DMX, the 46-year old recording artist, performer, and actor whose real name is Earl Simmons, has been charged with 14 counts of federal income tax evasion involving $1.7 million in alleged tax liabilities. He has surrendered to federal authorities. As is typical in cases of high profile defendants, prosecutors make much of his financial success and public acclaim. The indictment, U.S. v. Earl Simmons Indictment, is worth reading in its entirety.
FILE – In this Sept. 23, 2009 photo, DMX arrives at the 2009 VH1 Hip Hop Honors at the Brooklyn Academy of Music in New York. (AP Photo/Peter Kramer, file)
According to Acting U.S. Attorney Joon H. Kim:
For years, Earl Simmons, the recording artist and performer known as DMX, made millions from his chart-topping songs, concert performances and television shows. But while raking in millions from his songs, including his 2003 hit ‘X Gon’ Give it to Ya,’ DMX didn’t give any of it to the IRS. Far from it, DMX allegedly went out of his way to evade taxes, including by avoiding personal bank accounts, setting up accounts in other’s names and paying personal expenses largely in cash. He even allegedly refused to tape the television show ‘Celebrity Couples Therapy’ until a properly issued check he was issued was reissued without withholding any taxes. Celebrity rapper or not, all Americans must pay their taxes, and together with our partners at the IRS, we will pursue those who deliberately and criminally evade this basic obligation of citizenship.”
Best Financial Stocks To Own Right Now: RenaissanceRe Holdings Ltd.(RNR)
- [By WWW.MONEYSHOW.COM]
RenaissanceRe Holdings (RNR) is a global provider of reinsurance, as well as various types of insurance and related services. The company was founded in 1993 and is headquartered in Bermuda, notes Jack Adamo, editor of Insiders Plus.
Best Financial Stocks To Own Right Now: American International Group Inc.(AIG)
- [By Dan Caplinger]
Wednesday was yet another record-setting day for the stock market, as the Dow climbed triple digits and the S&P 500 and Nasdaq Composite followed the venerable average to unprecedented heights. Economic data showing rising inflation made it more likely that the Federal Reserve will look to boost interest rates at its next Federal Open Market Committee meeting next month, and the ripples throughout the bond market sent many investors to consider stocks instead. Yet despite the substantial rally, some stocks missed out on the move higher, and American International Group (NYSE:AIG), Teck Resources (NYSE:TECK), and Movado Group (NYSE:MOV) were among the worst performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so poorly.
- [By Ben Levisohn]
Heading into its earnings following the close of trading yesterday, shares of American International Group (AIG) had gained 34% from its low on Jun. 28 to Feb. 14. Then the bottom fell out.
- [By Ben Levisohn]
American International Group (AIG) tumbled to the bottom of the S&P 500 today after its earnings fell well short of the Street consensus.
Agence France-Presse/Getty Images
AIG dropped 8.9% to $60.85 today, while the S&P 500 gained 0.5% to 2,349.25.
Yes, AIG’s earnings were bad. It reported an operating loss of $2.72 a share, missing forecasts for a profit of 42 cents, according to Bloomberg. And it didn’t help that John Paulson’s Paulson & Co. cut its stake in the insurer.
You’ll notice the forecast is different than what it was in my earlier post on AIG–and an AIG spokesperson even reached out to tell me that the consensus, at least according to FactSet, should had been for a loss of 61 cents a share. Why the confusion? RBC’s Mark Dwelle and Scott Heleniak have your answer:
In reporting results AIG has recast all of its business segments, transferring various pieces to a Legacy unit, reallocating corporate expenses and net investment income as well as making some changes as to what is included within operating income, the most notable of which is that loss reserve discount effects in U.S. Commercial Insurance (and the Legacy unit) are now excluded from Operating Income. Accordingly, comparisons to prior reported results, and to some extent our 4Q16 estimates, require some reconciliation.
Macquarie’sAmit Kumar considers the bull and bear cases on AIG:
On 2/14, after market close, AIG reported a Q4 operating loss of $2.72 per share vs. our estimate of a $0.52 loss and street consensus of a $0.54 loss. Results are not directly comparable to street consensus due to lack of unanimity in terms of reserve adjustment estimates. Results included a higher than estimated $5.6 billion or $3.56/share of adverse development. The company had previously announced the possibility of a material reserve charge in the quarter. The bulls on the stock would note that this quar
- [By Ben Levisohn]
BMO’s Charles Sebaski explains why he upgraded American International Group (AIG) to Outperform from market Perform:
Agence France-Presse/Getty Images
AIG has been trading at discount to its tangible book given its mid-single digit return profile; however, we expect AIGs valuation to keep increasing with its improving return profile. We are now forecasting AIG to generate a 9.9% operating return on tangible common equity (ROtE) in 2018, which would be a 450 bp improvement from 2016. A double-digit return profile warrants the 1x multiple that we are applying to its tangible book value per share. While we expect AIGs return profile to benefit from lower taxes, we also expect the companys life and retirement business to improve from the rising interest rates as those spread businesses are more interest rate sensitive than the P&C business. That said, we expect continued improvement on both the loss and expense sides of the P&C as contributing factors to the ROtE improve.
BMO also upgraded Arch Capital Group (ACGL), Brown & Brown (BRO), and Travelers (TRV).
Shares of American International Group have declined 0.4% to $65.60 at 3:36 p.m. today, whileArch Capital Group has gained 2% to $87.90,Brown & Brown has advanced 0.5% to $44.65, andTravelers has risen 1.3% to $120.79.
- [By Lisa Levin]
Some of the stocks that may grab investor focus today are:
Wall Street expects Dr Pepper Snapple Group Inc. (NYSE: DPS) to report quarterly earnings at $1.06 per share on revenue of $1.57 billion before the opening bell. Dr Pepper Snapple shares fell 0.07 percent to close at $93.49 on Monday.
Analysts expect American International Group Inc (NYSE: AIG) to post quarterly earnings at $1.01 per share on revenue of $12.87 billion after the closing bell. AIG shares gained 0.38 percent to $66.39 in after-hours trading.
Flowers Foods, Inc. (NYSE: FLO) reported in-line earnings for its fourth quarter, while sales missed expectations. Flowers Foods shares fell 1.87 percent to $20.45 in the after-hours trading session.
Before the markets open, Diebold Nixdorf Inc (NYSE: DBD) is projected to report its quarterly earnings at $0.32 per share on revenue of $1.31 billion. Diebold Nixdorf shares slipped 0.73 percent to close at $27.20 on Monday.
Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.
Best Financial Stocks To Own Right Now: Euro/Yen(EJ)
- [By Belinda Cao]
E-House China Holdings Ltd. (EJ), a real estate brokerage, gained 9.2 percent to $9.70, extending it advance to a third week. Its American depositary receipts retreated 3.1 percent Sept. 20 from the highest level since May 2011.
Best Financial Stocks To Own Right Now: Wells Fargo & Company(WFC)
- [By Zacks]
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Comerica Incorporated (NYSE: CMA): Free Stock Analysis Report
Wells Fargo & Company (NYSE: WFC): Free Stock Analysis Report
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Zacks Investment Research
- [By WWW.THESTREET.COM]
Cramer’s game plan for next week’s trading starts on Monday, when Warren Buffett is scheduled to be on CNBC. Cramer said he wants to hear Buffett’s thoughts on his portfolio’s biggest under-performers, like American Express (AXP) , Coca-Cola (KO) and Wells Fargo (WFC) .
- [By Garrett Baldwin]
Former Wells Fargo & Co. (NYSE: WFC) CEO Dick Kovacevich called Bitcoin a “pyramid scheme” and said he believes it to be just another scam.
“It makes no sense. I’m just surprised it isn’t even lower,” he said about Bitcoin during an interview with CNBC.
- [By Dustin Blitchok]
In August, Wells Fargo & Co. (NYSE: WFC) revised the number of people affected when the bank opened unauthorized bank and credit card accounts upward to 3.5 million.
- [By John Maxfield]
You have to hand it to Wells Fargo’s (NYSE:WFC) executives for keeping investors in the loop about the performance of its retail banking unit following last year’s fake-account scandal, in which thousands of the bank’s employees opened up to 2 million accounts for customers without their approval to do so.
- [By Tyler Crowe, Jordan Wathen, and Beth McKenna]
So we asked three of our contributors to highlight a stock they see as a real underdog in the market today and why investors should be watching this stock. Here’s a quick look into why they picked banker Wells Fargo (NYSE:WFC), railcar manufacturer Greenbrier Companies (NYSE:GBX) , and egg wholesaler Cal-Maine Foods (NASDAQ:CALM)
Best Financial Stocks To Own Right Now: Barclays PLC(BCS)
- [By Jon C. Ogg]
Barclays PLC (NYSE: BCS) was raised to Overweight from Equal Weight at Morgan Stanley. Its American depositary sharesclosed up 2.6% at $11.36 on Thursday and were indicated up 1.2% at $11.50 on Friday. The52-week range is $6.76 to $12.05.
- [By WWW.THESTREET.COM]
Banco Santander (SAN) : “I prefer Barclays (BCS) , but let’s wait and see what the other banks have to say”
ProLogis (PLD) : “I am not a fan of that group right now, but that one is best of breed.”