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Monday, June 8, 2015

ETF recommendation: Financial Sector XLF

ETF recommendation: Financial Sector XLF

XLF is a fund that provide a low cost approach to invest in a portfolio of stocks that represent the financial sector index.

The market crash in 2008 become the huge stock fall in all sectors including Financial, Medical Care and Utilities.
The most affected was the financial sector because the bank home loans was the main factor of the economic crisis.

The sector is growing at a slow rate due to many factors like the FED rate unchanged, the weak dolar and the multi million legal claims suffered by banks and financial institutions.

We think there is an opportunity in the sector right now and a possibility to recover the prices.
The sector is far away from the highs previous to the 2008 financial crisis.

The main components of the XLF fund are: 

Citigroup Inc. C
Bank of America Corp. BAC
JPMorgan Chase & Co. JPM
Wells Fargo & Co. WFC
Morgan Stanley MS
Berkshire Hathaway Inc. Cl B BRK.B
American International Group Inc. AIG
American Express Co. AXP

The ETF has not a significant trend line since 2011 but we expect a movement to follow a bull trend line in the next months.
We see a target price of $28 with a profit margin of around 12.5% in the short time.
The ETF is actually trading around $25, the RSI is still low at 54.28 and a volume below the average of 30.439.739.

Investment Information

YTD return: 0.11%
5 yr avg return: 13.52%
Market Cap: 18.20B
Net Assets: 18.10B
NAV: 24.64
Shares Outstanding: 733.80M
Avg Daily Vol: 25.83M
Dividend Yield: 1.46%
Dividend: 0.09
Ex Dividend Date: 03/20/15

52 week low: $21.55
52 week high:$25.14

Monday, June 1, 2015

Stock Recommendation for June: Intel corp (INTC) recommends Intel (INTC):

Industry: Semiconductors

Sector: Technology

Intel corp was born in California in 1968 and then reincorporate in Delaware in 1989.
The Company designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset, and may be enhanced by additional hardware, software, and services. Its platforms are used in computing applications, such as notebooks, desktops, servers, tablets, smartphones, automobile infotainment systems, automated factory systems and medical devices. 

We see a strong opportunity on INTEL, the company reported better than expected 1Q of 2015 results on April 14th.
The company reported 0.41 cts per share vs estimated of 0.41$ cts, revenues came up to $12781 millions vs a year ago $12764, yr over yr increase of 0.1%.
The 4Q os 2014 reported 0.74 cts per share vs estimated 0.66 cts, revenues of $14721 millions vs a year ago of $13834, yr over yr increase of 6.4%.
INTC corp is beating the market revenues and earnings since 4 quarterly of 2013 that shows an increase in sales and revenues.

INTC has recently announces the purchased of Altera corp (ALTR) in a $16.7 billion all cash deal for $54 per share.
It is a strategic movement for the market.
Altera has the technology with FPGA which can basically surpass this. Intel to be in business as geometries shrinks has to make moves in these areas. Buying Altera is one of the three companies that can do it. Garrity concluded.
The strategic alliance could bring more technology to advance in the chip market.

We estimate a target price of $37 for the short term in line with the most popular broker analyst, attached last analyst upgrades or downgrades on INTC:

52 week low: 27.12
52 week high: 37.90

Dividends: 0.24
Div yield: 2.83%
Market Cap: $163.48 millions

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