Wells Fargo Eyes Jet Financing Market and 4 Hot Stocks Sparking Chatter
Walmart (NYSE:WMT): Current Price $68.91
‘Walmart on Campus’ is the name of a new tiny store footprint that the giant retailer is testing on the premises of the Georgia Institute of Technology. The second in its test series of ultra-small stores that cater to the needs of students, Walmart’s (NYSE:WMT) Georgia college store will be just 2,500 square feet in size and stock merchandise such as some groceries, convenience and general non-food items, health and beauty products, a pharmacy and a financial services center. The large format stores remain the company’s engine for growth said a Walmart spokesman, but the smaller stores reflect the chain’s more flexible approach to communities.
Morgan Stanley (NYSE:MS): Current Price $22.15
Morgan Stanley (NYSE:MS) reported fourth quarter EPS (excluding DVA) of $0.45 and revenue (excluding DVA) of $7.5 billion, beating estimates by $0.15 and $0.48 billion respectively. The results for the quarter include a negative revenue of $511 million (positive revenue of $216 million last year) relating to Debt Valuation Adjustment. The Global Wealth Management Group earned pre-tax margins of 17%. The Institutional Securities unit saw strong performance in investment banking, equity sales and trading, though fixed income and commodities sales and trading saw a decline. The Asset Management business reported assets under management of $338 billion and net revenues of $599 million.
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Wells Fargo & Co. (NYSE:WFC): Current Price $34.67
Wells Fargo & Co. (NYSE:WFC) plans to make a splash in the $100 billion-a-year commercial jet financing market and disclosed plans to start its own aircraft leasing company. A year ago, Wells Fargo failed to acquire the aircraft leasing unit of the Royal Bank of Scotland (NYSE:RBS), being outbid by three Japanese institutions who agreed to pay $7.3 billion for the business. For the new venture in which it will own a majority stake, Wells Fargo is tying up with Irish aircraft lessor Avolon to set up a fleet of 10 new jets valued approximately $500 million that will be bought from airlines and leased back to them.
Anheuser-Busch InBev (NYSE:BUD): Current Price $89.09
Anheuser-Busch InBev (NYSE:BUD) raised C$1.2 billion through the issue of five-year and 10 year bonds. The former carry a coupon of 2.375% and will yield 2.478%, while the 10 year bonds carry a coupon rate of 3.375% and a yield of 3.461%. The utilization of the amount mobilized is unclear as of now, considering InBev’s $20 billion acquisition of Grupo Modelo is still under regulatory scrutiny, and one from which it may yet walk away if the conditions imposed are unacceptable.
Goldman Sachs Group Inc (NYSE:GS): Current Price $143.03
LEG Immobilien AG, a German property company which is 95% owned by Goldman Sachs Group Inc (NYSE:GS), may make an initial public offering that could raise about €1.5 billion or $2 billion. According to sources, half of the company might be listed, allowing Goldman Sachs and Perry Capital, a LEG co-owner, to make a profit on their investment of €3.5 billion when they bought the company in 2008. German real estate prices have been on a roll lately.