Insiders' Blog

Google (GOOG) Mulling Development of Consumer Home Entertainment System Feb 9, 2012 03:54PM

Google (Nasdaq: GOOG) said to be in the works for a consumer home entertainment system. Headlines come from the WSJ.

Manulife (MFC) Said to Set Up Unit for HNW Canadians Feb 9, 2012 03:50PM

Manulife Financial (NYSE: MFC) is trading lower amid reports it will set up a High Net Worth unit for Canadians. Manulife has since confirmed the WSJ headline.

Shares are down about 2 percent on the session.

Hasbro (HAS) Moves Higher Following Exclusive Partnership with Zynga (ZNGA) Feb 9, 2012 03:47PM

Between Hasbro and Zynga (Nasdaq: ZNGA), who expected to make out better with the new, exclusive distribution agreement? If investor sentiment in anything, Hasbro is the winner.

Shares are up nearly 3 percent on the session and moved sharply higher following the announcement, whereas Zynga has given back most of the gains following the release.

Signs of Improving Fundamentals, Demand Shift Spur Renewed Investor Interest in Solar Sector (TAN) Feb 9, 2012 03:20PM

Solar stocks are continuing higher Thursday as word from a number of sources has recently hinted at renewed interest in the industry -- specifically within the Chinese market. In addition to improving fundamentals, prospects for upcoming favorable policy shifts seem to be another major driver of the move.

The Claymore/MAC Global Solar ETF (NYSE: TAN) is up nearly 10 percent this afternoon, extending a nearly 5 percent increase in the fund on Wednesday.

A note from Deutsche Bank's Vishal Shah Thursday morning highlighted some factors which point at a pick-up in demand:

• Utilization rates are improving;
  
• PV prices could further increase in February;
  
• Multiple markets are showing similar signs of increased demand;
  
• Tier 1 companies in China, Taiwan, Korea are all seeing increased bookings momentum, and are running at full capacity;
  
• Downstream companies in Europe are also seeing increasing orders and are looking to accelerate orders by paying extra for air freight.

Shah said checks indicate German end customers are seeing such strong demand that they've nearly run out of rooftops to put panels on. "Some leading developers plan to increase installation levels in Germany by 30 percent YoY in 2012 and individual households also consider the current FiT levels attractive enough to initiate new installations (note that individuals also get 50 percent tax deduction on top of FiT). Discussions with industry participants suggest that although several proposals including a hard cap are being considered, a final resolution by April is unlikely," according to Shah. The analyst sees upside to his 3.5-gigawatt installation forecast for the German market.

Shah noted some Korean companies which have seen increased demand in the U.S. ahead of the solar grant program expiration: "...under the current cash grants provision, installers are required to purchase 5 percent of the product before Dec 31st in order to receive the grant. US installers have 105 days to receive product for which payment was made as of Dec 31st and as such the current production related rush from the US could continue until late Feb/early Mar."

Shah also pointed to upcoming talks between the White House and China. The analyst believes CEOs' from several Tier 1 Chinese solar companies appearing at the the discussions -- a recent unconfirmed rumor -- would be a positive. Shah's comments seem to suggest the CEOs' involvement could be a precursor to further solar policy development in China, with PV and Tier 1 solar companies to benefit.

Separately, a larger Norwegian solar company, Renewable Energy Corp., issued similar comments with its fourth-quarter earnings release late Wednesday. The company said demand is shifting from Europe to the U.S. and Asian markets. The company also noted the Chinese government is expected to double solar installations this year and set tariffs on developers and manufacturers aimed at shifting to solar power.

On January 11th, China's National Energy Administration website said China plans to develop 3-GW of solar capacity in 2012, though some speculate that number could increase to 4-GW before all is said and done.

Just about every solar out there is moving Thursday on the reports. Solars in the Chinese market are leading the way.

• Trina Solar (NYSE: TSL) - up about 26 percent on the session;
• Yingli Green Energy (NYSE: YGE) - up 19 percent;
  
• LDK Solar (NYSE: LDK) - up 13 percent;
  
• Suntech Power (NYSE: STP) - up 11 percent;
  
• JA Solar (Nasdaq: JASO) - up about 12 percent;
  
• Renesola (NYSE: SOL) - up about 12 percent; and
  FSLR) - up 8 percent.

Bove is Furious Over $25B Mortgage Settlement (BAC) (JPM) (WFC) (C) Feb 9, 2012 01:37PM

The five-largest U.S. banks entered into a settlement with the U.S. Attorney General Eric Holder, Department of Housing and Urban Development (HUD) Secretary Shaun Donovan, Iowa Attorney General Tom Miller and Colorado Attorney General John W. Suthers Thursday over "mortgage loan servicing and foreclosure abuses."

The five banks -- Bank of America (NYSE: BAC), Ally Financial, Wells Fargo (NYSE: WFC), J.P. Morgan Chase (NYSE: JPM), and Citigroup (NYSE: C) -- will pay about $25 billion in the deal.

Rochdale Securities analyst Richard Bove commented in a Bloomberg interview about the deal. To put it short, he's fuming. The following is a brief synopsis of Bove's comments:

• Banks have already set aside funds for a potential settlement like this, so there should be minimal financial impact.
  
  
• BofA is said to have put away about $8 billion ahead of the call.
  
  
• Mortgages have already been largely written down or written off.
  
  
• No immediate impact should happen since the settlement will take place over a period of time.
  
  
• He thinks the deal was "made in Hell," or worse.
  
  
• In the deal, Bove says those actually paying their mortgage will get screwed two ways. First, their neighbor who hasn't been paying their mortgage -- who may have been banking whatever money they've been making -- will have the total value of their mortgage written down. The person who is paying is losing money on actually paying their mortgage instead of putting it in the bank. Next, the value of the person's home who has been paying will have gone down because of the lower property value their neighbor's home now boasts.
  
  
• There will still be headline risk for banks -- particularly BofA -- since the U.S. Attorney General is sketching up another lawsuit over securitization irregularities.
  
  
• Bove jokingly believes Obama and AG Holder have set up a specific office to continuously create lawsuits against the banks.
  
  
• He noted a quote from J.P. Morgan CEO Jamie Dimon, who said his institution is facing about 10,000 lawsuits at any given time.
  
  
• Expectations are for banks to set aside about $2 billion per quarter in litigation fees.