• 3 Dirt-Cheap Stocks You Simply Shouldn't Ignore
    Motley Fool

    3 Dirt-Cheap Stocks You Simply Shouldn't Ignore

    Let's face it: There are a lot fewer bargains in the stock market than there were a couple of months ago. It's understandable why Bank of America stock fell. While some companies have suspended their dividends, Bank of America has kept its dividends flowing and should be able to continue doing so.

  • Business Wire

    ROSEN, A LONGSTANDING AND TOP RANKED FIRM, Announces Filing of Securities Class Action Lawsuit Against Wells Fargo & Company; Encourages Investors with Losses in Excess of $100k to Contact the Firm – WFC

    Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of the securities of Wells Fargo & Company (NYSE: WFC) between April 5, 2020 and May 5, 2020, inclusive (the "Class Period"). The lawsuit seeks to recover damages for Wells Fargo investors under the federal securities laws.

  • Bloomberg

    PG&E Readies $11 Billion Jumbo Debt Deal for Bankruptcy Exit

    (Bloomberg) -- Utility giant PG&E Corp. is readying an $11 billion debt-financing package that may be sold to investors as soon as next week as the company prepares to exit bankruptcy, according to people with knowledge of the matter.The financing includes $4 billion of high-yield bonds and a $750 million term loan led by JPMorgan Chase & Co., the people said, asking not to be named because the transaction is private. The remaining package consists of an investment-grade bond portion led by Bank of America Corp., the people said.The exit financing marks the near-conclusion of a complex Chapter 11 bankruptcy that’s lasted over a year and seen wildfire victims fight for compensation. The utility company filed for relief from its creditors in January 2019 after its equipment was linked to wildfires that ripped through Northern California in 2017 and 2018.PG&E shares surged as much as 12.4% to $13.34 after Bloomberg reported the potential offering, triggering a volatility pause.Bankers are targeting a timeline of next week for the debt offering, the people said, adding that PG&E is expected to market a $9 billion equity offering at a later date. The company has said in court papers that it expects to market the debt as soon as it gets confirmation of its plan, which could come as early as next week.Representatives for PG&E, JPMorgan and Bank of America declined to comment.An attorney for PG&E told the bankruptcy judge overseeing its case Friday that the utility plans to raise the $9 billion in equity this month, saying it can’t do it in July because of a blackout period during the run up to reporting second-quarter earnings. The attorney, Stephen Karotkin, asked the judge to confirm its plan by next Friday so the company can start raising the money.“The intention is to raise all the capital as quickly as possible so we can exit as quickly as possible,” he said.The jumbo debt financing comes as corporate debt markets have rallied following unprecedented support from the Federal Reserve. Investors poured a record $15.6 billion into funds that buy U.S investment-grade and high-yield bonds and leveraged loans in the week that ended June 3.Some investment-grade companies have received record-low interest rates on new debt amid the frenzy, and U.S. high-yield bonds have gained 21% since bottoming in late March. Leveraged loans have been slower to recover, but the market for new loans has started to thaw as well.U.S. Bankruptcy Judge Dennis Montali is expected to conclude confirmation hearings on PG&E’s $59 billion bankruptcy plan Friday and rule shortly after. The plan includes $25.5 billion of settlements to pay wildfire damage claims from residents, businesses, local governments and insurers.PG&E is seeking to gain court approval of its turnaround plan by June 30 so it can participate in a state wildfire insurance fund that will help utilities pay for any future fire damage claims. The firm’s equity offering is intended to go into a wildfire trust for victims.(Adds comments from bankruptcy hearing.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Wells Fargo Is the Canary In the Coal Mine for Subprime Auto Lenders
    Motley Fool

    Wells Fargo Is the Canary In the Coal Mine for Subprime Auto Lenders

    The big bank has stopped making car loans through most independent auto dealers, which suggests that lenders more reliant on auto loans are headed for trouble.

  • Warren Buffett's Next Bulk Purchase Should Be Costco
    Bloomberg

    Warren Buffett's Next Bulk Purchase Should Be Costco

    (Bloomberg Opinion) -- Warren Buffett says “nothing can stop America.” To put his money where his mouth is and spend some of his $137 billion stash before this crisis is over, he wouldn’t have to look far. If there’s one company that warrants the dealmaker’s attention, it may be Costco Wholesale Corp., a retailer in which Buffett’s Berkshire Hathaway Inc. already owns a stake. At Berkshire’s virtual shareholder meeting last month, Buffett signaled that the Covid-19 pandemic hasn’t afforded him deal opportunities at bargain-basement prices the way past economic meltdowns have. Despite the nationwide shutdowns that are just starting to lift and a soaring unemployment rate, the S&P 500 Index is only 8% off its February all-time high. That’s partly due to aggressive actions taken by the Federal Reserve to mitigate the crisis, though one can’t deny that there exists an astonishing disconnect between stock prices and the economic realities of many Americans right now.Costco wouldn’t be a typical crisis-era bet for Buffett in this regard. The shares are up, not down, this year and its operations have carried on throughout the pandemic. Zoom, Netflix, TikTok, Costco — the retailer is right up there with those services that have become centerpieces of the stay-at-home recession.But in so many other ways a Costco deal would still be classic Buffett. For starters, Buffett already likes Costco. Berkshire has owned the stock for two decades; its 1% stake is valued at about $1.3 billion currently. Buffett’s business partner Charlie Munger, the 96-year-old vice chairman of Berkshire Hathaway, also sits on Costco’s board. Last year, Buffett even publicly marveled at Costco’s in-house Kirkland brand, which at that point had $39 billion of annual sales. “Here’s somebody like Costco, establishes a brand called Kirkland and it’s doing $39 billion — more than virtually any food company,” including Kraft Heinz Co., he said. Berkshire is Kraft Heinz’s largest shareholder.Costco has proven during this crisis that it has a durable brand and a wide competitive moat, two of the key attributes Buffett looks for. More than 90% of Costco’s U.S. club members renew, and globally the rate is nearly as high at 88%. Those warehouse memberships are a predictable source of cash flow, almost akin to Berkshire’s insurance float that Buffett uses to invest. While the majority of Costco’s 787 warehouse clubs are in the U.S. and Canada, it does have locations in Mexico, the U.K., Japan, South Korea, Taiwan and Australia. It’s also expanding in China, offering Buffett exposure to the country’s growing middle class.Costco’s same-store sales have risen 6.5% on average for the last 10 quarters, topping other U.S. mass retailers including Walmart Inc., the parent of Sam’s Club. Costco also generated more than $1,300 of sales per square foot in fiscal 2019 — more than any of its peers.The share price has gotten a bump from all the panic-shopping, and at 34 times earnings, Costco’s valuation certainly isn’t what Buffett would call cheap. But Costco should continue to fare well in a post-virus America, especially if it leads some residents to ditch cities for suburbs and spend more time at home. After the meat and toilet paper shortages, more shoppers may even turn to bulk-buying to be better prepared for future lockdowns or shortages.The biggest hurdle to a takeover is that Costco’s market value is $137 billion — precisely the amount of cash Berkshire has available. Berkshire’s last major acquisition was Precision Castparts, a maker of airplane engine parts, for $37 billion in 2016. After years spent searching for his next target, Buffett signaled recently that his hunt is on hold, suggesting that he thinks the crisis could still get worse before it gets better. “The cash position isn’t that huge when I look at the worst-case possibilities,” he told a stunned audience last month that tuned into the livestreamed annual meeting expecting to hear something a little more upbeat or at least hopeful from the Oracle of Omaha.(1)Berkshire could simply increase its stake in Costco, a stable holding that pays a 70-cent quarterly dividend. But it wasn’t all that long ago that Buffett spoke of the possibility of an acquisition Costco’s size. “If a $100 billion deal came along that Charlie [Munger] and I really liked, we’d get it done,” he said in May 2018. With Buffett set to turn 90 in August, it would be uncharacteristic to not want to do one last splashy transaction.It also wouldn’t be the first time Berkshire acquired one of its stock holdings. Berkshire owned shares in Precision Castparts before that deal. It also took a stake in the BNSF railroad in 2007 and kept adding to that position until it eventually purchased the whole company. Berkshire’s ownership of Geico even dates back to the 1950s when Buffett first bought shares and as a curious young investor began a serendipitous friendship with the insurer’s former CEO, Lorimer Davidson, as Buffett often retells it.Whether as a takeover candidate or stock pick, Buffett’s best option may be right under his nose. (1) One well-known shareholder, Bill Ackman’s Pershing Square Capital Management, even exited its Berkshire position, deciding itcan find worthwhile investing opportunities faster than Berkshire can at this rate.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Is Goldman Sachs a Buy?
    Motley Fool

    Is Goldman Sachs a Buy?

    Berkshire Hathaway made news in May when it sold most of its shares in investment bank Goldman Sachs (NYSE: GS). While Berkshire Chairman and CEO Warren Buffett didn't elaborate, the move was likely part of his efforts to de-risk the portfolio, as my colleague Matthew Frankel wrote about back on May 19. Goldman was not the only financial stock that Buffett dumped, but it was his biggest sell, as he dropped more than 10 million shares.

  • Google Search a Target of U.S. Antitrust Probes, Rival Says
    Bloomberg

    Google Search a Target of U.S. Antitrust Probes, Rival Says

    (Bloomberg) -- U.S. federal and state authorities are asking detailed questions about how to limit Google’s power in the online search market as part of their antitrust investigations into the tech giant, according to rival DuckDuckGo Inc.Gabriel Weinberg, chief executive officer of the privacy-focused search engine, said the company has spoken with state regulators, and talked with the U.S. Justice Department as recently as a few weeks ago.Justice Department officials and state attorneys general asked the company about requiring Google to give consumers alternatives to its search engine on Android devices and in Google’s Chrome web browser, Weinberg said in an interview.“We’ve been talking to all of them about search and all of them have asked us detailed search questions,” he added.Weinberg’s comments shine a light into how the inquiry is examining Google’s core business -- online search. Bloomberg has reported that the Justice Department and Texas are already examining Google’s dominance of the digital advertising market. The Justice Department and a coalition of states led by Texas Attorney General Ken Paxton have been investigating the company for a year, and the DOJ has begun drafting a lawsuit, which could be filed in the coming months. It would kick off one of the most significant antitrust cases in the U.S. since the government sued Microsoft Corp. in 1998.The investigations have been wide-ranging and are looking into various parts of Google’s business. States including Utah and Iowa are focusing on search, according to people familiar with the matter. Texas is looking at the digital ad market and related technology.Google handles the majority of online searches in the U.S., with Microsoft’s Bing, DuckDuckGo and other providers trailing far behind. Google Search is free for users, but the company’s lead helps it charge thousands of businesses high prices for ads that run above the free web listings in results. Last year, that business generated almost $100 billion in revenue.Read more: Google Search Dominance Has Businesses Paying for Their Name“We continue to engage with the ongoing investigations led by the Department of Justice and Attorney General Paxton, and we don’t have any updates or comments on speculation,” a Google spokeswoman said. In the past, the company has said that online competition is just a click away.The Federal Trade Commission previously investigated whether Google stifled competition in the market for online search advertising, but it closed the probe in 2013 after the company agreed to relatively minor changes. However, portions of communications between FTC commissioners and staff later showed that staffers recommended bringing an antitrust lawsuit against Google.Read more: Google Should Be Afraid of Latest U.S. ScrutinyWeinberg said the questions he has fielded recently about requiring Google to present users of its tech alternatives to its own search engine suggest that’s something the government could include in a possible future settlement.“That’s one direction we think has a decent probability,” he added. The Justice Department declined to comment. Attorneys general in Utah and Iowa didn’t respond to requests for comment.In Europe, Google was fined a record $5 billion for antitrust violations in 2018. As part of that ruling, the company is required to give consumers using phones that run its Android operating system a choice of different search engines and web browsers. Competing services must bid in an auction to be included in a “choice screen.”“Could this be a precursor to similar changes in the U.S.?” Mark Shmulik, Toni Sacconaghi and other analysts at Sanford C. Bernstein, wrote in a note to investors earlier this week.Europe’s remedy has gone through various iterations and some rivals have argued that having to pay to be included in the choice screen is unfair.Read more: Google App Prompts Watched ‘Very Very Closely’ by EU’s VestagerEcosia, a not-for-profit search engine based in Germany, boycotted the auction. DuckDuckGo participated in the most recent auction, but said it may not be able to compete if prices rise.“This auction remedy, proposed by Google, was constructed to make Google money, not to provide meaningful consumer choice,” DuckDuckGo said in a blog post last week.It suggested scrapping the auction and said that an unpaid “search preference menu” has increased competition already in Russia. In 2010, Microsoft created a successful browser preference menu without an auction where the top five web browsers by market share appeared randomly, DuckDuckGo said.“While our view is that users are unlikely to switch search engines, Yandex grew their search engine share by 2,000 basis points to 58% in three years following a similar ruling in Russia,” Bernstein’s Shmulik wrote in the recent Bernstein note to investors.If the U.S. incorporates these suggestions, it could bypass Europe as the most successful regulator of Alphabet Inc.’s Google, Weinberg said.“The U.S. gets criticized for being behind Europe but in reality what’s happened in Europe hasn’t worked,” the CEO added. “The U.S. not only can do it right from the start but has the opportunity to leapfrog the EU.”(Updates with analyst comment in 13th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Big Lots and Intercontinental Hotel Group highlighted as Zacks Bull and Bear of the Day
    Zacks

    Big Lots and Intercontinental Hotel Group highlighted as Zacks Bull and Bear of the Day

    Big Lots and Intercontinental Hotel Group highlighted as Zacks Bull and Bear of the Day

  • Should You Buy First Republic Bank (FRC)?
    Insider Monkey

    Should You Buy First Republic Bank (FRC)?

    In this article we will take a look at whether hedge funds think First Republic Bank (NYSE:FRC) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips […]

  • Hedge Funds Are Betting On Digital Realty Trust, Inc. (DLR)
    Insider Monkey

    Hedge Funds Are Betting On Digital Realty Trust, Inc. (DLR)

    In this article we will check out the progression of hedge fund sentiment towards Digital Realty Trust, Inc. (NYSE:DLR) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 […]

  • Watch out: This is the age where you should definitely stop trading stocks
    MarketWatch

    Watch out: This is the age where you should definitely stop trading stocks

    For more investors, low cost index funds, especially exchange-traded index funds, are the way to go. How annuities could protect your retirement income Annuities can help plan for retirement during a volatile market. Maybe you saw the study which found that 10% of retail investors beat the market indexes over time.

  • WELLS FARGO SHAREHOLDER ALERT BY FORMER LOUISIANA ATTORNEY GENERAL: KAHN SWICK & FOTI, LLC REMINDS INVESTORS WITH LOSSES IN EXCESS OF $100,000 of Lead Plaintiff Deadline in Class Action Lawsuit Against Wells Fargo & Company - WFC
    PR Newswire

    WELLS FARGO SHAREHOLDER ALERT BY FORMER LOUISIANA ATTORNEY GENERAL: KAHN SWICK & FOTI, LLC REMINDS INVESTORS WITH LOSSES IN EXCESS OF $100,000 of Lead Plaintiff Deadline in Class Action Lawsuit Against Wells Fargo & Company - WFC

    Kahn Swick & Foti, LLC ("KSF") and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until August 3, 2020 to file lead plaintiff applications in a securities class action lawsuit against Wells Fargo & Company (NYSE: WFC), if they purchased the Company's shares between April 5, 2020, and May 5, 2020, inclusive (the "Class Period"). This action is pending in the United States District Court for the Northern District of California.

  • Revisiting the GuruFocus Predictability Rank: 2010-2019 Backtest Study
    GuruFocus.com

    Revisiting the GuruFocus Predictability Rank: 2010-2019 Backtest Study

    GuruFocus’ business predictability rank still has high correlation with average total return Continue reading...

  • SHAREHOLDER ALERT: Levi & Korsinsky, LLP Notifies Shareholders of Wells Fargo & Company of a Class Action Lawsuit and a Lead Plaintiff Deadline of August 3, 2020 - WFC
    Newsfile

    SHAREHOLDER ALERT: Levi & Korsinsky, LLP Notifies Shareholders of Wells Fargo & Company of a Class Action Lawsuit and a Lead Plaintiff Deadline of August 3, 2020 - WFC

    New York, New York--(Newsfile Corp. - June 5, 2020) -  The following statement is being issued by Levi & Korsinsky, LLP:To: All persons or entities who purchased or otherwise acquired securities of Wells Fargo & Company (NYSE: WFC) ("Wells Fargo") between April 5, 2020 and May 5, 2020. You are hereby notified that a securities class action lawsuit has been commenced in the the United States District Court for the Northern District of California. ...

  • Reuters

    MassMutual explores sale of its retirement services business -sources

    Massachusetts Mutual Life Insurance Company (MassMutual) is exploring a sale of its retirement services division, which has about $175 billion of assets under management and administration, people familiar with the matter said on Friday. MassMutual's retirement services business administers savings programs, such as 401(k) plans, for private and public sector employees. While the mutual company offers a variety of financial products such as annuities, it no longer considers the capital-intensive servicing of retirement plans core to its business, the sources said.

  • WFC Investor Alert: Bronstein, Gewirtz & Grossman, LLC Notifies Wells Fargo & Company Investors of Class Action and Encourages Investors to Contact the Firm
    Newsfile

    WFC Investor Alert: Bronstein, Gewirtz & Grossman, LLC Notifies Wells Fargo & Company Investors of Class Action and Encourages Investors to Contact the Firm

    New York, New York--(Newsfile Corp. - June 5, 2020) - Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Wells Fargo & Company (NYSE: WFC) ("Wells Fargo" or "the Company") on behalf of shareholders who purchased Wells Fargo securities between April 5, 2020, and May 5, 2020, inclusive (the ''Class Period''). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/wfc.This class action seeks to ...

  • PG&E Corp preparing $11 billion debt financing: investor
    Reuters

    PG&E Corp preparing $11 billion debt financing: investor

    PG&E's debt financing package, which will consist of high-yield bonds and term loans, is part of the company's previously announced plans to raise up to $27 billion in funding from future public offerings, said George Schultze, founder of Schultze Asset Management, which invests in distressed securities. Schultze's company is serving as one of the participants in the company's financing plan, which is crucial to PG&E's goal of exiting bankruptcy by June 30 in order to tap a state-backed fund that would help power utilities cushion the hit from wildfires. "The debt market is so hot right now that I'm sure this offering will be oversubscribed."

  • Hope dims for hydroxychloroquine even as medical study detailing the drug’s failure is retracted
    MarketWatch

    Hope dims for hydroxychloroquine even as medical study detailing the drug’s failure is retracted

    A month ago, about 70% of the COVID-19 patients being treated at the 13 hospitals that make up the Hackensack Meridian Health system in New Jersey received hydroxychloroquine as part of their care.

  • GuruFocus.com

    Buffett: Keep Learning and Remain Open to New Ideas

    Thoughts from Berkshire Hathaway's 2005 annual meeting Continue reading...

  • Trump To Buffett: 'Should Have Kept The Airline Stocks'
    Benzinga

    Trump To Buffett: 'Should Have Kept The Airline Stocks'

    U.S. President Donald Trump held a press conference on Friday morning following a jobs report from the Labor Department that blew economist expectations out of the water.In his speech, Trump noted that plenty of smart experts have missed the mark when it comes to the resiliency of the U.S. economy amid the COVID-19 outbreak, and he specifically mentioned Wall Street legend and Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett."Warren Buffett sold airlines a little while ago. He's been right his whole life. But sometimes even somebody like Warren Buffett--I have a lot of respect for him--they make mistakes. They should have kept the airline stocks because the airline stocks went through the roof today and others did too. The whole market went through the roof," Trump said.Buffett On AirlinesBuffett sold Berkshire's entire stakes in Delta Air Lines, Inc. (NYSE: DAL), American Airlines Group Inc (NASDAQ: AAL), United Airlines Holdings Inc (NASDAQ: UAL) and Southwest Airlines Co (NYSE: LUV) back in April near their lowest points of the coronavirus sell-off.At Berkshire's annual shareholder meeting in early May, Buffett said he had been wrong to invest in airline stocks."I just decided that I'd made a mistake...in investing in the airlines business," Buffett said. "It's a very difficult business. The future is much less clear to me how the business will turn out."Since May 1, the four airline stocks Buffett sold are up between 40% and 90% each.Buffett & TrumpBuffett was a supporter of Trump's 2016 election opponent Hillary Clinton, but he has mostly remained silent on Trump since he took office."I'm not in the business of attacking any president, nor do I think I should be," Buffett said in a 2017 interview.On Friday, Trump said Americans who didn't panic and dump their stocks have been rewarded far quicker than many experts anticipated."If people didn't get rid of stocks in their 401(k)s, they're almost even. Think of it," Trump said.Benzinga's TakeA rebound in the stock market and the economy is a huge development when it comes to Trump's re-election prospects come November. Following Friday's rally, the SPDR S&P 500 ETF Trust (NYSE: SPY) is up 43.7% since March 23 and now down just 0.4% overall year to date.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Related Links:History Suggests Record 50-Day Stock Market Rally May Be Just The Beginning Here's What Elon Musk Thinks About Warren BuffettSee more from Benzinga * How Large Boeing, Delta Options Traders Are Positioning As Economy Reopens * Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios * Bartstool's Dave Portnoy Breaks Down About The Importance Of Diversification(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • GuruFocus.com

    Berkshire Hathaway: A Premium Business Deserves a Premium Multiple

    A look at Berkshire's insurance advantage Continue reading...