Our goal is to present to you our IPO analysis for every new fixed-income security that enters the market and to find out if there is any trading potential. In this article, we want to shed light on the newest preferred stock issued by Bank of America Corporation (BAC). Even though the product may not be of interest to us and our financial objectives, it definitely is worth taking a look at.
The New Issue
Before we submerge into our brief analysis, here is a link to the 424B5 Filing by Bank of America Corporation - the prospectus (Source: SEC.gov).
For a total of 52.4M shares issued, the total gross proceeds to the company are $1.31B. You can find some relevant information about the new preferred stock in the table below:
Source: Author's spreadsheet
Does Crown Castle International Corp. Have More Upside?
If you want to make a lot of money in the stock market, you might want to consider this kind of business.
Longtime readers have heard me compare telecom companies to toll-bridge operators. After making a big investment upfront to build a bridge, the owner gets to earn a stream of income indefinitely. In the same manner, telecoms invest heavily in infrastructure then kick up their feet and collect the access fees.
Crown Castle International Corp. (NYSE: CCI) is one such company The telecom infrastructure company owns about 40,000 cell phone towers across the United States, in addition to approximately 65,000 route miles of fiber optic cable. Carriers lease these facilities to expand their coverage network, sending Crown... more
The Utility sector emerged as a sector of choice for me earlier this year due to its earnings outlook. It is expected to post the strongest earnings growth this quarter and has one of the clearest paths to long-term growth of the 11 S&P 500 sectors. Others, like Consumer Discretionary and Industrials, have a more robust outlook for YOY EPS growth this year to next, the problem for me is they also have negative outlook for this quarter and possibly next. That is a shaky foundation for investment in my opinion.
Within the utility sector all five sub-industries are expected to post EPS growth this quarter and one, Natural Gas Utilities, should see growth in the double digits. I've compiled a list of top-paying dividend-growth stocks in the Utility Sector. This analysis... more
(Source - Pexels/Pixbay)
There is no denying the fact that people as a whole have turned against coal in recent decades. Indeed, coal is generally dirtier than other forms of energy, and the developed world is, in general, moving away from "unclean energy". This has caused the price of coal and coal stocks to see very poor performance in recent years.
The top coal producers in North America are: Teck Resources (TECK), Warrior Met Coal Inc. (HCC), Arch Coal (ARCH), Contura Energy (CTRA), and CONSOL Energy (CEIX) which trade at "P/E" valuations between 3.2X (Warrior) and 8X (Contura). Even more, most of them have very low debt levels. Remember, most U.S. stocks trade at "P/E" valuations of 22X or greater and have high debt.
Clearly, investors seem to place a huge equity risk/sin... more
It's been a fairly good week for holders of the Credit Suisse Crude Oil Shares Covered Call ETN (USOI) with the instrument returning around 2% in price appreciation. While the underlying upside seen in the oil markets hasn't fully translated into price returns for the instrument, I believe that additional uplift will be seen in the shares to come. Specifically, I believe that investors are likely to end out the year with a decent gain in shares.
The Instrument USOI is a very interesting instrument in that it is an ETN which is predicated upon another ETP, USO. USOI is basically a strategy which replicates what one would earn if they were to hold USCF Investments' popular USO ETF and sell covered calls at roughly 6% out of the money. The strategy pays out the premium earned through... more
Comcast (CMCSA) is a telecommunications conglomerate that is the largest home internet provider in the US and its media business is home for some of the most popular content in the world. The company has grown its bottom line by an impressive CAGR of 13% in the last 10 years thanks to organic growth and acquisitions and remains well positioned to keep growing earnings at a double-digit rate as the management is taking proactive steps to further improve their portfolio and cross-selling ability.
Source: Comcast Presentation
Although the company got involved with a bidding war for Sky, I believe that is a great asset going forward due to its leading position in entertainment and communications in Europe. Due to its position, Sky can cross-sell to... more
Dine Brands Global (DIN) has had a rough go of it this year. Shares peaked at $103 earlier this year but trade today at just $70. The company issued some ugly guidance a couple of months ago, and shares have been punished ever since. However, the company offers a unique blend of value and yield that is difficult to find in the sector, and I think it is worth a look if you're on the hunt for a new restaurant holding.
Weak guidance provides opportunity
The company's Q2 earnings report resulted in shares plummeting during the summer, and about a month out from the Q3 report, I think more than enough damage has been done.
Results haven't been perfect by any means, but it looks like the company's punishment hasn't fit the crime. Revenue is up 25% this year,... more
Williams-Sonoma, Inc. (NYSE: WSM) announced today that its Board of Directors has declared a quarterly cash dividend of $0.48 per common share. The dividend is payable on November 29, 2019 to stockholders of record as of the close of business on October 25, 2019. As of September 1, 2019, the Company had 78,022,213 shares of common stock outstanding.... more
Physicians Realty Trust (NYSE: DOC) (the “Company”) announced today that the Company’s Board of Trustees has authorized and the Company has declared a quarterly cash dividend of $0.23 per common share and unit for the quarter ending September 30, 2019.... more
Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of moderately priced footwear and accessories, announced today that its Board of Directors has approved the payment of a quarterly cash dividend.... more