In this segment of The Motley Fool's everything-financials show,�Where the Money Is, banking analysts Matt Koppenheffer and David Hanson tell investors what to be on the lookout for when Wells Fargo and JPMorgan Chase report second-quarter earnings tomorrow morning.
Matt and David highlight a few concerns, but also, some sliver linings.
Gearing up for bank earnings season
Banks are set to begin reporting second-quarter earnings over the next few weeks. Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's�new report. It's free, so�click here to access it now.
Top 5 Warren Buffett Stocks To Own For 2014: Cad It(CAD.MI)
CAD IT S.p.A. offers software solutions, as well as provides maintenance, personalization, integration, and other correlated services to banking, insurance, and private and public administration markets primarily in Italy. The company�?s Finance division provides Financial Area, an application that manages various functions connected to the negotiation, settlement, accounting, and administration of domestic and foreign financial operations. It also offers various solutions for fund allocation, tangible asset management, private banking, link-up to international markets, derivate management, general group data, credit, and forex. The company's Public Administration division provides planning and control systems, and a range of instruments and services, including local taxation, a package for the management of revenue, and voluntary/forced tax collection activities; B-Eval, a tool to monitor, measure, and evaluate the objectives and activities of a public body; and Babel e, a business intelligence platform to support public administration in activities, such as cost analysis, planning and programming, PEG/detailed plan of objectives, strategic control, staff cost control, and aim assessment. Its Industry division offers solutions for the management of various activities, such as accounting, production, management control, workflow management, quality system, designing, and supply chain management; and an ERP solution that covers various areas of company management. The company also offers outsourcing services in the areas of technical infrastructure, data protection, hardware and software maintenance, applicative software maintenance, technical and applicative monitoring, and disaster recovery. CAD IT S.p.A. was founded in 1977 and is headquartered in Verona, Italy.
Top 5 Warren Buffett Stocks To Own For 2014: Target Energy Ltd(TEX.AX)
Target Energy Limited engages in the exploration, development, and production of oil and gas in the United States. It holds a 50% interest in the Buffalo project covering approximately 13,000 acres located in south Texas; a 60% interest in the Fairway project covering approximately 1500 acres situated in west Texas; and a 35% interest in East Chalkley Oil project in Cameron Parish, Louisiana. The company also holds oil and gas interests in Merta Gas Field in Wharton County, Texas; and the Wolfberry play in western Texas, as well as in St Martin Parish, Louisiana. Target Energy Limited was founded in 2006 and is based in West Perth, Australia.
Top High Tech Companies To Invest In Right Now: Aon Corporation(AON)
Aon Corporation provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services primarily in the United States, the Americas, the United Kingdom, Europe, the Middle East, Africa, and the Asia Pacific. The company?s Risk Solutions segment offers retail brokerage products and services, including affinity products, general underwriting management services, placement services, and captive management services; and advisory services to technology, financial services, agribusiness, aviation, construction, health care, and energy industries, as well as facilitates various risk management solutions for property liability, general liability, professional liability, directors' and officers' liability, workers' compensation, and various healthcare products. This segment also provides risk consulting services comprising captive management; eSolutions products that enable clients to manage risks, policies, claims, and safet y concerns through an integrated technology platform; reinsurance brokerage services, such as actuarial, enterprise risk management, catastrophe management, and rating agency advisory services; property and casualty reinsurance; and specialty lines, which include professional liability, medical malpractice, accident, life, and health, as well as capital management transaction and advisory services. Its HR Solutions segment offers human capital services in the areas of health and benefits, retirement, compensation, and strategic human capital; and benefits administration and human resource business process outsourcing services. The company was founded in 1919 and is headquartered in Chicago, Illinois.
Advisors' Opinion:- [By Michael]
Aon Corp. (NYSE: AON : 46.02, 0.87) registered net profit of $258 million or 75 cents per share in its Q2, up from $153 million, or 54 cents per share a year earlier. Analysts had forecasted earnings of 82 cents per share for the company. Total revenue during the quarter rose 48 percent to $2.8 billion. Shares had closed yesterday's trading at $49.39.
- [By Robert Holmes]
Company Profile: Aon is a provider of risk-management services, insurance and reinsurance brokerage and human capital and management consulting. In July 2010, the company announced a merger with Hewitt Associates, an HR consulting and outsourcing company.
Share Price: $46.30 (Dec. 6)
2011 Return: 0.7%
Investment Thesis: William Blair analysts see several catalysts for Aon Corp. in 2012, the most notable of which is the merger with Hewitt, which should reap rewards next year. The analysts forecast a 100-basis-point improvement in pretax margin for 2012 and a 250-basis-point improvement for 2013.
"The margin in the brokerage segment has finally begun showing progress," the analysts write. "With forecast organic growth remaining solid (our estimate is 3% for 2012), the segment should be able to secure additional margin expansion for the next few years. We forecast 40 basis points of pretax margin improvement during 2012 and 2013."
Additionally, William Blair expects Aon's free cash flow growth to remain robust and their forecast assumes 30 million of share repurchases over the next two years, which they argue could be a conservative number if the cash flow from the merger with Hewitt. accelerates into 2012.
Top 5 Warren Buffett Stocks To Own For 2014: Cardiovascular Systems Inc.(CSII)
Cardiovascular Systems, Inc., a medical device company, focuses on developing and commercializing minimally invasive treatment solutions for vascular disease. Its primary products include catheter-based platforms, such as the Diamondback 360�PAD System, the Diamondback Predator 360�PAD System, and Stealth 360�PAD System that are used for the treatment of a range of plaque types in leg arteries above and below the knee. The PAD Systems consists of a single-use catheter that travels over its proprietary ViperWire guidewire and are used in conjunction with a reusable external control unit or a saline infusion pump. It markets and sells its products through direct sales force to hospitals and office based laboratories in the United States. The company was founded in 1989 and is headquartered in St. Paul, Minnesota.
Top 5 Warren Buffett Stocks To Own For 2014: Insmed Inc.(INSM)
Insmed Incorporated, a biopharmaceutical company, focuses on the development of inhaled pharmaceuticals for the site-specific treatment of serious lung diseases. The company primarily focuses on the development of inhaled antibiotic therapy delivered via proprietary advanced pulmonary liposome technology in areas of high unmet need in lung diseases. Its lead product candidate includes ARIKACE, an inhaled antibiotic supported by positive phase 2 results for treating serious lung infections due to susceptible bacteria. The U.S. Food and Drug Administration has cleared the company's investigational new drug application to conduct a pivotal Phase 3 clinical trial of ARIKACE in nontuberculous mycobacteria lung infections. Insmed Incorporated was founded in 1999 and is based in Monmouth Junction, New Jersey.
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