New York’s AG Takes on Bank of America, Humana Grabs an Upgrade, and 3 More Hot Stocks
Bank of America (NYSE:BAC): New York Attorney General Eric Schneiderman is gearing up to sue Bank of America, as well as Wells Fargo (NYSE:WFC), over violations to the multi-billion mortgage settlement. Schneiderman maintains that the banks “repeatedly violated” the terms of the $26 billion fiasco, which was brokered last year between five of the nation’s biggest banks and 49 state attorneys general over foreclosure abuses.
Humana Inc. (NYSE:HUM): JPMorgan (NYSE:JPM) has upgraded shares of Humana from Neutral to Overweight, while simultaneously raising the price target from $88 to $91 following a strong report from the last quarter. ”What’s a reasonable [minimum] return on invested capital metric that we should think about for the Medicare Advantage business?” analyst Justin Lake asked on the call. Thirteen percent “is the number that it is today [and] we expect to improve on it, but not in a predictive sense,” was management’s response.
Cliffs Natural Resources (NYSE:CLF): Shares are running hot following an upgrade from FBR Capital, which determined that “the company has multiple levers to pull including (1) reducing expenses by curbing spending on chromite; (2) scaling back 2014 capex; (3) reducing operating costs in Canadian business; and (4) monetizing assets to boost liquidity, if needed.” U.S. operations are well positioned to withstand potentially higher domestic supply, and recent trends in China are supportive of iron ore imports, the firm noted.
BMC Software (NASDAQ:BMC): The software maker has reached an agreement to be purchased with Bain and Golden Capital, which will jointly take ownership of the company for $6.9 billion, a two percent premium on the company’s stock valuation. Elliot Associates, an activist investment firm with a 9.6 percent stake in BMC, is supporting the deal.
Rio Tinto (NYSE:RIO): Threats are being made by unions representing coal workers for “imminent industrial action,” as tensions between the unions and Port Waratah Coal Services continue to heat up. Rio Tinto, as a large stakeholder in Waratah, could face growing challenges as the terminal handles more than 105 million metric tons of coal annually at its facilities.
Investing Insights: Could Coca-Cola Be Facing a Slowdown?