For Immediate Release
Chicago, IL – March 18, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Hartford Financial Services Group Inc. (HIG), Discover Financial Services (DFS), JPMorgan Chase and Co. (JPM), Bank of America Corp. (BAC) and Wells Fargo & Co. (WFC).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
Hartford to Repay TARP
In order to repay the entire $3.4 billion of bailout money it received from the government for its participation in the Troubled Asset Relief Program (TARP) at the height of the credit crisis, Hartford Financial Services Group Inc. (HIG) said on Tuesday that it will raise $3.05 billion from new securities.
The securities of Hartford will consist of $1.45 billion in common stock, $500 million in convertible preferred stock and $1.1 billion in bonds.
The move will free the life and property insurer from government involvement in its affairs and pay restrictions, even though the Treasury will still hold Hartford’s warrants for about 52 million shares at an exercise price of $9.79 each. However, Hartford does not intend to repurchase the warrants at this point.
In Jan 2009, Hartford became a thrift holding company with the approval of the Office of Thrift Supervision. The holding company status made Hartford eligible to apply for TARP funds.
Separately, Discover Financial Services (DFS) said on the same day that it has got regulatory approval to repay $1.2 billion of TARP money it received from the government.
After incurring sturdy credit losses, Hartford reduced its dividend and raised billions of dollars in private and public transactions last year. It has also reduced headcount to stabilize its financial position.
Nevertheless, during fourth quarter of 2009, Hartford returned to profitability for the first time since mid-2008. Hartford’s fourth quarter core earnings came in at $1.51 per share, substantially ahead of the Zacks Consensus Estimate of $1.40. This also compares favorably with the core loss of 72 cents in the year-ago quarter.
The upside was primarily attributable to stability in Hartford’s life and property and casualty businesses. Also, Hartford ended the year with a strong capital position. Despite the overall market conditions remaining timid, Hartford delivered strong underwriting results. During the fourth quarter, rising stock markets helped strengthen investment income in the company’s life insurance business.
However, the results suffered from losses in Hartford’s investment portfolio and higher costs related to the variable-annuity business. We remain concerned with Hartford’s exposure to variable annuities and pressure on the Life segment as consumers seek relatively safe investment vehicles for their retirement assets.
Most of the major institutions in the financial market like JPMorgan Chase and Co. (JPM), Bank of America Corp. (BAC) and Wells Fargo & Co. (WFC) have repaid the TARP loan. Also, the Treasury has started auctioning stock warrants it acquired from the banks that received a significant portion of taxpayers’ money and have fully repaid the same.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
