From: "Options Newsletter" - newsletter@optionsnewsletter.com
December 14, 2001
Hello valued member,
This week, the biggest news on Wall Street was the fed's decision to cut interest rates by yet another quarter point. This latest move by the fed sent interest rates to the lowest level we've seen in over 40 years! In order for investors to profit from this situation, it is important to understand the basics of what happens when interest rates drop.
First and foremost, when interest rates drop, consumers become "uneasy" with the ridiculously low interest that they receive in their bank's savings account. As this "unease" grows, many consumers look to increase their returns by taking money out of money market and investing in other vehicles such as real estate and/or stocks. Since an increase in demand for stocks and real estate is good for the economy, it is safe to say that when the fed lowers interest rates, they are in essence helping to boost the overall economy.
Secondly, as interest rates drop, many homeowners look for ways in which to lower their monthly mortgage payments. One way of doing this is by refinancing their existing mortgage based on the new low interest rates. After all, why pay an 8.5% mortgage, when you can pay a 6.5% mortgage? Rarely will a lending institution (bank) pass along the entire rate-cut down to the consumer, as they tend to "pocket" a portion of the cut for themselves. Because of this, a bank's profit margin tends to increase as interest rates fall.
With this in mind, below you will find that this week's "stocks in the spotlight" include two companies that are very well positioned to take advantage of the "refinancing boom" that is expected to take shape over the next few months. In addition, they were chosen due to the fact that the company's insiders are so confident in their own future, that they've PERSONALLY purchased large amounts of their own stock in the open market. As always, we sincerely hope you profit from this information. Good luck and enjoy.
(check below for this week's "stocks in the spotlight")
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LendingTree
LendingTree, Inc. (TREE) offers an Internet-based loan marketplace for consumers and lenders. The Company attracts consumers through its proprietary Website, www.lendingtree.com, as well as through private-label and co-branded marketplaces enabled by its proprietary technology. The company collects and compares consumer credit requests and related credit information to the underwriting criteria of over 100 participating lenders.
Since the 9.11 attacks, four company insiders purchased a total of roughly $250,000 worth of TREE stock in the open market. In addition, institutions purchased a total of roughly $5 million worth of TREE, in the past quarter alone. It's nice to see that those who know the company best (the insiders) are buying shares for their personal accounts.
For the nine months ended Sep 2001, revenues more than doubled, while net loss applicable to common fell 51%. LendingTree has about 74 lenders providing home mortgage loans; 60 lenders providing home equity loans; 15 lenders providing automobile loans; 12 credit card issuers; and nine lenders providing personal loans. In addition to helping consumers secure a mortgage loan, LendingTree can also refer purchase mortgage customers to real estate agents in nearly all 50 states.
To continue researching LendingTree, Click Here
www.optionsxpress.com/quote_detail.asp?SYMBOL=tree
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Banco Popular
Banco Popular (BPOP) is a consumer-oriented bank with a market valuation of just under four billion dollars. The company operates 199 branches and 478 automated teller machines. The Bank has a trust operation in Puerto Rico. Banco Popular also operates seven branches in the United States Virgin Islands, one branch in the British Virgin Islands and one branch in New York.
In recent months, six insiders purchased a total of over $2 million worth of BPOP stock in the open market. It is interesting to note that among these insiders is the company's President, as well as the company's Senior V.P. Not only are the insiders buying, but Institutional investors (the "smart money") also seem to like what they see, as they've bought over $45 million worth of BPOP stock in the past quarter alone.
The principal market for the Company is Puerto Rico, where the Company has roughly $20 billion of assets and receives $1.8 billion of its total revenues. BPOP is a very profitable company, earning $2.17 per share and paying a 2.8% annual dividend. The company is sitting on over $600 million in cash, and generating a healthy profit margin of 14%.
www.optionsxpress.com/quote_detail.asp?SYMBOL=bpop
December 14, 2001
Hello valued member,
This week, the biggest news on Wall Street was the fed's decision to cut interest rates by yet another quarter point. This latest move by the fed sent interest rates to the lowest level we've seen in over 40 years! In order for investors to profit from this situation, it is important to understand the basics of what happens when interest rates drop.
First and foremost, when interest rates drop, consumers become "uneasy" with the ridiculously low interest that they receive in their bank's savings account. As this "unease" grows, many consumers look to increase their returns by taking money out of money market and investing in other vehicles such as real estate and/or stocks. Since an increase in demand for stocks and real estate is good for the economy, it is safe to say that when the fed lowers interest rates, they are in essence helping to boost the overall economy.
Secondly, as interest rates drop, many homeowners look for ways in which to lower their monthly mortgage payments. One way of doing this is by refinancing their existing mortgage based on the new low interest rates. After all, why pay an 8.5% mortgage, when you can pay a 6.5% mortgage? Rarely will a lending institution (bank) pass along the entire rate-cut down to the consumer, as they tend to "pocket" a portion of the cut for themselves. Because of this, a bank's profit margin tends to increase as interest rates fall.
With this in mind, below you will find that this week's "stocks in the spotlight" include two companies that are very well positioned to take advantage of the "refinancing boom" that is expected to take shape over the next few months. In addition, they were chosen due to the fact that the company's insiders are so confident in their own future, that they've PERSONALLY purchased large amounts of their own stock in the open market. As always, we sincerely hope you profit from this information. Good luck and enjoy.
(check below for this week's "stocks in the spotlight")
--------------------------------------------------
LendingTree
LendingTree, Inc. (TREE) offers an Internet-based loan marketplace for consumers and lenders. The Company attracts consumers through its proprietary Website, www.lendingtree.com, as well as through private-label and co-branded marketplaces enabled by its proprietary technology. The company collects and compares consumer credit requests and related credit information to the underwriting criteria of over 100 participating lenders.
Since the 9.11 attacks, four company insiders purchased a total of roughly $250,000 worth of TREE stock in the open market. In addition, institutions purchased a total of roughly $5 million worth of TREE, in the past quarter alone. It's nice to see that those who know the company best (the insiders) are buying shares for their personal accounts.
For the nine months ended Sep 2001, revenues more than doubled, while net loss applicable to common fell 51%. LendingTree has about 74 lenders providing home mortgage loans; 60 lenders providing home equity loans; 15 lenders providing automobile loans; 12 credit card issuers; and nine lenders providing personal loans. In addition to helping consumers secure a mortgage loan, LendingTree can also refer purchase mortgage customers to real estate agents in nearly all 50 states.
To continue researching LendingTree, Click Here
www.optionsxpress.com/quote_detail.asp?SYMBOL=tree
--------------------------------------------------
Banco Popular
Banco Popular (BPOP) is a consumer-oriented bank with a market valuation of just under four billion dollars. The company operates 199 branches and 478 automated teller machines. The Bank has a trust operation in Puerto Rico. Banco Popular also operates seven branches in the United States Virgin Islands, one branch in the British Virgin Islands and one branch in New York.
In recent months, six insiders purchased a total of over $2 million worth of BPOP stock in the open market. It is interesting to note that among these insiders is the company's President, as well as the company's Senior V.P. Not only are the insiders buying, but Institutional investors (the "smart money") also seem to like what they see, as they've bought over $45 million worth of BPOP stock in the past quarter alone.
The principal market for the Company is Puerto Rico, where the Company has roughly $20 billion of assets and receives $1.8 billion of its total revenues. BPOP is a very profitable company, earning $2.17 per share and paying a 2.8% annual dividend. The company is sitting on over $600 million in cash, and generating a healthy profit margin of 14%.
www.optionsxpress.com/quote_detail.asp?SYMBOL=bpop
