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Yum Brands (YUM): A global meal
2009-07-02 06:00:00
"Yum Brands (NYSE: YUM), the world's largest restaurant company, is our latest featured stocks," says Alex Kolb, editor of Zacks Elite Stocks. Here, he looks at the firm's global reach."The company has more than 36,000 restaurants in more than 110 countries and territories. Four of its brands -- KFC, Long John Silver's, Pizza Hut and Taco Bell -- are the global leaders of the chicken, quick-service seafood, pizza and Mexican-style food categories."The company, which is based in Louisville, Kentucky, saw more than $11 billion in total revenues in 2008 and is #239 on the Fortune 500 List.  Solid Income Yum recently declared a dividend of 19 cents per share."The company said it continues to return cash and build shareholder value through its dividend program first initiated in 2004, adding that it has increased its dividend four-fold since then."Yum is a dividend leader among its industry peers, offering an annual dividend of 76 cents per ...
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DuPont (DD): 'World class'
2009-07-02 06:00:00
"DuPont EI de Neumours (NYSE: DD) is a world-class company with a world-class dividend yield," says growth & income expert Bryan Perry. Here's the latest from The Cash Machine."Some of the biggest winners in a recovering economy are those stocks of companies engaged in the basic businesses such as industrial chemicals, plastics, and adhesives."The firm can implement price increases along the way, which could translate into phenomenal earnings surprises and set a stock like DuPont in motion higher."Since 1802, DuPont's business has been focused on science-based products and services by using science to create sustainable solutions essential to a better, safer, healthier life for people everywhere. "Currently, the company has operations in more than 70 countries, and offers a wide range of innovative products and services that include agriculture. It stays ahead of their competition by investing in research. "With greater e...
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MannKind (MNKD): High risk bet on inhaled insulin
2009-07-01 14:00:00
"In looking for a highly speculative stock for our portfolio, I have settled on MannKind Corp. (NASDAQ: MNKD), a company that is developing an inhaled insulin product," says Nate Pile.In his growth-oriented Nate's Notes, the advisor cautions, "I believe we are looking at a situation in which we will either lose most of our money, or triple (or better) our investment in a fairly short period of time.""In a nutshell, the company’s near-term fate hinges upon AFRESA, a novel, ultra rapid acting mealtime insulin therapy being studied for use in adult patients with type 1 and type 2 diabetes mellitus for the treatment of hyperglycemia."Working against the company is the fact that there has never been an inhaled insulin product approved for commercial use that has worked very well."Thus, if MannKind’s product manages to both win FDA approval and achieve commercial success, MannKind will truly be treading where no one has gone bef...
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Immunogen (IMGN): Antibody play
2009-07-01 14:00:00
"How does one go about investing in the antibody space?" asks biotech specialist John McCamant. In The Medical Technology Stock Letter, he eyes Immunogen (NASDAQ: IMGN)."As background, T-DM1 is a second generation Herceptin that may even exceed the original in sales because the armed antibody has been more potent to date by showing effectiveness in mBC patients  who have failed either Herceptin or Tykerb."The company will continue to benefit from Genetech's extensive antibody experience as they continue to run all development for Immunogen's T-DM1."In addition, the armed antibody companies can offer significant patent extensions for naked antibodies after they lose patent protection. This additional patent protection is a significant long-term value, especially given the very strong current and projected sales for naked antibodies."Companies will spend lots of money to protect/extend patents on blockbuster drugs. Thus, we believe ...
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NovaGold (NG): 'Exceptional bet' in mining
2009-07-01 14:00:00
"In the 2000s, as we’ve alternated between deflationary and inflationary worries, gold has been the only major investment to rise every year," says Stephen Leeb.In his The Complete Investor, he explains, "We think that many miners are exceptional bets today. And among our favorite gold investments is one that we hold in our small cap value model portfolio: NovaGold Resources (ASE: NG).""The case for mining stocks is that the price of gold rises faster than miners’ costs, allowing margins to increase."That’s not to deny the risks, such as possible shortfalls in production, sudden price increases, environmental costs, and so on. Still a miner that can increase production and maintain or boost margins will outperform the metal over time."NovaGold -- and its relationship with Barrick (NYSE: ABX) -- illustrates particularly well the potential a superior miner can have even when gold prices are flat. "Barrick, now Nova’s...
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Guangshen Railway (GSH): On track in China
2009-07-01 06:00:00
"A focal point of China 's ambitious $586 billion stimulus package will be railroadsl in fact, investment in railways has already tripled over this time last year." explains value Investor Nathan Slaughter.In his Half-Priced Stocks he adds, "Guangshen Railway Limited (NYSE: GSH) looks to be an obvious choice to benefit from this trend. Indeed, pricing flexibility, stellar efficiency and utilization has made Guangshen the most profitable rail company in China.""Growth in China's railways doesn't come as a surprise. Years before this plan was put in motion, China already had bold ideas about building out its railway system -- and was bankrolling those ideas with about $200 billion in government cash."And now, those commitments will be supplemented with an additional $100 billion earmarked from this latest stimulus package. "To be sure, the sprawling country is certainly in need of additional rail capacity, and many rural areas ha...
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Noble (NE): 'Jackup' profits
2009-06-30 06:00:00
"Noble (NYSE: NE) offers a compelling combination of deepwater and international 'jackup' drilling exposure," says energy expert Elliott Gue in his The Energy Strategist."The stock is cheaper on a price-to-earnings and price-to-cash flow basis than most other contract drillers."In total, Noble has 14 deepwater and ultra-deepwater rigs operating in the Gulf, with all but one of these rigs contracted through early to mid 2011. Its booked contracts amount to around $10.6 billion, a solid base of defensive, visible earnings."The fundamental upside turnaround potential for Noble resides in its jackup fleet, which consists of 40 rigs of varying qualities."In total, Noble has 12 jackups working for Mexico's Pemex, primarily at day rates in the $125,000 to $160,000 range; these rigs offer exposure to any improvement in international jackup rates."In addition, Noble has eight harsh environment jackups working i...
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Tide turns for US dollar?
2009-06-30 06:00:00
According to Bryan Rich, a currency specialist and the editor of The World Currency Alert, the US dollar is now poised for a rise based on both technical and fundamental factors."The correction in dollar strength has been sharp over the past few months, but the key support area I've been watching in the U.S. Dollar Index has proven resilient. Now the dollar's resurgence is under way, and it's time to hop on."The dollar has broken key trendlines against the Australian dollar, the Euro, the Swiss franc and the Canadian dollar. This further indicates that this recent trend of dollar weakness should be over."Perhaps the biggest confirmation, however, is occurring in the stock market; the S&P 500 has broken a key supportive trendline that describes the sharp climb from the March lows of 666. This is a very bearish signal that should summon heavy selling pressure."This recent surge in risk appetite has been bad for the dollar, bad for U.S. longer-t...
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Toby Smith: In the chips with SanDisk (SNDK)
2009-06-30 06:00:00
"For two years chips stocks have unequivocally stunk; the industry has been mired in a host of problems, including massive overcapacity and shrinking demand," says Toby Smith , adding, "But that's changing."In his ChangeWave Investing, he suggests, "One recommendation in this sector is SanDisk (NASDAQ: SNDK), the leader in flash memory -- one of the strongest segments in semis today.""For the second quarter in a row the semiconductor sector is showing major signs of momentum that are so good that the industry ranked at the top of the nearly 20 industries we track each quarter."The bottom line is that these results clearly indicate that it is time to be invested in the semis, and the best way to do this is with two short-term plays."So, one of our recommendations is the leader in flash memory -- SanDisk (NASDAQ: SNDK), whose flash memory data storage products serve both consumers and original equipment manufacturers. "Its products ...
More About: Chips , Sandisk

Microsoft (MSFT) Bet on Bing?
2009-06-29 06:00:00
"Microsoft (NASDAQ: MSFT), a holding on our buy list, was added to Goldman Sachs' Conviction Buy List," says Bill Martin. In BullMarket.com, he offers the reasoning for his buy rating."Analyst Sarah Friar at Goldman raised her price target on the name to $29 from $25. "She said,'"We are adding Microsoft to our Conviction List as we think the combination of better revenue drivers, improved expense management, and sizeable cash balances provides more opportunities for bottom-line beats.'"'Windows 7, Windows Server 2008 R2, Bing , Xbox 360 and new Halo content, Office 2010, and the Azure Cloud provide renewed innovation beyond anything we have seen in multiple years,' Friar wrote."She added, 'Looking out to CY2010 and beyond, the new product pipeline, combined with a modest rebound in IT spending, should buoy top-line growth. The stock remains under-owned by growth managers, providing further buying...

Powershares Agriculture (DBA): Invest in crop circles!
2009-06-29 06:00:00
"There are many reasons to like PowerShares DB Agriculture (NYSE: DBA), and ETF that tracks agricultural commodity prices," says fund expert Doug Fabian.In The ETF Trader, he explains, "We like the technical picture. In addition, we believe commodities are a great hedge against inflation." Here's his assessment."I’m a pretty skeptical guy; one of the more wild claims of the past decade or so was that so-called 'alien' crop circles -- those bizarre patterns carved into wheat, corn and other fields around the globe."Well, I say forget about the aliens, but don’t forget about the patterns taking shape in the world’s key agricultural crops."The patterns being cut into price charts of crops like corn, soybeans, sugar and wheat all have given us one compelling message, and that message is it’s time to buy."That’s why I now am recommending that you purchase the PowerShares DB Agriculture (NYSE: DBA). Thi...
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Utility expert taps into water
2009-06-26 14:00:00
"Investors have given up on the water industry -- the sector has fallen 60% --  but the best firms have hardly missed a beat," says Roger Conrad; here's two favorites in Personal Finance."The EPA stimates the US will have to spend $335 billion over the next decade to keep the taps turned on, given aging infrastructure and supply degradation."Service providers are the highest percentage way to play growth in global water spending. Demand fluctuates with weather depending on the season but has proven steady even during deep recessions, including this one."Water utilities’ earnings are based on the size of their rate base--the reservoirs, treatment centers, water mains and distribution pipes they use to provide service. The more money invested, the more rate base grows, which generates higher revenue, earnings and dividends."American Water Works (NYSE: AWK) and Aqua America (NYSE: WTR) are also growing via acquisitions. Some 85% of...
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What's the safest dividend in the Dow?
2009-06-26 14:00:00
"Following last year's dismal market, investors are looking for something they can be sure of in the year ahead; and for income investors, that means finding a safe and rewarding dividend," says Carla Pasternak.In her High Yield Investing, she offers a fascinating review to find the "safest dividend in the Dow." Here's her breakdown of the Dow and her top pick for dividend safety."The 30 members of Dow Jones Industrial Average represents some of the strongest names in America. So these corporate titans are a good place to start searching for the safest dividend."The first step in the process is not to look at the Dow at all, but to start with the 10-year Treasury note, currently yielding 3.86%. "In theory, stocks represent more risk than Treasuries, so you want to make sure you're getting compensated for that risk with a higher yield. "Using the yield of the 10-Year Treasury as our threshold eliminates most of the Dow. Though ...
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Dow Theory's mid-year favorites
2009-06-25 14:00:00
"Midyear is as good a time as any to pause and reflect," says Richard Moroney in Dow Theory Forecasts -- a newsletter that has been published for over 50 years.Here, he reviews the state of the market and offers a look at trio of favorite stocks which he considers "fundamentally superior" companies: Biogen Idec (NASDAQ: BIIB), Comcast (NASDAQ: CMCSA), and Oceaneering International (NYSE: OII)."The Dow Theory indicator remains in the bearish camp, as the last confirmed signal was the move to new lows in March."But both the Industrials and Transports have staged significant rallies since March, so the pathway to a bull-market signal has been established."If at least one average can hold above a March low on a signifi cant market correction and then both averages rebound above the closing highs established in the current rally, the Dow Theory will return to the bullish camp."While the average U.S. ...
More About: Favorites , Year

Step up to Nike (NKE): A 'great company'
2009-06-25 14:00:00
"The conditions are in place for a 'Best Buy' opportunity," says Jim Stack, whose buy signal should receive special attention given that his timing signals side-stepped the bear market.The editor of Investech Market Analyst is increasing his equity positions, such as a new buy rating on Nike (NYSE: NKE). He states, "With a portfolio of iconic brands, an identified growth strategy, recognized innovation, and sound financial footing, Nike fits the bill of being a great company.""Very rarely do we have all these conditions in place – that’s only occurred five times in the last 45 years. Historically, this means we should give the growing evidence of a new bull market every benefit of doubt."While it’s true the market has moved quickly, we must remember that this would still be early in the cycle compared to historical bull markets. We are only three months past the March 9 low, and bull markets typically last 2-5 ye...
More About: Company , Great , Step , Step Up

Pairs trade: Long gas, short oil
2009-06-25 06:00:00
BizRadio host and editor of The MoneyMan.com newsletter, Daniel Frishberg, looks to a "pairs trade" in energy in which he uses ETFs to short oil and concurrently going long natural gas."There are always things to worry about. Geopolitical risk, doubts about the economic recovery, profit taking, worries about government spending and debt, fears of new regulations, the upcoming Fed meeting....take your pick."The markets seem to have their own rhythm apart from the current news and economic events.  A pullback after our long run would not be unexpected after a set of weak advances and weak pullbacks. "If this selloff is real, we would actually view it as an opportunity. An even bigger pullback will create a bigger opportunity. We know from the leading economic indicators that the economy is improving and that we will soon be seeing economic news that will surprise on the upside. "Meanwhile, we are recommending a 'pairs trade...
More About: Trade , Long , Short

Bank on India: HDFC (HBN)
2009-06-25 06:00:00
"HDFC Bank (NYSE: HDB), the leading private-sector bank in India ," notes Paul Goodwin.In his The Cabot China & Emerging Markets the global advisor explains, "The company puts itself at the top of its class with its relentless revenue growth, which has averaged over 42% a year." Here's his review."The bank became an independent company as part of the liberalization of the Indian banking industry that began in 1994. "It has experienced dramatic growth since then, expanding from a tiny base in 1995 to its current network of 1,412 branches nationwide with 3,295 ATMs in 528 Indian towns and cities."With a market cap of over $11 billion, HDFC isn’t the kind of small, nimble business that we typically look for.  But its operations extend into all sectors of the banking business, and it’s well positioned to take advantage of the improving Indian business climate."HDFC’s business begins with its retail...

Tech talk from MarketWatch
2009-06-24 14:00:00
"Stocks are likely in a new downtrend," says Michael Ashbaugh. In Marketwatch 's TheTech nical Indicator, he looks at the S&P's prospects and some drug stocks set to buck the trend."The S&P 500 has violated its major moving averages in the closely tracked 900 area. The recent downturn was convincingly bearish, placing the burden on market bulls to reassert the uptrend."After finding resistance in the 923 area, the S&P sold off sharply, edging back under its 200-day moving average, which currently holds at 900 and now marks resistance. This is bearish price action."Consider the following:Most obviously, the S&P violated its major moving averages. Its 200-day currently holds at 900, while its 50-day rests at 899. The index itself recently closed just under both levels. The market's breadth registered bearish extremes. Specifically, last Monday, down volume surpassed up volume by 14 to 1 on the NYSE, and b...
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ABB (ABB) Build-out in China
2009-06-24 06:00:00
Writing from Japan, Keith Fitz-Gerald says, "China is powering ahead like a gigantic steamroller." In Money Map Reporter, he looks at one company set to benefit: ABB Ltd. (NYSE: ABB)."Notably, China reported that May retail sales rose 15.2% vs. a year ago after April's 14.8% gain. "At the same time, May's industrial output rose 8.9% on top of April's 7.3% increase while Chinese investment in urban areas for assets like roads and apartments rose 40% in May versus a year ago."Many analysts continue to paint China as a country that will live and die by exports. What they fail to acknowledge is that  China's internal strength is based on governmental spending that accounts for roughly 43% - 45% of GDP."Net exports account for a mere 3.5% - 9%. Obviously there are variations on the theme by data source, but the net take away is that this hardly sounds like an economy that's going to live and die by what it sends overse...
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At home with Almost Family (AFAM)
2009-06-24 06:00:00
"Almost Family (NASDAQ: AFAM), a provider of home health services, keeps 'whacking the cover off the ball'." says growth stock specialist Tom Bishop. Here's the latest from BI Research."The company provides skilled nursing services (80% of revenues) as well as personal care services (20%) to patients convalescing in the comfort of their own homes, a much lower cost setting also favored by Medicare."While the market obsesses about future Medicare reimbursement rates, I believe the company will be able to adapt to whatever Medicare throws at it without any major setbacks. "Meanwhile, the company keeps whacking the cover off the ball, despite another zero increase year from Medicare. "Net revenues grew 77% in Q1, including organic revenue growth of 41%. AFAM beat estimates, again, by $.08. EPS came in at $.68, 13% above estimates prompting all 7 analysts to raise their estimates for the year by an average of $.17. "EPS advan...
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Stocks inside the iPhone
2009-06-24 06:00:00
Technology sector expert Paul McWilliams offers a fascinating look at the new iPhone 2G S from Apple (NASDAQ: AAPL) to uncover what tech companies are supplying components.In his Next Inning newsletter -- a specialty service devoted to tech savvy investors -- the advisor offers a look at the players inside the iPhone."A few interesting notes have come from the folks busily tearing down the new Apple iPhone 3G S.The first is confirmation that the rumor I shared in April that Omnivision (NASDAQ: OVTI) would win a 3MP image sensor design in the next generation iPhone. It appears the tear down report published by EE Times has confirmed this win."The second is that Broadcom (NASDAQ: BRCM) displaced both the CSR Bluetooth and Marvell WiFi chips with its BCM4325 that supports both functions in a single chip."The third is confirmation that SkyWorks (NASDAQ: SWKS) in fact is the power amp supplier. I noted this in my first report on the new iPhone 3G S even thou...
More About: Stocks , Iphone , Inside

Turnaround for Williams (WMB): Pipeline profits
2009-06-23 06:00:00
"Despite coming close to bankruptcy in 2002, Williams Co. (NYSE: WMB) has some of the premier assets in each of its business segments: exploration & production, mid-stream and pipelines," says turnaround expert George Putnam.In his The Turnaround Letter, he explains, "The company now has the financial strength not only to survive the current downturn but to grow and prosper.""Begun in 1908 as a pipeline construction company, Williams is now a major, integrated natural gas company; it produces, gathers, processes and transports natural gas throughout the United States. "In the 1990’s, Williams branched out into new businesses, including telecommunications (initially by running fiber optic cable through decommissioned natural gas pipelines), electric power generation and energy trading."Much of this expansion was funded by debt, and by the end of 2002, the company’s debt burden had brought it close to bankruptcy. Williams sold of...
More About: Profits , Pipeline

Winners from Federal regulation
2009-06-23 06:00:00
Congratulations to Neil George; long-known in the newsletter community for his expertise in income investing, the advisor has just launched a new blog service, Stocks that Pay You.He notes, "Most of the government 's proposed changes for the financial markets aren't new or needed; but what will happen will be a boost for some and a bane for others. Here, he looks at some winners and losers."In my view, tthese supposedly massive changes amount to window dressing. Banks and other related firms can continue to do what they've always done: cherry pick regulators and play off one regulator against another."So, unless we get the government actually empowering the guys down the line inside all of these agencies and departments, don't look for any big changes, because - while the players and the names might be changing - the contest is staying the same."The potential losers in this process will be some of the Federal Thrifts or FSBs that wi...
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Turnaround for Urban Outfitters (URBN)?
2009-06-23 06:00:00
"Stocks have struggled lately; still, I continue to see opportunities," says Mark Skousen. In The Turnaround Alert, he says, "I especially like Urban Outfitters (NASDAQ: URBN)." "Urban Outfitters , the apparel retailer, after it beat Wall Street analysts’ estimates. Two years ago, the stock was selling for $37 a share."But today, it's selling for nearly half that. During the deep recession, retailers have seen sales drop as consumers cut back on spending for clothing and other discretionary purchases. As a result, retail apparel stocks fell sharply. "Granted, net income for Urban Outfitters declined 28% on revenues of $1.8 billion, but overall sales fell only 2% for the year. Urban’s brands have held up well compared to their competition (Abercrombie & Fitch, GAP, etc.)."Analysts think that Urban did better than expected because of better margins in its 300 stores, suggesting that the company is controlli...

China Unicom (CHU): Set to soar?
2009-06-22 06:00:00
"China Unicom (NYSE: CHU) could be one of the best ways to play China’s astounding economic growth," says Brandon Clay in Invest with an Edge. Here's the growth advisor's review."With the world’s largest population as its market, the mobile phone industry in China is set to soar. This makes China Unicom a compelling play. The firm has 21% market share in China."China Unicom's vice president recently said the company is targeting subscriber growth of 20 million to 30 million within a year. To put that into context, Verizon Wireless, the largest mobile phone carrier in the U.S., had 72.1 million subscribers at the end of last year."The company also recently announced it may partner with Apple to offer the iPhone, which has so far been unavailable in China. Given the sleek smartphone’s huge popularity in the rest of the world, it is reasonable to expect Chinese consumers will flock to the iPhone in droves."China Unicom uses 3G...
More About: Soar

'ABC' of stock splits
2009-06-22 06:00:00
"Last month provided only one split for us to consider: AmerisourceBergen (NYSE: ABC)," says Neil Macneale, whose 2-for-1 newsletter only buys stocks that announce splits."In reviewing the company, I decided ABC has enough going for it to merit a place in the 2 for 1 portfolio.Amerisource Bergen is a drug distributor to both healthcare providers and pharmaceutical manufacturers."The company operates on a relatively thin profit margin but its fundamentals are otherwise quite robust. ABC does pay a modest dividend and has below average volatility; traits I’m particularly keen on at the moment. "We owned Bergen Brunswig, a predecessor to ABC, in our model portfolio at the turn of the millennium and, while positive, it was not a big winner for us. "I wrote at the time of its sale, 'An industry held captive by a larger force, i.e. drug distributors under the thumb of the HMOs and Medicare, can be a prescription for erratic performance....
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Celgene (CGNE): Offense and defense
2009-06-22 06:00:00
"Biotech company Celgene Corp. (NASDAQ: CELG) is a prime example of a stock that plays both offense and defense," says Ian Wyatt.In his Top Stock Insights, he explains, "The valuation is low and growth is attractive. With the pipeline of products in development, Celegene offers investors a huge upside potential." Here's his review."Celgene offers investors a steady product base, a variety of drug treatments in development and a cash pile ready to purchase existing technologies."Celgene engages in the discovery of therapies designed to treat cancer and immune-inflammatory related diseases.  They have a number of products at the commercial stage. "Their commercial stage products are REVLIMID®, THALOMID® and VIDAZA®. Celgene is also researching stem cells derived from the human placenta as well as from the umbilical cord, thus tapping into a promising new technology while avoiding the political and ethical questions dogging o...
More About: Defense

911 by land: Emergency Medical Services (EMS)
2009-06-19 06:00:00
"Emergency Medical Services Corp. (NYSE: EMS) is the leading provider of emergency medical services in the United States," notes growth stock expert David Fessler.In The Oxford Club advisory, he explains, "Every three seconds, one of its staff member touches a patient in some facet of the patient care process: non-critical patient transport, 911-response services, emergency room staffing and other similar services.""Hopefully you'll never require the services of an emergency medical crew - like I did - when I suffered a brain aneurism three years ago. "I'll be forever grateful for their quick response and professional training. They probably saved my life."Volunteers staff many of these ambulance corps, but larger towns and cities are increasingly contracting these services out to highly trained professionals. The biggest and best just happens to be Colorado-based Emergency Medical Services."The company's American Medical Resp...
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911 by air: Air Methods (AIRM)
2009-06-19 06:00:00
Air Methods (NASDAQ: AIRM), which provides aeromedical emergency services and systems in the US, is a recent buy from technician Leo Fasciocco.In his The Ticker Tape Digest, which focuses on stocks breaking out of basing patterns, he suggests, "AIRM is a turnaround stock that is acting strong now; with strong profits coming this year, we see good prospects for a breakout to the upside.""AIRM, with annual revenues of $500 million, operates a fleet of aircraft, consisting of helicopters and airplanes. It serves hospitals in 26 states under contracts ranging from one to 10 years."The company transports persons requiring medical care from either the scene of an accident or general care hospitals to highly skilled trauma centers or tertiary care centers. AIRM also has a products division that makes and installs medical interiors."The stock was a highflyer climbing from 6 back in 2005 to a peak of 59 in late 2007. It then went into a down trend during the bea...

Scottish income: Royal preferreds
2009-06-19 06:00:00
In her top-ranked Global Investing advisory, Vivian Lewis looks at a lesser-known area of the income market -- non-cumulative preferreds -- explaining these vehicles and offering some favorites."Over 20 years ago, Barclays Bank, which is British, invented a new vehicle for raising money in the U.S. market to enhance its capital ratios and finance its growing dollar business. "They were called non-cumulative preferred shares and were issued at $25/share to pay dividends four times a year just as normal U.S. stocks do. The clear target for these vehicles was U.S. retail investors. "Some British banks use a different term, non-cumulative preference shares; they mean the same thing."At the time, Barclays was able to enhance the amount it was paying in dividends by using a feature of the British tax code called Advance Corporate Taxes. This no longer applies. "So the yield on preferred shares now is actually being paid as a cost of capital by the Britis...
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