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Quick Thoughts: BAC – Capital Restatement is a Bitter Pill, but Expect $15bn Stock Buyback in 2015

BAC is resubmitting its 2014 (“CCAR”) capital plan to the Fed after discovering an accounting error (related to structured notes acquired with Merrill in 2009) which reduces Tier 1 common capital at December 2013 by $3.7bn and the common-equity (“CET1”)

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Quick Thoughts: V – Cuts 2014 Revenue Guidance and Reorganizes for Merchant “Outreach”

V traded down over 4% in extended hours after delivering in-line results but lowering growth guidance for 2014 to single-digits (10-11% in constant currency with a 2% currency headwind); the firm cited weakness in cross-border volumes and a downshift in

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Quick Thoughts – HSY

Hershey’s Q1 results this morning struck a familiar note within staples and the broader market this earnings season – miss on revenues, meet or beat on EPS.   HSY constant currency organic sales increased 3.2% (2.4% reported, shy of consensus by

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Quick Thoughts: Barclays – Moment of Truth

The market took in its stride Barclays pre-announcement that 20143Q1 profits would be lower than last year’s GPB1.79bn because of weak FICC revenues; the stock is up over 1% today at GPB2.52 and well above the GBP2.36 of March 11th

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US Banking: Mobile Banking Will Increase Scale Economies

Despite a strong rally off October 2011 lows, large-bank valuations remain attractive with WFC, JPM, and BAC trading at price-to-book multiples of 60%, 40% and 30% relative to the S&P500 – at or below the low-end of pre-crisis ranges. Valuations

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Quick Thoughts: Discover Checking Account Offers Durbin-Advantaged Rewards

DFS beat on EPS ($1.31 vs. $1.25 consensus) and continued to outpace the industry in loan growth (5% year-on-year in card and student, and 26% and 27% in private-student and personal lending respectively); with double-digit account growth in card, we

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Corn Planting Progress Remains Sluggish

As of Sunday, 6% of the U.S. corn crop had been planted versus a five year average of 14% – a slow start to be sure.  Significant progress was made across more Southern locations (Louisiana was virtually completed, for example)

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Quick Thoughts – Another Challenging Quarter for MCD

We suspect that expectations were modest for MCD’s Q1 results given the weather in the U.S., recent trends ex-weather and the company’s cautious commentary on margins contained in its last sales release.  We believe that the stock’s recent move higher

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Quick Thoughts – CMG Q1 EPS

There is very little not to like in CMG’s earnings release this morning (unless you care about margins or EPS results) – but we recognize that it is a growth stock and that top line growth is pretty much all

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Quick Thoughts – PM Q1 EPS

This morning, PM reported Q1 ’14 EPS of $1.19 per share, besting consensus estimates by $0.03 – we would characterize the quality as somewhat mixed (certainly not as strong as Q4 ‘13), but our view on PM is unchanged given

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