CHICAGO, Aug. 30, 2011 /PRNewswire/ -- 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 Corp. (NYSE:
BAC), Berkshire Hathaway (NYSE: BRK.B), The Blackstone
Group (NYSE: BX), Toronto-Dominion Bank (NYSE: TD) and
BlackRock Inc. (NYSE: BLK).
(Logo:
http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
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 Monday's Analyst Blog:
BofA Close to Divesting CCB Stake
According to a CNBC report, Bank of America Corp.
(NYSE: BAC) is in the final stage of selling at least half of its
stake in China Construction Bank
("CCB"). This is part of BofA's effort to strengthen its capital
position in order to reinstate dividend hike and meet new
international capital standards. However, the company will continue
to be a strategic investor in CCB, the world's second largest bank
by value.
BofA will sell around $8.5 billion
of its 10% stake in the Chinese bank CCB, which is valued
at about $17 billion, per the
source.
Bloomberg data show that the company is the second largest stake
holder in CCB after the 59% right held by the Chinese government.
The lockup-period, wherein BofA is not allowed to sell its stake,
will expire on August 29.
The potential buyers of BofA's stake could be a consortium of
sovereign wealth funds in Asia and
the Middle East.
In 2005, BofA had paid $3 billion
for a 9.9% stake in CCB, before CCB's IPO. The company further
raised its stake by exercising the option to purchase an additional
11% for $9.2 billion.
This is not the first time that BofA is planning to sell its
stake in CCB. In January 2009, the
company had sold 2.5% holdings in CCB, reaping a profit of
$1.1 billion.
Further, in May 2009, the company
sold another 9.9% stake leading to a pre-tax profit of $7.3 billion. Also, in 2010, the company sold its
right to buy another 1.79 billion shares in CCB to Temasek Holdings
Pte, Singapore's state investment
company.
If BofA can successfully shed a sizeable holding in CCB on
attractive terms, its capital ratios would come in for a real
boost.
The $5 billion investment made by
Warren Buffett's Berkshire
Hathaway (NYSE: BRK.B) in the company on August 25, 2011 was also a confidence
booster.
BofA's plan to sell about half of its stake in CCB is part of
its long-term strategy to remove non-core assets from its balance
sheet. The company also looks to concentrate more on businesses
that directly serve customers, as well as fortify its balance
sheet.
BofA has also broached talks with The Blackstone Group
(NYSE: BX) to sell real estate assets held by its Merrill Lynch
unit for nearly $1 billion.
Moreover, early this month, the company agreed to sell its
Canadian credit-card unit to Toronto-Dominion Bank (NYSE:
TD) for $7.6 billion. Non-core asset
selling is not a recent hype. BofA shed a number of non-core assets
earlier this year as well as the last.
Among others, BofA sold 43.6 million of its BlackRock
Inc. (NYSE: BLK) shares for $163
each in November 2010. Furthermore,
the company sold an additional 2.5 million shares of BlackRock to
Japan's third-biggest bank Mizuho
Financial Group Inc.
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
About Zacks
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.