Mortgage Servicer Ocwen Eyes Other Consumer Debt

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NEW YORK (TheStreet) --Ocwen Financial  (OCN) one of the nation's largest collectors of mortgage debt, is considering branching out into other types of consumer debt collection.

"That's something that we are looking because we're generating substantial amount of excess cash flow in Ocwen," Chairman Bill Erbey told TheStreet during one of several interviews for this profile published Wednesday. "We haven't told anybody publicly what that would be," he added.

Investor Wilbur Ross, who sits on Ocwen's board of directors, believes such an expansion would be a natural fit.

"When you think about what the skill sets are, it's managing very complex interactions with consumers under very stressful circumstances, mainly default, and doing it with a lot of, I don't want to say entry level, but almost entry level people, and doing it on a vast scale, and along the way managing that process in two continents, mainly the Americas and India. So those are skill sets that are pretty rare, and pretty valuable. There are all sorts of other consumer debt instruments that I have no doubt that they could service. So even if something were to go slow with mortgage servicing, I think there are plenty of other opportunities. Consumer's finance is not going to go away, and there aren't that many people that are good at it," Ross says.

Ocwen reported third quarter earnings Thursday, though the issue did not come up on a conference call with analysts and investors.

Rick Biggs, partner at New York-based hedge fund Consector Capital, which owns Ocwen shares, sees an opening for Ocwen in consumer debt collection. He says Portfolio Recovery Associates, Inc.  (PRAA) and Encore Capital Group  (ECPG) "are the best and at this point almost the only real solid operators so there is room I think for a little more competition." (PRAA) But Zach Gast, analyst with research firm CFRA, believes collecting consumer debt be a more difficult transition for Ocwen than it may seem on the surface. That's because non-mortgage-related consumer debt collecting is based on a different business model. First of all, the amounts involved are smaller, meaning lots of investment in infrastructure for a relatively small payoff. "Mortgage is the one that's a huge debt. It stays outstanding for 30 years. So if I've got to employ calling centers -- you know, vast automated systems to send out statements every month to certain customers and know the right timing and program all that in, that's very different when you're talking about a $500 credit card bill that's overdue," Gast says. The analyst adds, "if you think paperwork problems are difficult on a $150,000 mortgage, wait 'til you get a $500 credit card bill, where the consumer has probably disputed at least one of those charges." Consumer debt collectors tend to focus on buying debt that has already defaulted, which they buy for pennies on the dollar, Gast says.

According to its most recent 10-K, Portfolio Recovery Associates' portfolio of credit card debt, which was by far its largest segment, stood at $49.3 billion, in terms of the original amount that was owed. It had paid just over $1.9 billion for the chance to collect that debt. Anything it collects above that amount, minus expenses, would fall to the bottom line. By contrast, mortgage servicers such as Ocwen do not buy the debt. They buy what are known as mortgage servicing rights (MSRs), which entitles them to collect a fee in return for servicing the mortgage. Ocwen services both performing and non-performing loans, but its specialty is the non-performers. It is, in fact, the largest servicer of non-performing residential mortgages in the U.S. It services $130 billion worth of unpaid principal on outstanding mortgages, or 13% of the total $1 trillion in delinquent U.S. mortgages, more than Wells Fargo, Bank of America or JPMorgan Chase, according to data through June 30 from trade publication Inside Mortgage Finance.

--Written by Dan Freed in New York 


Follow @dan_freed

Is Vodafone a Buy?

With shares of Vodafone (NASDAQ:VOD) trading around $29, is VOD an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Vodafone is a mobile communications company operating across the globe providing a range of communications services. It offers a range of products and services, including voice, messaging, data and fixed-line solutions and devices to assist customers in meeting their total communications needs. It operates in three geographic regions: Europe, Africa and Central Europe; Asia Pacific, and the Middle East, and has an investment in Verizon Wireless in the United States. Consumers and companies across the globe aim to connect and interact at increasing rates. With such a large global presence, look for Vodafone to be a main communications provider around the world.

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T = Technicals on the Stock Chart are Mixed

Vodafone stock has been stagnant for most of the last several years. However, the stock has just popped higher and may be wanting to break above a multi-year range. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Vodafone is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Vodafone options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Vodafone Options	25.99%	3%	0%

What does this mean? This means that investors or traders are buying a very small amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
June Options	Flat	Average
July Options	Flat	Average

As of today, there is an average demand from call and put buyers or sellers, neutral over the next two months. To summarize, investors are buying a very small amount of call and put option contracts and are leaning neutral over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Decreasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last earnings announcement reactions help gauge investor sentiment on Vodafone’s stock. What do the last earnings and revenue growth (Y-O-Y) figures for Vodafone look like and more importantly, how did the markets like these numbers?

	2012	2011	2010	2009
Earnings Growth (Y-O-Y)	-32.34%	-88.07%	N/A	N/A
Revenue Growth (Y-O-Y)	-1.96%	8.87%	N/A	N/A
Earnings Reaction	-2.25%	3.12%	N/A	N/A

Vodafone has seen decreasing earnings and and mixed revenue figures over the last couple of years. From these figures, the markets have been a bit confused with Vodafone’s recent earnings announcements.

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P = Average Relative Performance Versus Peers and Sector

How has Vodafone stock done relative to its peers, Verizon (NYSE:VZ), AT&T (NYSE:T), Sprint Nextel (NYSE:S), and sector?

	5 Best High Tech Stocks To Watch For 2014 Vodafone	Verizon	AT&T	Sprint Nextel	Sector
Year-to-Date Return	17.15%	20.08%	9.46%	29.19%	16.76%

Vodafone has been an average performer, year-to-date.

Conclusion

Vodafone provides essential communications products and services to consumers and companies across the globe. The stock has been part of a multi-year range but looks to be preparing for a breakout move higher. Over the last couple of years, earnings have decreased while revenue figures have been mixed which have sent mixed vibes to investors. Relative to its peers and sector, Vodafone has been an average year-to-date performer. WAIT AND SEE what Vodafone does in coming quarters.

How to Grade Colleges

Beginning in 1999, Kiplinger's has published the best values in private colleges and universities. This year, our lists take on special significance. President Obama recently proposed tying federal financial aid to colleges' performance, based on a ratings system that would let students and families select schools that provide the best value. As soon as we heard about the President's speech, we unleashed a barrage of tweets and Facebook posts that said "We already do that!"

See Also: Best Values in Private Colleges, 2014

The President's proposed ratings would be based on affordability measures such as tuition, scholarships and student-loan debt, as well as graduation rates—all of which Kiplinger's considers. Our rankings start with academic quality, then heavily weight such factors as financial aid packages, excluding loans. And we give extra credit to schools that hold down debt and get kids out in four years.

We keep our data as objective as possible to give families an unbiased comparison. "We take our job seriously," says senior editor Jane Bennett Clark, who supervises our college coverage. Last year, says Jane, when several colleges acknowledged that they had submitted false data, "we dropped them from the rankings."

Beyond the numbers, the President's proposal to measure college outcomes runs into a minefield. How do you measure success when families may have different ideas of what that means? A number of sources already make a stab at it, using various benchmarks. For example, the Washington Monthly ranks schools based on what the magazine considers public-interest criteria, such as how many students join the military or the Peace Corps. Some families may be interested in schools that emphasize a strong core curriculum, which you can find in a guide called "What Will They Learn?" compiled by the American Council of Trustees and Alumni. Meanwhile, in its College Salary Report, PayScale lists the median earnings for alumni of more than 1,000 schools, as self-reported in surveys.

Parents and students may not have a specific salary in mind, but given the cost of college and the lukewarm labor market, they're at least concerned that graduates will be able to find a job. If that's your idea of a successful outcome, here's what I recommend: When you visit a school, don't just look at the dorms and the climbing wall. Head for the career center to find out how serious the school is about helping students land internships and jobs or apply to grad school. When staff writer Susannah Snider visited top-ranked Washington and Lee University, she was impressed that students were focused on getting practical experience, often with internships in nearby Washington, D.C.

And students should choose a major with an eye toward marketability. They don't have to major in such hot fields as computer engineering or nursing. But liberal arts majors should learn computer skills, and business and science majors should take classes in writing and public speaking. (See our lists of the Best College Majors for a Lucrative Career and the Worst College Majors for Your Career.)

By the numbers. When compiling any rankings, you're only as good as your data provider. This year, after W&L topped our list, it came to light that the school had measured the number of students admitted as a percentage of total applications, including those that were never completed. When incomplete applications were omitted, W&L's admission rate jumped a few percentage points. We double-checked our rankings using the new number, and W&L still came out on top, mainly because it had stepped up its need-based financial aid. As Jane observes, we take our job seriously.

American Furniture Companies at 52-week Low

This could be a case of "when bad things happen to good furniture companies" but with homebuilding in a possible recovery mode, American furniture companies could also bounce back.

Here's a look at what goes inside those new homes: new furniture. As furniture makers increase outsourcing and the U.S. manufacturing sector declines, investors must be wondering about the future of American furniture companies. Trading histories show Guru billionaires have taken years of losses, especially in the case of Furniture Brand International Inc. (FBN), but the recent insider trades at Furniture Brand may be some indication of what we can expect from Guru shareholders when their second quarter trading activity in this sector is revealed.

Here's a look at two highlights from the manufacturing sector of furniture and apparel, with a focus on American furniture companies on a 52-week low.

Industry Sector: Manufacturing – Furniture and Apparel

This week the furniture and apparel manufacturing sector lists 10 stocks out of 86 that are on a 52-week low. The low ratio is 0.12.

Highlight: Furniture Brands International Inc. (FBN)

The current FBN share price is $2.43 or 80.9% off the 52-week high of $12.74.

Down 68% over 12 months, FBN has a market cap of $72.8 million, and trades at a P/B of 0.60.

Company: The Missouri-based company Furniture Brands makes some of the best known brands in the furniture industry, including Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge.

Guru Owners: Top Guru shareholder Chuck Royce has taken a long column of losses on FBN across a five-year history that coincides with the sharp decline of furniture manufacturing in the US. Royce's trading history shows an average loss of 97% on shares bought and an average loss of 98% on shares sold. The FBN trading histories of other Guru shareholders Howard Marks, HOTCHKIS & WILEY, and Jim Simons tell a similar s! tory.

Historical pricing:

[ Enlarge Image ]

Recent Insider Trading at FBN

Insider trading shows that 10% owner and major shareholder Kuo Shan Huei sold 72,142 shares last week. See the details of FBN insider trades here.

Highlight: Stanley Furniture Company Inc. (STLY)

The current STLY share price is $3.47 or 30.6% off the 52-week high of $5.00.

Down 15% over 12 months, STLY has a market cap of $50 million, and trades at a P/E of 1.80 and a P/B of 0.60.

Company: Stanley Furniture Company Inc. (STLY) is a designer, manufacturer and importer of residential wood furniture targeted at the premium price range. The company offers product lines across all major style and product categories, branding the company as a complete wood furniture resource for retailers.

Guru Owners: As of the first quarter of 2013, a number of Guru shareholders were holding STLY, including top Guru shareholder Third Avenue Management, and Chuck Royce, Donald Smith, Martin Whitman and Jim Simons.

Historical pricing:

[ Enlarge Image ]

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Finding ETFs That Benefit From U.S. Dollar Woes

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NEW YORK (ETF Expert) -- The U.S. dollar has certainly lost value since the Federal Reserve began printing greenbacks to purchase U.S. bonds.

On the other hand, most of the damage occurred at the onset of the Fed's quantitative easing program(s). Since the euro came under extreme pressure during the sovereign debt crisis of 2011, and since Japan's campaign to radically devalue its currency (yen) in 2012, PowerShares DB Dollar Bullish (UUP) has been remarkably stable.

On the other hand, current market participants have sniffed out a highly probable outcome over the next six months. Specifically, the idea of the Fed slowing down its bond purchases (a.k.a. tapering) is preposterous. In my July 30 feature, Bond ETFs Could Shock Pundits in the Months Ahead, I expressed serious doubts that the Bernanke-led Fed would begin tapering in 2013. I wrote: Who genuinely believes that unemployment is falling at a rapid enough clip to warrant a change in direction? Who actually sees the Fed's inflation measure rising at a fast enough pace to justify a policy modification? Last but not least, why would Bernanke want to rock the apple cart in any shape or form prior to his January departure? Most experts believed that I was way off base. In particular, my suggestion that the 10-year yield would likely be closer to a 2% to 2.25% range than a 2.75% to 3% range by year's end seemed like a long shot. Equally controversial, I advocated that taxable account owners revisit municipal bond opportunities like iShares National Muni (MUB). Today, however, a few more folks may be coming around to my way of thinking. The number of new jobs have been steadily dropping for months. The budget debate is only getting started. If Janet Yellen replaces Bernanke, the Fed may even try to print more money to buy bonds rather than pull away from the project. The 10-year yield is declining... Courtesy of StockCharts.com ...the U.S. dollar via UUP is testing 2011 lows... Courtesy of StockCharts.com ...and the prospects for munis in the intermediate term appear to be brightening. Courtesy of StockCharts.com I am not suggesting that investors abandon the stock ship for the supposed safer shores of fixed income. In actuality, the electronic printing of dollars to buy bonds is benefiting stocks and commodities as well. In particular, the economies of China and Europe may be recovering with less overt currency devaluation or obvious rate manipulation. It follows that funds like iShares Australia (EWA) may benefit from greater internal demand on the mainland. Additionally, broader-based international assets like Vanguard All World excl U.S. (VEU) and iShares MSCI EAFE Small Cap (SCZ) may figure prominently in any year-end running of the bulls. Follow @etfexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.

A Creeping Tide of Worry

The closer we get to this year's holiday season, the more investors should pay attention to every single action retailers make, writes MoneyShow's Jim Jubak.

It's getting to look a lot like Christmas, in every analyst report you write, or read. I know it's only October, but we're starting to see a lot of guessing (since that's really all it is), about what the holiday retail season is going to look like. It's showing up in guidance for a lot of companies in third quarter earnings and it's really critical.

What we're trying to do here, what the market is trying to do as it rallies, is trying to walk this very fine edge, you can call the Goldilocks market, whatever-not too hot, not too cold. The market would like to see the economy cold enough, so that the Federal Reserve doesn't begin to taper off its purchase of assets from $85 billion down to something like 70 a month, until, maybe, March. But it doesn't want to see the economy fall off a cliff, because then that means the earnings are going to be bad.

So, Christmas is kind of critical. It's a big season for almost everybody, and what we're seeing is, something that's looking a little weaker than we might like, if we're looking for the perfect Goldilocks market.

What we've seen are companies, like Wal-mart, saying good things. Wal-mart is saying it was going to add about 10% more seasonal help than it did last year. That's a step in the right direction. On the other hand, Kohls, another big company in the retail space, said that it was going to keep hiring steady. Is Wal-mart an outlier? Is Walmart the trend? We don't know yet. That's one of the reasons we're watching this.

The other thing we're getting is stories from companies like eBay, where eBay said ,when it delivered third quarter earnings and talked about guidance for the fourth quarter, it said they were concerned about revenue in the fourth quarter. They were concerned that the holiday season was not gong to be as strong as they would like.

There is a sort of creeping tide of worry about retail, and consumer spending, and all that, for the fourth quarter and the end of the year period. We really need to watch that going forward if we want to try to judge how long this rally might run and whether it's going to stall on fundamentals.

This is Jim Jubak for the MoneyShow.com video network.

China's Big Banks and Bad Loans

The number of bad China bank loans tripled in just six months of 2013, but bank profits remained mainly unscathed, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

China's biggest banks cleaned house in the first half of 2013, tripling the amount of bad loans written off in the period from the first half of 2012.

That kind of coming clean would be a good thing—analysts have argued that China's banks have dragged their feet on writing off loans that have gone bad and are clearly never going to be repaid—except that it has raised fears that China's banks are cleaning house now in anticipation of a new wave of bad loans to come, as a result of a slowdown in China's economic growth.

In the first six months of 2013, China's five biggest banks wrote off 22.1 billion yuan ($3.65 billion) in debt. That was up from 7.65 billion yuan in the first half of 2012.

The worry is, with growth forecast to slow to 7.6% in 2013, the lowest growth rate since 1999, China's banks are facing a surge in bad loans as a result of the credit boom that began in 2009. The five biggest banks; Industrial and Commercial Bank of China, Bank of Communications, Agricultural Bank of China, Bank of China, and the China Construction Bank, showed a 22.4 billion yuan ($3.68 billion) increase in nonperforming loans in the first half of 2013. That took the total for nonperforming loans to 350 billion yuan ($57.5 billion), or 1% of total loans, according to Bloomberg. In the first half of the year, the big five banks added 83 billion yuan ($13.6 billion) to their reserves for loan losses.

Even a huge increase in bad loans and reserve provisions hasn't dented profits at these big banks. They showed a record profit of $76 billion in the first half.

But nobody outside the banks themselves and China's regulators believe the bank's nonperforming loan loss numbers. (Officials at the banks and at regulators may not believe them either, but they aren't talking.)

The loan loss ratios—both at Industrial and Commercial Bank of China, at just 2.5% at the end of June, and at China Construction Bank at 2.63%—seem low in the context of reports of widespread problems with loans made to businesses connected to local governments. These ratios also seem low in the context of reports of falling profits in major industrial sectors at everything but the most efficient state-owned enterprises, and with reports of widespread distress among privately owned mid-size and small businesses.

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Government regulations that seriously delay when a bank can write off a loan may be a big part of the problem. Banks need to get approval from the Finance Ministry to write off a loan, and courts have ruled that a company has to be declared bankrupt before a lender can seek that permission. These rules were revised in 2010 to allow banks to write off small business loans of five million yuan or less ($820,000 or less), without permission from the ministry, or a bankruptcy ruling after trying to collect the debt for one year. That rule change doesn't speed up the bad loan process for any but the smallest of China's business borrowers.

China's banks are due to report third quarter results at the end of October, beginning with Industrial and Commercial Bank on October 27.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund did not own shares of any stock mentioned in this post as of the end of June. For a complete list of the fund's holdings as of the end of June see the fund's portfolio here.

Why the Dow Is Higher Today

Blue-chip stocks are headed higher this afternoon on the heels of Friday's better-than-expected jobs report and in anticipation of second-quarter earnings season. As of 2:35 p.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up by 89 points, or 0.59%.

It's safe to say that last week ended on a high note. The Department of Labor released data showing that a total of 195,000 jobs were created in June. This soundly beat the consensus forecast, which called for a gain of 155,000 jobs, and it was the third-best June jobs report in the last 15 years.

As my colleague Morgan Housel noted at the time, "Bad news for the end-of-the-world crowd: June's jobs report was released Friday, and it was pretty good."

But while this was unquestionably good news for the economy, it wreaked havoc in the bond market. Yields on the benchmark 10-year Treasury bond shot above 2.7% -- the highest rate in nearly two years. And there was a veritable slaughter in the mortgage market, with the interest rate on a conventional 30-year fixed-rate mortgage beginning to approach the 5% level.

In terms of stocks, we've seen the brunt of this "re-pricing" hit mortgage REITs, which hold portfolios of mortgage-backed securities, the values of which move inversely to long-term interest rates. Since May 22 -- that is, the day the Federal Reserve triggered the flight from bonds by intimating that it'll begin to reduce its support for the economy -- shares of Annaly Capital Management (NYSE: NLY  ) and American Capital Agency (NASDAQ: AGNC  ) , the two largest players in this space, have plummeted by 20.7% and 40.2%, respectively.

That being said, for at least the next few weeks, analysts' focus will be on second-quarter earnings season, which unofficially kicks off today when Alcoa (NYSE: AA  ) reports its results after the closing bell. Analysts expect the aluminum giant to earn $0.06 per share, roughly in line with the same quarter of last year, on $5.86 billion in revenue -- a 1.7% year-over-year decline.

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While Alcoa has long been considered an economic bellwether, and its earnings are assumed to "set the tone" for earnings season, there's less and less reason to believe that this still holds true. According to The Wall Street Journal: "The company is still economically significant and is the first Dow component to report. The vagaries of the aluminum market mean, though, that it isn't the industrial bellwether of yore." Thus, per the story's lede, "It is not only cliche that [Alcoa] 'sets the tone' for earnings season -- it is also no longer really true."

In terms of Dow stocks, the biggest mover today is Intel (NASDAQ: INTC  ) , down 3.9% after investment bank Evercore Partners downgraded the chip maker's stock from "equal weight" to "underweight." An analyst at the firm cut his price target on Intel from $22 per share to $20 a share based on his opinion that tablets are cannibalizing PC sales -- Intel's bread and butter -- and reducing demand from emerging markets.

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Norfolk Southern's Coal Business Could Dampen Its Quarterly Results

Norfolk Southern (NSC), one of the leading railroad networks in the eastern U.S., is scheduled to report its Q3 2013 results on October 23. While the overall volume outlook is positive, we expect the company to face challenges on the revenue per unit (RPU) side. The overall volume will be driven by growth in chemicals, automotive, intermodal and housing-related shipments. However, challenges such as lower volumes of export coal and longer-haul Southern utility coal could lead to a decline in the overall RPU in Q3.

We expect the company to also face profitability pressure in the third quarter due to changes in product mix carried by the company. NSC's railway operating ratio rose to 70.2% in Q2 2013 as compared to 67.5% in Q2 2012, and we will closely monitor this metric in the earnings results.

Recap Of Q2 2013 Results

NSC's operating revenue declined by 3% annually in Q2 2013 to $2.8 billion due to a 5% fall in average RPU, which was partially offset by a 2% increase in overall volumes. Headwinds in the coal market were mainly responsible for the decline in the overall RPU as coal RPU fell by 14% in Q2. The overall volumes rose owing to strength across the intermodal, chemicals, automotive and housing markets.

Coal Market Headwinds To Persist In The Third Quarter

We expect the coal market to present both volume and RPU related challenges for NSC in the third quarter. Low coal volumes will be caused by reduced demand for electricity generation, high inventory stockpiles among Southern utilities, as well as subdued demand for U.S. thermal and metallurgical coal in the international market. Further, pricing challenges in the export coal market coupled with lower volumes of longer-haul Southern utility coal will put pressure on coal RPU during the quarter.

Intermodal Segment Will Continue To Grow

We expect NSC to show growth in the intermodal segment in Q3 owing to continued highway-to-rail conversions along with the company's initiatives t! o expand its capacity in this segment. The international intermodal segment could also show increased volumes due to increased business with existing customers.

Chemicals, Automotive And Housing-Related Shipments Could Boost Revenue Growth In The Merchandise Segment

We expect the results in the merchandise segment to be led by gains in the chemicals, automotive and housing-related shipments.

NSC's chemicals and petroleum products shipments are expected to post growth owing to expansion in the U.S. oil and gas industry, as well as increase in crude oil by rail shipments. Automotive shipments are also forecast to increase substantially due to growth in North American light vehicular production. Increased construction activity combined with the housing recovery being seen in the U.S. is expected to boost shipments of products such as crushed stone, sand, gravel, stone, clay, etc. Housing starts grew by 19% annually in August 2013 and this trend is expected to continue in the future. [1] We think the agricultural grain shipments will continue to bear the impact of last year's drought in the third quarter. The outlook in the agricultural market is expected to improve in the fourth quarter with increases in the crop output.

Our $74.30 price estimate for Norfolk Southern, represents nearly 5% downside to the current market price.

Disclosure: No positions.

Source: Norfolk Southern's Coal Business Could Dampen Its Quarterly Results

Why Tenet Healthcare and Vanguard Health Systems Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of acute care and specialty hospital operators Vanguard Health Systems (NYSE: VHS  ) and Tenet Healthcare (NYSE: THC  ) vaulted higher by as much as 70% and 10%, respectively, after Tenet announced a deal to buy Vanguard Health Systems.

So what: Under the terms of the deal, Tenet Healthcare will acquire Vanguard Health for $1.8 billion, or $21 per share, while also assuming its $2.5 billion in net debt. Tenet has arranged financing through Bank of America/Merrill Lynch and plans to refinance Vanguard Health's debt to a lower interest rate once the deal is complete. The impetus behind the move for Tenet is that it'll move the hospital operator into new markets and greatly expand its hospital revenue management segment as we enter the final months before the full implementation of the Patient Protection and Affordable Care Act, also known as Obamacare.

Now what: I'd certainly say that Vanguard Health Systems shareholders are walking away like bandits with a 70% premium on a hospital stock that I already considered to be possibly the most overvalued of the bunch. While I understand Tenet's reasoning behind the move and the urge to expand prior to Obamacare's full implementation, my concern grows as it takes on more debt to pay out a hefty premium -- 25 times forward earnings -- for Vanguard Health. There's little doubt in my mind hospital operators will benefit from a reduction in doubtful accounts due to the individual mandate portion of the PPACA, but I'm not certain I feel as strongly about this deal as investors do. I would suggest hitting the sidelines for a few quarters and letting the inevitable "merger hiccups" run their course.

Craving more input? Start by adding Vanguard Health Systems and Tenet Healthcare to your free and personalized watchlist so you can keep up on the latest news with the company.

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GM’s leader says top brass more diverse than ever

General Motors North America President Mark Reuss said the company is committed to leadership diversity as it changes a "traditionally bureaucratic, very white-male-oriented" culture.

GM is "about as diverse from a power standpoint as I've ever seen it," Reuss said at the Rev. Jesse Jackson's 14th annual Rainbow PUSH Coalition Global Automotive Summit in Detroit.

He said the automaker is committed to hiring diverse managers and more minority dealers.

About 22% of new car purchases are made by non-white consumers, according to Rainbow PUSH Coalition.

Jackson praised GM for its commitment to diversity, but said "people don't know you've got" so many minorities in leadership positions.

Among the top minority executives at GM are global design chief Ed Welburn, global quality chief Alicia Boler-Davis and purchasing chief Grace Lieblein. The highest-ranking woman at GM, global product development chief Mary Barra, is considered a top candidate to become the next CEO when Dan Akerson retires within a few years.

Best Safest Companies To Buy For 2014

Akerson last week said he expects a "car gal" will soon become the first woman CEO of a Detroit-based automaker.

"Who doesn't want to work in a company like that?" said Reuss, a white man whose father worked his way up through GM. He is also considered a serious candidate to succeed Akerson. "Every woman in our company would love to work for a company that has the first woman CEO as part of the auto industry."

Reuss said GM is working toward a goal of adding 25 minority-owned dealerships in the U.S. by the end of the year after losing many during the period before and during its 2009 bankruptcy.

"This is a time where we can better reflect the buying public and the fabric of America inside our company," Reuss told reporters.

Top Bank Companies To Watch For 2014

Poor Bank of America (NYSE: BAC  ) . After seeing its share price rise spectacularly in the week prior to its first-quarter earnings report, the stock took a real drubbing immediately after that report was issued. Today, it is getting beat up anew, and I think it is still feeling the consternation of investors about its less-than-sparkly earnings announcement.

Was the report really that bad? Sure, there were weak points, such as mortgage banking malaise, as well as continuing legal hassles in regards to its Countrywide smudge pot of stinky legacy loans. But there were bright spots, too: The streamlining process is working, and B of A has reduced nonperforming assets by $5 billion year over year. Plus, its Bank of America Merrill Lynch division is kicking butt, bringing home the bacon to the tune of $3.68 billion�-- a 7% boost from the year-ago quarter's $3.44 billion.

So, why is the share price still falling by mid-morning, having lost 0.68% since the opening bell? Softness in the financial sector as a whole is surely at work here, as the Dow (DJINDICES: ^DJI  ) has been somewhat grumpy itself this Monday morning and now sits 0.12% lower than it did at the open of business today.

Top Bank Companies To Watch For 2014: Credicorp Ltd (BAP)

Credicorp Ltd. (Credicorp), incorporated on October 20, 1995, is a financial services holding company. The Company is organized in four operating segments: Banking, Insurance, Pension funds and Brokerage and other. Credicorp is engaged principally in banking (including commercial and investment banking), insurance (including commercial property, transportation and marine hull, automobile, life, health and underwriting insurance), pension funds (including private pension fund management services), and brokerage and other (including the structuring and placement of primary market securities issues and the execution and trading of secondary market transactions.). Its four operating subsidiaries are : Banco de Credito del Peru (BCP), Atlantic Security Bank (ASB), El Pacifico-Peruano Suiza Compania de Seguros y Reaseguros, and Prima AFP.

Banking segment

Banking includes handling loans, credit facilities, deposits and current accounts, and providing investment banking services, including corporate finance, both for corporate and institutional customers. Banking also includes handling deposits consumer loans and credit cards facilities for individual customers. The Company conducts banking activities in Bolivia through BCP Bolivia, a service commercial bank. Its banking business is organized into wholesale banking activities, which are carried out by BCP�� wholesale banking group (which includes the corporate banking operations of ASB), and retail banking activities, which are carried out by BCP's retail banking group. Its deposit-taking operations are managed by BCP'�� retail banking group and and ASB's private banking group.

Insurance

Credicorp�� insurance segment includes commercial property, transportation and marine hull, automobile, life, health and pension fund underwriting insurance. Private hospital services are also included under this operating segment. The Company conducts its insurance operations Grupo Pacifico and its subsidiaries, whic! h provide a broad range of insurance products. Grupo Pacifico property and casualty insurance through Pacifico Seguros, life and pension insurance through Pacifico Vida, and health care insurance through Pacificosalud EPS.. Grupo Pacifico sells its products both directly and through independent brokers and agents.

Pension funds

Credicorp�� pension funds segment provides private pension fund management services to customers. Credicorp conducts all of its pension fund activities through its private pension fund administrator Prima AFP. Credicorp through its subsidiary Prima AFP, focuses mainly on obtaining new affiliates, by providing permanent information and diverse channels of communication.

Brokerage and other

The Company�� brokerage and others segment includes the structuring and placement of primary market issues and the execution and trading of secondary market transactions. This segment also includes offers of local securitization structuring to corporate entities, management of mutual funds and other services. The majority of its trading and brokerage activities are conducted through BCP, ASB and Credicorp Securities Inc. Its asset management business is carried out by BCP in Peru, through its subsidiary Credifondo, and by ASB. It offers Brokerage and other services through BCP and ASB. BCP offers clients a range of such products and services, such as brokerage, mutual funds and custody services through its branch network in Lima and throughout the rest of Peru. In addition, ASB also offers brokerage and other services.

The Company competes with BCP, BBVA Banco Continental, Scotiabank Peru, Interbank and Banco Interamericano de Finanzas.

Advisors' Opinion:

• [By Chuck Carnevale]

  Credit Corp. Limited (BAP)

  My first featured aggressive financial candidate is Credit Corp. Limited, a Bermuda-based financial services holding company, and the largest financial holding company in Peru. Although the company is headquartered in Bermuda and operates in Peru, its long-term track record is exceptional. Once again, I will let the F.A.S.T. Graphs��speak for themselves, other than to say in addition to a great track record, this ADR is expected to offer above-average growth and appears to be very attractively valued at today�� levels.

Top Bank Companies To Watch For 2014: J P Morgan Chase & Co(JPM)

JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. Its Investment Bank segment provides various investment banking products and services, including advising on corporate strategy and structure, capital-raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, prime brokerage, and research services serving corporations, financial institutions, governments, and institutional investors. The company?s Commercial Banking segment provides lending, treasury, investment banking, and asset management services to corporations, municipalities, financial institutions, and not-for-profit entities. Its Treasury & Securities Services segment offers cash management, trade, wholesale card, and liquidity products and services to small and mid-sized companies, multinational corporations, financial institutions, and government entities. It also holds, values, clears, and services securities, cash, and alternative investments for investors and broker-dealers, and manages depositary receipt programs worldwide. JPMorgan?s Asset Management segment provides investment and wealth management to institutions, retail investors, and high-net-worth individuals. This segment offers investment management in equities, fixed income, real estate, hedge funds, private equity, and liquidity products, as well as trust and estate, banking and brokerage services, and retirement services. Its Retail Financial Services segment offers retail banking and consumer lending services that include checking and savings accounts, mortgages, home equity and business loans, and investments through ATMs, online banking, and telephone banking, as well as auto dealerships and school financial-aid offices. The company?s Card Services segment issues credit cards and processes various credit card payments. JPMorgan Chase & Co. was founded in 1823 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Morgan Housel]

  The Mortgage Bankers Association's Refinance Index fell 12% last week. Rising rates could push that gauge even lower, although higher home prices allow more homeowners to refinance and could be an offset. Industry leaders Wells Fargo (NYSE: WFC  ) and JPMorgan Chase (NYSE: JPM  ) both enjoyed big income from mortgage banking in 2012. Those days may soon be gone. As Fool banking analyst Matt Koppenheffer recently discussed, not only is refinance activity falling, but the margins banks earn on refi activity is also narrowing.

• [By Teresa Rivas]

  Yet Financials are reporting the largest upside aggregate differences between actual earnings and estimated earnings: Notable beats came from Goldman Sachs (GS), American International Group (AIG), Bank of America (BAC), and JPMorgan (JPM).

• [By Jessica Alling]

  Banks still central in feared scenarios
  Within the Dow, both Bank of America (NYSE: BAC  ) and JPMorgan (NYSE: JPM  ) are down in trading so far today. Both banks have operations in the Asian markets, so there's some connection to the Japanese concerns weighing the banks down. As we've seen in the past few weeks, weakness from the Asian markets can hit the banks hard. But only 4% and 6%, respectively, of B of A's and JPMorgan's revenues are derived from their operations in Asia. Rival Citigroup (NYSE: C  ) , on the other hand, gets up to 20% of its revenue from that market, leading to an investor sell-off this morning -- the bank is down 2.89% as of this writing.

Best Stock Investments For 2014: Royal Bank Of Canada(RY)

Royal Bank of Canada provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. Its Canadian Banking segment offers personal financial services, business financial services, and cards and payment solutions. The company?s Wealth Management segment provides wealth and asset management, and estate and trust services to affluent and high net worth clients through distributors, as well as directly to institutional and individual clients in Canada, the United States, Europe, Asia, and Latin America. Its Insurance segment provides various life and health insurance, including universal life, accidental death and critical illness protection, disability, long-term care insurance, and group benefits; and property and casualty insurance comprising home, auto, and travel insurance, as well as wealth accumulation solutions; and reinsurance products through retail ins urance branches, call centers, independent insurance advisors and travel agencies, financial institutions, and career sales force. The company?s International Banking segment offers various financial products and services to individuals, business clients, and public institutions in the U.S. and Caribbean. This segment also provides global custody, fund and pension administration, securities lending, shareholder services, analytics, and other related services to institutional investors. Royal Bank of Canada?s Capital Markets segment engages in the trading and distribution of fixed income, foreign exchange, equities, commodities, and derivative products for institutional, public sector, and corporate clients; and involves in investment banking, debt and equity origination, advisory services, corporate lending, private equity, and client securitization businesses. The company was founded in 1864 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Dan Caplinger]

  U.S. investors first became aware of the relative strength of Canadian banks during the U.S. financial crisis, but since then, they've realized the benefits of looking north of the border. Canada does have its own systemically important banks, which include not only Scotiabank but also Royal Bank of Canada (NYSE: RY  ) , Bank of Montreal (NYSE: BMO  ) , and three other large financial institutions, but high capital requirements have demonstrated their creditworthiness and relative safety.

• [By Eric Volkman]

  The joint book-running managers of the issue are Raymond James Financial (NYSE: RJF  ) unit Raymond James & Associates, Royal Bank of Canada's (NYSE: RY  ) RBC Capital Markets, and the Securities divisions of Credit Suisse and Deutsche Bank (NYSE: DB  ) . The sale is expected to close on May 28.

• [By Amanda Alix]

  The housing sector's slow recovery appears to be gaining ground, and homebuilders like PulteGroup (NYSE: PHM  ) Ryland Group (NYSE: RY  ) recently reported gains�in first-quarter revenues and substantial increases in sales prices due to rising demand. The U.S. Census Bureau�reported that housing starts for March were well over one million, nearly 47% over that for the same time last year.

• [By Rich Duprey]

  As mobile commerce continues to grow worldwide, Royal Bank of Canada (NYSE: RY  ) this week announced its�customers will be able to securely purchase goods and services with debit or credit using smartphones compatible with Bell Canada's (NYSE: BCE  ) wireless network as part of a new�mobile payment system the two are launching.

Top Bank Companies To Watch For 2014: New York Community Bancorp Inc (NYCB)

New York Community Bancorp, Inc. is a bank holding company and a producer of multi-family mortgage loans in New York City, with an emphasis on apartment buildings that feature below-market rents. It has two bank subsidiaries: New York Community Bank (the Community Bank),New York Commercial Bank (the Commercial Bank. The Community Bank has 241 branches and operates through seven divisional banks. The Commercial Bank has 34 branches in Manhattan and operates 17 of its branches under the divisional name Atlantic Bank.

During the year ended December 31, 2011, all of the one-to-four family loans the Company originated was sold to government-sponsored enterprises (GSEs). In New York, the Company serves its Community Bank customers through Roslyn Savings Bank, with 55 branches on Long Island; Queens County Savings Bank, with 34 branches in the New York City borough of Queens; Richmond County Savings Bank, with 22 branches in the borough of Staten Island, and Roosevelt Savings Bank, with eight branches in the borough of Brooklyn. As of December 31, 2011, in the Bronx and neighboring Westchester County, the Company had four branches that operated directly under the name New York Community Bank.

In New Jersey, the Company serves its Community Bank customers through 51 branches that operate under the name Garden State Community Bank. In Florida and Arizona, where it has 25 and 14 branches, respectively, the Company serves its customers through the AmTrust Bank (AmTrust) division of the Community Bank. In Ohio, the Company serves its Community Bank customers through 28 branches of Ohio Savings Bank. Customers of the Community Bank and the Commercial Bank have access to their accounts through 261 of its 285 automatic teller machines (ATMs) locations in five states. The Company also serves its customers through three Websites, which include www.myNYCB.com, www.NewYorkCommercialBank.com and www.NYCBfamily.com.

Lending Activities

The Company�� principal asset is l! oans. Its loan portfolio consists of three components: covered loans, non-covered loans held for sale and non-covered loans held for investment. As of December 31, 2011, the balance of covered loans was $3.8 billion, of which $3.4 billion were one-to-four family loans. Non-covered loans held for sale consists of the one-to-four family loans that are originated for sale, primarily to GSEs. At December 31, 2011, the held-for-sale loan portfolio totaled $1.0 billion

As of December 31, 2011, loans held for investment consisted of loans that it originates for its own portfolio, and totaled $ 25.5 billion.

In addition to multi-family loans, loans held for investment include commercial real estate loans (CRE); acquisition, development and construction (ADC) loans; commercial and industrial loans (C&I), and one-to-four family loans. As of December 31, 2011, its multi-family loans represented $17.4 billion, or 68.3%, of total loans held for investment, and represented $5.8 billion, or 64.1%, of the total loans that it originated for investment. The multi-family loans it originates are typically secured by non-luxury apartment buildings in New York City. It also makes multi-family loans to property owners who are seeking to expand their real estate holdings by purchasing additional properties.

As of December 31, 2011, CRE loans represented $6.9 billion, or 26.9%, of total held for investment; ADC loans represented $445.7 million, or 1.7%, of total loans held for investment. Its ADC loan portfolio consists of loans that were originated for land acquisition, development, and construction of multi-family and residential tract projects in New York City and Long Island.

C&I loans represented $600.0 million, or 2.4%, of total held for investment. It also offers a range of loans to small and mid-size businesses for working capital (including inventory and receivables), business expansion, and the purchase of equipment and machinery. Non-covered one-to-four family loans totaled $127! .4 millio! n at December 31, 2011.

Investment Activities

The Company�� securities portfolio primarily consists of mortgage-related securities, and debt and equity (other) securities. Its investments include GSE certificates, GSE collateralized mortgage obligations (CMOs) and GSE debentures. The Community Bank and the Commercial Bank are members of the Federal Home Loan Bank of New York (FHLB-NY), one of 12 regional Federal Home Loan Banks (FHLBs) consisting of the FHLB system. As of December 31, 2011, the Company�� securities represented $4.5 billion, or 10.8%, of total assets. As of December 31, 2011, 93.7% of its securities portfolio consisted of GSE obligations; held-to-maturity securities represented $3.8 billion, or 84.0%, of total securities, and its investment in bank-owned life insurance (BOLI) was $769.0 million.

Source of Funds

The Company has four primary funding sources. These include the deposits that it added through its acquisitions or gathered through its branch network, and brokered deposits; wholesale borrowings, primarily in the form of FHLB advances and repurchase agreements with the FHLB and various brokerage firms; cash flows produced by the repayment and sale of loans, and cash flows produced by securities repayments and sales. As of December 31, 2011, deposits totaled $ 22.3 billion, which included certificates of deposit (CDs) of $7.4 billion; negotiable order withdrawal (NOW) and money market accounts of $8.8 billion; savings accounts of $ 4.0 billion, and non-interest-bearing accounts of $2.2 billion. As of December 31, 2011, the Company�� borrowed funds totaled $14.0 billion, loan repayments and sales generated cash flows of $15.0 billion, and securities sales and repayments generated cash flows of $4.2 billion.

Subsidiary Activities

As of December 31, 2011, Community Bank had 34 subsidiary corporations. Of these, 22 are direct subsidiaries of the Community Bank and 12 are subsidiaries of Community Bank! -owned en! tities. The 22 direct subsidiaries of the Community Bank include DHB Real Estate, LLC, Mt. Sinai Ventures, LLC, NYCB Community Development Corp., NYCB Mortgage Company, LLC, Eagle Rock Investment Corp., Pacific Urban Renewal, Inc., Somerset Manor Holding Corp., Synergy Capital Investments, Inc., 1400 Corp., BSR 1400 Corp., Bellingham Corp., Blizzard Realty Corp., CFS Investments, Inc., Main Omni Realty Corp., NYB Realty Holding Company, LLC, O.B. Ventures, LLC, RCBK Mortgage Corp., RCSB Corporation, RSB Agency, Inc., Richmond Enterprises, Inc. and Roslyn National Mortgage Corporation.

The 12 subsidiaries of Community Bank-owned entities include Bronx Realty Funding Company, LLC, Columbia Preferred Capital Corporation, Ferry Development Holding Company, Peter B. Cannell & Co., Inc., Roslyn Real Estate Asset Corp., Walnut Realty Funding Company, LLC, Woodhaven Investments Inc, Your New REO, LLC, Ironbound Investment Company, Inc.,The Hamlet at Olde Oyster Bay, LLC, The Hamlet at Willow Creek, LLC and Richmond County Capital Corporation.

The two direct subsidiaries of the Commercial Bank include Beta Investments, Inc., and Gramercy Leasing Services, Inc. The two subsidiaries of Commercial Bank-owned entities include Omega Commercial Mortgage Corp. and Long Island Commercial Capital Corp.

Advisors' Opinion:

• [By Selena Maranjian]

  Among holdings in which Barrow, Hanley increased its stake were New York Community Bancorp (NYSE: NYCB  ) and Seadrill (NYSE: SDRL  ) . New York Community Bancorp, with a whopping 7.5% dividend yield, has been growing via acquisitions lately. Its CEO has been with the company for decades, and is heavily invested in it ��literally. In addition, the bank's management is known for prudent management of credit risk.

• [By Rick Munarriz]

  Wednesday
  New York Community Bancorp (NYSE: NYCB  ) is another regional banker reporting this week. One of its more notable features is its chunky dividend. A hefty yield of 7.3% will turn heads in just about any industry, but is it sustainable? Analysts see slight dips in revenue and earnings per share in Wednesday's report.

• [By Selena Maranjian]

  Among holdings in which Renaissance Technologies increased its stake was New York Community Bancorp (NYSE: NYCB  ) , which is offering a hefty 7.3% dividend yield. The company has recently been growing via acquisitions and its management is known for prudent management of credit risk. Bulls like that its CEO has been with the company for decades and is heavily invested in it, and a recent decline in its non-performing assets is a plus, too.

• [By John Maxfield]

  Given that you clicked on this article, it seems safe to assume you either own stock in New York Community Bancorp (NYSE: NYCB  ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about NYCB stock before deciding whether to buy, sell, or hold it.

Top Bank Companies To Watch For 2014: Itau Unibanco Holding SA (ITUB.N)

Itau Unibanco Holding S.A., incorporated on September 9, 1943, is a bank in Brazil. The Company has four operational segments: Commercial Banking, Itau BBA, Consumer Credit and Corporate and Treasury. Commercial banking, including insurance, pension plan and capitalization products, credit cards, asset management and a variety of credit products and services for individuals, small and middle-market companies). Itau BBA includes corporate and investment banking. Consumer credit includes financial products and services to its non-accountholders. Corporate and treasury includes the results related to the trading activities in its portfolio, trading related to managing currency, interest rate and other market risk factors, gap management and arbitrage opportunities in domestic and foreign markets. It also includes the results associated with financial income from the investment of its excess capital.

On October 24, 2010, Itau Unibanco completed the integration of customer service locations throughout Brazil. In total, 998 branches and 245 customer site branches (CSB) of Unibanco were redesigned and integrated as Itau Unibanco customer service locations, thus creating a network of approximately 4,700 units in the country under the Itau brand. The Company is a financial holding company controlled by Itau Unibanco Participacoes S.A. (IUPAR). As of December 31, 2010, it had a network of 3,747 service branches throughout Brazil. As of December 31, 2010, it operated 913 CSBs throughout Brazil. As of December 31, 2010, it operated 28,844 automated teller machines (ATMs) throughout Brazil.

Commercial banking

The commercial banking segment offers a range of banking services to a diversified base of individuals and companies. Services offered by the commercial banking segment include insurance, pension plan and capitalization products, credit cards, asset management, credit products and customized products and solu tions. The commercial banking segment comprises the special! i! zed areas and products, such as retail banking (individuals); public sector banking; personnalite (banking for high-income individuals); private banking (banking and financial consulting for wealthy individuals); very small business banking; small business banking; middle-market banking; credit cards; real estate financing; asset management; corporate social responsibility fund; securities services for third parties; brokerage, and insurance, private retirement and capitalization products.

The Company�� credit products include personal loans, overdraft protection, payroll loans, vehicles, credit cards, mortgage and agricultural loans, working capital, trade note discount and export. Its investments products include pension plans, mutual funds, time deposits, demand deposit accounts, savings accounts and capitalization plans. Its services include insurance (life, home, credit/cash cards, vehicles, loan protection, among others), exchange, brokerage and others. Its core business is retail banking, which serves individuals with a monthly income below R$7,000. In October 2010, it completed the conversion of branches under the Unibanco brand to the Itau brand and as of December 31, 2010, it had over 15.2 million customers and 4,660 branches and CSBs. Its public sector business operates in all areas of the public sector, including the federal, state and municipal governments (in the executive, legislative and judicial branches). As of December 31, 2010, it had approximately 2,300 public sector customers. Itau Personnalite�� focus is delivering financial advisory services by its managers, who understand the specific needs of its higher-income customers; a portfolio of exclusive products and services; special benefits based on the type and length of relationship with the customer, including discounts on various products and services. Itau Personnalite�� customer base reached more than 600,000 individuals as of December 31, 2010. Itau Personnalite customers also have access to Itau Unibanco! ne! twor! k of ! branches and ATMs throughout the country, as well as Internet banking and phone.

Itau Private Bank is a Brazilian bank in the global private banking industry, providing wealth management services to approximately 17,951 Latin American clients as of December 31, 2010. The Company serves its customers��needs for offshore wealth management solutions in major jurisdictions through independent institutions in the United States through Banco Itau Europa International and Itau Europa Securities , in Luxembourg through Banco Itau Europa Luxembourg S.A. , in Switzerland through Banco Itau Suisse , in the Bahamas through BIE Bank & Trust Bahamas and in Cayman through Unicorp Bank & Trust Cayman. As of December 31, 2010, it had over 565 very small business banking offices located throughout Brazil and approximately 2,500 managers working for over 1,235,000 small business customers. Loans to very small businesses totaled R$5,981 million as of December 31, 2010. As of Dece mber 31, 2010, it had 374 small business banking offices located nationwide in Brazil and nearly 2,500 managers who worked for over 525,000 companies. Loans to small businesses totaled R$28,744 million as of December 31, 2010.

As of December 31, 2010, it had approximately 115,000 middle-market corporate customers that represented a range of Brazilian companies located in over 83 cities in Brazil. The Company offers a range of financial products and services to middle-market customers, including deposit accounts, investment options, insurance, private retirement plans and credit products. Credit products include investment capital loans, working capital loans, inventory financing, trade financing, foreign currency services, equipment leasing services, letters of credit and guarantees. The Company also carries out financial transactions on behalf of middle-market customers, including interbank transactions, open market transactions and futures, swaps, hedging and arbitrage transactions. It also offers its middle-ma! rket cus!! tomers co! llection services and electronic payment services. The Company is able to provide these services for virtually any kind of payment, including Internet office banking. It charges collection fees and fees for making payments, such as payroll, on behalf of its customers.

The Company is engaged in the Brazilian credit card market. Its subsidiaries, Banco Itaucard S.A. (Banco Itaucard) and Hipercard Banco Multiplo S.A. (Hipercard), offers a range of products to 26 million customers as of December 31, 2010, including both accountholders and non-accountholders. As of December 31, 2010, it had approximately R$16,271 million in outstanding real estate loans. As of December 31, 2010, it had total net assets under management of R$291,748 million on behalf of approximately 2.1 million customers. The Company also provides portfolio management services for pension funds, corporations, private bank customers and foreign investors. As of December 31, 2010, it had R$184,496 mill ion of assets under management for pension funds, corporations and private bank customers. As of December 31, 2010, the Company offered and managed about 1,791 mutual funds, which are mostly fixed-income and money market funds. For individual customers, it offered 154 funds to its retail customers and approximately 287 funds to its Itau Personnalite customers. Private banking customers may invest in over 600 funds, including those offered by other institutions. Itau BBA�� capital markets group also provides tailor-made mutual funds to institutional, corporate and private banking customers.

The Company provides securities services in the Brazilian capital markets. Its services also include acting as transfer agent, providing services relating to debentures and promissory notes, custody and control services for mutual funds, pension funds and portfolios, providing trustee services and non-resident investor services, and acting as custodian for depositary receipt programs. The Company also provides brokerage ! services ! to i! nternatio! nal customers through its broker-dealer operations in New York, through its London branch, and through its broker-dealers in Hong Kong and Dubai. Its main lines of insurance are life and casualty (excluding Vida Gerador de Benefucio Livre), extended warranties and property. Its policies are sold through its banking operations, independent local brokers, multinational brokers and other channels. As of December 31, 2010, it had 9.9 million in capitalization products outstanding, representing R$2,620 million in liabilities with assets that function as guarantees of R$2,646 million. The Company distributes these products through its retail network, Itau Personnalite and Itau Uniclass branches, electronic channels and ATMs. These products are sold by its subsidiary, Cia. Itau de Capitalizacao S.A.

Itau BBA

Itau BBA is responsible for its corporate and investment banking activities. As of December 31, 2010, Itau BBA offered a portfolio of products and ser vices to approximately 2,400 companies and conglomerates in Brazil. Itau BBA�� activities range from typical operations of a commercial bank to capital markets operations and advisory services for mergers and acquisitions. As of December 31, 2010, its corporate loan portfolio was R$ 76,584 million. In investment banking, the fixed income department was responsible for the issuance of debentures and promissory notes that totaled R$18,888 million and securitization transactions that amounted to R$4,677 million in Brazil in 2010. In addition, Itau BBA advised 35 merger and acquisition transactions with an aggregate deal volume of R$16,973 million in 2010.

Itau BBA is also active in Banco Nacional de Desenvolvimento Economico e Social (BNDES) on-lending to finance large-scale projects, aiming at strengthening domestic infrastructure. In consolidated terms, total loans granted by Itau BBA under BNDES on-lending represented more than R$9,010 million in 2010. Itau BB A focuses on the products and initiatives! in the i! nternation! al busine! ss unit, such as structuring long-term, bilateral and syndicated financing, and spot foreign exchange. In addition, in 2010 Itau BBA continued to offer a large number of lines of credit for foreign trade.

Consumer Credit

As of December 31, 2010, its portfolio of vehicle financing, leasing and consortium lending consisted of approximately 3.8 million contracts, of which approximately 71.1% were non-accountholder customers. The personal loan portfolio relating to vehicle financing and leasing reached R$60,254 million in 2010. The Company leased and financed vehicles through 13,706 dealers as of December 31, 2010. Sales are made through computer terminals installed in the dealerships that are connected to its computer network. Redecard S.A. (Redecard) is a multibrand credit card provider in Brazil, also responsible for the capturing, transmission, processing and settlement of credit, debit and benefit card transactions. As of December 31, 2010, the Com pany held approximately 50% interest in Redecard�� capital stock.

The Company competes with Bradesco, Banco do Brasil S.A. (Banco do Brasil), Banco Santander, Caixa Economica Federal (CEF), BNDES, HSBC, Banco Citibank S.A, Banco de Investimentos Credit Suisse (Brasil) S.A., Banco JP Morgan S.A., Banco Morgan Stanley S.A., Banco Merrill Lynch de Investimentos S.A., Banco BTG Pactual S.A., Banco Panamericano S.A, Citibank S.A., Banco GE Capital S.A. and Banco Ibi S.A.

Top Bank Companies To Watch For 2014: Popular Inc.(BPOP)

Popular, Inc., through its subsidiaries, provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. It offers deposit products; commercial, consumer, and mortgage loans, as well as lease finance; and finance and advisory services. The company also offers trust and asset management, brokerage and investment banking, and insurance and reinsurance services. As of December 31, 2010, it owned and occupied approximately 94 branch premises and other facilities in Puerto Rico; and 119 offices, including 20 owned and 99 leased in New York, Illinois, New Jersey, California, Florida, and Texas. Popular, Inc. was founded in 1917 and is headquartered in San Juan, Puerto Rico.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Popular (NASDAQ: BPOP) shares tumbled 5.54 percent to $27.48 after Morgan Stanley downgraded the stock from Equal-weight to Underweight.

  Pacific Coast Oil Trust (NYSE: ROYT) down, falling 7.13 percent to $16.70 after the company priced a public offering by Pacific Coast Energy Company LP and other selling unitholders of 13,500,000 trust units at a price of $17.10 per unit.

Top Bank Companies To Watch For 2014: Australia and New Zealand Banking Group Ltd (ANZ)

Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Company conducts its operations in Australia, New Zealand and the Asia Pacific region. It also operates in a range of other countries, including the United Kingdom and the United States. The Company operates on a divisional structure with Australia, International and Institutional Banking (IIB), New Zealand, and Global Wealth and Private Banking. As of September 30, 2012, the Company had 1,337 branches and other points of representation worldwide, excluding automatic teller machines (ATMs). In September 2012, it sold its remaining shareholding in Visa Inc. Advisors' Opinion:

• [By Weiyi Lim]

  The funds lured a net $25.9 billion in the period, Wei Liang Chang, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone from Singapore today, citing data from EPFR Global. Developed markets posted $24.3 billion of inflows, while emerging-nation funds drew $1.6 billion, according to Chang.

• [By Adam Haigh]

  Australia & New Zealand Banking Group Ltd. (ANZ) sank 3 percent after Australia�� third-largest bank by market value forecast interest margins will keep dropping. Hyundai Merchant Marine Co. jumped 6.9 percent in Seoul after North Korea and South Korea agreed to reopen the Gaeseong industrial complex. Chinese stock exchange officials are investigating a spike in the Shanghai Composite Index, which soared from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes. Everbright Securities Co. said it experienced a trading error.

Top Bank Companies To Watch For 2014: Banco Bilbao Vizcaya Argentaria S.A. (BBVA)

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. The Company also has investments in some of Spain�� companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities. On August 21, 2009, through its subsidiary BBVA Compass, BBVA acquired certain assets of Guaranty from the United States Federal Deposit Insurance Corporation (the FDIC).

Spain and Portugal

The Spain and Portugal business area focuses on providing banking services and consumer finance to private individuals, enterprises and institutions in Spain and Portugal. The main business units included in the Spain and Portugal area Spanish Retail Network, which manages individual customers, high net-worth individuals (private banking) and small companies and retailers in the Spanish market; Corporate and Business Banking, which manages business with small and medium enterprises (SMEs), large companies, institutions and developers in the Spanish market, and Other units, which includes consumer finance, that manages renting and leasing business, credit to individual and to enterprises for consumer products and Internet banking; European Insurance that manages the insurance business in Spain and Portugal, and BBVA Portugal, that manages the banking business in Portugal. The Spanish Retail Network unit services the financial and non-financial needs of households, professional practices, retailers and small businesses. The Corporate and Business Banking unit offers a range of services and products to SMEs, large companies, institutions and developers with specialized branch networks for each segment.

The Company�� European Insurance unit�� activities are conducted through! various insurance companies that provide direct insurance, reinsurance and insurance brokering services in Spain and Portugal and market products for different types of customers (private individuals, SMEs, retailers, professional service firms and providers and self-employed individuals) through this unit�� branch offices. BBVA Portugal manages its banking business in Portugal.

Wholesale Banking and Asset Management

The Wholesale Banking and Asset Management area focuses on providing services to large international companies and investment banking, capital markets and treasury management services to clients. The business units included in the Wholesale Banking and Asset Management area are Corporate and Investment Banking, which coordinates origination, distribution and management of a complete catalogue of corporate and investment banking products (corporate finance, structured finance, syndicated loans and debt capital markets) and provides global trade finance and global transaction services with coverage of large corporate customers specialized by sector (industry bankers); Global Markets, which handles the origination, structuring, distribution and risk management of market products, which are placed through its trading rooms in Europe, Asia and the Americas; Asset Management, which designs and manages the products that are marketed through its different branch networks including traditional asset management, alternative asset management and Valanza (its private equity unit); Industrial and Other Holdings, which helps to diversify the area�� businesses with the aim of creating medium and long-term value through active management of a portfolio of industrial holdings and other Spanish and international projects, and Asia.

During the year ended December 31, 2009, it launched two products: BBVA Bonos Cash (BBVA Cash Bonds), a money market fund for retail customers, and BBVA Bonos Largo Plazo Gobiernos II (BBVA Long-Term Government Bonds), a public-debt fu! nd. In ad! dition it launched through this unit additional fixed-income long-term funds, including BBVA Bonos Corporativos 2011 and BBVA Bonos 2014, which were sold to HNWI customers.

Mexico

The business units included in the Mexico area are Retail and Corporate banking and Pensions and Insurance. BBVA Bancomer launched six new mortgage products for lending to home buyers in 2009. These products included: loans for home improvements, remodeling or additions to homes and financial discount which provides liquidity to construction companies. In Mexico, it operates its pensions business through Afore Bancomer, its insurance business through Seguros Bancomer, its annuities business through Pensiones Bancomer and its health insurance business through Preventis.

The United States

The business units included in the United States area are BBVA Compass and Other units: BBVA Puerto Rico and Bancomer Transfers Services (BTS). During 2009 this unit marketed and sold several new products, The ClearPoints credit card, Business Build-to-order Checking, Compass for your Cause and Money Market Sweep.

South America

The South America business area includes its banking, insurance and pension businesses in South America. The business units included in the South America business area are Retail and Corporate Banking, which includes banks in Argentina, Chile, Colombia, Panama, Paraguay, Peru, Uruguay and Venezuela; Pension businesses, which includes pensions businesses in Argentina, Bolivia, Chile, Colombia, Ecuador and Peru and Dominican Republic, and Insurance businesses, which includes insurance businesses in Argentina, Chile, Colombia, Dominican Republic and Venezuela.

Corporate Activities

The Corporate Activities area handles its general management functions. These mainly consist of structural positions for interest rates associated with the euro balance sheet and exchange rates, together with liquidity management and shareholde! rs��fun! ds.

Advisors' Opinion:

• [By Alexis Xydias]

  Borrowed stock in BBVA (BBVA), Spain�� second-biggest bank, has fallen to 0.23 percent of the Bilbao-based company�� outstanding shares, from 2.41 percent two years ago, Markit data show. The stock surged 41 percent in the period.

• [By Lee Jackson]

  Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) was raised to Outperform from Neutral by Credit Suisse.

  Caterpillar Inc. (NYSE: CAT) was started as Equal Weight at Morgan Stanley

• [By John Udovich]
  A.F.P Provida SA. A Chile-based company�involved in the management of private pension funds, A.F.P Provida SA�� activities include the investment and collection of its clients��contributions, the management of individual capitalization accounts and the provision of life and disability benefits, payments of funeral expenses and senior retirement pensions. A.F.P Provida SA also has operations through its subsidiaries in Peru, Ecuador and Mexico. Under former dictator Pinochet,�Chile privatized its otherwise bankrupted social security program�and mandates its citizens to invest a certain portion of their wages with government-endorsed asset management firms like A.F.P Provida SA. Right now, A.F.P Provida SA has a trailing P/E of 6.33 along with a forward dividend of $10.89 for a 12% dividend yield, but there is also a big catch. Back in February, it was reported that Metlife Inc (NYSE: MET) would acquire the firm from Banco Bilbao Vizcaya Argentaria SA (NYSE: BBVA) in a deal valued at about $2 billion in order to add fee income in Latin America���meaning that juicy dividend is no longer a sure bet for investors. On Monday, small cap A.F.P Provida SA rose 0.28% to $90.80 (PVD has 52 week trading range of $82.60 to $112.79 a share) for a market cap of $2.01 billion plus the stock is down 9.1% since the start of the year, up 2.3% over the past year and up 205.7% over the past five years.

FTC Approval of OfficeMax Deal Appears Certain

NEW YORK (The Deal) -- The Federal Trade Commission appears to have accepted Office Depot's (ODP) argument that the company faces stiff competition in the office supply market from both general and online retailers, eliminating any regulatory roadblock to the company's pending $1.2 billion acquisition of rival OfficeMax (OMX).

The transaction would leave only Office Depot and Staples (SPLS) as big box office supply retailers, but they face competition not only from traditional rivals like stationers and direct distributors but now from superstores such as Wal-Mart Stores (WMT) and Target (TGT) as well as online retailing giants such as Amazon (AMZN).

In recent conversations with investors, executives for the parties as well as Staples CEO Ronald Sargent have said the entry of the general retailers and Amazon altered the market dramatically since the FTC thwarted Staple's 1997 bid to acquire Office Depot, leaving little reason for the deal to be blocked or saddled with any significant divestiture orders.

Presumably Sargent has also delivered that message to FTC officials in the course of their investigation of the merger. Sources following the deal said they believe the parties certified compliance with the FTC's second request for information on the deal at the end of September. Given that the companies entered a timing agreement not to consummate the merger until at least 45 days after certifying compliance with the second request, the FTC now appears set to approve the deal no later than mid-November. Despite being blocked in its bid to acquire Office Depot 16 years ago, Staples is said to support the merger of its two closest big box rivals because it and Office Depot will be better positioned to compete against Wal-Mart, Target and Amazon. Further indication that FTC approval is near came last month when OfficeMax CEO Ravi Saligram took himself out of the running to head the merged company. Saligram's announcement was seen as a sign that the prospective CEO will be announced soon, a step the companies would be unlikely to take if they were still uncertain of the FTC's direction. Office Max shares have been steadily rising since late August, when they traded around the $10.50 range as prospects for FTC approval have become clearer. As of midday trading Thursday, they hovered around $14.50, eliminating the spread on Office Depot's offer to provide 2.69 of its shares for each of Office Max's. -- Written by Bill McConnell in Washington

Top 10 Safest Stocks For 2014

Wells Fargo & Co. (NYSE: WFC)�may be Warren Buffett’s favorite bank hands down and it may be the safest of the money center and banking giants now. It turns out that if you work for that bank in the mortgage services unit, it might not be the safest bank when it comes to job security. Reports hit late in the day on Wednesday from Bloomberg, CNBC, and other media outlets�that Wells Fargo was laying off some 2,300 mortgage related jobs. It turns out that the refinancing boom has been crushed by a 100 to 125 basis point rise in mortgages.

The home-lending unit is based in Des Moines, Iowa and the cuts are being spread out around the nation. Frankly, this is not that surprising when you consider what has happened with interest rates. In fact, refinancings were peaking even before mortgage rates hit a low because those who could refinance had already done so.

It turns out that this will make the total layoffs since July come to roughly 3,000. Wells Fargo is the king of mortgage banking, which means it also has the most to lose in opportunity costs. The bank’s total headcount of almost 275,000 workers implies that just over 1% will have been let go. Whether or not more jobs will be terminated if rates keep rising and/or if housing slows is up to you to decide.

Top 10 Safest Stocks For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Top 10 Safest Stocks For 2014: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Rich Smith]

  On the plus side, though, one analyst is naming Under Armour (NYSE: UA  ) a winner. Let's start the week's final trading day off on a bright note and begin with that one:

• [By Chris Hill]

  Visa (NYSE: V  ) and Under Armour (NYSE: UA  ) hit new all-time highs. General Motors (NYSE: GM  ) appears to be turning the corner in Europe. And second-quarter profits for Crocs (NASDAQ: CROX  ) fell a whopping 43%. In this installment of Investor Beat, Motley Fool analysts David Hanson and Jason Moser discuss four stocks making moves on Thursday.

Best Low Price Stocks To Watch Right Now: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:

• [By CRWE]

  Fluor Corporation�� (NYSE:FLR) Chairman and Chief Executive Officer, David Seaton, and Chief Financial Officer, Biggs Porter, will give a presentation to investors at the Credit Suisse 2012 Engineering & Construction Conference in New York on Thursday, June 7 at 9:00 a.m. Eastern Daylight Time.

• [By The Energy Report]

  JH: One of the areas where the U.S. for decades has been the leading technological power is in small nuclear reactors. We've used them on our aircraft carriers and on our nuclear submarines safely and efficiently. The U.S. has an advantage in understanding small modular nuclear reactors. One of the companies that we have followed for a long time that's working on that is Babcock & Wilcox Co. (BWC). There's also Fluor Corp. (FLR), which is working on small modular nuclear reactors. President Obama and the Department of Energy are funding research on the implementation of small modular nuclear reactors.

Top 10 Safest Stocks For 2014: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By Aimee Duffy]

  Transocean is as good a bellwether as any, given it's the world's largest offshore driller. The company's most recent fleet status report shows that a number of rigs that were idle are now booked for work. Seadrill (NYSE: SDRL  ) is no slouch either, with its fleet of 61 drillships and rigs. It just inked a massive $2.7 billion contract with Brazil's state-owned oil company, Petrobras (NYSE: PBR  ) .