For Immediate Release
Chicago, IL – April 2, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Bank of America Corporation , The Bank of New York Mellon Corporation , MetLife Inc. , BlackRock Inc. and Hyatt Hotels Corporation .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
BofA Wins Lawsuit Dismissal
On Thursday, the dismissal of lawsuit pertaining to the buyback of defective mortgage-backed securities (MBS), gave reprieve to Bank of America Corporation . The lawsuit was filed against BofA by a group of investors led by Walnut Place group.
The litigation charged BofA’s Countrywide Financial Corp. unit, which the bank acquired in 2008, of making wrong representations and warranties about the loans that backed these securities. The judge also dismissed Walnut Place's allegation that Countrywide's MBS trustee, The Bank of New York Mellon Corporation , had not acted on its complaints regarding defective Countrywide loans.
The judge who dismissed the present litigation will also decide the fate of BofA’s $8.5 billion MBS settlement deal. In June 2011, the company had entered into an agreement to pay $8.5 billion for its legacy Countrywide mortgage repurchase and servicing claims.
This deal was struck between BofA, BNY Mellon, Pacific Investment Management Co., MetLife Inc. , BlackRock Inc. and group of about 20 investors who suffered large losses for their investments in MBS that were sold by Countrywide prior to the housing market failure. The agreement basically covered most of BofA’s legacy Countrywide-issued first-lien MBS repurchase exposure.
The deal hass yet to receive approval of the court. But some investors allege that BofA had secretly reached a bigger settlement deal with the large institutional investors, leaving the smaller ones with losses. They further argued that the settlement amount was too low.
Walnut Place is a pseudonym used by Boston-based hedge fund Baupost Group LLC. This is the second time that Walnut Place has lost an appeal against BofA. Last month, a U.S. Appeals Court had ruled that BofA’s settlement deal related to Countrywide MBS will be reviewed in the New York state court, instead of the federal court as demanded by Walnut Place.
The deal, if approved, will not impact BofA’s financials as the company has already bore the brunt of the deal in the second quarter of 2011 by taking the reserves for $8.5 billion. Moreover, it will be a huge relief for the company as it has been facing a lot of lawsuits and investigations regarding various MBS sold by Countrywide.
Currently, shares of BofA have a Zacks #3 Rank, which translates into a short-term Hold rating. Additionally, we maintain our long-term Neutral recommendation on the stock.
Hyatt to Revisit Puerto Rico
Hyatt Hotels Corporation recently announced that a Hyatt affiliate entered into a management agreement with an affiliate of Island Hospitality Partners, LLC to unveil Hyatt Place Bayamón and El Tropical Casino. This is a part of the hotelier’s Caribbean expansion plan. After a nine-year hiatus, this property will mark the comeback of Hyatt-branded hotels in Puerto Rico upon its opening in 2014.
The new property will feature 156 luxurious guest rooms along with various other amenities. Located near San Juan and in proximity to the city’s largest shopping mall, the property remains a strategic fit.
Puerto Rico has been playing a major role in the hoteliers' Caribbean expansion. The location enjoys an edge over any other Caribbean island as it offers strong connectivity to other places and stresses on eco-tourism.
Moreover, the U.S. citizens are excused by the government of Puerto Rico from producing a passport. Following this initiative, Puerto Rico saw a substantial increase in overall tourist traffic. Therefore, we expect hoteliers to considerably benefit from this strategic expansion going forward.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT 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=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Zacks Investment Research
800-767-3771 ext. 9339