Italian shares have been on a tear. In dollar terms, Italy is the top performing developed equity market this year and the best performer over the past twelve months. But investors would be right to wonder how much upside might be left.
The MSCI Italy equity index is up 15.5% in the year to date and up 51% over the past 12 months. Perhaps unsurprisingly, the Italian market’s closest rivals are Ireland, which runs a close second on the year-to-date performance, and Spain. Unsurprising because the equity market performance follows a general turnaround in sentiment about the euro zone’s prospects.
Ever since European Central Bank President Mario Draghi said he would do “whatever it takes” to ensure the single currency’s survival, sovereign debt yields have been plunging across the single currency region. And as those yields fell, equities rose.
Top 10 Performing Stocks To Watch For 2015: Gleacher & Company Inc.(GLCH)
Gleacher & Company, Inc., an independent investment bank, provides corporate and institutional clients with advice and execution in the areas of advisory services, capital raising and research, sales, and trading. It operates through five segments: Mortgage Backed/Asset Backed & Rates (MBS/ABS & Rates), Corporate Credit, Investment Banking, Equities, and Other. The MBS/ABS & Rates segment provides sales, trading, banking, research, and advisory services on a range of mortgage and asset-backed securities; the United States Treasury and government agency securities; and structured products, such as collateralized loan obligations and collateralized debt obligations, whole loans, and other securities. The Corporate Credit segment offers analysis, sales, and trading on various debt securities comprising bank debt and loans, investment grade debt, high-yield debt, treasuries, convertibles, distressed debt, preferred debt, emerging markets debt, and reorganization equities to co rporate and institutional investor clients. The Investment Banking segment provides financial advisory services in regards to mergers and acquisitions, restructurings, recapitalizations, and capital markets-related matters. It engages in capital raising through underwritings and private placements of equity and debt securities. The Equities segment offers research on customer trades in equity securities in aerospace, defense, industrials, technology, healthcare, and REIT sectors. The Other segment provides early stage growth capital to companies in the information and energy technology sectors. The company was formerly known as Broadpoint Gleacher Securities Group, Inc. Gleacher & Company, Inc. was founded in 1952 and is headquartered in New York, New York.
Advisors' Opinion:- [By Eric Volkman]
Investment bank Gleacher (NASDAQ: GLCH ) has announced that it will exit its mortgage-backed securities and rates business, as well as its credit-products operations. This move, the repercussions of which could potentially affect up to roughly 160 employees, is effective immediately.
Top 10 Performing Stocks To Watch For 2015: Ishares Silver Trust (SLV)
iShares Silver Trust (the Trust) owns silver transferred to the Trust in exchange for shares issued by the Trust (Shares). Each Share represents a fractional undivided beneficial interest in the net assets of the Trust. The assets of the Trust consist primarily of silver held by the Trust�� custodian on behalf of the Trust. The sponsor of the Trust is iShares Delaware Trust Sponsor LLC (the Sponsor). The trustee of the Trust is The Bank of New York Mellon (the Trustee) and the custodian of the Trust is JPMorgan Chase Bank N.A., London branch (the Custodian).
The activities of the Trust are limited to issuing Baskets of Shares in exchange for the silver deposited with the Custodian as consideration, selling silver as necessary to cover the Sponsor�� fee, Trust expenses not assumed by the Sponsor and other liabilities and delivering silver in exchange for Baskets of Shares surrendered for redemption. Each deposit of silver for the creation of Baskets of Shares and each surrender of Baskets of Shares for the purpose of withdrawing Trust property (including if the trust agreement terminates) must be accompanied by a payment to the Trustee of a fee.
Advisors' Opinion:- [By Myra P. Saefong and Barbara Kollmeyer]
Shares of the SPDR Gold Trust ETF (GLD) �edged down by 0.5% and the iShares Silver Trust (SLV) �lost 0.2% Tuesday morning. The Philadelphia Gold and Silver Index (XAU) �was down 0.7%.
- [By Jonathan Yates]
That is certainly a better way to profit from gold, SPFR Gold Shares (NYSE: GLD), and silver, iShares Silver Trust (NYSE: SLV). Both the GLD and the SLV have plunged, but sea treasure recovery is very profitable. The find today demonstrates that fact of investing! Odyssey Marine Exploration (NASDAQ: OMEX) had a huge haul off the coast of Ireland earlier this summer, which is more proof of the profit potential for this industry!!.
- [By The Market Flash]
I encourage you all to read the Singh and Stella article, but I will summarize it by saying that they feel that the influence of the legacy banks (Citibank, B of A, JPMorgan, etc.) is less important to money creation than it used to be. They claim there are a larger number of financial institutions that create money now and that good collateral serves more the role of the constraint on the money supply than the older High Powered Money. The article implies that the fundamental components and relationships on the left side of the equation (MV) have changed significantly in the last 20 years. My take on this is that advances in technology have made paper money less important, increased the speed at which money changes hands, allow people surrogates for money like SPDR Gold Shares (GLD), iShares Silver Trust (SLV), and bitcoin, and led to people holding their money in more places than just a bank checking and savings account. To quote from their conclusion:
Top 5 India Companies To Own In Right Now: Discovery Minerals Ltd (DSCR)
Discovery Minerals Ltd., formerly Dhanoa Minerals Ltd., incorporated on July 11, 2005, is an exploration-stage company. The Company�� principal business is the acquisition and exploration of menial resources located in the United States, Central and South America. The Company operates in only one business segment, namely natural resource exploration, mining and recovery.
The Company does not own any properties that contain mineral reserves that are economically recoverable. The Company's projects include Turquoise Mountain Project and Yukon Mining Project.
Advisors' Opinion:- [By Peter Graham]
Small cap mining stocks Discovery Minerals Ltd (OTCMKTS: DSCR), Zinco Do Brasil Inc (OTCMKTS: ZNBR) and Amalgamated Gold and Silver Inc (OTCMKTS: BCHS) have been getting some extra attention lately as one stock surged last Friday while the other two are or have been in the past, the subject of paid promotions. It goes without saying though that small cap mining stocks tend to be riskier than your average stock. But do these three small cap mining stocks have what it takes to produce a mother lode for investors? Here is a deeper dig into all three:
Discovery Minerals Ltd (OTCMKTS: DSCR) Is Branching Out Into Mining AppsSmall cap Discovery Minerals Ltd is a production stage company formed to acquire and develop natural resource properties. Activities include gold, precious metals and petroleum minerals, including rare earth minerals production and sales. In addition, the company has initiated a new program to evaluate undervalued assets, including clean tech and alternative energy investments, for potential addition to its portfolio. On Friday, Discovery Minerals Ltd surged 25% to $0.001 for a market cap of $1.66 million plus DSCR is down 73% over the past year and down 97.1% over the past five years according to Google Finance.
Top 10 Performing Stocks To Watch For 2015: Flexpoint Sensor Systems Inc (FLXT)
Flexpoint Sensor Systems, Inc.(Flexpoint), incorporated on June 11, 1992, is a development stage company. The Company is principally engaged in designing, engineering and manufacturing bend sensor technology and products using its patented Bend Sensor technology. Flexpoint manufactures, and has jointly developed, six products that are being sold and supplied to customers. Flexpoint owns nine patents, including patents on specific devices that use the Bend Sensor. The Company works with various Tier 1 (major) automotive suppliers on a variety of products that are in various stages of development and implementation.
Bend Sensor Technology
Flexpoint owns the patent rights to the Company's Bend Sensor technology through Sensitron, Inc. (Sensitron), a wholly owned subsidiary of the Company. The Bend Sensor is a potentiometer bend sensor product consisting of a coated substrate, such as plastic, that changes electrical conductivity as it is bent in a consistent manner. Electronic systems can connect to this sensor and measure in detail the amount of bending or movement that occurs in a predictable manner. A potentiometer functions through the means of metal contacts swiping or rubbing across a resistive element. Flexpoin�� Bend Sensor potentiometer is a single layer with no mechanical assembly that makes it more reliable and smaller, and lighter in weight.
Automotive Products
Flexpoint has developed comfort seat for automobiles utilizing its patented Bend Sensortechnology and is working with Tier 1 suppliers on development of the seat and various seat related controls. Through a joint development arrangement with a Tier1supplier Flexpoint developed and delivered prototypes of the seat. Automobile manufacture has partnered with a Tier 1 supplier and is in the final stages of evaluating Flexpoint�� patented horn switch to replace their existing technology. The automobile manufacturer is also evaluating the use of the Bend Sensor as a switch to open rear! doors of SUV's and as a seat belt reminder (SBR). While working with various Tier 1 automotive suppliers the Company has developed and tested a SBR sensor that alerts the occupant of an automobile to fasten his/her seatbelt.
Flexpoint is working with multiple manufacturers to replace existing devices in the marketplace with a system superior in performance. Four separate and independent automotive suppliers and OEMs tested the Bend Sensor device for use in pedestrian impact detection device. The tests proved that the Bend Sensor device was able to detect impact with a human leg and in the event of an accident and trigger the desired safety response. Flexpoint has also developed a crash sensor, which is a series of sensors mounted in strategic places on the side and door panels of an automobile to detect an impact, as well as the speed, direction and force of the impact. This allows an onboard computer to deploy side air bags where needed. Using the same concept as the Company's automotive seat belt reminder (SBR), this device monitors cinema theater's paying customers and identifies available seats. Flexpoint has supplied a theater management firm with several prototype sensors, which have undergone extensive testing for this application.
As of December 31, 2012, Flexpoint developed and produced 20 prototype medical beds that assist in the management of bed sores. Using the Bend Sensor technology and accompanying electronics the bed is able to determine the position of the person in the bed and how they are moved. The Company has developed a vibration sensor, a rupture disc/bursting disc utilizing the Bend Sensor as the detection/alarm element of a rupture disc device, an infant bed cover using its patented sensors that is used to monitor infants in the prevention of sudden infant death syndrome (SIDS), toys and video gaming devices, and sports applications.
Advisors' Opinion:- [By CRWE]
Today, FLXT has shed (-6.25%) down -0.0060 at $.0900 with 19,500 shares in play thus far (ref. google finance Delayed: 11:10AM EDT September 25, 2013).
Flexpoint Sensor Systems, Inc. previously reported they expect to complete both Phase Two and Phase Three of development of the colonoscope application during the remainder of 2013. The company will receive milestone cash payments for each stage of the development process.
Top 10 Performing Stocks To Watch For 2015: Greenhunter Resources Inc (GRH)
GreenHunter Resources, Inc., formerly GreenHunter Energy, Inc., incorporated on June 7, 2005, is engaged in providing Total Water Management Solutions to oil and gas operators who are active in the Marcellus, Eagle Ford and Bakken shale plays. The Company operates in three segments: Wind Energy, Water Management and Biomass. All of the Company�� segments are in development stages with no operations. The Company assembled a suite of water management products and services and markets them under the Total Water Management Solutions brand. The Company�� operations includes Total Water Management Solutions, Frac-Cycle, remote access management compliance asset tracking (RAMCAT), equipment and tank rentals, disposal wells, MAG Tank and salt water disposal animation. On February 17, 2012, the Company closed on the acquisition of 100% of the ownership interest of three fully operational commercial salt water disposal (SWD) wells and associated facilities located in Washington County, Ohio and Lee County, Kentucky. In March 2013, GreenHunter Water, LLC closed the purchase of a 10.8 acre barging terminal facility located in Wheeling, Ohio County, West Virginia. In February 2014, its wholly owned subsidiary, GreenHunter Water, LLC, sold its Kenedy Hunter salt water disposal (SWD) facilities and a SWD permit and surface acreage located at another South Texas property to Sable Environmental, LLC.
The Company�� subsidiary GreenHunter Water, LLC (GreenHunter Water) is focused on water resource management specifically as it pertains to the unconventional oil and natural gas shale resource plays with its business operations in the Appalachian and South Texas basins. GreenHunter Water engaged in providing a full range of solutions to address producers��needs and is built upon an identified need in the oilfield, to deliver a Total Water Management Solution to its customer base through long term agreements. The Company�� Total Water Management Solutions are custom developed to meet producers��wat! er resource planning needs. These solutions include owning and operating saltwater disposal facilities, fluids handling and hauling and logistics services, frac tank and next-generation modular above-ground tank rentals, mobile water treatment technologies and remote asset tracking to provide as value added services to its customers.
The Company�� asset included a fleet of nine water hauling vacuum trucks, and 37 frac tanks (500 barrel capacity each). As of December 31, 2011, total salt water disposal capacity is 9,000 barrels per day, of which 6,000 barrels per day is from two wells located in Ohio and approximately 3,000 barrels per day is from one well located in Kentucky. The Company is engaged in exploring various alternative means of water transport that include temporary and permanent above-ground or below-ground pipeline systems, and the use of rail and barge transport.
GreenHunter Water has assembled a variety of equipment and tanks for rental. Products available in the Eagle Ford and Marcellus Shale areas include 500 barrel frac Tanks, 425 barrel Weir Tanks, modular above-ground temporary storage tanks to replace frac ponds, available up to 41,000 barrel in capacity, frac manifolds and glass lined steel tanks, up to 100,000 barrel. During the year ended December 31, 2011, the Company Completed a project, that included the removal of chemicals and impurities in a sufficient amount for reuse in new wells that were scheduled for fracture stimulation. The project also included the treatment of a gel frac flowback and multiple sources of flowback water blended together. The Company purchased equipment assets to be used to service a long term contract to haul and dispose produced water for several oil companies that control mineral leasehold acreage positions in the Marcellus and Utica Shale plays located in Pennsylvania, West Virginia and Ohio. The equipment consists of five Peterbilt 388 trucks, five 130 barrel Vacuum Trailers and five vacuum pumps and related equipme! nt.
The Company�� water treatment services name is Frac-Cycle. Frac-Cycle�� flexible design allows the user to take in flow-back or produced water and recycle to either clean brine or fresh water. Recycled water can be used in subsequent frac jobs and in some cases an NPDES permit can be obtained to discharge fresh water into a stream. The Company�� RAMCAT is a system and compliance tool that bundles a combination of its software, advanced hardware and communications technologies to provide a method for remote activity observation via a Web-based portal for management of well-head fluids. RAMCAT includes online data monitoring, which provides oil and natural gas producers near real-time dynamic information on fluid levels, tank temperature, recent transactions, date and time of on-load and off-load, truck and driver identification, H2S and critical condition alarms and battery voltage.
Advisors' Opinion:- [By James E. Brumley]
In a perfect world, a stock's price is merely a reflection of a predictable combination of a company's history and forward-looking prospects. We don't live - or trade - in a perfect world though. In the real world, a chart not only tells a story, but illustrates traders' changing opinion of a stock. The good news is, traders move, thing, buy, and sell in fairly predictable patterns, and when you see certain hints fall in place, you can make a very good trade. Enter Authentidate Holding Corp. (NASDAQ:ADAT) and Greenhunter Resources Inc. (NYSEMKT:GRH). Both GRH as well as ADAT have taken on a bullish shape as of today, and both are apt to be at much higher levels in the foreseeable future.
Top 10 Performing Stocks To Watch For 2015: SciQuest Inc.(SQI)
SciQuest, Inc. provides an on-demand strategic procurement and supplier enablement solution worldwide. The company?s solution integrates its customers with their suppliers for automating the source-to-settle process. Its solution include various modules, such as sourcing director, spend director, requisition manager, order manager, settlement manager, supplier contract management and authoring, total supplier manager, supplier diversity manager, and materials management. The company delivers its solutions over the Internet using a software-as-a-service model. It serves higher education, life sciences, healthcare, state and local government entities, and commercial customers through direct sales force. SciQuest, Inc. was founded in 1995 and is headquartered in Cary, North Carolina.
Advisors' Opinion:- [By Steve Symington]
What:�Shares of SciQuest, (NASDAQ: SQI ) plunged 19% Friday after the cloud-based business-automation specialist released�in-line first-quarter results, but followed with disappointing forward guidance.
- [By Holly LaFon]
A second company that makes enterprise software is SciQuest (SQI), which provides procurements and spending management software on a subscription basis. Unlike one of its chief competitors, which targets everyday supply purchases made by big companies, SciQuest provides automated purchasing to a different segment by focusing on universities, hospitals, local and state governments, etc.
Top 10 Performing Stocks To Watch For 2015: One Liberty Properties Inc.(OLP)
One Liberty Properties, Inc., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties in the United States. The company�?s property portfolio includes retail furniture stores, as well as industrial, office, flex, health and fitness, and other properties. As of March 31, 2008, it owned 67 properties; holds a 50% tenancy in common interest in 1 property; and owns 4 properties through joint ventures. The company has elected to be treated as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income tax, if it distributes at least 90% of its taxable income to its shareholders. One Liberty Properties was founded in 1982 and is based in Great Neck, New York.
Advisors' Opinion:- [By Dividends4Life]
One Liberty Properties, Inc. (OLP), a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties. December 10th the company increased its quarterly dividend 5.7% to $0.37 per share. the dividend is payable January 3, 2014, to stockholders of record on December 27, 2013. The yield based on the new payout is 6.9%.
- [By Marc Bastow]
Retail, industrial, health and fitness and flex-office real estate investment trust (REIT) One Liberty Properties (OLP) raised its quarterly dividend 5.7% to 37 cents per share, payable on Jan. 3 to shareholders of record as of Dec. 27.
OLP Dividend Yield: 7.21% - [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, commercial REIT One Liberty Properties (NYSE: OLP ) has earned a coveted five-star ranking.
Top 10 Performing Stocks To Watch For 2015: Sino-Global Shipping America Ltd.(SINO)
Sino-Global Shipping America, Ltd., through its subsidiaries, provides shipping agency services for foreign ships coming to and departing from Chinese ports. Its services include preparing documents, husbanding vessels, working through customs issues, coordinating matters with port authorities, overseeing and settling cargo claims, tracking shipments, recommending trucking, warehousing, and complementary services. The company offers these services for bulk and break-bulk general cargo, and vehicle transport, as well as raw materials, such as crude oil, oil products, iron, manganese, and other metal ores in 76 ports in the People?s Republic of China. Sino-Global Shipping America, Ltd. was founded in 2001 and is based in Flushing, Virginia.
Advisors' Opinion:- [By James E. Brumley]
The recent strength from Sino-Global Shipping America, Ltd. (NASDAQ:SINO) and the now-renewed strength from Safe Bulkers, Inc. (NYSE:SB) would suggest those two stocks are among the very best ways to play the rebound currently unfurling in the shipping sector. And to be fair, both are fine companies in their own right. The top play in the dry goods maritime shipping arena, however, may well be Diana Shipping Inc. (NYSE:DSX). No, DSX isn't one of the fun and exciting small caps in the maritime shipping space. But, there's a lot to be said for size and stability, which SB and SINO can't offer.
Top 10 Performing Stocks To Watch For 2015: Xoom Corp (XOOM)
Xoom Corporation (Xoom), incorporated on October 10, 2012, is engaged in online international money transfer service. Its customers use Xoom to send money to family and friends in 30 countries. The Company generates revenue from transaction fees charged to customers and from foreign exchange spreads on transactions where the payout currency is other than United States dollars. In February 2014, Xoom Corp acquired BlueKite, LTD, a technology company that develops solutions and applications.
The Company�� solutions are designed to offer customers a convenient, fast and cost-effective way to send money to family and friends at any time, from any Internet-enabled location. The Company�� solutions include Origination, Funding, Disbursement and Transaction Processing.
Advisors' Opinion:- [By John Udovich]
Small cap money transfer stock Euronet Worldwide, Inc (NASDAQ: EEFT) and Wal-Mart Stores, Inc (NYSE: WMT) have announced an exclusive money transfer service called "Walmart-2-Walmart,��meaning its time to take a closer look at the stock along with the performance of peers like Moneygram International Inc (NASDAQ: MGI), Xoom Corp (NASDAQ: XOOM) and The Western Union Company (NYSE: WU) which fell 17.68%, 4.32% and 4.98%, respectively.
- [By Monica Gerson]
Xoom Corporation (NASDAQ: XOOM) shares fell 8.23% to $15.50 in pre-market trading. 8-K from Xoom showed that company has been a victim of criminal fraud related to employee impersonation. It is expecting $30.8 million in charge and projects Q4 sales of $43.1 to $43.6 million. Xoom filing also showed that CFO Matthew Hibbard has resigned. Analysts at Stifel Nicolaus initiated coverage on Xoom with a Buy rating.
- [By John Kell]
Xoom Corp.(XOOM) swung to a fourth-quarter profit as the international money-transfer provider reported a jump in revenue. But the company’s full-year earnings outlook fell short of Wall Street’s expectations. Shares dropped 13% to $24.46 premarket.
Top 10 Performing Stocks To Watch For 2015: BancorpSouth Inc (BXS)
BancorpSouth, Inc., incorporated on February 17, 1982, is a financial holding company. Through its principal bank subsidiary, BancorpSouth Bank (the Bank), the Company conducts commercial banking and financial services operations in Mississippi, Tennessee, Alabama, Arkansas, Texas, Louisiana, Florida, Missouri and Illinois. As of December 31, 2012, the Company and its subsidiaries had total deposits of $11.1 billion. The Bank conducts a general commercial banking, trust and insurance business through 284 offices in Mississippi, Tennessee, Alabama, Arkansas, Texas, Louisiana, Florida, Missouri and Illinois. The Bank and its subsidiaries provide a range of financial services to individuals and small-to-medium size businesses. On July 2, 2012, the Company purchased certain assets of The Securance Group, Inc.
The Bank operates investment services and insurance agency subsidiaries, which engage in investment brokerage services and sales of other insurance products. The Bank�� trust department offers a range of services, including personal trust and estate services, certain employee benefit accounts and plans, including individual retirement accounts, and limited corporate trust functions.
Lending Activities
The Bank�� lending activities include both commercial and consumer loans. The Bank offers a range of commercial loan services including term loans, lines of credit, equipment and receivable financing and agricultural loans. A range of short-to-medium term commercial loans, both secured and unsecured, are made available to businesses for working capital (including inventory and receivables), business expansion (including acquisition and development of real estate and improvements), and the purchase of equipment and machinery. The Bank also makes construction loans to real estate developers for the acquisition, development and construction of residential subdivisions.
The Bank�� lending activities consists of the origination of fixed and adjustable! rate residential mortgage loans secured by owner-occupied property located in the Bank�� primary market areas. In addition, the Bank offers construction loans, second mortgage loans and home equity lines of credit. The Bank finances the construction of individual, owner-occupied houses on the basis of written underwriting and construction loan management guidelines.
The Bank makes residential construction loans to individuals who intend to erect owner-occupied housing on a purchased parcel of real estate. The Bank sells its mortgage loans with terms of 15 years or more in the secondary market and either retains or releases the right to service those loans. Non-residential consumer loans made by the Bank include loans for automobiles, recreation vehicles, boats, personal (secured and unsecured) and deposit account secured loans. The Bank also issues credit cards.
Investment Activities
As of December 31, 2012, the Company�� held-to-maturity and available-for-sale securities included the United States Government agency securities, taxable obligations of states and political subdivisions, tax-exempt obligations of states and political subdivisions, government agency issued residential mortgage-backed securities, government agency issued commercial mortgage-backed securities, collateralized debt obligations and other securities. As of December 31, 2011, the Company�� available-for-sale securities totaled $ 2.4 billion. Investments in tax-exempt securities totaled $455.1 million as of December 31, 2012.
Source of Funds
Deposits originating within the communities served by the Bank are the primary source of funding. As of December 31, 2012, the Company and its subsidiaries had total deposits of $ 11.1 million. The Bank offered deposits, such as noninterest bearing demand deposits, interest bearing demand deposits, savings deposits and other time deposits. The Company had federal funds purchased and securities sold under agreement to repurc! hase of $! 414.6 million as of December 31, 2012.
Subsidiary Activities
The Bank�� insurance service subsidiary serves as an agent in the sale of title insurance, commercial lines of insurance and a full line of property and casualty, life, health and employee benefits products and services and operates in Mississippi, Tennessee, Alabama, Arkansas, Texas, Louisiana, Missouri and Illinois. The Bank�� investment services subsidiary provides brokerage, investment advisory and asset management services and operates in certain communities in Mississippi, Tennessee, Alabama, Arkansas, Louisiana, Texas, Florida and Missouri.
Advisors' Opinion:- [By Vera Yuan]
As we mentioned earlier, stock selection in the financial sector was the primary cause of our relative underperformance during the quarter. Two of the Fund's top five detractors, Genworth (GNW) and BancorpSouth Inc. (BXS) were in the financial sector. Genworth (GNW) declined over 24 percent and cost the Fund 38 basis points of performance during the quarter. The company announced a sizeable addition to reserves for purposes of covering potential loss exposure to long-term care insurance provided to its earliest customers. This was not an unknown risk to us as we did factor this into our thinking when we established our position. However, while the reserve build was in-line with our projections, it was still a negative surprise to the street. Our view with respect to long-term care is that States will allow for premium increases, sometimes sizeable, as GNW (and others providing this insurance) are last line defenses to patients who would otherwise likely end up in Medicaid and exacerbate state budget situations. Unfortunately, a mismatch in timing occurs as claims rise first, then reserves are lifted followed by a request for premium increases. Ultimately, we feel GNW is very cheap and is in a good position to seek premium relief even as the company continues to restructure its business in both long-term care and mortgage insurance.
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