Keefe, Bruyette & Woods Reiterates Buy Rating for Tristate Capital (TSC)

Tristate Capital (NASDAQ:TSC)‘s stock had its “buy” rating restated by research analysts at Keefe, Bruyette & Woods in a research report issued to clients and investors on Friday. They presently have a $35.00 price objective on the financial services provider’s stock. Keefe, Bruyette & Woods’ price objective suggests a potential upside of 22.16% from the stock’s current price.

A number of other analysts also recently issued reports on TSC. Stephens restated a “buy” rating and set a $28.00 price target on shares of Tristate Capital in a report on Thursday. BidaskClub upgraded shares of Tristate Capital from a “hold” rating to a “buy” rating in a report on Friday, June 8th. Finally, Zacks Investment Research upgraded shares of Tristate Capital from a “sell” rating to a “hold” rating in a report on Tuesday, April 24th. Three research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus target price of $29.80.

Get Tristate Capital alerts:

Tristate Capital opened at $28.65 on Friday, according to MarketBeat Ratings. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.07 and a current ratio of 1.07. Tristate Capital has a 1-year low of $20.30 and a 1-year high of $29.00. The company has a market capitalization of $813.27 million, a price-to-earnings ratio of 23.10, a price-to-earnings-growth ratio of 1.52 and a beta of 0.38.

Tristate Capital (NASDAQ:TSC) last released its earnings results on Wednesday, July 18th. The financial services provider reported $0.40 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.37 by $0.03. Tristate Capital had a net margin of 22.41% and a return on equity of 10.91%. The business had revenue of $41.29 million for the quarter, compared to analyst estimates of $40.72 million. sell-side analysts forecast that Tristate Capital will post 1.54 EPS for the current fiscal year.

In related news, CFO David J. Demas bought 998 shares of the company’s stock in a transaction that occurred on Friday, May 25th. The stock was purchased at an average price of $25.50 per share, for a total transaction of $25,449.00. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Lovell Minnick Partners Llc sold 2,200,000 shares of Tristate Capital stock in a transaction that occurred on Friday, May 25th. The shares were sold at an average price of $25.71, for a total transaction of $56,562,000.00. The disclosure for this sale can be found here. In the last 90 days, insiders have bought 2,108 shares of company stock valued at $53,907 and have sold 4,406,000 shares valued at $113,283,000. 23.40% of the stock is owned by company insiders.

A number of institutional investors have recently bought and sold shares of the stock. IFP Advisors Inc increased its holdings in Tristate Capital by 20.0% in the 1st quarter. IFP Advisors Inc now owns 12,000 shares of the financial services provider’s stock valued at $279,000 after purchasing an additional 2,000 shares during the last quarter. Deutsche Bank AG increased its holdings in Tristate Capital by 0.6% in the 4th quarter. Deutsche Bank AG now owns 393,679 shares of the financial services provider’s stock valued at $9,051,000 after purchasing an additional 2,470 shares during the last quarter. Swiss National Bank grew its stake in shares of Tristate Capital by 7.3% in the first quarter. Swiss National Bank now owns 39,938 shares of the financial services provider’s stock worth $929,000 after acquiring an additional 2,700 shares in the last quarter. Wells Fargo & Company MN grew its stake in shares of Tristate Capital by 14.6% in the first quarter. Wells Fargo & Company MN now owns 36,823 shares of the financial services provider’s stock worth $856,000 after acquiring an additional 4,700 shares in the last quarter. Finally, Cornerstone Wealth Management LLC acquired a new position in shares of Tristate Capital in the second quarter worth $229,000. Hedge funds and other institutional investors own 60.07% of the company’s stock.

Tristate Capital Company Profile

TriState Capital Holdings, Inc operates as the bank holding company for TriState Capital Bank that provides various commercial and private banking services to middle-market businesses and high-net-worth individuals in the United States. The company operates in two segments, Bank and Investment Management.

Featured Article: Closed-End Mutual Funds

Europe prepares to hit Google with another huge fine

Europe could soon bring the hammer down on Google.

The European Commission is expected to hit the company with a massive fine over allegations that it pushed its apps on smartphone users and thwarted competitors.

The complaints �� brought by European and American rivals �� have been under investigation since 2015, and a decision will be announced Wednesday, according to multiple media reports. The European Union's top antitrust official Margrethe Vestager is scheduled to address reporters at 7 a.m. ET in Brussels.

The Commission declined to comment ahead of the press conference.

EU regulators have taken a much more adversarial approach to big tech companies than their US counterparts, especially when it comes to competition, data protection and tax issues.

Last year, Google (GOOGL) was hit with a record EU antitrust fine of ��2.4 billion ($2.8 billion) for prioritizing its shopping service over competitors in search. Apple (AAPL), Amazon (AMZN) and Facebook (FB) have also been penalized by European regulators.

The Commission has accused Google of violating antitrust rules by requiring manufacturers to install its apps on smartphones before they are sold. Regulators have also alleged that Google sought to prevent manufacturers from using alternatives to its Android operating system.

The European Union could force the tech company to change its business practices. It could also be fined as much as 10% of its annual global sales, which topped $110 billion in 2017.

Google has argued that its practices have not reduced consumer choice.

Hot Medical Stocks To Own Right Now

tags:ALLT,MOBL,EFX,SONC,

The financial news has recently been dominated by the new tax law, but so many of the columns based on questions from readers throughout the year are still relevant and timely. Here are the nine most valuable personal finance lessons based on your questions in 2017:

SEE ALSO: Test Your Retirement IQ

1. Knowing the Medicare rules and options can help you avoid penalties, fill in gaps, save money, and get the best coverage each year. I receive more questions about Medicare than anything else. Many readers are turning 65 and want to know the sign-up rules. Others continue to work past age 65 and want to make sure they aren't hit with late-enrollment penalties. See When to Sign Up for Medicare for the standard sign-up rules, and see What to Know About Enrolling in Medicare Part B if you delayed signing up past 65 because you were working. Readers also understand how important it is to get extra coverage to fill in the gaps in Medicare, whether through a medigap plan paired with a Part D prescription drug plan (to cover medical and drug expenses, respectively) or through a Medicare Advantage plan (to cover both). See When to Sign Up for Medigap and Prescription-Drug Coverage and Medicare Part D Beneficiaries May Pay Less for Prescriptions in 2018. If you have Medicare Advantage, you can switch plans during open enrollment every year; you may have opportunities to change plans at other times, too. See How to Change Your Medicare Advantage Plan Outside of Open Enrollment.

Hot Medical Stocks To Own Right Now: Allot Communications Ltd.(ALLT)

Advisors' Opinion:

• [By Joseph Griffin]

  IBM (NYSE: IBM) and Allot Communications (NASDAQ:ALLT) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

• [By Max Byerly]

  Allot Communications (NASDAQ:ALLT) will be posting its quarterly earnings results before the market opens on Tuesday, May 8th. Analysts expect Allot Communications to post earnings of ($0.10) per share for the quarter.

• [By Shane Hupp]

  Allot Communications (NASDAQ: ALLT) and Extreme Networks (NASDAQ:EXTR) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Hot Medical Stocks To Own Right Now: MobileIron, Inc.(MOBL)

Advisors' Opinion:

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on MobileIron (MOBL)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Keith Noonan]

  Shares of MobileIron (NASDAQ:MOBL) have climbed 14.1% during the first six months of 2018, according to data provided�S&P Global Market Intelligence. The company's most dramatic movement stemmed from its fourth-quarter earnings report in February. However, the market was less pleased with its first-quarter results in April and shares have given up ground.

• [By Shane Hupp]

  Mobileiron (NASDAQ: MOBL) and Nutanix (NASDAQ:NTNX) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Hot Medical Stocks To Own Right Now: Equifax, Inc.(EFX)

Advisors' Opinion:

• [By Ethan Ryder]

  Here are some of the news articles that may have impacted Accern Sentiment Analysis’s rankings:

  Get Equifax alerts: Why Is Equifax (EFX) Down 3.4% Since its Last Earnings Report? (finance.yahoo.com) Equifax to Attend the Cowen 46th Annual Technology, Media & Telecom Conference in New York City (finance.yahoo.com) Credit freezes will be free, thanks to banking deregulation law and Equifax changes (rssfeeds.usatoday.com) Equifax (EFX) Data Shows Private Label Credit Card Delinquency Rates Up 57 Basis Points, Highest Since 2011 (streetinsider.com) Equifax Inc. (EFX) Given Consensus Rating of “Hold” by Brokerages (americanbankingnews.com)

  Shares of Equifax traded up $0.55, hitting $115.21, during trading on Friday, Marketbeat Ratings reports. The stock had a trading volume of 360,176 shares, compared to its average volume of 1,087,000. The firm has a market capitalization of $13.92 billion, a PE ratio of 19.30, a price-to-earnings-growth ratio of 2.44 and a beta of 0.94. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.52. Equifax has a 12 month low of $89.59 and a 12 month high of $147.02.

• [By Money Morning News Team]

  In just the first six months of 2017, there were 230% more data breaches in the United States than the prior year. Some of the major U.S. companies that experienced breaches include Verizon Communications Inc. (NYSE: VZ), Microsoft Corp. (Nasdaq: MSFT), and Equifax Inc. (NYSE: EFX).

• [By Chris Lange]

  The stock posting the largest daily percentage gain in the S&P 500 ahead of the close was Equifax Inc. (NYSE: EFX) which rose 6% to $124.70. The stock��s 52-week range is $89.59 to $147.02. Volume was 2.6 million compared to the daily average volume of 1 million.

Hot Medical Stocks To Own Right Now: Sonic Corp.(SONC)

Advisors' Opinion:

• [By Stephan Byrd]

  Darden Restaurants (NYSE: DRI) and Sonic Drive-In (NASDAQ:SONC) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on Sonic Drive-In (SONC)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Dan Caplinger]

  The stock market was mixed on Thursday, with strength for the Dow Jones Industrial Average standing in contrast to weakness among the key technology stocks in the Nasdaq Composite. For the most part, those impacts canceled each other out for the broader market, with the�S&P 500 showing only minimal changes from yesterday's levels. The volatility shows that investors generally have some uncertainty about the future direction of the market, but some stocks managed to post substantial gains. Camping World Holdings (NYSE:CWH), Axovant Sciences (NASDAQ:AXON), and Sonic (NASDAQ:SONC) were among the best performers on the day. Here's why they did so well.

• [By Jonathan Schonfeld]
  The Chinese stock market has entered bear market territory. The Shanghai Composite is off more than 20% since January. Ongoing concerns about the nation's economic growth and a large-scale trade war with the United States have weighed on investor sentiment. This morning, U.S. Treasury Secretary Steven Mnuchin attempted to alleviate concerns about the ongoing selloff by rolling back statements on the nation's intention to limit domestic Chinese investment. Gold prices�took a beating last week, but sentiment may have finally hit an intermediate-term bottom – and it could make this moment one of the best buying opportunities you'll see. Money Morning Resource Specialist Peter Krauth explains why now is the time to buy gold. Canada is in the process of legalizing weed, and that's opening the floodgates for billions of dollars to flow into the industry. On June 19, the Canadian Senate voted to legalize recreational marijuana use. By Oct. 17, Canadian Prime Minister Justin Trudeau wants recreational sales to start, according to�CBS. Here's how you can profit from this event. Three Stocks to Watch Today: GE, BHGE, HOG General Electric Co.�(NYSE: GE) stock popped 5.5% after the company announced a series of spin-off plans on Tuesday. The company said that it will divest its GE Healthcare business and sell its stake in oilfield services giant Baker Hughes Co.�(NYSE: BHGE). General Electric, which was recently dropped from the Dow Jones Industrial Average, will now focus exclusively on its aviation, power, and renewable energy businesses. Harley Davidson�Inc. (NYSE: HOG) is taking criticism from President Trump. The company recently said it will be moving some of its U.S. production abroad due to tariffs from the European Union. The iconic motorcycle giant had previously said that tariffs would add an additional $2,200 in cost to every motorcycle that it sold. Trump threatened the company earlier today, stating that if it moves operations over sea, "they
• [By Logan Wallace]

  Sonic Drive-In (NASDAQ:SONC) was downgraded by equities research analysts at ValuEngine from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.

• [By Joseph Griffin]

  Shares of Sonic Drive-In (NASDAQ:SONC) hit a new 52-week high and low during mid-day trading on Thursday . The stock traded as low as $33.82 and last traded at $33.29, with a volume of 35358 shares trading hands. The stock had previously closed at $33.63.

The trade war is making 1,300 products more expensive

Businesses and consumers beware. Washington put tariffs on $34 billion worth of Chinese goods on Friday, and Beijing immediately responded with penalties of an equal scale.

The cost of the new tariffs can be found in the roughly 1,300 individual products that have suddenly become more expensive.

The additional taxes will ripple through supply chains, forcing companies in both countries to decide whether to take a financial hit themselves or pass it along to consumers. If demand drops, jobs will be in jeopardy.

Here are some of the goods in the firing line.

US goods hit by Chinese tariffs

Poultry �� Frozen beef �� Fresh or cold pork �� Dried, smoked or salted pork belly �� Frozen chicken nuggets �� Frozen whole duck

Fruit and vegetables �� Farming potatoes �� Mushrooms �� Truffles �� Apples �� Cherries �� Avocados

An avocado hangs from a tree at a farm in Pauma Valley, California.

Dairy products �� Butter �� Cream �� Yogurt

Fish �� Frozen red salmon �� Frozen mackerel �� Frozen yellowfin tuna

Seafood �� Frozen squid �� Lobster �� Canned shark fin �� Octopus �� Sea urchins

Tobacco �� Tobacco cigarettes �� Tobacco cigars �� Unstemmed tobacco

Pet food �� Canned cat food �� Canned dog food

Beverages �� Whiskey �� Modified ethanol �� Non-frozen orange juice with less than 20% sugar

Vehicles �� Some passenger cars �� Some small passenger cars �� Some off-road vehicles

Chinese goods hit by US tariffs

Vehicles �� Some motor vehicles with diesel engines �� Some motor vehicles with electric motors �� Some motorcycles, including mopeds �� Helicopters �� Some airplanes and other powered aircraft �� Airplane parts �� Ferry boats and cruise ships

Spacecraft and technology �� Spacecraft launch vehicles �� Communication satellites

Industrial machinery �� Nuclear reactors �� Chassis fitted with engines for some vehicles �� Hydraulic turbines �� Machines for sorting fruit or other agricultural produce �� Metal-rolling mills �� Molds for glass, rubber or plastics �� Railway track fixtures �� Electric welding apparatus

A worker welds steel at an offshore oil engineering company in Qingdao, China on Dec. 1, 2016.

Medical devices �� Pacemakers �� X-ray generators �� UV apparatus �� Anesthetic instruments �� Optical instruments

Other �� Parts of equipment for checking semiconductor devices �� Some microscopes and telescopes �� Seismographs

-- Serenitie Wang contributed to this report.

SEC Issues FCPA Charges Against Credit Suisse

The U.S. Securities and Exchange Commission (SEC) recently announced that Credit Suisse Group will pay roughly $30 million to resolve charges. Essentially, these charges are in regards to it obtaining investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of Foreign Corrupt Practices Act (FCPA).

According to the SEC��s order, several senior Credit Suisse managers in the Asia-Pacific region sought to win business by hiring and promoting individuals connected to government officials as part of a quid pro quo arrangement.

While this practice bypassed the firm��s normal hiring process, employees in other Credit Suisse subsidiaries and affiliates were aware of it and in some instances approved these ��relationship hires�� or ��referral hires.��

Over the course of a seven-year period, the SEC found that Credit Suisse hired more than 100 employees at the request of foreign government officials, resulting in millions of dollars of business revenue.

Credit Suisse agreed to pay disgorgement of $24.9 million, plus $4.8 million in interest, to settle the SEC��s case. Separately, Credit Suisse also agreed to pay a $47 million criminal penalty to the U.S. Department of Justice.

Charles Cain, chief of the SEC Enforcement Division��s FCPA Unit, commented:

Bribery can take many forms, including granting employment to friends and relatives of government officials.� Credit Suisse��s practice of engaging in these hiring practices violated the law, and it is now being held to account for having done so.

24/7 Wall St.
Merrill Lynch Issues Top 8 US Stock Ideas for Q3 2018

Chesapeake's Completions Designs Are Reinventing The Company

Chesapeake Energy (CHK) could be representing significant value at current levels, despite being up over 100% for the year. CHK has battled numerous issues in the past few years, but seems to have reinvented itself through a step change in innovative completions techniques and financial discipline. As a result, CHK could be on the verge of a real turnaround, and investors who have been loyal throughout the downturn may finally be seeing some reward.

Chesapeake Snapshot

Trading at under 5x earnings (snapshot below), CHK is a steal at current share prices. When factoring in production growth of 11% quarter over quarter, CHK��s 5x multiple is more than a fair price to pay for earnings.

Source: E*TRADE

The 11% production growth has been attributed to innovations in completions techniques, such as pad drilling, longer laterals, reduced drilling times, and slim hole casing designs (reducing the hole and casing sizes for each hole interval).

Some wells, like the Sundquist 9 (below), are even averaging more than 500 barrels of oil after the first year of production. Most short cycle plays experience significant drop-offs in production after a year.

Source: Chesapeake Energy

So, since most wells cannot produce these kinds of numbers after a year, CHK may have actually unlocked a game-changing technique for short cycle economics, and the oil and gas industry, as a whole.

Bossier Showing Economics Similar To Haynesville

Aside from other high growth areas that CHK is benefitting from, like the Marcellus, Powder River, and Eagle Ford basins, the Bossier in Louisiana is producing excellent results.

Laterals are being started at 10,000 feet in the Bossier, and sand pumped has reached a staggering 4,000 pounds per lateral foot. Again, these techniques are learnings being applied from the Haynesville, just north of the Bossier, where a 15,000 foot lateral was recently drilled.

Source: Chesapeake Energy

If the 15,000 foot lateral is successful in the Haynesville, those teachings can be transferred to the Bossier for eventual lateral extensions, as well (seen above).

Haynesville A Working Model For Utica

Similar to the way that learnings can be applied from the Eagle Ford to the Austin Chalk by a company like EOG Resources (EOG), Chesapeake is applying learnings from the Haynesville and Eagle Ford to new completions programs in their Utica plays.

We have changed some of the landing within the Utica. We are drilling longer laterals in the Utica. We have upspaced in the Utica, because we believe that we're effectively stimulating more rock and don't need the tight spacing.

Source: Chesapeake Energy

In fact, CHK��s outperformance in the Utica has been due to both the drilling and completion sides of the company pushing the envelope. On the drilling side, CHK focused on redesigning casing strings and lowering times to drill. On the completion side of the company, CHK experimented with pumping different fluids and using more sand, up to 33% more, in fact, which was successful in the Haynesville.

Financials Shaky But Troughing

A first glance at Chesapeake��s financials are enough to make investors run for the hills. The company has more total liabilities than total assets, which is definitely a red flag. Debt levels also stand at over $9 billion, which is twice more than CHK��s market cap.

Source: E*TRADE

However, free cash flow did come in at $609 million, which allowed CHK to materially pay down debt by $581 million. With 100 wells expected to be popped next quarter, compared to 60 last quarter, cash flow could be almost double, which could be used to pay down additional debt.

While debt levels may be burdensome, CHK is proving they can make stellar returns with oil prices at current levels, judging by their cash flow statement below. As investors can see, income has turned positive again after the downturn experienced during 2014-2016.

Source: E*TRADE

Net income levels have reached pre-crash levels again, mainly because breakevens have fallen from $70 per barrel, pre-crash, to around $35 per barrel in 2018, due to the improvements in completions designs stated above. Just to get an idea of the efficiencies gained, a four-rig program in today��s operational landscape can do the same job that a ten-rig program could do in years past.

Differentials A Non-Factor

Last but not least, Chesapeake is even seeing improved differentials, despite their solid growth in oil and gas volumes, which should shield the company from any future bottleneck risks. In addition, 63% of nat gas production is hedged at $2.96 per mcf, and 78% of all remaining oil volumes have been hedged at $53.78.

Source: Chesapeake Energy

Chesapeake even took advantage of the recent spike in oil prices to hedge more than 11 million barrels of oil in 2018 at over $57 per barrel. So, while Chesapeake is not unhedged like Continental (CLR), earnings should be less volatile next year, should oil prices decide to take a dive.

Analysts Consensus

Analysts are not very bullish on Chesapeake, at the moment. Understandably so, debt numbers are so high that it wouldn��t take much in the way of interest rates rising or oil prices falling to derail CHK��s fragile recovery.

Source: E*TRADE

However, if completions results can perform consistently, and efficiencies can continue to be realized from higher production, then revenues can continue to increase at a steady enough rate to grow the company while still paying down debt.

Conclusion

Even after being up over 100% for the year, Chesapeake is still trading at an attractive valuation. Due to a breakthrough in completions designs using pad drilling, more sand per lateral foot, less string casing, and longer laterals, CHK is in the midst of a turnaround and should be driving record production for the foreseeable future.

Strong hedges and improved differentials should also reduce volatility going forward for CHK, and cash flows being generated at current WTI prices should be enough for the company to retire debt in a meaningful way. As a result, investors who have stayed patient throughout the downturn could finally be rewarded for their wait.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.