY have been outperforming. CASY has been consistently outperforming the Dow Jones ($DJI), S&P 500 (SPX) and the Nasdaq (COMP). The company offers a dividend yield of 1.2%, while the majority of its industry peers pay no dividend at all.

Company Description

Casey & General Stores, Inc. together with its subsidiaries, operate convenience stores under the Casey's General Stores name in the Midwest states. It has operations in Iowa, Missouri, Illinois Kansas, Minnesota, Nebraska, South Dakota, Wisconsin, and Indiana. The company was founded in 1959 and is headquartered in Ankeny, Iowa.

Solid Growth

The company reported an all-time high in earnings for the first fiscal quarter, surpassing the consensus estimate by nearly 18% and noting that the record quarter gave CASY a solid foundation for meeting its annual performance goals. During the past 5 consecutive quarters, the company missed analyst forecasts only once and on average topped estimates by 11%.

First-quarter sales were up 16.8% to $1.3 billion. Same-store gallons sold increased by 0.50%. Grocery and other merchandise same-store sales climbed 4.7%, and prepared food and fountain drinks same-store sales jumped 12.3 percent.

Favorable Comparison and Higher Expectations

CASY offers a dividend yield of 1%, which exceeds the industry average as CASY's industry group pays little to no income. The company's return on equity (ROE) is 13%, which beats industry average of 5%.

Analyst earnings estimates for the year ending April 2009 of $1.58 per share are above last month's expectations of $1.56. The most accurate projection of $1.63 per share is a more bullish one.
"CASY" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Granite City Food & Brewery Ltd. (GCFB) Provides Family Favorites

QualityStocks — Wed, 15 Oct 2008 14:50:30 +0000

Headquartered in St. Louis Park, Minnesota, Granite City Food & Brewery Ltd. is an upscale, modern, and casual restaurant chain. Trading on the NASDAQ Global Market, the Company features affordable, high quality, family favorite menu items. In addition to food, they also have their own on-site brewery in each location. Founded in 1997, Granite City [...]

Should I buy XLF or a Bunker in South Dakota?

Jim Wiandt — Fri, 26 Sep 2008 15:01:33 +0000

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The wild instability in current markets has me thinking...

"Washington Mutual Becomes the Biggest Bank to Fail in U.S. History," blares a headline.

"Bailout Talks Implode During Day of Chaos," screams another.

That can't possibly be good for the markets, right? You'd have to think that the Dow and the Select Sector SPDRS Financials ETF (XLF) will be taking another nosedive today unless the government gets it together. In a major league show of brinksmanship, Paulson et al announced the big bailout assuming (correctly) that if you don't follow through and actually fund the plan, that it could exacerbate the situation. I mean if you make the announcement, at that point, you can hardly NOT fund the bailout, right?

Crazy times.

And our job is to tell you what it means for you as an index and ETF investor. Does it mean get ready to buy the crap out of the panicked bottom of this market (risking trying to catch a sky full of falling knives)? Or should we sell ALL our ETFs NOW while there's still liquidity in the market and go buy a plot, a bunker and maybe some physical gold and plant a bit potato field somewhere in Idaho or North Dakota?"

I'm leaning slightly toward the "buy the crap out of the market" camp but not by much. Frankly, it feels like a bit of an Alice in Wonderland fantasy scenario where you've got John McCain "suspending" his campaign, the VP frankly looking, uh, ditsy - when they allow her to talk - and really just a sense that maybe no one really knows what they're doing. I mean, really, how much confidence does Paulson inspire?

But SOMEHOW I think the world will survive all of this drama...even if it takes us 10 years and a lot of potato eating to wade our way out of it.

And honestly, I'm not doing much with the portfolio. I definitely feel like there are a very likely a few more shoes to drop, Khrushchev-style, on to the financial table. Don't get me wrong. These ARE important times...and you do get the feeling that we are at an inflection point in history. But panicking and making wild moves nearly always turn out to be the wrong things to do, whether they're driven by greed or fear.

I wanted to follow up a bit on the Lehman story and the Opta ETNs. It turns out (and we're still digging around this a bit) that those funds were almost entirely drawn down to nothing before they shut down...with only a million bucks or something left in them. We're working on the post mortem of that story (and looking at their much more significant structured products as well).

The ETF/ETN industry (and U.S. finance frankly) will never be the same after this latest round. That much you can count on. By and large I think it's healthy...or at least it is as long as I'm not forced to actually move to that bunker and grow potatoes.

Slovenia’s 2008 Parliamentary Election

Edward Hugh — Sun, 21 Sep 2008 00:00:00 +0000

by Manuel Alvarez-Rivera, Puerto Rico

Voters in Slovenia, which held a presidential election last year, return to the polls on Sunday to choose members of the lower house of Parliament, the 90-seat National Assembly. Slovenia's National Electoral Commission will have 2008 parliamentary election results in Slovene as well as English.

This posting deals exclusively with the upcoming parliamentary election; Slovenia's 2007 presidential election has an overview of developments prior to 2008 in the former Yugoslav republic.

Save for two mandates set aside for Italian and Hungarian ethnic minorities, National Assembly seats are filled at the nationwide level by the largest average method of proportional representation (the d'Hondt rule) among parties polling at least four percent of the national vote. Voters may choose a party list or an individual candidate, and a complex procedure provides for the subsequent allocation of seats among eight multi-member constituencies (each comprising eleven seats, which are initially allocated by the Droop quota) and 88 single-member districts; nonetheless, due to the proportional nature of Slovenia's electoral system, some single-member districts end up with more than one deputy, while others get none.

The two deputies representing the Italian and Hungarian minorities are chosen by simple majority preferential vote (the Borda count method); however, voters belonging to either minority group may also take part in the election for the remaining 88 seats.

Slovenia has a Western European-style multi-party system, and coalition governments have ruled the country since the attainment of independence in 1991. Since the 2004 parliamentary election, a center-right coalition government headed by Prime Minister Janez Janša of the Slovenian Democratic Party (SDS), in alliance with the Democratic Pensioners' Party of Slovenia (DeSUS), the Slovenian People’s Party (SLS) and New Slovenia (NSi) has held office.

Opinion polls indicate SDS is likely to remain Slovenia's largest party, narrowly ahead of the left-wing, opposition Social Democrats (SD), led by Borut Pahor. The Social Democrats had finished in third place in the 2004 election, well behind SDS and the left-of-center Liberal Democracy of Slovenia (LDS), which ruled the country almost uninterruptedly from 1992 to 2004. However, LDS suffered a damaging split in 2007, when several of its deputies left the party to establish Zares (For Real). In addition, a number of leading LDS figures jumped ship to join SD, which appears poised to emerge as the main left-of-center party, well ahead of Zares and a much-diminished LDS. Although the Social Democrats were originally a post-Communist party, they favor the sale of state-owned enterprises, albeit in a more limited fashion and at a slower pace than SDS.

Meanwhile, the nationalist Slovenian National Party (SNS), which stands to the right of the government, expects to build upon its strong showing in last year's presidential election. However, SNS could lose support to Lipa, a breakaway populist party established by earlier this year by three former SNS deputies.

Although inflation has been at times the highest in the Euro zone - Slovenia adopted the Euro as its currency in 2007 - the country's economy has otherwise performed well under Janša's tenure, registering solid growth, the lowest unemployment rate since independence and a budget surplus. However, the election campaign has been dominated since the beginning of this month by allegations that Finnish weapons manufacturer Patria bribed Janša to secure a contract to supply armored personnel carriers to the Slovenian army in 2006. Janša has denied any wrongdoing, but Finnish investigators are probing the allegations, which were originally reported by Finland's state broadcaster YLE.

The scandal has soured relations between Slovenia and Finland (which owns a majority stake in Patria), but it does not appear to have had an impact on the election race back in Slovenia, at least according to the last polls published a week before the event (polls may not be released during the last week of campaigning). However, SDS is unlikely to secure an overall majority, and some polls suggest that two of Janša's allies, SLS and NSi may fall below the four percent threshold and lose all their seats in the National Assembly, which would further complicate the premier's re-election prospects. At least six parties - SDS, SD, Zares, DeSUS, LDS and SNS - are expected to win parliamentary representation in Sunday's vote, and it remains unclear what kind of government would emerge should the center-right parties lose their overall majority.

Stocks for Adults Only

Fred Fuld — Fri, 19 Sep 2008 06:39:00 +0000

One industry that seems to be recession proof is the adult entertainment industry. This is a $20 billion industry, and some sources say that the industry has been growing by as much as 50% per year. Many of the publicly traded stocks in this business are low cap companies, so caution is urged when considering these.

Playboy (PLA) is a New York Stock Exchange company that which is participating in practically all aspects of the industry including magazines, DVD’s, television shows, documentaries, web entertainment, e-commerce sites, and various Playboy brand products. They also own the Spice brand of TV shows and related products. They recently decided to launch their Playboy Magazine in the Philippines. It is considered to be the largest adult entertainment conglomerate in the world. Last year, they started going after women as customers. It has a forward P/E of 14. This is a low cap stock and should therefore be considered speculative.

New Frontier Media (NOOF) is a Boulder, Colorado based company, traded on NASDAQ, which provides adult entertainment TV networks, cable television video-on-demand, satellite broadcasts, motion pictures and hotel room broadcasts. It has a forward P/E of 19 and a PEG Ratio of 1.28. This is a very low cap stock and should therefore be considered very speculative.

VCG Holding Corp. (VCGH) provides live adult entertainment, under the branded names PT’s, Diamond Cabaret and The Penthouse Club. The stock has a PE of 10. This is an extremely low cap stock and should therefore be considered extremely speculative.

LodgeNet Entertainment (LNET) is a NASDAQ traded Sioux Falls, South Dakota company provides television broadcasts to hotels in the U.S. and internationally, including on-demand movies which include mature audience entertainment. The company has recently generated negative earnings. This is a very low cap stock and should therefore be considered very speculative.

Private Media Group (PRVT) is an adult media company is based in Barcelona, Spain. The company, which was founded in 1980, produces magazines, videos, DVD’s and movies for broadcast television, cable, satellite, and the Internet. The company has recently generated negative earnings. This is a very low cap stock and should therefore be considered very speculative.

Rick's Cabaret International (RICK) This Houston based company operates adult nightclubs in cities throughout the United States including Houston, New York, New Orleans, Charlotte, and Minneapolis. The stock has a P/E of 14. This is a very low cap stock and should therefore be considered very speculative.

Million Dollar Saloon Inc. (MLDS.PK) operates an adult cabaret in Dallas, Texas. The company was founded in 1982. The stock has a PE of 10. This is an extremely low cap stock and should therefore be considered extremely speculative.

Scores Holding Co. Inc. (SCRH.OB) is a New York City based company that licenses its trademark to adult oriented nightclubs. The company has recently generated negative earnings. This is an extremely low cap stock and should therefore be considered extremely speculative.

Interactive Brand Development Inc. (IBDI.PK) is based in Deerfield Beach, Florida, and provides online payment processing services for adult entertainment companies. They also own a part interest in Penthouse Media Group, and an adult TV network. The company has recently generated negative earnings. This is an extremely low cap stock and should therefore be considered extremely speculative.

Other adult industries that you may want to check out include gambling stocks.

Author owns RICK. No recommendation expressed or implied.

By Stockerblog.com

Casey & General Stores – Growth & Income – Zacks Rank Buy

Alex Kolb — Thu, 18 Sep 2008 00:00:00 +0000

Casey & General Stores (CASY) reported an all-time high in earnings for the first fiscal quarter, surpassing the consensus estimate by nearly 18%. The companys return on equity (ROE) is 13%, which beats industry average of 5%.

Company Description

Casey & General Stores, Inc. together with its subsidiaries, operate convenience stores under the Caseys General Stores name in the Midwest states. It has operations in Iowa, Missouri, Illinois Kansas, Minnesota, Nebraska, South Dakota, Wisconsin, and Indiana. The company was founded in 1959 and is headquartered in Ankeny, Iowa.

Solid Growth

Favorable Comparison and Higher Expectations

CASY offers a dividend yield of 1%, which exceeds the industry average as CASYs industry group pays little to no income. The companys return on equity (ROE) is 13%, which beats industry average of 5%.

Analyst earnings estimates for the year ending April 2009 of $1.56 per share are above last months expectations of $1.49.
"CASY" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Wyoming Stocks

Fred Fuld — Tue, 16 Sep 2008 03:33:00 +0000

Did you know that Wyoming has a district called the historic J.C. Penny district? James Cash Penny established his first store in this state. Eventually it grew to the chain best known as J.C. Penny.

Here are some interesting facts about Wyoming:

1. New jobs created in Wyoming during 2007 ranked second in the country.
2. No personal income tax.
3. No corporate income tax.
4. Income from the mining industry contributes 2/3 of the total state revenue.
5. Wyoming’s top tourist destinations are: Yellowstone National Park and Grand Teton National Park.
6. Top commodities are: Livestock of cattle, hay, sugar beets and barley.
7. Top mineral commodities are: coal, natural gas, and crude oil.
8. Wyoming is seventh nationwide for oil production.
9. Wyoming ranks number one for coal production in the nation.
10. The southern part of Wyoming is excellent for the production of wind power.

The following companies are connected to the state of Wyoming.

US Energy Corp. (USEG) is a Wyoming based company that explores for and develops uranium, molybdenum, gold, lead, zinc, silver, and oil and gas. The stock has a PE of 1.05. This is a very low cap stock and should therefore be considered very speculative.

Crazy Woman Creek Bancorp Inc. (CRZY.PK) is a bank holding company for Buffalo Federal Savings Bank, which serves the Johnson, Campbell, and Sheridan counties in Wyoming. The stock has a P/E of 19. It has a very low market cap, so it should therefore be considered very speculative and illiquid. For their recent reported quarter, they had a 31% drop in earnings on a 9.6% increase in revenues.

Victory Acquisition Corp. (VRY) was founded in January 2007. It currently does not have substantial operations. It plans on increasing its business by purchasing or merging with other companies. The stock has a PE of 60.

Double Eagle Petroleum Co. (DBLE) produces and markets oil and natural gas. The stock generated a loss of $1.08 per share. It has a forward PE of 16.

MDU Resources Group Inc. (MDU) is a distributor of electricity and natural gas, and is also involved in construction services in Wyoming, North Dakota, South Dakota, and Montana. The stock has a PE of 12, a PEG of 0.98, and it pays a yield of 1.9%.

Glacier Bancorp (GBCI) is a holding institution that renders banking services in Wyoming, Montana, Idaho, Utah, and Washington. The stock has a PE of 16, a PEG of 14, and It pays a yield of 2.4%.

Black Hills Corp. (BKH), controls an energy company that delivers energy to customers in Wyoming, South Dakota, and Montana. The stock has a PE of 16, a PEG of 2.04. It pays a yield of 4.1%.

Gastar Exploration, Ltd. (GST) explores for and develops coal bed methane property in the Powder River Basin of Wyoming and Montana. They also explore and develop oil and gas properties in North America and Australia. The stock has a forward PE of 42. The stock trades on the American Stock Exchange.

Questar Corp. (STR) is in the business of producing and selling natural gas and oil in Wyoming, Utah, and Idaho. The stock has a PE of 16, a PEG of 1.57, and it pays a yield of 0.9%.

Check out stocks from some other states: Nevadastocks, Idaho stocks, and Colorado stocks.

Author does not own any of the above at this time.

By Stockerblog.com

North Dakota Stocks

Fred Fuld — Sun, 07 Sep 2008 07:46:00 +0000

North Dakota’s economy is mainly dependant on agriculture, 25% of its economic base to be more precise. Natural resources are the most valuable asset this state possesses. Consider the following key facts about North Dakota:

1. It ranks number one nationally for its potential to produce wind power.
2. The state also produces biofuels like ethanol and biodiesel.
3. There are more than 160 certified organic farms in the state.
4. North Dakota lowered its corporate income tax beginning January 1, 2007. North Dakota corporate taxable income percentages vary from 2.6 to 6.5%.
5. The state individual income tax varies from 2.1% to 5.5%.
6. North Dakota allows a corporate tax exemption of up to 5 years for new or expanding technology based businesses.
7. North Dakota is one of the safest states in the country.
8. North Dakota produces about 2.7% of the total U.S. oil production.
9. The state population is only 635,867
10. North Dakota produce approximately 45 million barrels of oil in 2007

The following companies are connected to North Dakota:

MDU Resources Group Inc. (MDU) is a distributor of electricity and natural gas, and is also involved in construction services segment in Montana, North Dakota, South Dakota, and Wyoming. The stock has a PE of 12, a PEG of 0.98, and it pays a yield of 1.9%.

Investors Real Estate Trust (IRET) is an investment trust focused in real estate properties that generate income in the United States. The stock has a PE of 55, a PEG of 2.53, and it pays a yield of 6.6%.

Titan Machinery, Inc. (TITN) runs agricultural stores in North America. It is also a retailer of construction equipment. The stock has a PE of 30, and a PEG of 1.14. The stock has a market cap of $400 million.

Continental Resources Inc. (CLR), although not based in North Dakota, is an oil and natural gas explorer and developer which is the largest land leaseholder in the North Dakota part of the Bakken shale. The stock has a PE of 24, and a PEG of 0.41.

EOG Resources, Inc. (EOG), the oil and gas company, although not based in North Dakota, has successfully drilled in the Bakken Formation in North Dakota where they own approximately 320,000 net acres. The stock has a PE of 24, a PEG of 0.89, and a yield of 0.6%.

Check out stocks from some other states: Arizona stocks, Oregon stocks, and Nevada stocks.

Author does not own any of the above.

By Stockerblog.com

Montana Stocks

Fred Fuld — Thu, 04 Sep 2008 23:35:00 +0000

Ranking 48th in population when compared to the rest of the states, Montana has plenty of room to accommodate tourists and visitors, as well as plenty of natural wonders to show, including Yellowstone National Park and Glacier National Park. Tourism, agriculture, and mining are Montana’s primary source of income. Some interesting facts about Montana:

1. The mining industry contribution to the state economy in 2005 was $2.3 billion.
2. It ranks number 6 in coal production in the United States.
3. Montana currently requires that public utilities companies obtain 5% of its energy from renewable sources, with a goal of 15% by the year 2015.
4. Wind power is of major importance to the state, Montana potential wind power generation ranks it number 5 nationwide.
5. Montana’s main crop is wheat.
6. Montana is rich in gas, oil, and coal.
7. Montana’s gross state product for 2007 was $34,253 million.
8. Copper is becoming increasingly important in Montana due to its rising value.
9. Approximately 8.6% of income goes to State income tax in Montana, well under the average 9.7% nationally.
10. Montana Corporate income tax is based on a flat rate of 6.75% on all corporate income.

The following companies are connected to the state of Montana:

Glacier Bancorp (GBCI) is a holding institution that renders banking services in Montana, Idaho, Wyoming, Utah, and Washington. The stock has a PE of 16, a PEG of 14, and It pays a yield of 2.4%.

Stillwater Mining Co. (SWC) specializes in the mining, and refining of palladium and other metals in Montana. The stock has a PE of 72.

Right Now Technologies (RNOW), delivers software in the U.S., Europe and Asia. The company generated a loss per share of $0.40, but it has a forward PE of 67.

Semitool Inc (SMTL) makes, sells and delivers semiconductor devices. The stock has a PE of 88, and a PEG of 1.70. This is a very low cap stock and should therefore be considered very speculative.

Black Hills Corp. (BKH), although not based in Montana, controls an energy company that delivers energy to customers in Montana, South Dakota, and Wyoming. The stock has a PE of 16, a PEG of 2.04. It pays a yield of 4.1%.

Northwestern Corp. (NWE), although not based in Montana, delivers energy to customers in Montana, South Dakota, and Nebraska. The stock has a PE of 15, and a PEG of 1.49. It pays a yield of 5.2%.

Gastar Exploration, Ltd. (GST), although not based in Montana, explores for and develops coal bed methane property in the Powder River Basin of Montana and Wyoming. They also explore and develop oil and gas properties in North America and Australia. The stock has a forward PE of 42. The stock trades on the American Stock Exchange.

Check out stocks from some other states: Nevadastocks, Idaho stocks, and Colorado stocks.

Did you know that the most expensive house in the world is being built in Montana?

Author does not own any of the above mentioned stocks.

By Stockerblog.com

South Dakota Stocks

Fred Fuld — Sat, 30 Aug 2008 22:36:00 +0000

What is today the state of South Dakota was actually acquired by the United States as part of the Louisiana Purchase in 1803 for $15 million. Jefferson’s investment has definitely paid huge dividends. Some interesting facts about South Dakota follow:

1. There is no corporate income tax.
2. There is no personal income tax.
3. South Dakota has a population of about 800,000.
4. The state gross product in 2007 was $34,000 million.
5. Forbes Magazine ranked Sioux Falls as the Best Small Place to do business in 2008.
6. The South Dakota housing market is among the most affordable in the country.
7. Mt. Rushmore National Memorial is one of the most popular tourist destinations in the state.
8. 10% of Dakota’s gross product is produced by the manufacturing industry.
9. Tourism generates over $1 billion in revenues each year.
10. Black Hills, South Dakota is the leading gold mining center in the United States.

The following companies are headquartered in South Dakota. They all have a market cap of over $500 million.

Black Hills Corp. (BKH) controls an energy company that delivers energy to customers in South Dakota, Wyoming, and Montana. The stock has a PE of 16, a PEG of 2.04. It pays a yield of 4.1%.

Verasun Energy Corp. (VSE) produces and sells ethanol and byproducts of ethanol. The stock has a PE of 10, and a PEG of 1.52.

Northwestern Corp. (NWE) delivers energy to customers in South Dakota, Montana, and Nebraska. The stock has a PE of 15, a PEG of 1.49. It pays a yield of 5.2%.

Daktronics Inc. (DAKT) produces and sells electronic scoreboards, and electronic displays. The stock has a PE of 16, a PEG of 2.1, and it pays a yield of 0.5%.

Raven Industries (RAVN) is in the business of making and selling industrial, agricultural, military and aerospace equipment. The stock has a PE of 25, a PEG of 1.67, and it pays a yield of 1.2%.

Check out stocks from some other states: Nevadastocks, Idaho stocks, and Colorado stocks.

Author does not own any of the above.

By Stockerblog.com

Raven Industries Inc.

Michael Vodicka — Wed, 27 Aug 2008 00:00:00 +0000

Raven Industries Inc. (RAVN) is fresh off the heels of another awesome quarter in which its sales were up 24% from last year. Analyst estimates continue to advance, and the company's share price is pressuring a short-term level of resistance and looks well positioned for a breakout.

Raven Industries, Inc., in conjunction with its subsidiaries, manufactures various products for the industrial, agricultural, construction and military markets in North America. The company was founded in 1956, has a market cap. of $763 million and is headquartered in Sioux Falls, South Dakota.

Second-Quarter Results

Raven Industries' share price has been on a roll since mid-July, recently gaining additional traction after the company reported excellent second-quarter results on Aug 19.

Revenue jumped 24% from last year to $69.3 million. Net income totaled $6.8 million, up 17% from last year's $5.8 million. This produced earnings of 38 cents per share, easily passing analyst estimates of 31 cents per share.

Consistent Results

In spite of one quarterly miss two quarters ago, Raven has established a pattern of beating analyst estimates, having done so over the last four quarters by an average 5 cents, or 12.16%.

CEO Ronald M. Moquist pointed out an agriculture industry trend that has been driving the company's robust sales growth, noting that as growers are confronted with higher costs for fertilizer and fuel, they are increasingly turning to precision agriculture products manufactured by Raven to boost crop yields and cut costs.

Exceptional Growth

Raven also reported exceptional growth from its flow control business, in which sales almost doubled to $22.7 million, up from $11.8 million last year.

Analyst Estimates

With these kinds of growth numbers floating around on the Street, its no long shot that analysts have been quick to revise their earnings projections. The current-year estimate has advanced to $1.77 per share, up from $1.64 per share, 90 days ago and $169 per share just 7 days ago.

Valuations

Based upon the current-year estimate, this stock has a forward P/E multiple of 23X, a sharp premium to the overall market.

The Chart

As previously mentioned, shares of RAVN have been rallying since mid-July, advancing from just above $31 to a recent high of over $43, where some short-term resistance has developed. This stock is fast approaching its 52-week and all-time high, and in order to drive past these levels, the company will need to continue to produce strong earnings. Take a look at the chart below.

"RAV" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Ticker Tape Digest Recommends Chyron

CEO Blogger — Tue, 19 Aug 2008 03:14:34 +0000

A speculative pick due to its small capitalization, Chyron is providing its high tech services to the Olympic games,” says Leo Fasciocco. In his Ticker Tape Digest – which focuses on buying fundamentally strong stocks that have scored technical breakouts from their trading ranges – he takes a look at this broadcasting graphics company. “With annual revenues of $35 million, CGS [...]

Dutton Associates Featured Company: LOGIC Devices, Inc. (LOGC)

QualityStocks — Fri, 15 Aug 2008 15:33:59 +0000

LOGIC Devices, Inc. (NASDAQ: LOGC) develops and markets high-speed digital integrated circuits that perform high density storage and signal/image processing functions. The company is focused on supplying integrated circuits that possess the highest quality, density, performance, and support. Their products enable SD and HD video display, transport, editing, composition, and special effects. [...]

Mantra Venture Group announces entry in Letter of Intent for an Exclusive Distribution Agreement with E.S.D. Environmental Protection and Technology Co., Ltd. of the Peoples Republic of China

Dawn Van Zant — Wed, 13 Aug 2008 13:00:00 +0000

Mantra Venture Group Ltd. (OTCBB: MVTG - FSE: 5MV) is pleased to announce that it has entered into a Letter of Intent to enter into Exclusive Distribution Agreement with E.S.D. Environmental Protection and Technology Co., Ltd. ("E.S.D.") of the Peoples Republic of China