FOX Translator
No data currently available.
No data currently available.
Many people know that the Federal Reserve sets interest rates in order to loan money to other banks so they can keep cash flowing throughout the U.S. financial system. Mostly, this works great for everyone involved. But, sometimes, banks and thrifts need a little extra cash, mostly so they can meet the reserve requirement (the minimum amount of deposits banks need to be considered in good financial shape).
To meet the reserve, the Fed has what's known as the discount window, which allows banks to borrow money for a short period of time at a higher interest rate (called the discount rate) than the official Federal Funds rate.
It's called a window because it used to be an actual teller window, where banks would go to borrow from the federal government. Now, it's used more as a lender of last resort. In fact, banks prefer to borrow from one another than directly from the discount window, since the interest owed can be cheaper and going to the discount window tends to imply that the bank is in a spot of trouble.
The Fed, too, doesn't like banks borrowing this way, which is why the discount rate is always higher than the target rate. It also requires banks to collateralize the loans, meaning they have to turn over liquid assets, such as loans or CDs, to the Fed in order to get the money. As with any loan, the banks get the underlying collateral back when they pay off the balance.
Home / Markets / Industries / Energy
Friday, June 13, 2008
Zacks Sell List Highlights: Western Refining Inc., Hansen Natural, Columbia Sportswear Co. & Coca-Cola Enterprises
Comtex
CHICAGO, Jun 13, 2008 (BUSINESS WIRE) ----Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks #5 Rank List - Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): Western Refining Corp. (NYSE: WNR) and Hansen Natural (NASDAQ: HANS). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Columbia Sportswear Co. (NASDAQ: COLM) and Coca-Cola Enterprises (NYSE: CCE). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List -- Stocks to Sell Now by 129% annually (+5.3% vs. +12.1%). While the rest of Wall Street continued to tout stocks during the market declines of the last few years, Zacks told investors which stocks to sell or avoid.
Here is a synopsis of why WNR and HANS have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:
Western Refining Corp. (NYSE: WNR) has been feeling the squeeze that most refiners have been experiencing over the last 12 months, as the crack spread, the difference in cost between a barrel of oil and a gallon of gasoline, continues to contract. Gasoline prices have simply been unable to keep pace with the meteoric rise in crude prices, and that has crippled the profits of the refining segment of the energy market. Western Refining Corp.'s stock price has been in a steady decline for the last 12 months, topping off at over $65 a share, to its recent low-point of less than $10.
Hansen Natural (NASDAQ: HANS) has been a top-tier performer over the last five years, consistently producing exceptional returns for its shareholders. But recently, the company and its share price have taken a hit. Hansen's first-quarter results were short of analyst expectations, posting earnings of 29 cents per share against the expected 36 cents. In turn, analysts downgraded their current-year estimates, dropping the consensus estimate to $1.93 per share from $2.14 per share. Hansen's stock price is down over 50% in the last 8 months, topping off at over $68 in November of 2007 and dropping to its current price of $31.
Here is a synopsis of why COLM and CCE have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;
Columbia Sportswear Co. (NASDAQ: COLM) shares have suffered along with the overall strength of the economy, as consumers tighten their budgets and curb discretionary spending patterns to cushion the blow of higher energy and food costs. The company's stock traded as high as $70 last summer, but is now hovering just above $40. As one would suspect, analyst estimates have continued to fall, with the current-year estimate shedding 34 cents over the last 90 days and dropping to $3.18 per share.
Coca-Cola Enterprises (NYSE: CCE) reported on May 28 that the company is in danger of missing its 2008 profit guidance. Weak sales in the U.S., particularly on 20-ounce bottles, was the reason cited for the decline. Shares of CCE have been declining since early 2008, topping off at over $26 a share and finally stabilizing right around $20.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions" is available to provide this insightful background. Download a free copy now to prosper in the years to come at http://at.zacks.com/?id=93
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +32.2%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 129% annually (+5.3% vs. +12.1%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=94
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=95
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE: Zacks.com
Zacks.com Michael Vodicka Phone: 312-265-9226 Email: pr@zacks.com Visit: www.Zacks.com
Copyright Business Wire 2008 ********************************************************************** As of Monday, 06-09-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND on 04-25-2008 for CCE @ $22.89. As of Monday, 06-09-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated an UPTREND on 05-28-2008 for WNR @ $10.63. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
