A New Number 1

March 11th, 2010

1. There is a new richest man in the world. Ladies and Gentleman meet Carlos Slim Helu. The Mexican telecom mogul knocked Bill Gates off as the world’s wealthiest man with a net worth of $53.5 billion dollars. 80% of his net worth lies in 5 Mexican telecom stocks. His net worth jumped $18.5 billion last year vaulting him from third to first place.

2. Bill Gates finished at number 2 with a net worth of $53 billion dollars. Gates would no doubt still be the richest man in the world if he had not retired from his daily duties at Microsoft in 2008. Only $500,000 separates Gates and Slim. His net worth increased $13 billion dollars over the past year.

3. Warren Buffett, for whom Buy Like Buffett is named, came in at number 3 with a net worth of $47 billion dollars. Buffett’s net worth grew $12 billion dollars in 2009. I wouldn’t feel too bad for Buffett. I am sure he isn’t losing too much sleep over just being the 3rd richest man in the world.

News , , ,

Financial Advisory

March 10th, 2010

Check out my first market update post for Financial Advisory. The link can be found below.

 AIG Continues To Rally

Finance

Chicago Bridge & Iron Is Building A Promising Future

March 9th, 2010

Chicago Bridge & Iron (CBI) has had a 22% rise since I first recommended buying the stock in December of 2009. The company recently reported results for the full year 2009. For 2009 total revenue was $4.6 billion dollars. Net income came in at $174.3 million dollars and earnings per share was $1.79. Chicago Bridge & Iron picked up over $3.4 billion in contracts in the fourth quarter and $6.1 billion dollars in new contracts for the full year. According to CEO Phillip Asherman, CB&I has over $300 million in cash and a backlog of $7.2 billion in orders.

The stock still looks like it has upside. The balance sheet is solid and shares still look cheap selling at just 13 times this years earnings. CB&I is selling at a .41 price to sales ratio. To be fair Chicago Bridge & Iron’s price to book ratio is definitely not cheap with a value of 2.7.  Management appears to be doing a solid job managing a 24.4% return on equity for 2009. The company tempered investor expectations for 2010 by guiding earnings downward. Any upside surprise in earnings for the current year and shares should rise. The real earnings story for CB&I is in 2011 when the average EPS is $2.15 meaning that the stock is trading at just over 10 times next years earnings. I have been long Chicago Bridge & Iron since last year and will continue to buy shares as long as the stock stays south of $24.

Photo by laffy4k

Investing , ,

Highest Rates on A Savings Account

March 8th, 2010

Here is a list of the highest interest rates on a savings account for the month of March.

1.  SmartyPig                              2.01%

2.  Bank of Internet                    1.50%

3.  Capital One                           1.45%

4.  Discover Bank                       1.35%

5.  Colorado F.S.B.                    1.35%

6.  Ally Bank                              1.30%

7.  American Express Bank      1.30%

8.  Dollar Savings Direct          1.30%

9.  WTDirect                             1.26%

10.  Everbank                            1.26%

Saving ,

List Of Bank Failures

March 6th, 2010

Complete List of All 219 Bank Failures Since 2000

Bank Name

City

State

   Closed

Centennial Bank

Ogden

UT

5-Mar-10

Waterford Bank

Germantown

MD

5-Mar-10

Bank of Illinois

Normal

IL

5-Mar-10

Sun American Bank

Boca Raton

FL

5-Mar-10

Rainer Pacific Bank

Tacoma

WA

26-Feb-10

Carson River Community Bank

Carson City

NV

26-Feb-10

La Jolla Bank

La Jolla

CA

19-Feb-10

George Washington Savings Bank

Orland Park

IL

19-Feb-10

The La Coste National Bank

La Coste

TX

19-Feb-10

Marco Community Bank

Marco Island

FL

19-Feb-10

1st American State Bank of Minnesota

Hancock

MN

5-Feb-10

American Marine Bank

Bainbridge

WA

29-Jan-10

First Regional Bank

Los Angeles

CA

29-Jan-10

Community Bank and Trust

Cornelia

GA

29-Jan-10

Marshall Bank, N.A.

Hallock

MN

29-Jan-10

Florida Community Bank

Immokalee

FL

29-Jan-10

First National Bank of Georgia

Carrollton

GA

29-Jan-10

Columbia River Bank

The Dallas

OR

22-Jan-10

Evergreen Bank

Seattle

WA

22-Jan-10

Charter Bank

Sante Fe

NM

22-Jan-10

Bank of Leeton

Leeton

MO

22-Jan-10

Premier American Bank

Miami

FL

22-Jan-10

Barnes Banking Company

Kaysville

UT

15-Jan-10

St. Stephen State Bank

St. Stephen

MN

15-Jan-10

Town Community Bank & Trust

Antioch

IL

15-Jan-10

Horizon Bank

Bellingham

WA

8-Jan-10

First Federal Bank of California, F.S.B.

Santa Monica

CA

18-Dec-09

Imperial Capital Bank

La Jolla

CA

18-Dec-09

Independent Bankers’ Bank

Springfield

IL

18-Dec-09

New South Federal Savings Bank

Irondale

AL

18-Dec-09

Citizens State Bank

New Baltimore

MI

18-Dec-09

Peoples First Community Bank

Panama City

FL

18-Dec-09

RockBridge Commercial Bank

Atlanta

GA

18-Dec-09

SolutionsBank

Overland Park

KS

11-Dec-09

Valley Capital Bank, N.A.

Mesa

AZ

11-Dec-09

Republic Federal Bank, N.A.

Miami

FL

11-Dec-09

Greater Atlantic Bank

Reston

VA

4-Dec-09

Benchmark Bank

Aurora

IL

4-Dec-09

AmTrust Bank

Cleveland

OH

4-Dec-09

The Tattnall Bank

Reidsville

GA

4-Dec-09

First Security National Bank

Norcross

GA

4-Dec-09

The Buckhead Community Bank

Atlanta

GA

4-Dec-09

Commerce Bank of Southwest Florida

Fort Myers

FL

20-Nov-09

Pacific Coast National Bank

San Clemente

CA

13-Nov-09

Orion Bank

Naples

FL

13-Nov-09

Century Bank, F.S.B.

Sarasota

FL

13-Nov-09

United Commercial Bank

San Francisco

CA

6-Nov-09

Gateway Bank of St. Louis

St. Louis

MO

6-Nov-09

Prosperan Bank

Oakdale

MN

6-Nov-09

Home Federal Savings Bank

Detroit

MI

6-Nov-09

United Security Bank

Sparta

GA

6-Nov-09

North Houston Bank

Houston

TX

30-Oct-09

Madisonville State Bank

Madisonville

TX

30-Oct-09

Citizens National Bank

Teague

TX

30-Oct-09

Park National Bank

Chicago

IL

30-Oct-09

Pacific National Bank

San Francisco

CA

30-Oct-09

California National Bank

Los Angeles

CA

30-Oct-09

San Diego National Bank

San Diego

CA

30-Oct-09

Community Bank of Lemont

Lemont

IL

30-Oct-09

Bank USA, N.A.

Phoenix

AZ

30-Oct-09

First DuPage Bank

Westmont

IL

23-Oct-09

Riverview Community Bank

Otsego

MN

23-Oct-09

Bank of Elmwood

Racine

WI

23-Oct-09

Flagship National Bank

Bradenton

FL

23-Oct-09

Hillcrest Bank Florida

Naples

FL

23-Oct-09

American United Bank

Lawrenceville

GA

23-Oct-09

Partners Bank

Naples

FL

23-Oct-09

San Joaquin Bank

Bakersfield

CA

16-Oct-09

Southern Colorado National Bank

Pueblo

CO

2-Oct-09

Jennings State Bank

Spring Grove

MN

2-Oct-09

Warren Bank

Warren

MI

2-Oct-09

Georgian Bank

Atlanta

GA

25-Sep-09

Irwin Union Bank, F.S.B.

Louisville

KY

18-Sep-09

Irwin Union Bank and Trust Company

Columbus

IN

18-Sep-09

Venture Bank

Lacey

WA

11-Sep-09

Brickwell Community Bank

Woodbury

MN

11-Sep-09

Corus Bank, N.A.

Chicago

IL

11-Sep-09

First State Bank

Flagstaff

AZ

4-Sep-09

Platinum Community Bank

Rolling Meadows

IL

4-Sep-09

Vantus Bank

Sioux City

IA

4-Sep-09

InBank

Oak Forest

IL

4-Sep-09

First Bank of Kansas City

Kansas City

MO

4-Sep-09

Affinity Bank

Ventura

CA

28-Aug-09

Mainstreet Bank

Forest Lake

MN

28-Aug-09

Bradford Bank

Baltimore

MD

28-Aug-09

Guaranty Bank

Austin

TX

21-Aug-09

CapitalSouth Bank

Birmingham

AL

21-Aug-09

First Coweta Bank

Newnan

GA

21-Aug-09

ebank

Atlanta

GA

21-Aug-09

Community Bank of Nevada

Las Vegas

NV

14-Aug-09

Community Bank of Arizona

Phoenix

AZ

14-Aug-09

Union Bank, National Association

Gilbert

AZ

14-Aug-09

Colonial Bank

Montgomery

AL

14-Aug-09

Dwelling House Savings and Loan

Pittsburgh

PA

14-Aug-09

Community First Bank

Prineville

OR

7-Aug-09

Community National Bank of Sarasota County

Venice

FL

7-Aug-09

First State Bank

Sarasota

FL

7-Aug-09

Mutual Bank

Harvey

IL

31-Jul-09

First BankAmericano

Elizabeth

NJ

31-Jul-09

Peoples Community Bank

West Chester

OH

31-Jul-09

Integrity Bank

Jupiter

FL

31-Jul-09

First State Bank of Altus

Altus

OK

31-Jul-09

Security Bank of Jones County

Gray

GA

24-Jul-09

Security Bank of Houston County

Perry

GA

24-Jul-09

Security Bank of Bibb County

Macon

GA

24-Jul-09

Security Bank of North Metro

Woodstock

GA

24-Jul-09

Security Bank of North Fulton

Alpharetta

GA

24-Jul-09

Security Bank of Gwinnett County

Suwanee

GA

24-Jul-09

Waterford Village Bank

Williamsville

NY

24-Jul-09

Temecula Valley Bank

Temecula

CA

17-Jul-09

Vineyard Bank

Rancho Cucamonga

CA

17-Jul-09

BankFirst

Sioux Falls

SD

17-Jul-09

First Piedmont Bank

Winder

GA

17-Jul-09

Bank of Wyoming

Thermopolis

WY

10-Jul-09

Founders Bank

Worth

IL

2-Jul-09

Millennium State Bank of Texas

Dallas

TX

2-Jul-09

First National Bank of Danville

Danville

IL

2-Jul-09

Elizabeth State Bank

Elizabeth

IL

2-Jul-09

Rock River Bank

Oregon

IL

2-Jul-09

First State Bank of Winchester

Winchester

IL

2-Jul-09

John Warner Bank

Clinton

IL

2-Jul-09

Mirae Bank

Los Angeles

CA

26-Jun-09

MetroPacific Bank

Irvine

CA

26-Jun-09

Horizon Bank

Pine City

MN

26-Jun-09

Neighborhood Community Bank

Newnan

GA

26-Jun-09

Community Bank of West Georgia

Villa Rica

GA

26-Jun-09

First National Bank of Anthony

Anthony

KS

19-Jun-09

Cooperative Bank

Wilmington

NC

19-Jun-09

Southern Community Bank

Fayetteville

GA

19-Jun-09

Bank of Lincolnwood

Lincolnwood

IL

5-Jun-09

Citizens National Bank

Macomb

IL

22-May-09

Strategic Capital Bank

Champaign

IL

22-May-09

BankUnited, FSB

Coral Gables

FL

21-May-09

Westsound Bank

Bremerton

WA

8-May-09

America West Bank

Layton

UT

1-May-09

Citizens Community Bank

Ridgewood

NJ

1-May-09

Silverton Bank, NA

Atlanta

GA

1-May-09

First Bank of Idaho

Ketchum

ID

24-Apr-09

First Bank of Beverly Hills

Calabasas

CA

24-Apr-09

Michigan Heritage Bank

Farmington Hills

MI

24-Apr-09

American Southern Bank

Kennesaw

GA

24-Apr-09

Great Basin Bank of Nevada

Elko

NV

17-Apr-09

American Sterling Bank

Sugar Creek

MO

17-Apr-09

New Frontier Bank

Greeley

CO

10-Apr-09

Cape Fear Bank

Wilmington

NC

10-Apr-09

Omni National Bank

Atlanta

GA

27-Mar-09

TeamBank, NA

Paola

KS

20-Mar-09

Colorado National Bank

Colorado Springs

CO

20-Mar-09

FirstCity Bank

Stockbridge

GA

20-Mar-09

Freedom Bank of Georgia

Commerce

GA

6-Mar-09

Security Savings Bank

Henderson

NV

27-Feb-09

Heritage Community Bank

Glenwood

IL

27-Feb-09

Silver Falls Bank

Silverton

OR

20-Feb-09

Pinnacle Bank of Oregon

Beaverton

OR

13-Feb-09

Corn Belt Bank & Trust Co.

Pittsfield

IL

13-Feb-09

Riverside Bank of the Gulf Coast

Cape Coral

FL

13-Feb-09

Sherman County Bank

Loup City

NE

13-Feb-09

County Bank

Merced

CA

6-Feb-09

Alliance Bank

Culver City

CA

6-Feb-09

FirstBank Financial Services

McDonough

GA

6-Feb-09

Ocala National Bank

Ocala

FL

30-Jan-09

Suburban FSB

Crofton

MD

30-Jan-09

MagnetBank

Salt Lake City

UT

30-Jan-09

1st Centennial Bank

Redlands

CA

23-Jan-09

Bank of Clark County

Vancouver

WA

16-Jan-09

National Bank of Commerce

Berkeley

IL

16-Jan-09

Sanderson State Bank

Sanderson

TX

12-Dec-08

Haven Trust Bank

Duluth

GA

12-Dec-08

First Georgia Community Bank

Jackson

GA

5-Dec-08

PFF Bank & Trust

Pomona

CA

21-Nov-08

Downey Savings & Loan

Newport Beach

CA

21-Nov-08

Community Bank

Loganville

GA

21-Nov-08

Security Pacific Bank

Los Angeles

CA

7-Nov-08

Franklin Bank, SSB

Houston

TX

7-Nov-08

Freedom Bank

Bradenton

FL

31-Oct-08

Alpha Bank & Trust

Alpharetta

GA

24-Oct-08

Meridian Bank

Eldred

IL

10-Oct-08

Main Street Bank

Northville

MI

10-Oct-08

Washington Mutual Bank

Henderson

NV

25-Sep-08

Ameribank

Northfork

WV

19-Sep-08

Silver State Bank

Henderson

NV

5-Sep-08

Integrity Bank

Alpharetta

GA

29-Aug-08

Columbian Bank & Trust

Topeka

KS

22-Aug-08

First Priority Bank

Bradenton

FL

1-Aug-08

First Heritage Bank, NA

Newport Beach

CA

25-Jul-08

First National Bank of Nevada

Reno

NV

25-Jul-08

IndyMac Bank

Pasadena

CA

11-Jul-08

First Integrity Bank, NA

Staples

MN

30-May-08

ANB Financial, NA

Bentonville

AR

9-May-08

Hume Bank

Hume

MO

7-Mar-08

Douglass National Bank

Kansas City

MO

25-Jan-08

Miami Valley Bank

Lakeview

OH

4-Oct-07

NetBank

Alpharetta

GA

28-Sep-07

Metropolitan Savings Bank

Pittsburgh

PA

2-Feb-07

Bank of Ephraim

Ephraim

UT

25-Jun-04

Reliance Bank

White Plains

NY

19-Mar-04

Guaranty National Bank of Tallahassee

Tallahassee

FL

12-Mar-04

Dollar Savings Bank

Newark

NJ

14-Feb-04

Pulaski Savings Bank

Philadelphia

PA

14-Nov-03

First National Bank of Blanchardville

Blanchardville

WI

9-May-03

Southern Pacific Bank

Torrance

CA

7-Feb-03

Farmers Bank of Cheneyville

Cheneyville

LA

17-Dec-02

Bank of Alamo

Alamo

TN

8-Nov-02

AmTrade International Bank

Atlanta

GA

30-Sep-02

Universal Federal Savings Bank

Chicago

IL

27-Jun-02

Connecticut Bank of Commerce

Stamford

CT

26-Jun-02

New Century Bank

Shelby Township

MI

28-Mar-02

Net 1st National Bank

Boca Raton

FL

1-Mar-02

NextBank, NA

Phoenix

AZ

7-Feb-02

Oakwood Deposit Bank Co.

Oakwood

OH

1-Feb-02

Bank of Sierra Blanca

Sierra Blanca

TX

18-Jan-02

Hamilton Bank, NA

Miami

FL

11-Jan-02

Sinclair National Bank

Gravette

AR

7-Sep-01

Superior Bank, FSB

Hinsdale

IL

27-Jul-01

Malta National Bank

Malta

OH

3-May-01

First Alliance Bank & Trust Co.

Manchester

NH

2-Feb-01

National State Bank of Metropolis

Metropolis

IL

14-Dec-00

Bank of Honolulu

Honolulu

HI

13-Oct-00

 

News

FDIC Shuts Down Four More Banks

March 6th, 2010

Sun America Bank in Florida, Bank of Illinois, Waterfield Bank in Maryland, and Centennial Bank in Utah were all shut down by the FDIC yesterday. The assets of Bank of Illinois and Sun America Bank were purchased by Heartland Bank and First Citizens Bank respectively. Waterfield Bank and Centennial Bank were unable to find buyers which means that all funds will be refunded to account holders. The 191 bank failures over the past 2 years seems like a pretty high number until you take into account that some economists have estimated that as many as 1,000 banks will fail over the next few years. There are still over 700 banks on the FDIC’s troubled list making it highly likely surpass the 140 bank failures that took place last year. All of these bank collapses are rapidly depleting the FDIC’s insurance fund.

News ,

Favorite Financial Sites Of The Week

March 6th, 2010

Secret Millionaire Donates Her Fortune

March 5th, 2010

I read an interesting article today about a 100 year old woman that donated her estate to her alma mater. Grace Groner left over $7 million dollars to Lake Forest College after she died. She  lived modestly in a 1 bedroom apartment with very little furniture and bought her clothes at rummage sales. She did not earn a lot of money but she did live frugally. Groner’s story reminded me of the book The Millionaire Next Door. Most millionaires live a simple lifestyle. You could be living next door to a millionaire and never even recognize it because they don’t drive a fancy car or live a giant mansion.

3 Characteristics of Millionaires

Millionaires:

1. Spend Less Than They Earn.

2. Avoid Buying Status Objects.

3. Maximize All Of Their Resources To Build Wealth.

How did Groner build her wealth? According to the Los Angeles Times, “In 1935 she bought three $60 shares of specially issued Abbott stock and never sold them. The shares split many times over the years, Marlatt said, and Groner reinvested the dividends. Long before she died, her initial outlay had become a fortune.” A $180 dollar investment ballooned to $7 million dollars after 75 years. This is truly an example of having patience and investing for the long run.

News , ,

Forbes Article: Using Your Credit Card Over Your Bank Account

March 3rd, 2010

There are situations in which it is appropriate to use your credit card over your bank account. If your bank account is overdrawn and you would be charged multiple overdraft fees than it just might be worth it to use your credit card instead. I am not suggesting that you rely on your credit card but in some situations it might save you money. Only use this advice when absolutely necessary and you are able to pay your card in full each month.

Read my complete article at Forbes:Forget Your Bank Account–Use Your Credit Card

Finance , ,

Should You Invest In AIG?

March 2nd, 2010

After losing $8.9 billion in the last quarter of 2009, AIG is finally selling off major assets and attempting to pay back the government’s huge investment in the insurance giant. AIG which lost $61.7 billion in one quarter last year and has received over $182.5 billion in government financing is selling AIA Group to British insurance company Prudential for $35.5 billion dollars. AIG will receive $25 billion in cash and $10.5 billion in securities.

AIA Group is an Asian insurance company whose services include life insurance, retirement planning, wealth management, accident, and health insurance. The federal government currently owns 80% of AIG and large stakes in AIA. AIG is attempting to unwind its businesses by selling off its most valuable non-core assets and repay the government’s loans. Despite AIG’s stock currently trading at $25.82, it is impossible to determine the value of AIG shares because there are too many unknowns. What is the value of AIG’s non-core assets? How much earning power will the company’s core assets have going forward? What are the derivatives in the Financial Units portfolio worth? How long before the firm returns to profitability? Will the government be able to unload its 80% stake without causing the stock to plummet? Until these questions are answered AIG is a stock that you should avoid.

Finance , ,