Zacks Bull and Bear of the Day Highlights: St. Joe, Fujifilm Holdings, HSBC
Holdings, Standard Chartered and ING Groep
CHICAGO, Dec. 13, 2012
CHICAGO, Dec. 13, 2012 /PRNewswire/ --Zacks Equity Research highlights The
St. Joe Company (NYSE:JOE) as the Bull of the Day and Fujifilm Holdings
(OTC:FUJIY) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on HSBC Holdings plc. (NYSE:HBC), Standard Chartered PLC
(OTC:SCBFF) and ING Groep NV (NYSE:ING).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
The St. Joe Company (NYSE:JOE) reported strong third quarter 2012 results with
a healthy year-over-year increase in revenue and EPS, with the latter
exceeding the Zacks Consensus Estimate by $0.18. St. Joe is one of the largest
real estate developers in Florida.
The company is presently focusing on developing the adjacent area of the
Panama-City Bay County Airport, which was opened in late 2010, to increase the
future value of its holdings. However, St. Joe's business is primarily
concentrated in Florida, which was one of the hardest hit states in the
recession and had adversely affected its bottom line in the recent past,
thereby undermining the future growth potential to some extent.
Our long-term Outperform recommendation on the stock indicates that it would
perform well above the broader market. Our target price of $27.00, 158.8X 2012
EPS, factors in this view.
Bear of the Day:
Fujifilm Holdings (OTC:FUJIY) generated net income of $101.3 million during
the three months ending September 30, 2012. The company far exceeded the $5.0
million reported in the year-ago quarter. Yet the company finds it difficult
to maintain its traditional business within the digitalization phase of
Also, due to the existence of many players in the industry, it becomes
challenging for the company to earn profits. Moreover, the ever increasing
prices of raw materials remain a nagging concern.
Thus, anticipating Fujifilm to face troubles in revenue generation, we are
downgrading the stock from Neutral to Underperform. Our $17.00 target price,
13.4x 2013 EPS, reflects this view.
Latest Posts on the Zacks Analyst Blog:
Money Laundering Costs HSBC Nearly $2B
HSBC Holdings plc. (NYSE:HBC) reached a settlement with the U.S. law
enforcement authorities in the money laundering case and agreed to pay a hefty
amount for it. The company would pay a penalty of $1.9 billion for its
misdeeds and take proper measures to avoid such issues going forward.
As a matter of fact, HSBC was blamed for substantial lapses in its anti-money
laundering compliance. The company was accused of being involved in the
displacement of funds through the U.S. financial system for countries under
the sanctioned list of the United States.
Moreover, it was charged for controversial transactions pertaining to the
illegal narcotics trade in Mexico. No less than $881 million of drug
trafficking earnings are said to have been laundered through HSBC Bank USA
between 2006 and 2010.
The settlement includes a Deferred Prosecution Agreement with the US
Department of Justice. Over the five-year term of the agreement, HSBC's
progress in executing the measures would be evaluated by an independent
monitor. As per the type of agreement, in case the company falters again, it
may be sued by the Justice Department.
Notably, HSBC, which admitted to its misdeeds, undertook measures to increase
its controls and compliances. In addition to elevating its expenditures on
anti-money laundering as well as increasing the unit staff strength, the
company has overhauled its Know Your Customer program.
HSBC has already initiated a review of all Know Your Customer files worldwide,
which would cost the company an estimated $700 million over five years.
Moreover, on grounds of risk, the company exited 109 correspondent
relationships while a number of senior officers' bonus have been revoked.
Also, a set of guiding principles have been adopted for restricting business
in countries which pose a high financial crime risk.
HSBC reached an agreement with all other US government agencies which have
probed the former's prior activities associated with these issues. Further, it
expects to finalize an agreement with the U.K. Financial Services Authority
The settlement with HSBC demonstrates the efforts of the U.S. regulators to
come down hard on the unjustifiable activities of the banks and terminate the
illegal cash flow through its financial system.
In August this year, the New York State Department of Financial Services (DFS)
reached a $340 million settlement with Standard Chartered PLC (OTC:SCBFF) for
its involvement in money laundering in Iran.
Earlier this year, the U.S. government held Netherlands-based ING Groep NV
(NYSE:ING) responsible for transferring billions of dollars through the
American financial system to nations that were economically restricted by the
U.S. As a result, ING bank ended up paying $619 million in penalties.
For HSBC, whose shares currently retain a Zacks #4 Rank (implying a short-term
Sell rating), though the settlement comes as a relief as the burden of
litigation overhangs would be lessened and legal costs would be curtailed, it
also exhausts the company's financials. Moreover, we believe that negligence
relating to such critical rules is not acceptable since these issues can
subject the global economy to dire consequences.
Get the full analysis of all these stocks by going to
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are
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