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Profits in finance are back – call it "Banking 2.0." This gem of a bank's third-quarter profits rose 52% – but that's nothing new. They never needed a bailout and remained profitable throughout the Great Recession.
They've won the "Best Bank in the World" award by prestigious British financial publication Euromoney three times in the last 7 years.
And here's the kicker:
The stock is dirt cheap, with a current P/E ratio that's 8.1% below the banking industry average and 26.5% below the S&P 500 norm. A five-alarm bargain when you consider the consensus analyst estimate for earnings growth of 21% in 2015. Get in on "Banking 2.0" now. Learn more.
| | | 1/28/2015 By Richard Stavros 
If you're looking to double your money and pocket a handsome dividend to boot, you'll love my top financial pick for 2015.
I've analyzed this multinational bank from top to bottom, and I've come to one conclusion:
It gives you a clear shot at more than doubling your investment with a 235% upside—and you'll collect a tidy 3.7% dividend yield as you go.
Here's what it's pulled off since the Great Recession: - Bailout money? No thanks: Since 2008, the US and EU have pumped $33.7 trillion into bailing out financial institutions … and my top secret pick never took a penny. Even better, it kept earning profits throughout the crisis.
- Sailing through the European storm: Even though my pick is based in Europe, it avoided quarterly losses during the worst of the sovereign debt emergency, and it remains profitable today, boasting a 52% jump in third-quarter earnings.
- A reliable dividend-payer: This bank kept paying its dividend while most others were scrambling to abandon theirs—and they continue this with a new strategy that's reinvesting capital for long-term strength and stability.
I love finding exciting new income investments, especially those overlooked (or, even better, undervalued) by the financial media.
And with this stock, we find a classic case of unfair "guilt by association."
Actually, it's a double case of unfair guilt.
First, US investors tend to shy away from big banks because Washington habitually blames them for the 2008 crash while being "too big to fail."
And second, American investors see Europe as toxic—home to persistent stagflation and perpetual labor unrest.
Invest in a European bank? You'd have to be crazy!
To which I respond: Not when said bank has renovated the ramparts and stands strong as a global powerhouse.
On top of all that… - It's seeing strong international growth, with more than 13,000 branches globally and over 100 million customers worldwide.
- It's gaining ground in Latin America, where profits rose 9% last year, and in the UK, where profits jumped 34%. (According to The Wall Street Journal, the UK is the fastest-growing advanced economy.)
- It's a bargain, with a P/E ratio of just 14.7, versus 15.9 for the banking industry and 18.6 for the S&P 500. That's almost unbelievable when you consider the 235% money-doubling opportunity it offers.
And I haven't even gotten to its real "secret weapon" yet: a winning culture put in place by one of the sharpest leaders the banking industry has ever seen.
Enter "El Presidente"
It was a charismatic figure known as "El Presidente" who transformed my pick into a global banking titan.
An energetic figure with a taste for Formula One cars, he charged into the ring like a young bull fresh out of the pen, immediately raising interest rates on deposits and triggering a war for new customers.
The grandees of Spanish banking were caught off guard.
Their banks had been known for being stodgy and conservative, and citizens flocked to this "very different" customer-friendly bank. Rivals were stunned, and El Presidente's bank saw its market share soar.
He was just getting started.
The dynamic leader then started snapping up distressed foreign banks and installing handpicked executives to turn them around. Deploying a rapid-fire, deal-after-deal pace, he bought, revamped and sold companies in the blink of an eye.
But El Presidente was no riverboat gambler.
When his rivals dove headfirst into the real estate boom, he refused to play the risky game and instead focused on bread-and-butter banking and high-quality loans.
That's why my pick stands proudly as one of the few major banks that needed no bailout money and stayed profitable during the Great Recession.
The Legend Continues
The current boss, handpicked by her father, has already proven she has the touch.
Off to a fast start, she successfully steered her bank through the European Central Bank's recent stress test, designed to see whether a bank could withstand another 2008-style crash.
That's where my pick stood strong while others fell.
She also spearheaded the bank's highly profitable expansion into Latin America. For that and her other accomplishments she was named The Financial Times' businesswoman of the year for two years in a row.
And in the grand tradition of El Presidente, the bank remains a shrewd acquirer. Just recently, it snagged one of Canada's biggest auto lenders—just as car sales are forecast to hit their highest levels ever this year.
Now, without further ado, I want to show you…
How to Make Your Move Now
As I mentioned earlier, my team and I have painstakingly researched this stock, and we're ready to send you our complete report absolutely free.
It's called "Forever Income: 3 High-Yield Stocks for 2015 and Beyond." In addition to my top banking stock for 2015, it gives you two other dividend producers ripe for your portfolio.
One is a company earning a tsunami of profits from the global shipping boom (current yield 7.3%). The other is a financial outfit that offers priceless advice to companies with great business ideas but inexperienced management (current yield 9.0%).
Your free copy is waiting for you now. All I ask is that you take my new advisory service, Global Income Edge, for a no-risk 90-day "test drive."
Why global, you ask?
Because while there are certainly lots of fine income stocks here at home, focusing solely on America—where the average S&P 500 stock yields just 1.89%—is like hunting with blinders on.
When you take those blinders off and international stocks come into view, you discover a whole new world of life-changing income opportunities.
That's why we created Global Income Edge.
So do yourself a favor and let the world start paying you for a change—starting with the three picks I reveal in "Forever Income."
Go here to grab your copy now.
You could be adding them to your portfolio in minutes.
Editor's Note: Richard Stavros's track record speaks for itself: his proven formula drove our Utility Forecaster advisory to its current average gain of 293% per pick.
Now his system has revealed the three high-income stocks you get in this new free report. And as with all of our Global Income Edge picks, they're international but trade on U.S. exchanges, so you can get in immediately.
But you must hurry. Due to the sensitive nature of this information, I can't guarantee this report will be available for long.
Don't wait. Get yours right away. | | |
My top-secret "Banking 2.0" pick never took one penny of bailout money – and earned profits throughout the Great Recession. They're making money right now – third-quarter profits shot up 52%, and their current yield is an eye-popping 9.7%. This is one of the most timely investments you'll find anywhere in the world – and you can buy it for less than $9 a share. Don't delay.
| | | 1/28/2015 By Chad Fraser 
Call it the demographic tidal wave.
According to the Pew Research Center, about 10,000 people turn 65 every day in the US.
Right now, those over the traditional retirement age make up 13% of the population---a figure that's expected to climb to 18% by 2030, when all the baby boomers have crossed the line.
The story is much the same in Europe, where more than 20% of the population will be 65 or older by 2025.
The aging population---along with a corresponding increase in the incidence of chronic diseases---is helping drive a global health care budget that grew 2.6% in 2013, according to Deloitte's 2014 global health care sector outlook.
That may seem tepid, but it's about to rise significantly: between 2014 and 2017, the consulting firm sees total global health outlays rising by an average of 5.3% annually.
Emerging Markets Boost Spending
The aging developed-world population is just one part of the story. The other is the increasing number of dollars developing countries are pumping into health care.
According to Deloitte, the Middle East and Africa will experience the biggest bump in health care budgets between 2013 and 2017, at an average of 10.0% annually, followed by the Asia-Pacific region (7.1% growth) and Latin America (6.8%).
Compare that to recession-racked Western Europe, which is expected to post just a 2% average annual increase, with some of the most debt-ridden countries (think Spain, Greece and Portugal) not seeing any rise at all before 2016.
So what's driving spending in the developing world?
Aging populations are one factor---though to a lesser extent than in developed nations. Others include population growth, government efforts to extend coverage to more people and a wealthier citizenry that expects better care than their parents and grandparents received.
At the same time, technological breakthroughs---everything from 3-D printing transplantable tissue to new tools, like data analytics and electronic medical records---are transforming health care delivery across the globe.
For Richard Stavros, chief strategist of our Global Income Edge advisory, companies with exposure to both mature and fast-growing markets hold the key for investors looking to tap into rising health care spending---particularly income-seekers.
"We will be expanding our health care holdings," he wrote in the newsletter's latest issue. "Many health care companies make fine income investments, given rising health care spending in developed countries and new spending in developing nations."
He went on to specify what the advisory looks for when evaluating a stock:
"Our minimum thresholds to consider a company: $1 billion market cap, trades on a North American exchange, has a strong dividend and excellent dividend coverage and passes our various proprietary screens."
Health Care Giant Set to Close Big Deal
One outfit Stavros covers in Global Income Edge is Switzerland-based Novartis AG (NYSE: NVS). The diversified pharmaceutical giant boasts a $267-billion market cap and a 2.8% dividend yield.
Novartis is in the late stages of wrapping up a complex deal that will see it swap more than $20 billion worth of assets with UK-based GlaxoSmithKline (NYSE: GSK).
Here's how the agreement, slated to close in the first half of the year, works: - Novartis will acquire Glaxo's oncology business for $14.5 billion, plus an additional $1.5 billion depending on certain milestones.
- Glaxo will get Novartis's vaccine business for $7.1 billion (not including flu vaccines, which will go to Australia's CSL Ltd. for $275 million).
- The companies will also merge their consumer health care operations into a new joint venture. This firm, in which Novartis will hold a 36.5% stake, will be the world's second-largest consumer health care company, behind only Johnson & Johnson (NYSE: JNJ).
When the dust settles, Novartis will be left with just three main areas of focus: pharmaceuticals, generic drugs and eye care.
The company serves the latter through its Alcon division, which makes surgical products, contact lenses and treatments for a range of eye conditions. This market is also growing with an aging population: according to the American Academy of Ophthalmology, three-quarters of eye diseases are age-related.
Meanwhile, the Glaxo deal will bolster Novartis's presence in the growing oncology market. According to Bloomberg, the move will increase Novartis's cancer-drug sales by nearly 40%, to $11.2 billion, by 2018.
Big Drug Launches Ahead
The company came out with its latest results yesterday, reporting core earnings of $1.21 a share for the fourth quarter, up from $1.18 a year ago and ahead of the consensus forecast of $1.19.
Sales declined 2%, to $14.63 billion, but that was also ahead of the consensus forecast of $14.6 billion. Stripping out currency effects, sales gained 4%, while core EPS rose 12%.
For the year ahead, Novartis expects "mid-single-digit" sales growth and core operating income growth "ahead of sales at a high-single-digit rate" (excluding currency).
One fly in the ointment could be the rising Swiss franc, which, along with a stronger US dollar, could lower Novartis's core operating income by 12% this year; the company is now looking for ways to cut costs in its native country (where it records 13% of its expenses) in response.
Meantime, it can look forward to two major drug launches in 2015: Cosentyx (psoriasis) and LCZ696 (heart failure). CEO Joe Jimenez has said Cosentyx could bring in $1 billion of revenue annually, while the heart treatment could generate $2 billion to $5 billion.
Novartis also plans to raise its dividend by 6.1% for 2014, from 2.45 Swiss francs to 2.6 (1 Swiss franc = $1.11 US).
Double Your Money With the "World's Best Bank"
Since 2008, the US and EU have spent $33.7 trillion bailing out financial institutions. But this undervalued financial stock---routinely cited as the "World's Best Bank"---didn't take a penny.
It's one of three incredible picks Global Income Edge chief strategist Richard Stavros reveals in a new free report. Your potential upside: 235%! AND you'll collect a tidy 3.7% dividend yield as you go.
Get all the details here. | | |
Banking 2.0 has arrived with big profits. Don't look for this bank in the U.S. – nor Switzerland, Luxemburg, or Singapore. With more than 13,000 branches and 40 million customers worldwide, this bank is shellacking the competition. Prestigious British financial publication Euromoney has awarded it the "Best Bank in the World" award three times in the last 7 years. Invest in this top-secret recommendation now for 21% returns in 2015 – plus a 9.7% dividend right now. Click here.
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