Posts Tagged: ‘bank’

What You Need to Look for When Finding a New Bank

December 22, 2011 Posted by admin

History of banks
The first modern bank was founded in Italy in 1406 and was called Bank of St. George. Since 1406 banks have sprouted all over the world and have created different specialties for financing.  For example, <a title=”Learn More About Retail Banking at Zoot!” Href=http://www.zootweb.com/additional_information/retail_banking.html>retail banking</a> mostly refers to a regular bank that deals with deposits and withdrawals between the consumer and the bank. Commercial banking refers to banks that mostly work with deposits and <a title=”Learn More About Small Business Lending at Zoot!” Href=http://www.zootweb.com/additional_information/small_business_lending.html>small business lending</a>
from corporations and large businesses. Investment banks work with stocks, bonds, mergers and acquisitions for corporations. As our society and business world becomes more complex, financial institutions are following suite and are specializing to fit our needs.

Retail banks specializing to fit our needs
Not only have banks specialized to fit our business needs they’ve also adjusted to meet our personal needs. As technology advanced and internet, World Wide Web and email was created we started doing more work more efficiently. We’ve become dependent on computers to speed up processes. For example, before computer technology, businesses would have to travel to meetings across town or even across state. Now, with internet and computers, businesses can save time and money and conduct a web meeting with anyone from anywhere at any time.  With this business technology being used everyday why would consumers want to personally travel to their local retail banking businesses to take care of their banking needs? The days of waiting in line at the bank with two forms of ID on pay day are over. Now companies can direct deposit your paychecks straight into your account. And, forget about writing checks to pay bills you can now go online and pay your bills with the click of a mouse. And, if you need to move money from one account to another just do it online.   

Commercial Banks
Commercial banks have been created to specialize in withdrawals, deposits and loans for corporations or large companies. Small business lending is part of the services that commercial banks provide. And, with the technology advancements, commercial banking has stepped up and made it easier to apply for small business loans with a quicker approval process. A lot of banks have done this by implementing business rule engines and automated decisioning software which speeds up the approval process. These types of investments allow consistent and accurate evaluations of applications and gives results in a timely manner. This is beneficial for the applicant and the financial institute. The quicker approval process allows the customer to build their location faster or fix that broken sign faster and it allows the financial institutions to do more loan volume.

Investment Banks
Investment banks work with stocks, bonds, acquisitions and mergers of corporations. The biggest change with these types of banks is the capability of being able to go online and trade your stocks and bonds in real time. The advance in this technology has given some talented people a way to earn a living by sitting in front of their computers and tracking their investments.

Banks have certainly adapted to the personal and business lifestyles of today and have saved consumers, business owners and investors a lot of time and sometimes even some money for providing so many online banking solutions.

About the author: Jason Ausmus is a web content producer for Innuity. For more information regarding retail banking or small business lending , visit Zoot

Article Source:http://www.articlesbase.com/investing-articles/what-you-need-to-look-for-when-finding-a-new-bank-1537863.html

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Canadian Income Stocks!

November 7, 2011 Posted by admin

18 High-Dividend Canadian Stocks

 

 

The 2008 financial crisis uncannily echoes what happened in Japan more than a decade ago. In the 1990s, the Japanese banking systems had become overloaded with bad loans after a property bubble collapse, according to Gillian Tett, author of Fool’s Gold. The investor psychology seemed dangerously similar too.  If this is the case, investors who buy high yield stocks now could collect big dividends while the economy fights to get back on its feet.

 

The Associated Press (AP) reported on Friday that the U.S. federal budget deficit has surged to an all-time high of $1.42 trillion. The Obama administration projects deficits will total $9.1 trillion over the next decade. For weeks the US dollar’s decline sent gold to all-time highs and helped oil to over $78. Canada happens to have plenty of these commodities. 

 

The following are 18 Canadian companies listed on U.S. exchanges with market caps greater than $1 billion, reasonable P/E ratios, and dividend yields greater than 3.5% (sorted by yield):

 

 

Name

Symbol

P/E

Yield

Market Cap

PROVIDENT ENERGY TR

(PVX)

9.0

11.1%

1.66B

PENGROWTH EGY UTS

(PGH)

5.0

10.6%

2.61B

PENN WEST ENERGY TRU

(PWE)

5.1

10.1%

6.90B

ENERPLUS RES FD

(ERF)

5.8

8.4%

3.97B

HARVEST ENERGY TRUST

(HTE)

4.2

8.1%

1.14B

B C E INC

(BCE)

21.7

6.1%

18.82B

TELUS CORP

(TU)

8.6

5.8%

9.41B

PRECISION DRILL TRST

(PDS)

4.3

5.7%

1.91B

BANK OF MONTREAL

(BMO)

17.3

5.1%

27.68B

TRANSALTA CORP

(TAC)

21.9

5.1%

4.07B

BAYTEX ENERGY TR UTS

(BTE)

12.8

5.0%

2.77B

CANADIAN IMP BK COMM

(CM)

3.7

5.0%

2.98B

BROOKFIELD PTYS CP

(BPO)

6.2

4.6%

4.47B

TRANSCANADA CORP

(TRP)

15.1

4.3%

21.71B

SHAW COMM CL B NV

(SJR)

15.6

4.2%

8.24B

ROGERS COMMUN CL B

(RCI)

16.8

4.0%

16.57B

BANK OF NOVA SCOTIA

(BNS)

16.7

3.9%

45.86B

TORONTO DOMINION

(TD)

17.4

3.5%

53.70B

 

These 18 high-dividend companies are in 4 sectors: Energy, Financial, Telecom and Utilities.

 

Energy Income Trust

High demand from China and a weak US dollar make the energy sector attractive.  7 companies belong to energy income trust category:

 

Symbol

Operating Margin

Debt/Operating CF

52-wk Range

(BTE)

36%

1.0

7.84 – 26.44

(ERF)

51%

0.7

12.85 – 28.58

(HTE)

10%

3.2

3.00 – 11.55

(PDS)

28%

2.0

2.00 – 12.21

(PGH)

22%

2.5

4.51 – 11.90

(PVX)

23%

1.5

2.23 – 6.84

(PWE)

58%

2.3

6.77 – 19.01

 

 

For sophisticated traders, trading commodities directly might provide a higher reward. For income investors, commodity companies might be a better choice because they provide some buffer, in addition to regular dividends.

 

There is a small ETF called Claymore Canadian Energy Income (ENY) which includes most of these companies. Its yield is 5.45%.

 

 

Financials

The Following are comparisons between Canadian banks, U.S. major banks averages, as well as JPMorgan Chase (JPM), one of the most conservative banks in the US. Clearly Canadian banks are much more profitable.

 

Description

P/E

ROE %

Div. Yield %

Net Profit Margin %

U.S. Money Center Banks

n/a

1.1%

1.1%

1.3%

JPMorgan Chase & Co. (JPM)

52.6

2.9%

0.4%

15.5%

Toronto-Dominion Bank (TD)

17.6

9.4%

3.5%

22.2%

The Bank Of Nova Scotia (BNS)

16.8

13.2%

3.9%

28.9%

CIBC (CM)

3.8

7.0%

5.0%

18.8%

Bank of Montreal (BMO)

17.4

9.2%

5.1%

21.8%

 

 

Telecom

Competition in the telecom sector is heating up in Canada. When BCE (BCE) and Telus (TU) announced they will start carrying the iPhone next month which puts an end to the exclusivity that Rogers (RCI) has enjoyed, it sent RCI’s short ratio to a stunning high of 33. Unlike those 3, Shaw Communications (SJR) primarily focuses on cable services.

 

Utilities

TransAlta (TAC) is an electric utility company while TransCanada (TRP) operates through two segments: pipelines and energy. TAC’s short ratio of 5.8 makes me nervous.

 

 Conclusion

After boldly buying when others were selling, Warren Buffet is pulling back, buying fewer stocks while investing in debt.  He is warning that the economy, though on the mend, remains deeply troubled.

 

In addition, the Canadian dollar is a strong threat to the Canadian economy. CurrencyShares Canadian Dollar Trust (FXC) appreciated over 13% this year. Mark Carney, the governor of the Bank of Canada, has warned that the Canadian dollar appears to be moving away from the fundamentals. 

 

The iShares MSCI Canada Index (EWC) year-to-date’s return is an astonishing 46%. A great stock can be easily turned into a bad investment, if you buy it at a higher than reasonable price.  It all depends on the starting price.

 

Nonetheless, high-dividend, fundamentally-strong companies are more likely to survive in this stormy market. One of the greatest ways to protect your portfolio is through asset allocation: to make sure not a single sector accounts for more than 20% of your portfolio. Be sure to re-balance as it will automatically enroll you into the “buy low, sell high” camp.

 

Disclosure: I have long positions on BMO, BNS, CM, PWE, TD, and TRE. All data is from Yahoo Finance (http://finance.yahoo.com/) as of Oct 16, 2009. 

 

Stocks: BCE, BMO, BNS, BPO, BTE, CM, ENY, ERF, EWC, FXC, THE, JPM, PDS,

PGH, PVX, PWE, RCI, SJR, TAC, TD, TRP, TU

 

Hao Jin, CFA
Contributing Writer

Article Source:http://www.articlesbase.com/investing-articles/canadian-income-stocks-1360481.html

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Exceptional Cigars that Won’t Break the Bank

January 20, 2011 Posted by

Because it is a considered a niche player in the tobacco industry, it can be ambitious to get a dead on target picture of cigar smokers in the U.S.  The most modern survey was taken by the Centers for Disease Control and it happened that there were about 13.1 million cigar smokers in America in 2008. But even that is a bit misdirecting. You see, the survey admitted people who smoke cigars, cigarillos, and clove cigarettes. The existent number of people who smoke tangible cigars that are over 4 inches abundant is only around one percent of the U.S. population, or three million people, according to the survey.  

But in that shrivelling group of cigar users, there are several antithetic types of smokers. Those are those who bask a cigar every now and then and there are others who smoke every day. Since cigar smoke is not inhaled, they are not as addictive as cigarettes. Now, don’t get us improper, they are definitely sorry for you. However, few cigar users smoke more than one stogie a day because they are not as chemically addicted as people who smoke cigarettes.

For those who do smoke more than one, even several cigars each day, price often becomes a major concern. The cost of a premium or hand-rolled cigar ranges from two to twenty-five dollars. Just as with wine, many experts and connoisseurs are fast to note that pleasant products can be happened at lower prices

What to look for?

To begin with, we do not recommend machine-rolled cigars. No, we aren’t snobs. But even a tyro can state the difference between a hand-rolled cigar and one that is brought forth mechanically.  It all starts with the filler, which contributes about sixty percent of the flavor of the cigar. Machine-made stogies use little filler, which is basically just dried out up scraps of tobacco leaf. This short filler burns much faster.

By comparison, a handmade cigar uses long filler, which contains up to five different kinds of tobacco leaves. Not only is this filler far more flavorful and aromatic than the short version, but it also burns much slower and lasts about twice as abundant.  Believe it or not, purchasing low-priced premium cigars is often less big-ticket than acquiring machine-rolled brands when we factor in the longer fuming times

Cheap Cigars

What follows is a short list with descriptions of a few of the most widely available and affordable stogies on the market today. Price may alter slightly among vendors

Saint Luis Rey Rothchilde

At a little over two dollars per stick, these Honduran cigars have consistently proven better than far more big-ticket brands.  Assembled in Honduras with Peruvian, Honduran and Nicaraguan filler and wrappers from Nicaragua, these cigars are far more analyzable than their price tag suggests. In fact, they are medium-to-full-bodied cigars and urged for veteran smokers.

Private Stock #2

It came as no surprise to us that Private Stock is produced by the same factory in the Dominican Republic that makes high-end cigars like Griffin and Avo. At a moderate price of around .50 per cigar, you get a musky biological Connecticut Shade wrapper, a blase filler from the Dominican Republic, and a binder from Ecuador. Private Stock is a mild-to-medium cigar, which makes it an acid-tasting choice for fresh smokers.

Mr. B Lonsdale Maduro

Hand-rolled in Nicaragua with pure tobacco, Mr. B Lonsdale Maduro may just be the most affordable premium brand cigar on the market.  As improbable as it sounds, they are traded in most cigar stores for under a dollar each!  But the price alone is not what makes them an enthusiastic value. They are actually acceptable cigars. Sure, their appearance is a bit underwhelming and they have a slightly crinkled fire, but their taste is first rate and they have an even draw. If you purchase them by the box, they are probably the single best value for the grave smoker.  Though the Mr. B Lonsdale Maduro has a mild-to-medium flavor, it is analyzable enough to fulfill both experienced smokers

Helix Blue Tubular

Frequently compared to the far more popular and expensive Macanudo, the Helix Blue Tubular is another affordable cigar that was designed for the novice smoker. Made in Honduras by the revered General Cigar Company, this stogie contains filler tobacco from Brazil, the Dominican Republic, and Honduras. The Mexican binder and the Connecticut shade wrap up result in a clement cigar that can be basked at any time of day for a little over two dollars a stick.

Gispert Corona

The Gispert is customarily included on lists of top cigars for new smokers. There are two very acceptable reasons for this. First, they are traded at most cigar shops for less than two dollars each. Second, the Honduran and Nicaraguan filler combines to create a stogie with a discriminating woodsy flavor and an animating aroma

Joshua Correia is a freelance writer who writes about shopping and buying tobacco products such as cigars

Article from articlesbase.com

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Categories: Humidors

The pros and cons of bank money market deposit accounts

January 3, 2010 Posted by admin

A money market deposit account (MMA) is a high interest-earning account offered by a financial institution that operates under the Federal Deposit Insurance Corporation (FDIC) with limited transaction privileges mostly related to writing checks. Formally known as a money market deposit account, a MMDA functions as any regular savings account, but has higher minimum balance requirements that range between $1,000 to $2,500 and minimum number of withdrawals. Besides, it offers a higher rate of return because it is subject to the current interest rates that vary.

Advantages

(a) Liquidity

Funds in money market accounts are highly liquid and can be withdrawn as cash or transferred to other accounts.

The beneficiary may withdraw the money at any time without any fees or penalties and has easy access through checks, transfers, or ATMs. However, the withdrawals can be between three and six per month and are subject to varying withdrawals requirements. For instance, credit unions typically require a minimum deposit of $250 to open a money market deposit account and do not carry any service charge fees. On the contrary, larger banks typically charge fees and penalties when the balance falls below the minimum deposit of $5,000.

The money deposited in a money market account is invested through the bank or credit union, which collects the return. The interest paid to the account beneficiary remains in the account, but the bank lends that money to other accounts by charging a slightly higher interest for the loan than the interest paid to the account beneficiary. Therefore, the bank makes money by selling money, but it offers the flexibility to the account beneficiary to get the money instantly, without having to pay any penalties.

(b) Safety

Money market accounts are a safe investment, although their interest rates are low, because they are insured by the FDIC up to $250,000 or even a higher amount if they are linked to certain property investments. This means that, in case of liquidation of the bank, the insured deposits will be made by the FDIC as soon as possible either by cash or by offering to the depositor a transferred deposit of equal amount to a new insured institution.

FDIC is being kept solvent by the US Congress to ensure it can cover cases of emergency. However, there are certain scenarios that could possibly undermine the FDIC’s solvency. Such scenarios could be a credit crisis that occurs simultaneously with a general funding emergency; a war that deteriorates financial situation at home; an economic war with China.

(c) Interest

Money market deposit accounts earn higher interest than savings accounts. Nevertheless, they fall below the market average of interest on growth investment vehicles, such as stocks, mutual funds and long-term certificates of deposit (CDs). A money market deposit account offers investors returns as high as a short-term CD and it does not provide substantial enough interest payments to provide for long-term gains.

The interest rate is subject only to the amount of money that has been deposited and is not associated to the maturity date as it happens with the certificates of deposit (CDs). This enables investors to collect their cash any time, depending upon their investment plan. Besides, although interest rates in money market deposit accounts are lower than those of certificates of deposit, they enable investors to stay ahead of inflation.

Disadvantages

Money market deposit accounts have their disadvantages as well.

(a)    Minimum withdrawals

Money market deposit accounts allow few withdrawals per month, when dealing with third parties. In general, banks try to discourage investors from exceeding their minimum or maximum limits because there are fees involved. If the money market account falls below the minimum required balance, or it exceeds the limited number of transactions, the beneficiary pays high fees. In some cases, banks are closing the accounts in an effort to convince customers to limit their transactions. However, ATM transactions are not included.

(b) Higher balance requirements

For investors who anticipate needing a healthy portion of their savings at any time, money market deposit accounts may not be the best option. A MMDA typically requires a higher balance than a savings account, and penalizes the beneficiaries if it drops below the minimum.

Overall, money market deposit accounts are a good option for retirees or investors who prefer to earn a high interest on their money with the least possible risk, while maintaining direct access to their funds and being insured against loss. For a long-term horizon, other accounts may offer even higher interest, but they may be more risky. Generally, investors prefer money market deposit accounts because they are flexible and safe.

Christina Pomoni has acquired her MBA Finance from the American College of Greece. Her advanced familiarity with financial statement analysis, capital budgeting and market research has been acquired through her professional career at high-esteemed organizations. As part of her long journey, Christina has served as an Equity Research Associate at Telesis Securities (EFG Eurobank) and a Financial & Investment Advisor at ING Group. Besides, having lived at Chicago, IL, Boca Raton, FL and Paris, France has helped her, not only to be a successful professional, but mostly to see life under a more creative and innovative perspective.

Since 2005, Christina provides high quality writing services to numerous websites and research companies contributing her knowledge and expertise. Her areas of specialization are Business, Finance & Investment, Society, Politics & Culture. She also has a very good knowledge of Entertainment, Health & Fitness and Computers & Technology.

Christina currently designs the website of her own writing company. Believing that knowledge is the road to opportunity and development, her mission is to promote her already established knowledge to a growing number of visitors and to provide high quality writing services to meet the most demanding customer requirements.

Article Source:http://www.articlesbase.com/investing-articles/the-pros-and-cons-of-bank-money-market-deposit-accounts-1658310.html

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