Sunday, July 13, 2014

Top 5 Industrial Disributor Companies To Buy For 2014

Although we always recommend that investors maintain a highly diversified portfolio, two of our latest featured ideas are in the oil sector; one is a refiner and the other is an oil shipper, notes value investor John Buckingham, editor of The Prudent Speculator.

HollyFrontier (HFC) is one of the largest independent petroleum refiners in the US, with operations throughout the Midwest, Southwest, and Rocky Mountain regions.

Through five complex refineries (which allows Holly to process lower cost heavy sour crude into a higher percentage of fuel), its subsidiaries produce and market gasoline, diesel, jet fuel, asphalt, heavy products, and specialty lubricant products.

We like that its refineries are in good locations, with relatively easy access to multiple pipeline networks, and that it sells its products in some of the fastest growing markets in the country.

We believe the combination of refinery complexity, crude flexibility, and growth markets gives HFC strong competitive advantages.

Top 5 Clean Energy Companies To Invest In Right Now: CNA Financial Corp (CNA)

CNA Financial Corporation (CNAF), incorporated in 1967, is an insurance holding company. The Company�� core business commercial property and casualty insurance operations operate in two segments: CNA Specialty and CNA Commercial. Its non-core businesses are managed in two business segments: Life & Group Non-Core and Corporate & Other Non-Core. The Company�� insurance products primarily include commercial property and casualty coverages, including surety. Its services include risk management, information services, and warranty and claims administration. Its products and services are marketed through independent agents, brokers and managing general underwriters to a wide variety of customers, including small, medium and large businesses, associations, professionals and other groups. CNA's property and casualty and remaining life and group insurance operations are primarily conducted by Continental Casualty Company (CCC), The Continental Insurance Company, Western Surety Company and Continental Assurance Company (CAC). On June 10, 2011, CNA completed the acquisition of CNA Surety Corporation. In July 2012, the Company acquired Hardy Underwriting Bermuda Ltd. On December 14, 2012, the Company sold SUR Insurance Agency, Inc. and The Bond Exchange to California Contractors Insurance Services.

CNA Specialty

CNA Specialty provides professional and management liability and other coverages through property and casualty products and services, both domestically and abroad, through a network of brokers, independent agencies and managing general underwriters. CNA Specialty provides solutions for managing the risks of its clients, including architects, lawyers, accountants, health care professionals, financial intermediaries and public and private companies. Product offerings also include surety and fidelity bonds and warranty services.

CNA Specialty includes four business groups: Professional & Management Liability, International, Surety, and Warranty and Alternative Risks! . Professional & Management Liability provides management and professional liability insurance and risk management services and other specialized property and casualty coverages in the United States. This group provides professional liability coverages to various professional firms, including architects, real estate agents, small and mid-sized accounting firms, law firms and technology firms. Professional & Management Liability also provides D&O, employment practices, fiduciary and fidelity coverages. Products within Professional & Management Liability are distributed through brokers, agents and managing general underwriters. Professional & Management Liability, through CNA HealthPro, also offers insurance products to serve the healthcare delivery system. Products include professional liability and associated standard property and casualty coverages, and are distributed on a national basis through brokers, agents and managing general underwriters. Customer segments include long term care facilities, allied health care providers, life sciences, dental professionals and mid-size and large health care facilities.

International provides similar management and professional liability insurance and other specialized property and casualty coverages in Canada and Europe. Surety consists primarily of CNA Surety Corporation (CNA Surety) and its insurance subsidiaries and offers small, medium and large contract and commercial surety bonds. CNA Surety provides surety and fidelity bonds in all 50 states through a combined network of independent agencies.

Warranty and Alternative Risks provides extended service contracts and related products that provide protection from the financial burden associated with mechanical breakdown and other related losses, primarily for vehicles and portable electronic communication devices. These products are distributed through and administered by a wholly owned subsidiary, CNA National Warranty Corporation, or through third party administrators.

! CNA Comme! rcial

CNA Commercial works with an independent agency distribution system and a network of brokers to market a range of property and casualty insurance products and services to small, middle-market and large businesses and organizations domestically and abroad. Products include standard and excess property coverages, as well as marine coverage, and boiler and machinery. Casualty products include standard casualty insurance products such as workers��compensation, general and product liability, commercial auto and umbrella coverages. It also offers pecialized loss-sensitive insurance programs to those customers viewed as higher risk and less predictable in exposure.

The Business insurance group serves smaller commercial accounts and the Commercial insurance group serves middle markets and larger risks. In addition, CNA Commercial provides total risk management services relating to claim and information services to the insurance marketplace, through a wholly owned subsidiary, CNA ClaimPlus, Inc., a third party administrator. The International insurance group primarily consists of the commercial product lines of its operations in Europe, Canada, as well as Hawaii.

CNA Select Risk (Select Risk) includes excess and surplus lines coverages. Risk provides specialized insurance for selected commercial risks on both an individual customer and program basis. Select Risk�� products are distributed throughout the United States through specialist producers, program agents and brokers.

Life & Group Non-Core

The Life & Group Non-Core segment includes the results of the life and group lines of business that are in run-off. It retains block of group reinsurance and life settlement contracts.

Corporate & Other Non-Core

Corporate & Other Non-Core primarily includes certain corporate expenses. This also includes interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re and ! A&EP.

Advisors' Opinion:
  • [By Lauren Pollock var popups = dojo.query(".socialByline .popC"); popups.forEach]

    Loews Corp.(L) and CNA Financial Corp.(CNA) each posted a decline in first-quarter profit related to the pending sale of an annuity and pension business. Loews, controlled by the Tisch family, owns 90% of CNA, which usually contributes nearly two-thirds of Loews’ top line.

Top 5 Industrial Disributor Companies To Buy For 2014: Euler Hermes SA (ELE)

Euler Hermes SA is a France-based credit insurance company. It offers a range of services, including loan assurance, risk assessment, trade debt collection, compensation of losses due to buyer insolvency, bonding and guarantees for companies, reinsurance of loans to individuals and fidelity insurance covering companies against financial loss caused by fraudulent acts. It operates a number of subsidiaries, including Euler Hermes SFAC, Euler Hermes ACI Holding Inc., Euler Hermes Reinsurance AG, among others. On January 1, 2012, the Company completed the simplification of its legal structure in Europe by grouping 13 of its former subsidiaries into one insurance company, Euler Hermes Europe, located in Brussels. Advisors' Opinion:
  • [By Sarah Jones]

    Iberdrola SA (IBE), Spain�� biggest power company, fell 3.4 percent to 3.87 euros. Endesa SA (ELE) slumped 4.6 percent to 16 euros, while Acciona SA (ANA), which owns more than 4 gigawatts of wind farms in the country, tumbled 8.5 percent to 37.95 euros. Red Electrica Corp. slid 7.5 percent to 38.34 euros.

Top 5 Industrial Disributor Companies To Buy For 2014: Trico Bancshares (TCBK)

TriCo Bancshares (TriCo), incorporated on October 13, 1981, is a bank holding company that operates through its wholly owned subsidiary, Tri Counties Bank (the Bank). The Bank conducts a commercial banking business, including accepting demand, savings and time deposits, and making commercial, real estate and consumer loans. It also offers installment note collection, issues cashier's checks, sells travelers checks, and provides safe deposit boxes and other customary banking services. Brokerage services are provided at the Bank's offices by the Bank's association with Raymond James Financial Services, Inc., an independent financial services provider and broker-dealer. The Bank does not offer trust services or international banking services. Tri Counties Bank, TriCo Capital Trust I and TriCo Capital Trust II are the subsidiaries of the Bank. On September 23, 2011, the Bank acquired Bank of Northern California.

The Company is engaged in the banking business through 68 offices in 23 counties in Northern and Central California including ten offices in Shasta County, nine in Butte County, seven in Sacramento and Nevada Counties, six in Placer County, four in Stanislaus County, three each in Siskiyou, Sutter and Kern Counties, two each in Glenn and Yolo Counties, and one each in Contra Costa, Del Norte, Fresno, Lake, Lassen, Madera, Mendocino, Merced, Napa, Tehama, Tulare, and Yuba Counties. The Bank�� 76 automated teller machines (ATMs) are linked to several national and regional networks, such as CIRRUS and STAR. In addition, banking by telephone on a around-the-clock toll-free number is available to all customers. This service allows a customer to obtain account balances and most recent transactions, transfer moneys between accounts, make loan payments and obtain interest rate information. The Bank emphasizes on retail banking. Most of the Bank's customers are retail customers and small to medium-sized businesses. The Bank emphasizes serving the needs of local businesses, farmers and ranche! rs, retired individuals and wage earners.

Lending activities

The Bank conducts a commercial banking business, including accepting demand, savings and time deposits and making commercial, real estate, and consumer loans. It also offers installment note collection, issues cashier�� checks, sells travelers checks and provides safe deposit boxes and other customary banking services. Brokerage services are provided at the Bank�� offices by the Bank�� association with Raymond James Financial Services, Inc., an independent financial services provider and broker-dealer. The Bank concentrates its lending activities in four principal areas: real estate mortgage loans (residential and commercial loans), consumer loans, commercial loans (including agricultural loans), and real estate construction loans. The majority of the Bank�� loans are direct loans made to individuals, farmers and local businesses.

As of December 31, 2011 loans, including net deferred loan costs, totaled $1,551,032,000. As of December 31, 2011, total Real estate mortgage loans net deferred loan costs, were $ 965,922,000; total consumer loans were $ 406,330,000; total commercial loans were $ 139,131,000, and real estate construction loans were $ 39,649.

Investment Activities

The Bank classifies its investments as available for sale (AFS). As of December 31, 2011, investments consisted of corporate debt and debt securities of the United States government. As of December 31, 2011, the Bank�� securities portfolio consisted of obligations of the United States Government corporations and agencies, obligations of states and political subdivisions, and corporate bonds.

Sources of Funds

Most of the Bank's deposits are attracted from individuals and business-related sources. The various types of deposits offered by the Bank include non-interest-bearing demand deposits, interest-bearing demand deposits, savings deposits, time certificates of $100,000 and o! ver, and ! other time certificates. As of December 31, 2011, the Bank�� deposits totaled $ 2,190,536. The Bank participates in a deposit program offered by the State of California whereby the State may make deposits at the Bank�� request subject to collateral and creditworthiness constraints.

The Company had $8,527,000 of other collateralized borrowings as of December 31, 2011. The Company maintains a collateralized line of credit with the Federal Home Loan Bank of San Francisco. Other collateralized borrowings are generally overnight maturity borrowings from non-financial institutions that are collateralized by securities owned by the Company. The Bank had available unused correspondent banking lines of credit from commercial banks totaling $5,000,000 for federal funds transactions as of December 31, 2011.

Advisors' Opinion:
  • [By Rich Duprey]

    California-based�TriCo Bancshares (NASDAQ: TCBK  ) announced today its second-quarter dividend of $0.11 per share, a 22% increase over the $0.09 per share payout it made last quarter.

Top 5 Industrial Disributor Companies To Buy For 2014: First Advantage Bancorp(FABK)

First Advantage Bancorp operates as the holding company for First Federal Savings Bank that provides various financial services to individuals and businesses in Tennessee. The company offers various deposit products comprising non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts, including NOW and money market accounts; regular savings accounts; and certificates of deposit. Its loan portfolio include real estate mortgage loans, including one-to-four family residential loans and nonresidential real estate loans; construction loans for one-to-four family homes, commercial, multi-family, and other nonresidential purposes; land loans for developing vacant land; consumer loans consisting primarily of home equity loans; and commercial business loans secured by equipment, inventory, or accounts receivable to small businesses. As of June 10, 2010, the company operated five full-service offices in Montgomery County. First Advantage Banco rp was founded in 1953 and is headquartered in Clarksville, Tennessee.

Advisors' Opinion:
  • [By Tim Melvin]

    PL Capital has not filed any 13Ds in a couple of months, but earlier this year it disclosed a 5.99% position in shares of First Advantage Bancorp (FABK). The Clarksville, Tenn.-based bank has seven branches and trades at about 75% of book value. PL Capital also filed a 13D announcing 8% ownership of Mutual First Financial (MFSF) over the summer. The bank has 31 branches and is based in Muncie, Ind. — an area that has seen substantial consolidation in the past few years.

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