Apple Investors Take It on the Chin and 3 Hot Stocks Turning Heads
Bank of America (NYSE:BAC): Current price $11.55
According to the Wall Street Journal, Bank of America has cut back their mortgage business, but is still making a lot of money from it. In the fourth quarter of 2012, BofA made about $22 billion, about a third of what they produced in the first quarter of 2011. The bank’s gain-on-sale margin, or the revenue they booked, divided by the value of mortgages originated was 4.33%, compared with about 2.85% at JPMorgan Chase (NYSE:JPM), 2.56% at Wells Fargo (NYSE:WFC) and about 2.13% at U.S. Bancorp (NYSE:USB). The trouble is, BofA may be hard-pressed to sustain this performance, especially if interest rates on government bonds continue to rise. That will put more pressure on the bank to boost their share of the mortgage market so that they can maintain this revenue source.
Apple Inc. (NASDAQ:AAPL): Current price $449.17
According to the Wall Street Journal, investors who hold large stakes in Apple Inc. are taking it on the chin. Since peaking at $705.07 in September 2012, Apple shares have declined 36%, erasing over $236 billion in market value. About 60% of actively managed United States stock mutual funds that invest in big companies owned at least some Apple shares at the end of the year, according to Morningstar Inc. While some Apple investors are getting out for good, others are staying put or even buying more and some are glad they avoided the stock altogether.
Nokia Corporation (NYSE:NOK): Current price $3.9080
According to new mobile research from StatCounter, the independent website analytics company, Apple (NASDAQ:AAPL) dislodged Nokia Corporation in January for the first time as the most popular worldwide mobile internet usage vendor with 25.86%. Samsung also climbed ahead of Nokia Corporation with 22.15% to take second place behind Apple on a global basis.
Sysco Corp. (NYSE:SYY): Current price $30.81
Food cost inflation was 2.5% as measured by the estimated change in Sysco Corp.’s product costs, driven mainly by inflation in the poultry and meat categories. In addition, sales from acquisitions within the last 12 months increased sales by 1.1% and the impact of changes in foreign exchange rates for the second quarter increased sales by 0.3%. Case volume for the company’s Broadline and SYGMA operations combined grew 2.8% during the second quarter including acquisitions and approximately 1.8% excluding acquisitions.
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