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On the one hand, you'll likely never find anything so aptly named in finance. It is indeed a beige book. But its real title is the Summary of Commentary on Current Economic Conditions by Federal Reserve District. About two weeks before the Federal Open Market Committee meets to decide on interest rates, Fed governors get a compilation of how individual Federal Reserve banks view their economic health. (Actually, a different Fed bank is responsible each time to put it together, so they pass the workload around like roommates deciding who'll do the dishes.)
Obviously, it's important stuff. Since it's rather timely, many stock traders and economists use it to gauge whether the Fed has the same view of economic conditions as the market seems to.
But it's not scientific -- even the Fed admits that it's "anecdotal." And the Beige Book is the result of dozens of interviews with economists, bank branch managers, market experts and business leaders. As a result, a survey of pessimists in a district can paint a decidedly glass-half-empty picture. What's more, the Beige Book surveys all 12 Fed districts, and economic conditions in Cleveland can be much different than, say, Richmond, Va.
As a result, the Beige Book is rarely a market-mover, unless it contradicts a bunch of other data. So, check out the summary, but you can find better reports to read before nodding off.
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Thursday, July 03, 2008
Zacks Analyst Interview Highlights: Hudson City Bancorp and Texas Capital Bancshares.
Comtex
CHICAGO, Jul 03, 2008 (BUSINESS WIRE) ----Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Eric Rothmann, who discusses Hudson City Bancorp (Nasdaq: HCBK) and Texas Capital Bancshares (Nasdaq: TCBI).
A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.
Let's start with Hudson City Bancorp. What's your outlook here?
Even though Hudson City Bancorp (Nasdaq: HCBK) shares trade at a discount to the peer median (on a P/E basis), with 67% of the loan portfolio in residential real estate in the New York metropolitan area. Considering the industry overhangs, we remain cautious given the current valuations. Our rating remains a Sell, though a weaker one. Our six-month price target of $15.50 per share equates to a negative 11.7% expected total return.
Changing regions, where do you see Texas Capital Bancshares (Nasdaq: TCBI), presently?
Growth remains paramount, as 1Q08 average net loans expanded 25.9% year-over-year. Credit quality issues appear to have been contained presently. Following a review of the quarter, we have adjusted our 2008 and 2009 EPS expectation. In our opinion, Industry overhangs out-weigh TCBI's results for the quarter, as such we continue to the shares of this company as a Hold presently.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.
About Zacks
The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month.
The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
SOURCE: Zacks.com
Zacks.com Mark Vickery 312-265-9380 Visit: www.zacks.com
Copyright Business Wire 2008
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