FSI Claims Victory in Florida ‘Notice-Filing State’ Battle

The Financial Services Institute is claiming victory in its legislative fight “to protect investors’ access to affordable, independent financial advice.”

The legislation in question, signed into law late Friday by Gov. Rick Scott of Florida, makes it a “notice-filing state” for branch office applications. The law makes it easier for advisors to make changes to their business, no longer forcing them to close for the application process, which would cost them revenue and clients.

While this pertains to Florida, FSI says the implications are nationwide, since it affects every financial services firm with affiliated financial advisors in Florida, regardless of where the firm is headquartered. FSI worked closely with Rep. Dane Eagle (R-77) and Sen. Jeff Brandes (R-22) in crafting this legislation.

“This law is another historic step forward for FSI members, who have united once again to affect positive change,” FSI President and CEO Dale Brown said in a statement. “We applaud the elected officials and the Florida Office of Financial Regulation, who all came together with our members to make a positive difference. This is exactly how government/private partnerships should work to serve our mutual constituencies. And it shows how much FSI’s members can accomplish when they work together and speak with one voice.”

Some scenarios of when advisors need to re-file, or file for the first time, which would cause the delays include:

1.)           When an advisor changes broker-dealer affiliation

2.)           When an advisor moves his current office address to another address

3.)           When a firm operating in another state wants to open a new branch office in Florida

4.)           When a firm already operating in Florida opens a new branch office

The new law places the filing system online and mandates approval be automatic, keeping the advisor working and protecting clients’ access to their advice.

After working with the Office of Financial Regulation to find common ground on the legislation language, FSI agreed to language that makes Florida a notice-filing state, but allows the OFR to require broker-dealers to resolve deficiencies in their filing within 30 days. 

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Check out Florida’s Notice-Filing Legislation Affects Advisors Nationwide on AdvisorOne.

Top Dividend Companies To Watch For 2014

LONDON -- I'm always searching for shares that can help ordinary investors like you make money from the stock market. So right now I am trawling through the FTSE 100 and giving my verdict on every member of the blue-chip index. Simply put, I'm hoping to pinpoint the very best buying opportunities in today's uncertain market.

Today I am looking at London Stock Exchange (LSE: LSE  ) (NASDAQOTH: LDNXF  ) to determine whether you should consider buying the shares at 1,342 pence.

I assess each company on several ratios:

Price/earnings: Does the share look like a good value when compared against its competitors? P/E to growth: Does the share look like a good value when factoring in predicted growth? Yield: Does the share provide a solid income for investors? Dividend cover: Is the dividend sustainable?

So let's look at the numbers:

Top Dividend Companies To Watch For 2014: Paragon Shipping Inc.(PRGN)

Paragon Shipping Inc. provides shipping transportation services worldwide. The company engages in the ocean transportation of various drybulk cargoes and containers. Its fleet consists of 11 drybulk vessels with a total carrying capacity of 747,994 dwt. The company was founded in 2006 and is based in Voula, Greece.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 name shipping player that's starting to move within range of triggering a big breakout trade is Paragon Shipping (PRGN), which is engaged in transporting drybulk cargoes, including such commodities as iron ore, coal, grain and other materials along shipping routes worldwide. This stock has been on fire so far in 2013, with shares up sharply by 114%.

  If you take a look at the chart for Paragon Shipping, you'll notice that this stock just recently took out its 50-day moving average of $4.19 a share with strong upside volume. Shares of PRGN are showing relative strength today, despite the overall market weakness, which shows this stock is in strong demand at current levels. This move is now starting to push shares of PRGN within range of triggering a big breakout trade

  Market players should now look for long-biased trades in PRGN if it manages to break out above some near-term overhead resistance at $4.90 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 25,811 shares. If that breakout triggers soon, then PRGN will set up to re-test or possibly take out its 52-week high at $5.70 a share. If that level gets taken out with volume, then PRGN could easily tag its next major overhead resistance levels at $7 to $8.35 a share.

  Traders can look to buy PRGN off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $4.19 a share, or below its 200-day moving average at $3.74 a share. One can also buy PRGN off strength once it clears $4.90 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point. I would add to either position once PRGN takes out its 52-week high at $5.70 a share with strong upside volume flows.

Top Dividend Companies To Watch For 2014: Horizon Lines Inc.(HRZ)

Horizon Lines, Inc., through its subsidiaries, provides container shipping and integrated logistics services. It ships a range of consumer and industrial items, such as refrigerated and non-refrigerated foodstuffs, household goods, auto parts, building materials, and other materials used in manufacturing. The company offers container shipping services to ports within the continental United States, Puerto Rico, Alaska, Hawaii, Guam, the U.S. Virgin Islands, and Micronesia. Its integrated logistics services comprise rail, truck brokerage, warehousing, distribution, expedited logistics, and non-vessel operating common carrier operations. Horizon Lines, Inc. also offers terminal services. The company operates terminals in Alaska, Hawaii, and Puerto Rico; contracts for terminal services in seven ports in the continental United States; and the ports in Guam, Yantian, and Xiamen, China, as well as Kaohsiung, Taiwan. In addition, it offers inland transportation services. As of Dec ember 20, 2009, the company owned or leased approximately 20 vessels and 18,500 cargo containers. Horizon Lines, Inc. serves consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. The company was founded in 1956 and is based in Charlotte, North Carolina.

Advisors' Opinion:

• [By Hutchinson]

  Horizon Lines (NYSE: HRZ) is the largest oceangoing shipping company in the United States with a dominant market position along protected shipping lanes. One look at the steady resurgence in shipping demand, coupled with the company’s improving financials, and it seems the worst is behind them — making now the perfect time to scoop up this stock at a discount.

  HRZ is up almost 30% since September, and I expect it to continue moving higher. Recent data show more goods are being manufactured, and they need to be shipped. Horizon will be one of the biggest beneficiaries.

  Buy HRZ on pullbacks under $5.

5 Best Financial Stocks To Invest In 2014: NextEra Energy Inc. (NEE)

NextEra Energy, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. As of December 31, 2010, NextEra Energy had approximately 43,000 mega watts of generating capacity. The company involves in the generation of renewable energy from wind and solar projects. It also generates electricity through natural gas, nuclear, oil and coal, and hydro power plants. The company serves approximately 8.7 million people through approximately 4.5 million customer accounts in the east and lower west coasts of Florida. In addition, it leases wholesale fiber-optic network capacity and dark fiber to telephone, wireless carriers, Internet, and other telecommunications companies. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in May 2010. NextEra Energy, Inc. was founded in 1984 and is headquartered in Juno Beach, Florida.

Top Dividend Companies To Watch For 2014: Regal Beloit Corporation(RBC)

Regal Beloit Corporation, together with its subsidiaries, manufactures and sells electric motors and controls, electric generators and controls, and mechanical motion control products primarily in the United States and Asia. The company operates in two segments, Electrical and Mechanical. The Electrical segment manufactures and markets AC and DC commercial, industrial, and commercial refrigeration electric motors and blowers, as well as heating, ventilation, and air conditioning (HVAC) electric motors and blowers. It also provides precision servo motors, electric generators, automatic transfer switches and paralleling switchgear, and control electric power generation equipment; AC and DC variable speed drives and controllers, and other accessories for industrial and commercial applications; and capacitors for use in HVAC systems, high intensity lighting, and other applications. The Mechanical segment manufactures and markets a range of mechanical motion control products, i ncluding worm gears, bevel gears, helical gears, and concentric shaft gearboxes; marine transmissions; after-market automotive transmissions, and ring and pinions; custom gearing; gearmotors; electrical connecting devices; and manual valve actuators, which are used in oil and gas, water distribution and treatment, and chemical processing applications. The company sells its products to original equipment manufacturers, distributors, and end users through its direct sales people and manufacturer?s representative organizations. Regal Beloit Corporation was founded in 1955 and is based in Beloit, Wisconsin.

Top Dividend Companies To Watch For 2014: Lockheed Martin Corporation(LMT)

Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise the F-35 multi-role, stealth fighter; the F-22 air dominance and multi-mission stealth fighter; the F-16 multi-role fighter; the C-130J tactical transport aircraft; and the C-5M strategic airlifter modernization program; and support for the P-3 maritime patrol aircraft, and the U-2 high-altitude reconnaissance aircraft. The Electronic Systems segment provides air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services. The IS&GS segment offers information technology solutions and advanced technology primarily in the areas of software and systems integration for space, air, and ground systems to various defense and civil government agencies. The Space Systems segment provides government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland.

Advisors' Opinion:

• [By Dave Friedman]

  The shares closed at $70.26, up $1.14, or 1.65%, on the day. They have traded in a 52-week range of $66.36 to $82.43. Volume today was 3,030,515 shares, against a 3-month average volume of 2,513,850 shares. Its market capitalization is $23.41billion, its trailing P/E is 8.80, its trailing earnings are $7.99 per share, and it pays a dividend of $3.00 per share, for a dividend yield of 4.30%. About the company: Lockheed Martin Corporation is a global security company that primarily researches, designs, develops, manufactures, and integrates advanced technology products and services. The Company’s businesses span space, telecommunications, electronics, information and services, aeronautics, energy, and systems integration. Lockheed Martin operates worldwide.

Top Dividend Companies To Watch For 2014: TotalFinaElf S.A.(TOT)

TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates through three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration, development, and production of oil and natural gas. It also involves in the transportation, trade, and marketing of natural gas and liquefied natural gas (LNG), as well as in LNG re-gasification and natural gas storage operations. In addition, this segment engages in the shipping and trade of liquefied petroleum gas (LPG); power generation from gas-fired power plants, nuclear, or renewable energies; production, trade, and marketing of coal, as well as in solar power systems and technology operations. As of December 31, 2010, it had combined proved reserves of 10,695 Mboe of oil and gas. The Downstream segment involves in refining, marketing, trading, and shipping crude oil and petroleum products. It also produces a range of specialty products, s uch as lubricants, LPG, jet fuel, special fluids, bitumen, marine fuels, and petrochemical feedstock. This segment holds interests in 24 refineries located in Europe, the United States, the French West Indies, Africa, and China, as well as operates a network of 17,490 service stations. The Chemicals segment produces base chemicals, including petrochemicals and fertilizers, as well as engages in rubber processing, resins, adhesives, and electroplating activities. TOTAL S.A. was founded in 1924 and is based in Paris, France.

Advisors' Opinion:

• [By Glenn]  

  TOT has a market capitalization of $130 billion. Its dividend yield last year of 5% is among the best in the industry. Current P/E ratio of 9.2 seems very attractive compared to the industry average of 12. The stock prices did not participate much in the recent bull market. While smaller sized competitors such as ConocoPhillips (COP), Marathon Oil Corporation (MRO) and Statoil ASA (STO) offered spectacular returns (ranging from 30% to 50%), Total’s return in 2010 was only 2%. One may find that the price will catch up with profits.

Ultrawealthy Investors Favor Stocks, Focus on Growth in 2013

Ultra-affluent members of the Institute for Private Investors are bullish on equity markets and focused on growth rather than merely preserving capital, according to a survey released Thursday.

IPI said 69 families with assets of at least $30 million participated in its annual Family Performance Tracking survey during the second quarter.

Sixty-three percent of respondents said they planned to increase their allocation to global equities in 2013, and 53% planned to increase positions in domestic equities.    

Growth is the primary objective of 51% of survey respondents in 2013, compared with 47% in last year’s survey, while 36% aim for principal protection, versus 43% in 2012, and 13% look for income, compared with 10% last year.

Wealthy investors enjoyed positive returns in 2012, according to the survey. The average return net of fees was 10.1%, up from 0.6% in 2011. 

Domestic equities accounted for an average 2012 portfolio allocation of 18%, global equities 14%, taxable bonds 10%, municipals 7%, hedge funds and/or funds of funds 18%, private equity 10%, real estate direct investment 6%, commodities 5%, venture capital 2%, direct investments in private companies 2% and other 1%.

The survey showed that investors were more opportunistic. Sixty-nine percent said they had changed their asset allocation based on favorable market conditions in a particular asset class, while 57% had reallocated because of a shift in overall performance expectations and 52% owing to poor performance of a particular asset class.

The end of 2012 was marked by heightened uncertainty about taxes. Respondents most commonly realized capital gains by year-end and either created or altered estate planning vehicles.  

To manage taxes on an ongoing basis, 62% of private investors planned to rely on tax loss harvesting, 47% on asset allocation and 41% on family limited partnerships. 

Thirty-nine percent of respondents sought tax counsel from their accountants, 26% from lawyers and 24% from investment advisors.

Other findings:

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Check out Tiger 21: Real Estate Is Hot, Cash Is Not on ThinkAdvisor.

3 simple steps that will set you financially free

To some people financial freedom may refer to a lack of worry- you have enough funds to meet your family's needs, and some surplus.

To others, financial freedom means freedom from loans- not having to set money aside for the next EMI, owning your assets outright, this is freedom from debt.

To others still, it means being a strong financial provider- providing a better future for your family than you had yourself.

The interpretations are many- and each one is personally valid and important to its interpreter.

We all have certain financial freedoms that we want to attain.

At PersonalFN we understand that your family is important to you. Providing for them and taking care of them and yourself, and living the kind of life you want to live, is the reason you work so hard to earn money.

So, here`s a small list of things you should do, easy things that will help you attain your own financial freedom.

1. Define Your Freedom List

Make a Freedom List- containing not more than 3 goals- that you must achieve to consider yourself financially free.

These 3 goals will most likely be the most important goals to you in your life.
Examples of these goals might be:

• Educate your children at good colleges

• Financially provide for your parents

• Prepay all loans and be debt-free

• Provide for marriage expenses for your children

• Buy a bigger home

• Retire at x age with a corpus of Rs. Abc

Reading the list above you`ll see that freedom is indeed hard won, so keep the list small. Think of things that are very important to you and allow only these things to be on your Freedom List.

Be sure to make the Freedom Goals S.M.A.R.T.

2. Quantify your Freedom Goals

Remember how your parents used to tell you that when they were your age, a soft drink cost 8 annas?

More than one kid has thought to themselves 'I wish you had bought 100 bottles of Pepsi and stored them!' But what we don't realize is this is the effect of 10% per annum inflation. A very normal inflation rate for such goods.

(Read our article titled Why You Should Worry about Inflation )

Take your freedom goals and consider what they will be when you want to achieve them.

If you want to provide for your children`s education and marriage- consider what it costs today and inflate the cost by 10% per year. Know how much you want to achieve, and by when you want to achieve it.

Do this for each of your goals, have an amount and a year by when you want to achieve the goal.

3. Save and Invest regularly remember, Rome wasn't built in a day

Your goals are probably looking pretty big once you`ve quantified them, as they should be.

This kind of money takes years to build, and everybody starts small.

(Read our article titled To SIP or to VIP That is the Question )

If you have a goal of becoming debt- free, you can slowly teach yourself financial discipline. Save what you can and repay your debt a little at a time. You can also restructure your debt, for which you need to talk to and negotiate with your bank.

If debt is not your concern, and you`re looking to grow your wealth, then set aside your savings and invest in those avenues that suit your goals. For example if you have a short term goal, invest in debt i.e. fixed income. For a medium term goal you can invest in a combination of equity, debt and gold with a higher proportion in debt and gold and a lower proportion in equity, and for a long term goal, invest in all 3 asset classes with a higher proportion in equity and a lower proportion in debt and gold.

Stick to your investment plan, don`t get swayed by internal or external circumstances changing, and within no time you'll find that you can give yourself a pat on the back for being well on your way to achieving your goals.

Conclusion

To attain financial freedom, above all, you have to be patient. Trust that you will get there.

Wealth building is a gradual process. It requires continuous investing through market ups and downs. Don`t let yourself get swayed by fancy structured products, the latest mutual fund recommended by your bank, the hottest stock invested in by your neighbor. Have a plan, know which investments are the right ones for you, and invest in them regularly for the long haul.

Here's wishing all our readers a happy and financially free life!

PersonalFN is a personal finance website.

Earnings Miss at Hi-Tech Pharmacal - Analyst Blog

Hi-Tech Pharmacal Co., Inc. (HITK) reported fourth quarter fiscal 2013 (ended Apr 30, 2013) earnings of 50 cents per share, well below the Zacks Consensus Estimate of 68 cents and down 38.3% from the year-ago period. Lower-than-expected revenues contributed to the earnings miss in the final quarter of fiscal 2013.

Fourth quarter revenues were $58.5 million, down 4.6% year over year. Revenues missed the Zacks Consensus Estimate of $66 million.

Revenues at Hi-Tech Pharmacal were hurt by lower sales of Fluticasone nasal spray. Lower pricing hurt the sales of the drug. A slower-than-normal start to the allergy season also led to the weak revenues recorded in the quarter..

Fiscal year 2013 earnings were $2.28 per share, down 40.8% year over year. The Zacks Consensus Estimate for fiscal 2013 stood at $2.40 per share. Revenues in 2013 rose 10.4% year over year to $232.4 million. Revenues for 2013 were below the Zacks Consensus Estimate of $239 million.

Research and development expenses for fiscal 2013, increased 41.4% year over year to $17.3 million due to increased spending on internal projects for the generic pharmaceuticals division. Selling, general and administrative expenses rose 19.9% to $53.6 million in fiscal 2013 due to costs incurred towards restructuring of sales organization.

Segmental Details

Hi-Tech Pharmacal reports revenues under three segments – generic pharmaceuticals (Hi-tech generic), OTC branded pharmaceuticals (Health Care Products) and prescription brands (ECR).

Revenues at the generic pharmaceuticals segment in the reported quarter were down 7.2% year over year to $48.9 million. Lower revenues of Fluticasone Propionate nasal spray (down 31% year over year to $19.6 million) were primarily responsible for the decline.

Revenues at the Health Care Products division were down 7% from the prior-year quarter to $4.9 million. Sales continued to be affected by lower sales of diabetes drug Tussin.

Sales from the ECR divisi! on increased 40% to $4.7 million mainly driven by TussiCaps and Bupap sales.

Outlook

Hi-Tech Pharmacal expects a top line growth this year across all its businesses. The new generic launches will drive the generic increase. However, Hi-Tech Pharmacal expects declining sales of Fluticasone. Hi-Tech Pharmacal expects double-digit growth in its Health Care Products and ECR divisions.

Hi-Tech Pharmacal carries a Zacks Rank #3 (Hold). Right now, companies like Santarus, Inc. (SNTS), Lannett Company, Inc. (LCI) and Jazz Pharmaceuticals (JAZZ) look well positioned in the pharma space with a Zacks Rank #1 (Strong Buy).

Absent Higher Rates, Comerica Has Probably Gone Far Enough

Comerica (NYSE:CMA) is a curious bank in multiple respects. Although it has a sizable commercial loan book, the net interest margin isn't all that impressive. On the other hand, this looks like one of the most asset-sensitive of the larger banks, and income could accelerate relatively quickly if rates head meaningfully higher. All things considered, while I think Comerica's market position in Texas and California is worth more than average, I think the shares don't offer all that much promise unless you have a firm belief that the company can generate significantly better long-term returns on equity than the sell-side presently expects.

Another Familiar Pattern In Second Quarter Earnings
Add Comerica to the list of banks reporting okay net interest income and beating quarterly estimates on the basis of fee income and lower credit costs. Commerce Bancshares (Nasdaq:CBSH) actually reported the opposite, but other banks like Bank of the Ozarks (Nasdaq:OZRK), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) have been following this basic pattern for the second quarter.

SEE: Citigroup Continues The Theme Of Decent Big Bank Earnings

Operating revenue declined 2% from the year-ago level, but rose about 1% sequentially. Net interest income declined slightly on a sequential basis as the net interest margin ticked lower (down 5bp) on lower purchase accretion. Again, that slim sequential decline was consistent with Wells Fargo and Citigroup's experiences. Fee income rose 5% sequentially and expenses were flat, leading to a 4% sequential improvement in adjusted pre-provision earnings.

Growth Is Still Lacking
Comerica saw just 1% sequential loan growth, better than Wells Fargo and Citigroup, but weaker than Commerce (which also focuses on commercial lending and is looking to grow its loan book in Texas). Commercial lending was up about 2% over all, though commercial real estate lending was softer. Deposits declined 2% (on an end-of-period basis), marking the second straight sequential decline. With Comercia's capital position on the weaker side of "okay" (at least relative to peers), I'm starting to wonder if this softness in deposits will constrain lending capacity at some point or force the company to turn to more expensive wholesale/borrowed sources of funds.

Quality Improving, But Capital May Be A Little Thin
Comerica reported some solid improvements in multiple credit metrics. Non-performing loans declined 38% from the year-ago level and 9% from the first quarter, and the non-performing asset ratio declined again (from 1.78%/1.18% in the prior year/quarter to 1.05%) - far below the level of Citi and Wells, but more than double the rate of Commerce. The net charge-off ratio dropped again (from 0.42%/0.22% to 0.15%) and is very low.

The reserves are interesting, though. While the decline in non-performing loans has lifted the reserve/NPL percentage to almost 137% (from 93% a year ago), the reserves-to-loans ratio of 1.35% looks a little thin to me, particularly as the the Tier 1 common ratio of 10.4% isn't exactly a peer-leading number. That said, Comerica did fine in the Fed's stress test earlier this year and has the all-clear to return capital to shareholders, which is a meaningful detail in a growth-poor banking industry.

SEE: Foreclosure Activity Tumbles In 1H

The Bottom Line
With close to 10% of Comerica's loan book going to car dealers, Comerica should be taking advantage of a pretty healthy car market in the U.S. Likewise, the company's position in the energy sector ought to be a positive assuming the North American energy market has indeed seen its trough. And as I mentioned earlier, this is a lender with above-average leverage to higher rates, as about 80% of the portfolio is variable rate (with about 70% indexed to 30-day LIBOR).

There aren't too many cheap bank stocks left, though, and Comerica isn't one of them. A 10% estimate for long-term ROE suggests a fair value today in the low-to-mid $30s, and you have to go up to about 13% to get a target ahead of today's price. While Comerica's geographically concentrated business may give it an above-average chance of returning to the higher ROEs of yesteryear, I still think that's a pretty bold assumption to use today. On the other hand, the company's return on tangible assets suggests a fair price/tangible book value multiple of around 1.4x, which implies a fair value of about $47. So not unlike Citi, there seems to be a dichotomy in how the market is viewing/valuing the long-term prospects for some of these banks.

While I think Comerica is a relatively good way to play higher rates, I think at least some of that expectation is already built into the stock price today. With mediocre loan growth and still above-average expenses, I'll continue to be on the sidelines with this stock.