|By PR Newswire||
|January 9, 2014 09:30 AM EST||
CHICAGO, Jan. 9, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the JPMorgan Chase & Co. (NYSE:JPM-Free Report), UBS AG (NYSE:UBS-Free Report), HSBC Holdings Plc (NYSE:HSBC-Free Report), Bank of America Corp. (NYSE:BAC-Free Report) and General Motors Company (NYSE:GM-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Madoff Suit Costs JPMorgan $2.6B
In a further resolution of its legal issues, JPMorgan Chase & Co. (NYSE:JPM-Free Report) agreed to pay nearly $2.6 billion to settle several charges pertaining to lapses in reporting suspicious activities at Bernard L. Madoff Investment Securities LLC (BLMIS). Following this announcement, the company's share price fell during intra-day trading due to negative investors' sentiments. The company's share price closed at $58.32 on Jan 7, down 1.2% from the previous day.
Madoff had accounts with JPMorgan more than two decades before being arrested in 2008 for running a Ponzi scheme that duped investors of billions of dollars. The penalty of $2.6 billion is related to the bank's settlement with various governmental regulators as well as other private parties to resolve civil litigation related to BLMIS.
As part of the settlement, JPMorgan entered in to a Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office for the Southern District of New York, under which the U.S. Attorney will defer any prosecution of JPMorgan for a two-year period. Hence, the company agreed to pay $1.7 billion to the government as a non-tax-deductible payment.
Additionally, under the terms of DPA, JPMorgan admitted the allegations leveled against it, namely its failure to maintain a proper anti-money laundering program. Further, the company violated the Bank Secrecy Act as it did not file a suspicious activity report (SAR) in the U.S. in Oct 2008 with respect to BLMIS.
Further, the Financial Crimes Enforcement Network slapped JPMorgan with a penalty of $461 million for not detecting and reporting suspicious transactions related to BLMIS. However, this amount is not required to be paid as the company is already making similar payments to the U.S. government.
Moreover, JPMorgan will pay $350 million as Civil Money Penalty to the Office of the Comptroller of the Currency (OCC) in connection with various Bank Secrecy Act/Anti-Money Laundering deficiencies.
Separately, JPMorgan will pay $325 million to the trustee appointed by the court for BLMIS. This will absolve the company of all claims that could crop up from transfers received directly or indirectly from BLMIS. Also, the company will make payments of $218 million to the class action plaintiffs for exchange for a release of all damages claims related to BLMIS. Both these settlement amounts (subject to court approvals) will be distributed to BLMIS fraud victims.
Though significantly reserved to meet the financial terms of the settlement, JPMorgan will likely be adding $400 million (pre-tax) of litigation reserve when it announces the fourth quarter results on Jan 14. Notably, the settlement will lower the company's fourth-quarter net income by $850 million as the settlement amount is non-tax-deductible.
Notably, JPMorgan had set aside nearly $9 billion to cover legal costs in the third quarter. This had led the company to report a rare loss 17 cents per share in the said quarter.
Despite having settled the Madoff case, we believe that JPMorgan's run-in with regulators and other investigation agencies will likely continue in the near term. The company continues to face roughly eight government probes. Hence, higher litigation costs continue to weigh on the company's performance, going forward.
With the announcement of this settlement, the Madoff trustee will be recovering more than $10 billion or 59% of the total amount lost, for victims. However, the trustee is still pursuing claims worth roughly $3.5 billion from UBS AG (NYSE:UBS-Free Report), HSBC Holdings Plc (NYSE:HSBC-Free Report) and UniCredit SpA, all of which have been accused of benefiting from the Madoff fraud.
GM Reports Record Sales in China
General Motors Company (NYSE:GM-Free Report) and its joint ventures witnessed an 11.4% year-over-year increase in sales in China to 3,160,377 units in 2013. The record high sales were driven by high demand for all the major brands of the automaker.
China is the largest market of General Motors. Although the demand for commercial vehicles in the nation declined in 2013, the diverse product portfolio of the company helped sustain strong growth.
The healthy sales can be attributed to record high domestic sales of 1,512,000 vehicles by Shanghai GM, up 13.6%. SAIC-GM-Wuling also achieved record high sales of 1,584,920 units in China, reflecting a 9.7% year over year increase. Meanwhile, the domestic sales of FAW-GM improved 6.3% to 59,092 vehicles.
Sales of General Motors' Buick brand surged 5.7% to 809,918 units in China. The record high sales were driven by high demand for the original Excelle family as well as Excelle XT and GT.
Chevrolet also witnessed all-time high sales of 652,077 vehicles, up 8.5% year over year. The Cruze, Sail and Malibu models of the brand generated strong sales.
Meanwhile, a 24% increase in the sales of the SRX led to historical high China sales for General Motors' Cadillac brand. Sales surged 66.6% to 50,005 units during the year. Apart from SRX, XTS also generated strong sales for the brand.
Meanwhile, Wuling and Baojun also had record high sales of 1,484,422 and 100,498 units, respectively, during the year.
Total exports to other emerging markets amounted to 83,145 units, up 7.7% over 2012. As a result, total sales of Shanghai GM, SAIC-GM-Wuling and FAW-GM amounted to 1,575,167 units, 1,603,580 units and 60,410 units, respectively.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
SOURCE Zacks Investment Research, Inc.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 28, 2017 02:45 AM EST Reads: 13,980
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Feb. 28, 2017 02:30 AM EST Reads: 1,837
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Feb. 28, 2017 02:15 AM EST Reads: 5,069
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 28, 2017 02:15 AM EST Reads: 691
Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infrastructure through automation. Ayehu solutions have been deployed by major enterprises worldwide, and currently, support thousands of IT processes across the globe. The company has offices in New York, California, and Isr...
Feb. 28, 2017 02:15 AM EST Reads: 819
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 28, 2017 02:15 AM EST Reads: 7,087
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
Feb. 28, 2017 01:45 AM EST Reads: 2,037
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Feb. 28, 2017 01:15 AM EST Reads: 2,819
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Feb. 27, 2017 11:45 PM EST Reads: 906
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Feb. 27, 2017 11:00 PM EST Reads: 9,166
Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said "No to LUNs." With Tintri they manage only virtual machines, in a fraction of the footprint and at far lower cost than conventional storage. Tintri offers the choice of all-flash or hybrid-flash platform, converged or stand-alone structure and any hypervisor. Rather than obsess with storage, leaders focus on the business app...
Feb. 27, 2017 10:15 PM EST Reads: 742
Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products and services around this fundamentally unique approach to delivering complete software release management solutions. With a combination of Addteq's services and our extensive list of partners,...
Feb. 27, 2017 10:00 PM EST Reads: 1,303
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Feb. 27, 2017 09:15 PM EST Reads: 4,178
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Feb. 27, 2017 08:00 PM EST Reads: 7,972
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
Feb. 27, 2017 07:45 PM EST Reads: 7,387