Tag - Cpf

Stocks generally continued their upward trajectory and extended the rally today. The Dow closed up 33.63 points today to finish at 9,320.19; the Nasdaq finished up 2.70 points at 2,011.31; and the S&P 500 held over 1,000 to finished 1,005.61, up 2.98 points.

The Russell 2000 index finished up 4.38 point at 570.16.
 

Leading small-cap price gainers include Xerium Technologies (NYSE:XRM), up 33%; Georgia Gulf Corporation (NYSE:GGC) up 45%; Central Pacific Financial (NYSE:CPF) up 32%; and YRC Worldwide (Nasdaq:YRCW) up 30%.

Declining small-caps include WPT Enterprises (Nasdaq:WPTE) down 26%; The Phoenix Company (NYSE:PNX) down 19%; and Mellanox Technologies (Nasdaq:MLNX) down 17%.

*****Oil prices are slightly lower this morning. That should mean stocks will trade lower today as well. And while many are saying the fundamentals of this economic recovery do not support current prices for stocks or oil, I wouldn't get too excited about an imminent trade-worthy decline.

More likely, we will see any dip get bought by the bulls. And I doubt any dip will last for more than two days…

*****Sometimes, the financial markets can be very simpleminded--even downright dumb. And I believe now is one of those times. The federal government has committed to pouring as much cash into the economy as is necessary to keep prices from falling too much. And that may be all we need to know.

After all, banks can make money when they have the ability to borrow at 0.5% interest. They can make more money in fees when the government is sponsoring mortgage loan modifications. And when the government forced banks to raise more capital by selling stock, Goldman Sachs (NYSE:GS) may have made as much as $1 billion in profit from fees associated with secondary offerings.

Car companies and banks can make money from the Cash for Clunkers programs. Auto sales rose 13% in June, helped by this program. Heck, Ford (NYSE:F) posted its first rise in sales since 2007!

*****Some estimate that 40% of the world's wealth was lost in the wake of Lehman's collapse and the financial crisis. The only way to get that money back is to earn it. But companies aren't really earning money the old-fashioned way -- government policies are focused on allowing companies to do just that.

Sure, it's a form of trickle down economics. And while the long-term success may be questionable as there are always unintended consequences, make no mistake about the effect on the short-term. Assets are being reflated. Home values, stock prices, commodities - all can be expected to move higher.

*****Thanks to everyone who has sent in submissions for The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks T-shirt contest. In case you don't know, my first book is coming out on September 14, 2009. As part of the marketing plan for my book, The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks, I'm holding a T-shirt contest. I want you to be the one who comes with the slogan for The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks T-shirt. 

Submissions have already been posted to the Small Cap Investor Facebook page and we're holding this contest open for just a little longer to get your idea. Post your submission on the Small Cap Investor page on Facebook

Small Cap Investor page on Facebook  send it to tshirt@smallcapinvestor.com. We're keeping this open until Sunday, August 9th.

Everyone who submits a T-shirt slogan will get a 30-day, 100% complimentary trial to my SmallCapInvestor PRO advisory service. The winner gets a one-year subscription to ALL of my advisory and trading services ($2,680 value), plus a signed copy of the book and three t-shirts. Voting on the slogan will begin shortly after the 9th.

*****The Managed America video conference is coming up next Monday, August 10 at 6:00 P.M. We'll cover the game plan for making profits in an America with sustained high unemployment, weak growth, weak banks, higher taxes, and excess government regulation. You don't want to miss this. It's free to attend and you can register HERE.

Ian Wyatt

Editor

Daily Profit

P.S. Tomorrow is NewsletterAdvisors.com Wednesday where we interview one of the country's top investment experts. We're fortunate to have Carla Pasternak of High-Yield Investing and High-Yield International, two of the leading publications for dividend and income investments. Don't miss tomorrow's edition of Daily Profit with our in-depth interview with Carla.

Midsouth Bancorp Inc (Nasdaq:MSL), M & F Worldwide Corp (Nasdaq:MFW) and Bank of Marin Bancorp (Nasdaq:BMRC) are among the new 52-week lows in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: American Greetings Corp (Nasdaq:AM), Central Pacific Financial Corp (Nasdaq:CPF), Webster Financial Corp (Nasdaq:WBS), Peoples Financial Corp (Miss) (Nasdaq:PFBX), Abington Bancorp Inc (Nasdaq:ABBC) and Renasant Corp (Nasdaq:RNST).

Central Pacific Financial Corp. (NYSE: CPF), parent company of Central Pacific Bank, issued preliminary earnings numbers for the fourth quarter below the consensus on Wall Street.

The provider of commercial banking services in Hawaii said it expects to report earnings per share of approximately $0.10 to $0.14 for the fourth quarter ended Dec. 31, 2007, below the consensus of four analysts surveyed by Thomson Financial of $0.53 per share. 

The small cap stipulated the fourth quarter of 2007 would reflect a higher level of loan charge-offs and negative “credit migration” due to continued deterioration in the housing and residential construction market in California. CPF anticipates fourth-quarter net charge-offs of approximately $8.5 million to $9 million.

The earnings estimates are also said to include, credit costs of approximately $32 million to $34 million and an after-tax loss on an investment portfolio repositioning of $1 million, or $0.04 per diluted share.

“The fundamentals and overall safety and soundness of our bank remain strong,” Clint Arnoldus, chief executive officer of CPF, said in a press release. "However, along with other financial institutions, we are dealing with deteriorating market conditions and credit weaknesses in a number of residential tract lending projects we financed in California.”

The bank, however, noted it intends to maintain its quarterly dividend at its current level and will continue with its stock repurchase program.

Central Pacific Financial will officially release earnings on Jan. 31.

Shares of Central Pacific Financial (CPF) were up 0.53%, or $0.08, to $15.31 in pre-market trading.  Shares of Central Pacific Financial have been trading in the range of $$14.59 to $40.50 for the past 52 weeks.

Central Pacific Financial Corp. (NYSE: CPF) shares are dipping to a year low after the bank holding company announced third-quarter net income of $9.1 million, or $0.30 per share, below analyst estimates of $0.65 per share and down 56% from $20.6 million, or $0.67 per share, a year earlier.

“In light of the significant and rapid deterioration in the California residential construction market, combined with our commitment to proactively manage credit risk, we downgraded several loans which resulted in a provision for loan losses of $21.2 million in the quarter,” CEO Clint Arnoldus said in a statement.

Central Pacific’s loan losses totaled $0.3 million in the year-ago quarter.

The Honolulu, Hawaii-based company said it expects fiscal 2007 earnings in the range of $2.31 to $2.36 per share, below Wall Street projections of $2.69 per share. Last year, the company earned $2.57 per share.

During the three months ended Sept. 30, the firm’s total assets increased 5% to $5.6 billion, from $5.4 billion during the same period of 2006. Central Pacific’s total nonperforming assets soared 194% to $31.7 million, from $10.8 million a year earlier.

In July, the company’s board approved a stock repurchase plan of up to 1.5 million shares. At the end of the third quarter, Central Pacific had repurchased 0.9 million shares under the plan.

In morning trading, CPF shares are hitting a 52-week low—down 8.07%, or $1.93, at $21.99. Over the last 52 weeks, shares have ranged from $21.99 to $40.50.