Tuesday, June 18, 2013

Top Construction Material Companies For 2014

It may take a few more years, but eventually the PC's day of reckoning will be here. In the not-so-distant future, the tablet market will overcome the PC market in unit volumes. Market researcher IDC is predicting that this will happen come 2015.

Tablet shipments are expected to grow by 59% this year to hit 229.3 million, compared to the 144.5 million units shipped in 2012. That should be enough for tablets to overtake the laptop subset of the broader PC market by year's end.

IDC's Ryan Reith says the transition was sparked by a difficult economic environment, but a new global computing paradigm is taking shape with mobile front and center. Tablets are cheaper than PCs and many consumers have seen discretionary income decline amid a tough global economy. The PC will always have a place in the enterprise with business users, but the large consumer market is quickly shifting to tablets.

Top Construction Material Companies For 2014: Wilshire Bancorp Inc.(WIBC)

Wilshire Bancorp, Inc. operates as the holding company for Wilshire State Bank that offers a range of financial products and services. It accepts various deposit products that include certificates of deposit, regular savings accounts, money market accounts, checking and negotiable order of withdrawal accounts, installment savings accounts, and individual retirement accounts. The company?s loan portfolio comprises commercial real estate and home mortgage loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including personal loans, auto loans, and other loans. It also provides trade finance services that include issuance and negotiation of letters of credit, handling of documentary collections, advising and negotiation of commercial letters of credit, transfer and issuance of back-to-back letters of credit, and trade finance lines of credit. In addition, the company offers Internet banking services, auto matic teller machines, and armored carrier services. It has 24 full-service branch offices in Southern California, Texas, New Jersey, and the greater New York City metropolitan area; and 6 loan production offices in Colorado, Georgia, Texas, New Jersey, and Virginia. The company was founded in 1980 and is headquartered in Los Angeles, California.

Advisors' Opinion:
  • [By Philip]

    Shares of Wilshire Bancorp (WIBC) of Los Angeles closed at $3.42 Friday, down 55% year-to-date. The shares have 18% upside potential, based on a mean 12-month price target of $4.04, among analysts polled by FactSet.

    The company had $2.7 billion in total assets as of Sept. 30, with 24 branches in Southern California, Texas, New Jersey, and the New York City area, and six loan production offices in n Colorado, Georgia, Texas (two offices), New Jersey, and Virginia.

    Wilshire Bancorp owes $62.2 million in federal bailout funds received through the Troubled Assets Relief Program, or TARP. The company raised $100 million in common equity during the second quarter, following an agreement with the Federal Deposit Insurance Corp. and state regulators to bring main subsidiary Wilshire State Bank's Tier 1 leverage ratio up to at least 10%. The Bank subsidiary's Tier 1 leverage ratio was 13.24% as of Sept. 30.

    The holding company reported third-quarter net income available to common shareholders of $10.2 million, or 14 cents a share, increasing from $2.1 million, or 4 cents a share, during the second quarter, and $5.0 million, or 14 cents a share, during the third quarter of 2010.

    The main factor in the earnings improvement was a reduction in credit costs, with a third-quarter provision for loan losses of $2.5 million, declining from $10.3 million the previous quarter and $18.0 million a year earlier. A $5.7 million decline in loan loss reserves during the third quarter directly boosted earnings.

    With the company continuing its aggressive reduction of its commercial real estate loan portfolio and its nonperforming loans, Wilshire Bancorp's total assets declined 17% from a year earlier. During the third quarter, the company sold $28.7 million in loans, most of which were nonperforming, for a gain of $1.7 million.

    Net interest income declined 14% year-over-year to $25.5 million in the third quarter, reflecting the balance sheet reduction.

    The net interest margin -- t! he difference between a bank's average yield on loans and investments and its average cost for loans and deposits -- was a strong 4.23% in the third quarter, which was down from 4.42% the previous quarter, but up from 3.393% a year earlier.

    Wilshire Bancorp's ratio of nonperforming assets to total assets was 2.46% as of Sept. 30, improving from 3.22% the previous quarter and 2.87% a year earlier. The annualized ratio of net charge-offs -- loan losses less recoveries -- to total loans was 0.46%, and with reserves covering 5.27% of total loans, the company appeared well-positioned for continued significant releases of reserves.

    FIG Partners analyst Timothy Coffey on Oct. 28 reiterated his "Outperform" or "Buy" rating for Wilshire Bancorp, raising his 12-month price target to $4.50 from $3.80, also "estimating tangible book values of $3.43 in 2011, $4.21 in 2012 and $4.84 in 2013." The analyst said that he anticipated that "could start to reverse the DTA-Deferred Tax Asset valuation allowance over the coming quarters," and that "the improvement in the earnings power has resulted in losses below management's projections, which has increased the valuation allowance to $40 million." Coffey estimated that "company could have no tax expense or very limited expense in 2012 before a normalized expense returns in 2013."

    The shares trade for 6.8 times the consensus 2012 earnings estimate of 50 cents, among analysts polled by FactSet, and just above their Sept. 30 tangible book value of $3.27, according to SNL Financial.

    Four out of seven analysts covering Wilshire Bancorp rate the shares a buy, while the remaining analysts all have neutral ratings.

Top Construction Material Companies For 2014: Beacon Roofing Supply Inc.(BECN)

Beacon Roofing Supply, Inc. distributes residential and non-residential roofing materials. The company?s residential roofing products include asphalt shingles, synthetic slates and tiles, clay and concrete tiles, slates, nail base insulation, metal roofing, felt, wood shingles and shakes, nails and fasteners, metal edgings and flashings, prefabricated flashings, ridges and soffit vents, gutters and downspouts, and other accessories. Its non-residential roofing products comprise single-ply roofing; asphalt; metal; modified bitumen; built-up roofing; cements and coatings; insulation?flat stock and tapered; commercial fasteners; metal edges and flashings; skylights, smoke vents, and roof hatches; and sheet metal products, including copper, aluminum, and steel. The company also provides complementary building products, such as vinyl siding; red, white, and yellow cedar siding; fiber cement siding; soffits; house wraps; vapor barriers; and stone veneer, as well as vinyl windo ws, aluminum windows, wood windows, turn-key windows, and wood and patio doors. In addition, it offers specialty lumber products comprising redwood, red cedar decking, mahogany decking, pressure treated lumber, fire treated plywood, synthetic decking, PVC trim boards, millwork, and custom millwork. Further, the company provides waterproofing systems, building insulations, air barrier systems, gypsum, moldings, cultured stone, and patio covers. Its customer base consists of contractors, home builders, building owners, and other resellers. Beacon Roofing Supply, Inc. distributes its products through 194 branches in 38 states of the United States; and 6 Canadian provinces. The company was founded in 1928 and is based in Peabody, Massachusetts.

Top Financial Companies To Watch For 2014: Dynacq Healthcare Inc.(DYII)

Dynacq Healthcare, Inc., through its subsidiaries, develops and manages general acute care hospitals that principally provide specialized surgeries in the United States. The company operates a hospital that handles specialized surgeries, such as bariatric, orthopedic, and neuro-spine surgeries, as well as provides pain management, sleep laboratory, and minor emergency treatment services in Pasadena, Texas. Its hospital includes operating rooms, pre- and post-operative space, intensive care units, nursing units, and diagnostic facilities, as well as medical office buildings that lease space to physicians and other healthcare providers. Dynacq Healthcare, Inc. also invests in debt and equity securities, including short-term investments in initial public offerings and pre-initial public offerings. The company was formerly known as Dynacq International, Inc. and changed its name to Dynacq Healthcare, Inc. in November 2003. Dynacq Healthcare, Inc. was founded in 1983 and is bas ed in Pasadena, Texas.

Top Construction Material Companies For 2014: Richmond Minerals Inc (RMD.V)

Richmond Minerals Inc. engages in the exploration and development of base and precious metals in northern Ontario and Quebec, Canada. The company primarily explores for iron, copper, gold, uranium, nickel, and chromium deposits. Its principal properties include the Halle Property that is located east of Belleterre, Quebec; and the Ste. Anne du Lac Property that consists of approximately 150 claims located northeast of Mont-Laurier, Quebec. The company is headquartered in Toronto, Canada.

Top Construction Material Companies For 2014: Cattolica Ass(CASS.MI)

Societa Cattolica di Assicurazione, through its subsidiaries, provides various life and non-life insurance products for individuals, families, and small and medium-sized productive activities in Italy. It offers vehicle insurance; home and family insurance; travel and leisure insurance; pension coverage; and health care insurance, including accident and sickness insurance products, as well as index-linked policies and unit-linked bonds. The company offers its products through various agencies, branches of partner banks, and brokerage firms. It also engages in the development and improvement/valuation of real estate assets, as well as the provision of real estate services. Societa Cattolica di Assicurazione was founded in 1896 and is headquartered in Verona, Italy.

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