Tag Archives: Financial Stocks

Business, Finance, Occupation & Industry

Financial Stocks: Undervalued or Overvalued?

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By David Hanson and Matt Koppenheffer, The Motley Fool

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After being sold and sworn off during the financial crisis, stocks in the financial sector have bounced back and seen some huge gains. Bank of America  shares have more than doubled over the past 15 months, and Citigroup has been hot on the recovery trail. All of these gains may leave investors wondering if the sector is now overvalued.

In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer debate whether or not this sector is still undervalued, and why comparisons to years past may be a (small-f) fool’s errand. 

Citigroup’s stock still looks tantalizingly cheap. Yet the bank’s balance sheet is in need of more repair, and there’s a considerable amount of uncertainty after a shocking management shakeup. Should investors be treading carefully, or jumping on an opportunity to buy? To help figure out whether Citigroup deserves a spot on your watchlist, I invite you to read our premium research report on the bank today. We’ll fill you in on both reasons to buy and reasons to sell Citigroup, and what areas that Citigroup investors need to watch going forward. Click here now for instant access to our best expert’s take on Citigroup.

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From: http://www.dailyfinance.com/2013/04/11/financial-stocks-undervalued-or-overvalued/

Business, Finance, Occupation & Industry

Safeway's Prepaid Card Issuer Files for IPO

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By 24/7 Wall St.

Credit cards

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The unit of Safeway Inc. (NYSE: SWY) that issues gift cards and other prepaid and reloadable cards this morning filed a Form S-1 with the U.S. Security and Exchange Commission (SEC) to raise up to $200 million in an initial public offering. The unit, which will be called Blackhawk Network Holdings Inc., will trade on the Nasdaq Exchange under the ticker symbol HAWK.

Safeway currently owns about 96% of Blackhawk and “will continue to hold shares of Class B common stock representing a significant majority of the combined voting power” of Blackhawk’s outstanding shares after the offering. The lead underwriters for the offering are Goldman Sachs, BofA/Merrill Lynch, Citigroup and Deutsche Bank Securities.

According to the filing, Blackhawk currently counts among its gift-card customers such high-profile companies as Amazon.com Inc. (NASDAQ: AMZN), Lowe’s Companies Inc. (NYSE: LOW), Macy’s Inc. (NYSE: M), Starbucks Corp. (NASDAQ: SBUX) and Apple Inc.’s (NASDAQ: AAPL) iTunes. The company also serves the three large payment networks: American Express Co. (NYSE: AXP), Visa Inc. (NYSE: V) and Mastercard Inc. (NYSE: MA). Blackhawk also issues reloadable cards for Green Dot Corp. (NYSE: GDOT) among others, including its own PayPower brand.

Blackhawk’s filing indicates that the company will receive none of the net proceeds from the offering. Class A shares will have one vote and Class B shares will have 10 votes on all matters that are put to a shareholder vote.

According to the filing, Blackhawk posted net income of $48.165 million in 2012 on operating revenues of $959.07 million, up from $362 million in revenues and $22.7 million in operating profits in 2001, the year the company was founded.

Filed under: 24/7 Wall St. Wire, Business Services, Financial Stocks, IPOs, Retail Tagged: AAPL, AMZN, AXP, GDOT, LOW, M, MA, SBUX, SWY, V

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Business, Finance, Occupation & Industry

Xoom IPO Priced Higher Than Expected

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By 24/7 Wall St.

World currency

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An international money transfer company, Xoom Corp. (NASDAQ: XOOM), held its initial public offering this morning. The shares were offered at $16 apiece, above the estimated range of $13 to $15 a share. About 6.33 million shares were offered, and gross proceeds will reach more than $100 million. Of that, about $77.7 million will go to Xoom.

The company is selling 5.22 million shares, and certain shareholders are selling an additional 1.1 million shares. The underwriters have an option on an additional 948,750 shares.

Xoom anticipates net proceeds of $74.7 million ($88.8 million if the underwriters exercise their option), and the company said it will use the proceeds for working capital and general corporate purposes. Xoom may also use some of the proceeds to acquire “complementary businesses, products or technologies,” but has not made specific commitments yet.

Xoom’s chief competitor is the venerable Western Union Co. (NYSE: WU), and the new company makes its money primarily from transaction fees for its international money transfers. Unlike other international transfer firms, Xoom originates all its transactions online and its users can fund the transfer with a U.S.-based bank account, credit card or debit card. The company currently can make transfers between the United States and 30 countries.

As of 10:00 a.m. ET, no shares had yet been traded.

Filed under: 24/7 Wall St. Wire, Financial Stocks, Internet, IPOs Tagged: WU, XOOM

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