As a fan of regional banks over their much larger compatriots, PNC Financial (NYSE: PNC ) is one bank that has always interested me, so I decided to take a deeper look at the bank to get a better understanding of how it operates. Last week, we looked at where the Pittsburgh-based bank made its money, as well as just how profitable it is. With this article, we will look at a small -- yet very profitable -- piece of PNC's business, and why investors should take note of it.
The business of PNC Financial
As mentioned in both of the previous articles, PNC Financial breaks its business into six different business segments, the largest being its traditional retail banking business. However, it is the smallest segment that is perhaps most interesting:
Business Segment
2012 Revenue
2012 Net Income (Loss)
Profit Margin
Retail Banking
Top 5 Information Technology Companies To Watch In Right Now: Spirit Realty Capital Inc (SRC)
Spirit Realty Capital, Inc., incorporated on August 14, 2003, is a self-administered and self-managed real estate investment trust (REIT). The Company�� operations are carried out through Spirit Realty, L.P. (the Operating Partnership). The Company invests in single-tenant, operationally essential real estate throughout the United States that is leased on a long-term, triple-net basis primarily to tenants engaged in retail, service and distribution industries. Single-tenant, operationally essential real estate consists of properties that are generally free-standing, commercial real estate facilities where its tenants conduct retail, service or distribution activities. as of December 31, 2012, the Company�� portfolio of 1,122 owned properties were leased to approximately 165 tenants. In July 2013, the Company merged with Cole Credit Property Trust II.
The Company�� tenants operate in 18 different industries, which include medical/other office properties; recreational properties; educational properties; automotive dealers, parts and services facilities; industrial properties; building material suppliers; movie theatres; restaurants-casual dining; specialty retail properties; restaurants-quick service, and general and discount retail properties. The Company�� properties are geographically diversified across 47 states, with only 4 states contributing more than 5.0% of its annual rent. As of December 31, 2012, approximately 98.0% of its lease and loan revenues were attributable to long-term leases. As of December 31, 2012, the Company leases 181 properties to Shopko/Pamida, 179 of which are leased pursuant to three master leases.
Advisors' Opinion:- [By Rich Duprey]
With Spirit Realty Capital (NYSE: SRC ) set to merge with�Cole Credit Property Trust II in the third quarter, the commercial real estate REIT announced yesterday�it would pay a pro-rated dividend for the third quarter based on a quarterly payout of $0.3125 per share, the same rate it paid last quarter. Spirit only went public last September and began paying dividends in January.
Top Regional Bank Stocks To Invest In 2014: Macquarie Infrastructure Company LLC (MIC)
Macquarie Infrastructure Company LLC (MIC) owns, operates and invests in a diversified group of infrastructure businesses that provide basic services, such as chilled water for building cooling and gas utility services to businesses and individuals primarily in the United States. The businesses it owns and operates include individual segments with three of them grouped as the Energy-Related Businesses. Macquarie Infrastructure Management (USA) Inc. (MIMUSA), which is its Manager, is part of the Macquarie Group, consisting of Macquarie Group Limited and its subsidiaries and affiliates worldwide. On August 31, 2011, Atlantic Aviation acquired the assets of the FBOs at the Portland International and Eugene airports in Oregon (together referred to as Flightcraft).
The Energy-Related Businesses include a 50% interest in a bulk liquid storage terminal business (International Matex Tank Terminals (IMTT)), that provides bulk liquid storage and handling services at ten marine terminals in the United States and two in Canada and is a participant in this industry in the United States, based on storage capacity; a gas processing and distribution business (The Gas Company), that is the only full-service gas energy company in Hawaii, and a 50.01% controlling interest in a district energy business (District Energy), which operates a district cooling system in the United States, serving various customers in Chicago, Illinois and Las Vegas, Nevada. Atlantic Aviation is an airport services business providing products and services, including fuel and aircraft hangaring/parking, to owners and operators of general aviation aircraft at 65 airports in the United States.
Energy-Related Businesses
MIC owns 50% of IMTT. The remaining 50% is owned by a trust for the benefit of members of the founding family. IMTT stores and handles petroleum products, various chemicals, renewable fuels and vegetable and animal oils. IMTT is an independent provider of bulk liquid storage terminal services i! n the United States, based on capacity. IMTT also owns OMI Environmental Solutions (Oil Mop), which is an environmental emergency responses, industrial services, waste transportation and disposal business. Oil Mop has a network of facilities along the United States Gulf Coast between Houston and New Orleans. These facilities primarily service the Gulf region, but also respond to spill events and provides services as needed throughout the United States and internationally. The 16 million barrel storage terminal at Bayonne, New Jersey has the most storage capacity of any IMTT site.
NYH serves as the main petroleum trading hub in the northeast United States and the physical delivery point for the gasoline and heating oil futures contracts traded on New York Mercantile Exchange (NYMEX). In addition to waterborne shipments, products reach NYH through petroleum product pipelines from the United States Gulf region and elsewhere. NYH also serves as the starting point for refined product pipelines linked to inland markets and as a key port for refined petroleum product exports. IMTT-Bayonne has connections to the Colonial, Buckeye and Harbor refined petroleum product pipelines, as well as rail and road connections. As of December 31, 2011, on the lower Mississippi River, IMTT operated four terminals (St. Rose, Gretna, Avondale and Geismar). With combined storage capacity of 18.9 million barrels, the four sites give IMTT substantial market share in storage for black oil, bulk liquid chemicals, and vegetable oils on the lower Mississippi River.
The Gas Company is Hawaii�� only government franchised full-service gas company, manufacturing and distributing gas products and services in Hawaii. The market includes Hawaii�� approximately 1.4 million residents and approximately 7.3 million visitors, during the year ended December 31, 2011. The Gas Company manufactures synthetic natural gas (SNG) for its utility customers on Oahu, and distributes Liquefied Petroleum Gas (LPG) to utility and ! non-utili! ty customers throughout the state�� six primary islands. The Gas Company has two primary businesses, utility (or regulated) and non-utility (or unregulated). The utility business serves approximately 35,300 customers through localized pipeline distribution systems located on the islands of Oahu, Hawaii, Maui, Kauai, Molokai and Lanai. Over 90% of these customers are on Oahu. The utility business includes the manufacture, distribution and sale of SNG on the island of Oahu and distribution and sale of LPG. Utility revenue consists principally of sales of SNG and LPG.
The non-utility business sells and distributes LPG to approximately 33,400 customers. LPG is delivered by truck to individual tanks located on customer sites on Oahu, Hawaii, Maui, Kauai, Molokai and Lanai. Non-utility revenue is generated primarily from the sale of LPG delivered to customers. SNG and LPG have a number of commercial and residential applications, including water heating, drying, cooking, emergency power generation and decorative lighting, such as tiki torches. LPG is also used as a fuel for specialty vehicles, such as forklifts. Gas customers include residential customers and a range of commercial, hospitality, military, public sector and wholesale customers. SNG is delivered by underground piping systems to customers on Oahu. LPG is transported in cylinders or tanks.
District Energy operates district cooling system in the United States. As of December 31, 2011, the system served approximately 100 customers in downtown Chicago and one customer outside the downtown area under long-term contracts. District Energy produces chilled water at five plants located in downtown Chicago and distributes it through a closed loop of underground piping for use in the air conditioning systems of large commercial, retail and residential buildings in the central business district. District Energy also owns a site-specific heating and cooling plant that serves a single customer in Chicago outside the downtown area. Th! is plant ! has the capacity to produce 4,900 tons of cooling and 58 million British Thermal Units of heating per hour. District Energy�� Las Vegas operation owns and operates a stand-alone facility that provides cold and hot water (for chilling and heating, respectively) to three customers in Las Vegas, Nevada. These customers consist of a resort and casino, a condominium.
Aviation-Related Business
Atlantic Aviation operates FBOs at 65 airports in the United States. Atlantic Aviation�� FBOs provide fueling and fuel-related services, aircraft parking and hangar services to owners/operators of jet aircraft, primarily in the general aviation sector of the air transportation industry, but also commercial, military, freight and government aviation customers. Other services include de-icing, aircraft parking, hangar rental and catering. Fuel is stored in fuel tank farms and each FBO operates refueling vehicles owned or leased by the FBO. The FBO either owns or has access to the fuel storage tanks to support its fueling activities. At some of Atlantic Aviation�� locations, services are also provided to commercial carriers. These may include refueling from the carrier�� own fuel supplies stored in the carrier�� fuel farm, de-icing and/or ground and ramp handling services.
The Company competes with Bahamas Oil Refining Company International Limited; Buckeye Partners, L.P.; Enterprise Products Partners L.P.; Houston Fuel Oil Terminal Company; Kinder Morgan Energy Partners, L.P.; Magellan Midstream Partners, L.P.; NuStar Energy L.P.; Oiltanking Partners, L.P.; Plains All American Pipeline, L.P.; Royal Vopak N.V.; Sunoco Logistics Partners L.P.; TransMontaigne Partners L.P.; Vitol Holding B.V.; Westway Group, Inc.; Alinda Capital Partners LLC; ArcLight Capital Partners; Challenger Infrastructure Fund; First Reserve Corporation, Global Infrastructure Partners, Signature Flight Support, Landmark Aviation and Million Air.
Advisors' Opinion:- [By Eddie Staley]
Macquarie Infrastructure Company LLC (NYSE: MIC) shares shot up 11.59 percent to $68.26 after the company agreed to acquire the remaining 50% of International-Matex Tank Terminals for $910 million in cash and $115 million in newly issued stock. It also raised its quarterly dividend from $0.9375 to $0.95 per share.
- [By Steve Sears]
New stocks in what Goldman calls the “Hedge Fund VIP list,”�include Actavis (ACT), Baidu (BIDU), Berkshire Hathaway (BRK.B), Crown Castle International (CCI), Entergy Louisiana (ELB), �Equinix (EQIX), Facebook (FB), Fleetcor Technologies (FLT), W.R. Grace (GRA), MetLife (MET), Macquarie Infrastructure (MIC), Micron (MU), Time Warner Cable (TWC), and Time Warner (TWX).
- [By Garrett Cook]
Macquarie Infrastructure Company LLC (NYSE: MIC) shares shot up 10.72 percent to $67.73 after the company agreed to acquire the remaining 50% of International-Matex Tank Terminals for $910 million in cash and $115 million in newly issued stock. It also raised its quarterly dividend from $0.9375 to $0.95 per share.
Top Regional Bank Stocks To Invest In 2014: Carlisle Companies Incorporated (CSL)
Carlisle Companies Incorporated operates as a diversified manufacturing company in the United States and internationally. Its Construction Materials segment manufactures and sells rubber and thermoplastic polyolefin roofing systems; rigid foam insulation panels for various roofing applications; and liquid and spray-applied waterproofing membranes, vapor and air barriers, and HVAC duct sealants and hardware for the commercial and residential construction markets, as well as markets and sells polyvinyl chloride membrane and accessories. The company�s Transportation Products segment offers bias-ply, steel-belted radial trailer tires, stamped or roll-formed steel wheels, non-automotive rubber tires, and tire and wheel assemblies; and power transmission products, such as industrial belts and related components. Its Brake and Friction segment provides off-highway braking systems and friction products for off-highway, on-highway, aircraft, and other industrial applications. The company�s Interconnect Technologies segment offers wire, cable, contacts, fiber optic, RF/microwave, and specialty filtered connectors; specialty cable assemblies; integrated wired racks; trays; and airframe subsystem solutions primarily for the aerospace, defense electronics, and test and measurement industries. Its FoodService Products segment provides commercial and institutional foodservice permanentware, table coverings, cookware, display pieces, lighting equipment, and supplies to restaurants, hotels, hospitals, nursing homes, schools, and correctional facilities; and industrial brooms, brushes, mops, and rotary brushes. The company markets its products to original equipment manufacturers, distributors, and end-users. It serves customers in commercial roofing, energy, agriculture, lawn and garden, mining and construction equipment, aerospace and electronics, dining and food delivery, and healthcare markets. The company was founded in 1917 and is headquartered in Charl otte, North Carolina.
Advisors' Opinion:- [By Adam Haigh]
CSL Ltd. (CSL), an Australian maker of blood-derived therapies, climbed 2 percent to A$65.96 in Sydney, a second day of gains. The company will announce another share buyback of at least A$900 million ($824 million) at its full-year earnings release in August, Bank of America Corp. analyst Matthew Prior wrote in a report, upgrading the shares to buy from neutral.
- [By Adam Haigh]
CSL Ltd. (CSL), a maker of blood-derived therapies that gets more than a third of its sales in the U.S., advanced 3.1 percent in Sydney. Toyota Motor Corp. gained 1.1 percent in Tokyo as the yen weakened against the dollar, boosting the earnings outlook for Asia�� largest carmaker. Kingsgate Consolidated Ltd. fell 4.7 percent in Sydney as the gold miner reported an 18 percent drop in quarterly output.
- [By victorselva]
General Electric has a current ratio of 10% which is lower than all the comps: 3M Company (MMM), Danaher Corp. (DHR), Carlisle Companies Incorporated (CSL), Koninklijke Philips N.V (PHG) and Raven Industries Inc. (RAVN).
- [By Dividends4Life]
Memberships and Peers: MMM is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: General Electric Co. (GE) with a 3.1% yield, Raven Industries Inc. (RAVN) with a 1.6% yield and Carlisle Companies Inc. (CSL) with a 1.2% yield.
Top Regional Bank Stocks To Invest In 2014: Grupo Aeromexico SAB de CV (AEROMEX*)
Grupo Aeromexico SAB de CV is a Mexican holding company primarily engaged in the provision of passenger and cargo air transport services. It offers destinations in Mexico, the United States, Europe, Central and South America, Asia and Canada. It operates a fleet of over 110 aircrafts. The Company is primarily engaged in the passenger transportation segment, comprising regional, domestic and international routes, and package holidays; as well as in cargo transportation segment, handled mainly by its subsidiary Aeromexico Cargo. By its subsidiaries the Company is also engaged in real estate sector and in providing services to the aviation companies, including personnel training, management, and aircraft maintenance and modification. Its subsidiaries include Aerovias de Mexico SA de CV, Premier Loyalty & Marketing SAPI de CV, and Inmobiliaria Avenida Fuerza Aerea Mexicana 416 SA de CV, among others. In addition, it is a member of the SkyTeam airline alliance. Advisors' Opinion:- [By Jonathan Levin]
Volaris became Mexico�� second publicly traded carrier, after larger competitor Grupo Aeromexico SAB (AEROMEX*) sold stock in 2011. Airlines in Mexico have expanded into a void left when Cia. Mexicana de Aviacion, then largest based on passenger traffic, sought protection from creditors and ceased operations in 2010.
Top Regional Bank Stocks To Invest In 2014: FreightCar America Inc (RAIL)
FreightCar America, Inc. (America) is engaged in manufacturing of aluminum-bodied railcars in North America. America is also a manufacturer of coal cars. During the year ended December 31, 2011(2011), the Company was specialized in the production of coal cars, which represented 93% of its deliveries of railcars. The Company also refurbishes and rebuilds railcars and sells forged, cast and fabricated parts for all of the railcars it produces, as well as those manufactured by others. During 2011, its primary customers were railroads, shippers and financial institutions, which represented 83%, 2% and 1%, respectively, of its total sales attributable to each type of customer. During 2011, it delivered 6,188 railcars, including 4,500 aluminum-bodied coal cars. It offers railcar leasing and refurbishment alternatives to its customers. Through its newly formed subsidiary FreightCar Rail Services, LLC (FCRS), it provides railcar repair and maintenance, inspections, and railcar fleet management services for all types of freight railcars. Its railcar manufacturing facilities are located in Danville, Illinois and Roanoke, Virginia.
The Company also leases freight cars through its JAIX Leasing Company subsidiary. In addition, the Company manufactures coal cars for export to Latin America and manufactures intermodal railcars for export to the Middle East. With operations in Colorado, Indiana and Nebraska, it services freight cars and unit coal trains utilizing rail corridors in the Midwest and Western regions of the United States. The Company designs and manufactures aluminum-bodied and steel-bodied railcars that transport a range of various products. It manufactures two primary types of coal cars, such as gondolas and open-top hoppers. The BethGon is the aluminum-bodied coal gondola railcar segment, which is used in North America. Its aluminum bodied open-top hopper railcar, the AutoFlood, is a five-pocket coal car equipped with a bottom discharge gate mechanism. AutoFlood II and AutoFlood III design! incorporates the automatic rapid discharge system, the MegaFlo door system and a mechanism that uses an over-center locking design, enabling the cargo door to close with tension rather than by compression.
The Company also manufactures a range of other types of aluminum and steel-bodied coal cars, including triple hopper, hybrid aluminum/stainless steel hoppers and gondolas and flat bottom gondola railcars. The Company�� portfolio of other railcar types include the AVC Aluminum Vehicle Carrier design, which is used to transport commercial and light vehicles (automobiles and trucks) from assembly plants and ports to rail distribution centers; the Articulated Bulk Container railcar designed to carry dense bulk products, such as waste products in 20 foot containers; Intermodal Double Stack railcars, including a stand-alone, 40 foot well car and the DynaStack articulated, 5-unit, 40 foot and 3-unit, 53 foot well cars for transportation of containers; a Small Cube Covered Hopper railcar, which is used to transport products, such as roofing granules, fly ash, sand and cement; a Mill Gondola Railcar, which is used to transport steel products and scrap; Slab and Coil steel railcars, which is designed for transportation of steel slabs and coil steel products, respectively; Flat Railcars, Bulkhead Flat Railcars and Centerbeam Flat Railcars, which is designed to transport a range of products, including machinery and equipment, steel and structural steel components (including pipe), forest products and other bulky industrial products; a Woodchip Gondola Railcar, which is designed to haul woodchips and municipal waste, and a range of non-coal carrying open top hopper railcars designed to carry aggregates, iron ore, taconite pellets, petroleum coke and other bulk commodities.
The Company has established a licensing arrangement with a railcar manufacturer in Brazil pursuant to which its technology is used to produce various types of railcars in Brazil. In addition, it manufacture coal car! s for exp! ort to Latin America and have manufactured intermodal railcars for export to the Middle East. Railroads outside of North America have a range of track gauges that are sized differently than in North America, which requires it, in some cases, to alter manufacturing specifications for foreign sales. The Company has added 10 new or redesigned products to its portfolio in the last five years, including the AVC, slab and coil steel railcar, triple hopper and hybrid aluminum/stainless steel railcars, ore cars, ballast cars and aggregate cars. The Company�� manufacturing process involves four basic steps: fabrication, assembly, finishing and inspection. In its fabrication processes, it employ standard metal working tools, many of which are computer controlled. Each assembly line typically involves 15 to 20 manufacturing positions, depending on the complexity of the particular railcar design. It uses mechanical fastening in the fitting and assembly of its aluminum-bodied railcar parts, while it uses welding for the assembly of its steel-bodied railcars.
The Company competes with Trinity Industries, Inc., National Steel Car Limited, The Greenbrier Companies, Inc. and American Railcar Industries, Inc.
Advisors' Opinion:- [By SA Pro Top Ideas]
Stock Movers and Great Calls
On July 24, Mike Williams explained why FreightCar America's (RAIL) shares could double by 2015 as it returned to historic profitability. Shares are +16.3% to date after a strong earnings report this week. Read article » Vince Martin said on June 17 that Cray's (CRAY) sell-off after Q1 earnings was way overdone, offering investors a great deal. After a strong earnings report last week, shares now stand +45% from where they were before the article. Read article »
Alpha-Rich long and short ideas regularly move stocks and identify stocks that are about to move. Some notable recent calls subscribers had early access to:To Come Today
Don't forget to check your SA Pro dashboard later today for the latest Alpha-Rich ideas. Any thoughts to share on the latest Alpha-Rich ideas? Leave a comment here.
SA Pro Editors
…............
The SA Pro team is Eli Hoffmann (Editor in Chief), Rachael Granby (Editorial Product Manager), Daniel Shvartsman, Samir Patel, Michael McDonald, and Jeffrey Fischer (Senior Pro Editors). You can reach us at pro-editors@seekingalpha.com. - [By Eric Volkman]
FreightCar America (NASDAQ: RAIL ) has found an executive to lead its finance team. The company announced that it appointed Charles Avery as its CFO, vice president of finance, and treasurer, replacing Joseph McNeely. Avery will take up his position on Aug. 1.
Top Regional Bank Stocks To Invest In 2014: Lincoln National Corporation (LNC)
Lincoln National Corporation, through its subsidiaries, engages in multiple insurance and retirement businesses in the United States. The company operates in Annuities, Retirement Plan Services, Life Insurance, and Group Protection segments. It sells a range of wealth protection, accumulation, and retirement income products and solutions. These products include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL, term life insurance, employer-sponsored defined contribution retirement plans, mutual funds and group life, disability, and dental products. The company also provides employer-sponsored fixed and variable annuities, and mutual fund-based programs; single and survivorship versions of UL and VUL, including corporate-owned UL and VUL, and bank-owned UL and VUL products to small- to mid-sized banks, and mid- to large-sized corporations; and group non-medical insurance products, prin cipally term life, universal life, disability, dental, vision, accident, and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. Lincoln National Corporation distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1904 and is headquartered in Radnor, Pennsylvania.
Advisors' Opinion:- [By Jonas Elmerraji]
Lincoln National (LNC) is a financial stock that's forming a channel of its own... But with a twist.
That's because the $12 billion wealth management firm is moving sideways in a range-bound trade called a rectangle. The setup gets its name because price action is essentially "boxed-in" by resistance above shares at $45, and support to the downside at $42. Instead of buying within the channel, rectangles are breakout trades – you want to trade this name when it breaks outside of the box.
That means that a move through the $45 level is a buy signal, and a move through support at $42 is an indicator that it's time to sell (or short) LNC. Right now, there's some extra bias to the upside – typically, rectangles are continuation patterns, and since Lincoln's preceding price action was up, it's likely next move is up as well. Still, it doesn't become a high probability trade until the breakout happens, so wait to get your direction from the market.
- [By John Kell]
Lincoln National Corp.'s(LNC) fourth-quarter profit rose 9.7%, as it posted higher-than-expected operating revenue.
Marathon Oil Corp.(MRO) reported lower fourth-quarter sales volume, though the crude oil and natural gas producer’s bottom line grew 16% due to fewer income tax provisions.
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