10 Best Financial Stocks To Watch For 2014

With shares of Lennar (NYSE:LEN) trading around $35, is the stock an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze it with the relevant sections of our Cheat Sheet investing framework:

T = Trends for a Stock’s Movement

Lennar is a home builder and a provider of financial services as well as an investor and manager of funds that invest in real estate assets. The company�� homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land directly and through unconsolidated entities in which it has investments. Lennar operates in several segments: homebuilding east, homebuilding central, homebuilding west, homebuilding Southeast Florida, homebuilding Houston, financial services, and Rialto. The homebuilder industry has seen rising demand in the past couple of years that has driven profits much higher for these companies. Look for a homebuilder recovery to continue, and companies such as Lennar to increase profits.

10 Best Financial Stocks To Watch For 2014: C.A. Bancorp Inc Com Npv (BKP.TO)

C.A. Bancorp Inc. is a private equity firm specializing in management buyouts, acquisitions, expansions, restructurings, refinancing, PIPE transactions of middle-market companies, and other alternative investment opportunities. It also participates in open market purchases, equity investments in private issuers, and privatization of public companies. The firm seeks to invest in industrials, real estate, infrastructure, and financial services. Within industrials, it seeks to invest in mature industrial companies with a focus on manufacturing, distribution, and service sectors. The firm�s investment in real estate includes industrial, commercial, healthcare, hospitality, and retail properties. Its infrastructure investment opportunities focus on power generation, transportation, and utilities. Within financial services the firm invests in Canadian and international financial services businesses, including asset managers and investment counselors. From time to time, the firm will seek to invest in Capital Pool Companies within the real estate, infrastructure, and other asset-rich areas. It seeks to invest in the private and public companies based in Canada. The firm�s public investments will focus on mid-market companies trading on the Toronto Stock Exchange. It typically invests between $0.5 million and $20 million in companies with enterprise values between $25 million and $200 million. The firm seeks to pursue investments that offer returns between 1.5 percent and three percent. It seeks a board seat in its portfolio companies. The firm exits its investments through sale to strategic buyers or financial investors, open market sales, normal course retirement of securities, refinancing, and public offerings. It was previously known as C.A. Bancorp Ltd. C.A. Bancorp Inc. is based in Ontario, Canada.

10 Best Financial Stocks To Watch For 2014: Macatawa Bank Corporation(MCBC)

Macatawa Bank Corporation operates as the holding company for Macatawa Bank that provides various commercial and personal banking services. It offers various deposit products, which comprise checking accounts, savings accounts, time deposits, transaction accounts, savings and time certificates, non-interest bearing and interest bearing demand deposits, and money market accounts. The company?s loan portfolio comprises commercial and industrial loans, commercial real estate loans, construction and development loans, and multi-family and other non-residential real estate loans; residential mortgage loans; and consumer loans, including automobile loans, home equity lines of credit, installment loans, home improvement loans, deposit account loans, and other loans for household and personal purposes. It also provides cash management services, safe deposit boxes, travelers checks, money orders, and trust services; ATMs, Internet banking, telephone banking, and debit cards; and b rokerage services, including discount brokerage, personal financial planning, and consultation regarding mutual funds. In addition, the company offers personal trust services, such as financial planning, investment management services, trust and estate administration, and custodial services; and retirement plan services, including provision of various qualified retirement plans, such as profit sharing, 401(k)s, and pension plans. It operated a network of 26 branches and a lending and operation service facility in Kent, Ottawa, and northern Allegan counties of Michigan. The company was founded in 1997 and is headquartered in Holland, Michigan.

Top Low Price Companies To Buy Right Now: IFCI Ltd (IFCI)

IFCI Limited is engaged in financing business. Its products include short-term loans for different short term requirements including bridge loan, corporate Loan etc, medium-term loans for business expansion, technology up-gradation, long-term Loans for project finance for new industrial/infrastructure projects, lease financing, takeover of accounts from Banks, financing promoters contribution and purchase of standard Assets. The Company is a Nodal Agency for monitoring of Sugar Development Fund (SDF) loans for projects related to modernization and expansion, co-generation of power and production of alcohol/ethanol in the private sector. Its corporate advisory services include corporate advisory and infrastructure services, infrastructure advisory, monitoring agency for public issues, restructuring advisory services and bid process management.

10 Best Financial Stocks To Watch For 2014: Transpac Industrial Hldgs Ltd (T55.SI)

Transpac Industrial Holdings Limited, an investment holding company, provides venture capital to companies with capital appreciation potential in Asia. It invests in the securities of growing private companies principally located in China/Hong Kong SAR, Taiwan, Singapore, Malaysia, Thailand, and Indonesia. The company is based in Singapore.

10 Best Financial Stocks To Watch For 2014: LPL Investment Holdings Inc.(LPLA)

LPL Investment Holdings Inc. provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. The company?s brokerage offerings include variable and fixed annuities, mutual funds, general securities, alternative investments, retirement and 529 education savings plans, and fixed income; and insurance offerings comprise personalized advance case design, point-of-sale service, and product support for a range of life, disability, and long-term care products. Its fee-based advisory platforms and support solutions offer access to no-load/load-waived mutual funds, exchange-traded funds, stocks, bonds, conservative option strategies, unit investment trusts and no-load, institutional money managers, and multi-manager variable annuities through five platforms, as well as third-party equity research and asset-management services, and fee-based advisory and consulting services to retirement plans. The company?s cash sweep programs consist of money market sweep vehicles and an insured bank deposit sweep vehicles. Its services also include tools and services that enable advisors to maintain their practice; and trust, investment management oversight, and custodial services for estates and families, as well as technology and open architecture investment management solutions to trust departments of financial institutions. LPL Investment Holdings Inc. provides its services to approximately 12,800 independent financial advisors from a range of firms, including wirehouses, regional and insurance broker dealers, banks, and other independent firms; and registered investment advisors, and advisors at small and mid-sized financial institutions. The company was founded in 1968 and is headquartered in Boston, Massachusetts.

10 Best Financial Stocks To Watch For 2014: The Herzfeld Caribbean Basin Fund Inc. (CUBA)

Herzfeld Caribbean Basin Fund Inc. is a closed-ended equity mutual fund launched by Thomas J. Herzfeld Advisors, Inc. The fund is managed by Herzfeld/Cuba. It invests in the public equity markets of the Caribbean Basin Countries and the United States. The fund makes its investments in stocks of companies operating across diversified sectors. Herzfeld Caribbean Basin Fund Inc. was formed on March 10, 1992 and is domiciled in the United States.

10 Best Financial Stocks To Watch For 2014: CMS Bancorp Inc.(CMSB)

CMS Bancorp, Inc. operates as the holding company for Community Mutual Savings Bank, which provides various banking services to individuals and small businesses primarily in Westchester County and the neighboring areas in New York State. It offers various deposit products, including savings deposits consisting of passbook and statement savings accounts; interest- and non-interest-bearing demand accounts; money market accounts; and time deposits. The company also provides loan products comprising residential, commercial real estate, and consumer loans, as well as multi-family, non-residential, construction, home equity, and second mortgage loans. In addition, it invests in various assets, including securities of various government-sponsored enterprises and mortgage-backed securities. As of September 30, 2010, CMS Bancorp operated 1 corporate office in White Plains and 5 retail banking offices in Westchester County, New York. The company is headquartered in White Plains, New York.

10 Best Financial Stocks To Watch For 2014: Invesco Mortgage Capital Inc (IVR)

Invesco Mortgage Capital Inc., incorporated in June 2008, is a real estate investment trust (REIT). The Company is primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans, which it collectively refers to as its target assets. The Company�� target assets consist of residential mortgage-backed securities (RMBS) for which the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) or a federally chartered corporation, such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) guarantees payments of principal and interest on the securities. It refers to these securities as Agency RMBS. Its Agency RMBS investments include mortgage pass-through securities and may include collateralized mortgage obligations (CMOs). It also invests in RMBS that are not issued or guaranteed by the United States Government agency (non-Agency RMBS), commercial mortgage-backed securities (CMBS) and residential and commercial mortgage loans.

The Company finances its Agency RMBS, non-Agency RMBS and CMBS investments through short-term borrowings structured as repurchase agreements. The Company�� manager is Invesco Advisors Inc. The Company also finances its investments in certain non-Agency RMBS, CMBS and residential and commercial mortgage loans by contributing capital to the Invesco Mortgage Recovery Feeder Fund (Invesco IMRF Fund) that invests in public-private investment funds (PPIF) managed by the Company�� manager. The Company's manager is a wholly owned subsidiary of Invesco Ltd.

Advisors' Opinion:

• [By Amanda Alix]

  Analysts at odds over mREITs
  Financial analysts have been busy noting the underperformance of mREITs lately, especially since the Fed dropped the QE3 taper bombshell almost two weeks ago -- immediately igniting fears of rising interest rates, which would decrease the value of the trusts' legacy assets, thus dinging book values. The pain hasn't been limited to the stocks mentioned above,� as CYS Investments (NYSE: CYS  ) , and even hybrids like Invesco (NYSE: IVR  ) , have been on a roller-coaster ride ever since.

• [By Amanda Alix]

  All mREITs are taking it on the chin
  The agency crew, led by heavy hitters Annaly Capital (NYSE: NLY  ) , American Capital Agency (NASDAQ: AGNC  ) , and Armour Residential (NYSE: ARR  ) , have all been close to hitting 52-week lows, but the blood-letting hasn't stopped there. Even hybrid mortgage REITs, which also buy some non-agency paper, have plunged, as well. Two Harbors (NYSE: TWO  ) , which enjoyed such a nice lift post-earnings about a month ago, recently sunk to new lows, and Invesco Mortgage Capital (NYSE: IVR  ) has also slipped, even after its CIO's recent show of faith, making a sizable insider purchase�of stock less than two weeks ago.

• [By Monica Wolfe]

  Invesco Mortgage Capital (IVR)

  President and CEO of Invesco Richard King reported a rather notable insider buy on Aug. 5. The CEO purchased 6,500 shares of company stock at an average price of $15.41 per share. This purchase cost King a total of $100,165. Since this buy, the share price has increased a minor 0.13%. King now holds on to at least 56,545 shares of Invesco Mortgage stock.

• [By Sean Williams]

  In contrast, non-agency mREITs often have to be more careful with their leverage since loan defaults actively impact their bottom-line profit, and rapidly rising interest rates, such as what we saw over the past few weeks, can trigger MBS and other security sales at a loss. In return for more risk, non-agency securities pay out higher yields. Take, for example, Invesco Mortgage Capital (NYSE: IVR  ) , a buyer of agency and non-agency RMBSes, which delivered what might seem like an uninspiring 1.64% net interest margin in the first quarter with a leverage ratio of 6.4. Now compare that to agency-only mREIT Annaly Capital, whose net interest margin fell 80 basis points from the year-ago period in the first quarter to just 0.91%, but with a higher leverage ratio of 6.6.

10 Best Financial Stocks To Watch For 2014: Princeton National Bancorp Inc.(PNBC)

Princeton National Bancorp, Inc. operates as the holding company for Citizens First National Bank, which provides commercial banking and trust services to individuals, businesses, and governmental bodies in Illinois. The company provides consumer services, such as demand, savings, and time deposit accounts; home mortgage loans; installment loans; and brokerage services. It also offers secured and unsecured commercial loans, including real estate loans to companies and individuals for business purposes, and to governmental units; and agricultural and agricultural real estate loans secured by crops, machinery, and real estate to finance capital improvements and farm operations, as well as acquisitions of livestock and machinery. In addition, the company offers ATM and debit cards, and Internet banking services. Further, it provides insurance and farm management services; and equity, bond, and mutual fund portfolio management services. As of December 31, 2010, it managed or a dministrated 907 trust accounts. The company operates through 21 offices in 17 in Aurora, DePue, Genoa, Hampshire, Henry, Huntley, Millbrook, Minooka, Newark, Oglesby, Peru, Plainfield, Plano, Princeton, Sandwich, Somonauk, and Spring Valley; and 25 automated teller machines. Princeton National Bancorp, Inc. was founded in 1865 and is headquartered in Princeton, Illinois.

10 Best Financial Stocks To Watch For 2014: CenterState Banks Inc.(CSFL)

CenterState Banks, Inc., a multi bank holding company, provides consumer and commercial banking services to individuals, businesses, and industries in central Florida. Its deposit products include demand interest-bearing and noninterest-bearing accounts, money market deposit accounts, time deposits, direct deposits, savings accounts, negotiable order of withdrawal accounts, and certificates of deposit. The company also offers real estate loans to individuals and businesses for the purchase, improvement of, or investment in real estate; for the construction of single-family residential and commercial units; and for the development of single-family residential building lots. In addition, it provides commercial loans to individuals and small-to-medium sized businesses for working capital, equipment purchases, and various other business purposes; and consumer loans that comprise loans to individuals for various consumer purposes, and business purpose loans payable on an instal lment basis. Further, the company offers safe deposit services, cash management, notary services, money orders, night depository, travelers? checks, cashier?s checks, domestic collections, savings bonds, bank drafts, automated teller services, drive-in tellers, banking by mail and Internet, and automated teller machine cards. Additionally, it provides mutual funds, annuities, and other products. The company also sells fixed income securities; and provides correspondent bank deposits and checking accounts, as well as safe-keeping services, bond accounting services for correspondents, and asset/liability consulting services for small to medium size financial institutions. As of July 18, 2011, it had 52 full service branch banking locations in 14 counties throughout central Florida. CenterState Banks, Inc. was founded in 1989 and is headquartered in Davenport, Florida.