Archive for the ‘Financial Stocks’ Category

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Cowlitz Bancorp. (CWLZ) – Buzz Stock of the Day

Tuesday, June 29th, 2010

Shares of Washington bank, Cowlitz Bancorp. (Nasdaq: CWLZ) have been on a wild ride over the past three weeks. Shares of Cowlitz were up 25 percent from Monday’s close, in morning trading on Tuesday after the company announced that it presented an updated plan to regain compliance with two Nasdaq Listing Rules with which it is not in compliance and requested a 90-day exception to the continued listing standards.

The Company previously announced that on May 12, 2010, it received a delisting determination letter from Nasdaq due to the Company not being in compliance with the minimum 500,000 publicly held shares requirement set forth in Listing Rule 5550(a)(4).

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Last week, shares dove about 10 percent after the company announced it received a Supervisory Prompt Corrective Action Directive from the Federal Deposit Insurance Corp. that calls for Cowlitz’s main subsidiary, The Cowlitz Bank of Longview, Wash. to recapitalize within 30 days of the order, or sell or merge with a healthier institution.

The sell-off came on the heels of a surge, that sent the stock soaring as high as $6.99 in intraday trading the week before.

According to TheStreet.com:

News of the order shouldn’t have come as a huge surprise. The Cowlitz Bank was included in TheStreet’s Bank Watch List of undercapitalized banks and thrifts, based on first-quarter regulatory data provided by SNL Financial, because the bank’s Tier 1 leverage ratio was 3.37% and its total risk-based capital ratio was 6.68% as of March 31.

These ratios need to be at least 5% and 10% for most banks to be considered well capitalized. The ratios need to be at least 4% and 8% for most institutions to be considered adequately capitalized by regulators.

A day after the sell off, shares soared nearly 54 percent in Thursday trading, skyrocketing $1.92 to close at $5.49. On a normal day, Cowlitz trades about 63,500 shares trade, but on Thursday, trading volume was more than 545,000 shares.

Cowlitz is considered “critically undercapitalized” by the FDIC.

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Penny Buzz Stocks to Watch on 6/18 – CWLZ, MILV, MYSL

Friday, June 18th, 2010

Here are a few penny stocks we’re watching on Friday, June 18:

Cowlitz Bancorp. (Nasdaq: CWLZ): Shares of Cowlitz Bancorp. were up a staggering 84 percent from Thursday’s close in morning trading on Friday. Cowlitz Bancorporation operates as the holding company for Cowlitz Bank that provides a range of financial services to small and medium-sized businesses, professionals, and retail customers.

Mistral Ventures, Inc. (Pink Sheets: MILV): Shares of Mistral Ventures, Inc. were up 25 percent in morning trading on Friday. Earlier this month, Mistral Ventures announced an asset purchase agreement to buy substantially all the assets, proprietary products, licenses, and operations of telecom company, Tech World Capital, Inc., d.b.a. Tech World, Inc. for an aggregate of 940 Million restricted 144 shares in the Capital of the Company representing a change of control. The agreement between the two companies was mutually rescinded yesterday.

My Screen Mobile, Inc. (Pink Sheets: MYSL): Shares were up almost 23 percent from Thursday’s close in morning trading on Friday. My Screen Mobile, which develops mobile advertising technology platforms, yesterday announced that it completed a second stage of the financing arrangement previously announced with Global Financial Enterprises LLC. The company also recently launched its new interactive mobile advertising technology in Argentina with Claro, a large mobile communications network in those countries, and a subsidiary of America Movil S.A. de C.V. BMV: AMX(NYSE: AMX, NASDAQ: AMOV, LATIBEX: XAMXL).

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Sterling Financial Corp. (STSA) – Buzz Stock of the Day

Monday, May 24th, 2010

Shares of Sterling Financial Corp. (Nasdaq: STSA) were up as much as 33 percent today after it was announced that private-firm, Warburg Pincus would invest $139 million to support the bank’s recapitalization plan.

If the deal goes through, Warburg Pincus would own about 20 percent of Sterling’s common stock. The investment would augment last month’s announcement that Thomas H. Lee Partners (THL) of Boston will invest $134.7 million in the struggling Spokane bank if certain conditions are met.

As part of the Warburg Pincus investment, Thomas H. Lee Partners agreed to adjust the size of its previously announced proposed investment to equal the Warburg Pincus investment. Upon the closing of the recapitalization transactions, the two firms would invest a total of $278 million combined, and would hold an ownership stake of about 40% of Sterling Financial.

“We are pleased to announce Warburg Pincus as an investor in Sterling,” said Sterling’s president and CEO, Greg Seibly. “Warburg Pincus is a highly successful bank sector investor that has long-standing and deep knowledge of our company.”

Sterling Financial Corporation of Spokane, Wash., is the bank holding company for Sterling Savings Bank, a commercial bank, and Golf Savings Bank, a savings bank focused on single-family mortgage originations.

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Buzz Stock of the Day – Specialty Underwriters Alliance (SUAI)

Monday, June 22nd, 2009

Shares of Specialty Underwriters Alliance, Inc. (Nasdaq: SUAI) were up more than 57 percent today after news that insurer Tower Group, Inc. (Nasdaq: TWGP) agreed to buy Specialty Underwriters Alliance for about $107 million in stock.

The Chicago-based property and casualty insurer will be able to better leverage its distribution network and gain new access to Tower’s A- rating by A.M. Best Co., Tower Group said.

“We are pleased to join forces with Tower, which has a strong track record in acquisitions and providing meaningful value to shareholders,” said Specialty Underwriters’ president and CEO, Courtney Smith. “After a careful review of our strategic alternatives, our board has concluded that this transaction provides our shareholders with the best opportunity to enhance shareholders’ value. In addition, our affiliation with Tower will allow us to improve our profitability and take advantage of the current market opportunities by accessing Tower’s A- rating by A.M. Best Company and strong capitalization.”

For 2010, including the effects of the Specialty Underwriters transaction, Tower projects its diluted earnings per share to be in a range between $3.50 and $3.70 per diluted share.

Both Tower and Specialty Underwriters will host a conference call at 10 a.m. EST on Tuesday, June 23, 2009 to discuss the transaction.

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Buzz Stock of the Day – Tree.com (TREE)

Friday, May 1st, 2009


Shares of our Buzz Stock of the Day — Tree.com, Inc. (Nasdaq: TREE) closed almost 40 percent higher todaya fter reporting positive earnings for the first quarter of 2009.

The Charlotte-based company, is the parent of several brands and businesses in the financial services and real estate industries including LendingTree(r), LendingTree Loans(sm), GetSmart(r), Home Loan Center, RealEstate.com, iNest(r), and RealEstate.com, REALTORS(r).


Tree.com, Inc. today reported Q1 earnings of $0.32 per diluted share on revenue of $57.3 million, compared with a net loss of $1.05 per share on revenue of $70.2 million in the same period a year earlier. Revenue for Q1 2009 increased 19 percent sequentially. The company generated EBITDA of nearly $8 million in Q1.

“While we are pleased to deliver positive earnings per share and sequential quarterly improvements in revenue, we continue to benefit from a declining mortgage rate environment,” said Tree.com’ CFO, Matt Packey. “We had concerns towards the middle of Q109, as we saw rates start to tick back up, that we would have to begin spending more heavily on marketing again. However, based on what we have experienced throughout April 2009, and in seeing various market forecasts for continued low rates through the end of 2009, we do not anticipate having to significantly increase our marketing expense to drive additional volume.”

As of March 31, 2009, Tree.com had $81.4 million in cash and cash equivalents compared to $73.6 million as of December 31, 2008. The key drivers behind the increase in cash included $7.9 in EBITDA that was generated, $1.9 million of cash received from the sale of restricted common stock, $3.6 million of positive net working capital changes and a $0.2 million increase related to a decrease in restricted cash. These increases were partially offset by a $4.2 million net cash outflow related to timing of the origination and sale of loans and warehouse line activity, as well as $1.6 million outflow for acquisition payments and capital expenditures in the quarter.

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