Sunday 31 January 2016
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Active Stocks in Review: Diamond Rock Hospitality Company (NYSE:DRH), Radian Group Inc (NYSE:RDN), American Capital Ltd. (NASDAQ:ACAS)

On Thursday, Shares of Diamond Rock Hospitality Company (NYSE:DRH), lost -3.11% to $9.65.

On Tuesday, December 29, 2015, Nasdaq Composite ended at 5,107.94, up 1.33%, Dow Jones Industrial Average advanced 1.10%, to finish the day at 17,720.98, and the S&P 500 closed at 2,078.36, up 1.06%.

Diamond Rock Hospitality Co’s stock edged higher by 0.89% to close Tuesday’s session at USD 10.15. The company’s shares oscillated between USD 9.91 and USD 10.17. The stock recorded a trading volume of 1.71 million shares, which was below its 50-day daily average volume of 2.20 million shares and its 52-week average volume of 2.04 million shares. Over the last three days Diamond Rock Hospitality Co’s shares have advanced 1.81% and in the past one week the stock has moved up 3.47%. Furthermore, over the last three months the stock has lost 6.88% and in the past six months the shares have shed 20.77%. On a compounded total return basis, the company has returned 4.63% in the past one week. Additionally, Diamond Rock Hospitality Co has a current dividend yield of 4.95%. Further, the company is trading at a price to earnings ratio of 16.64 and a price to book ratio of 1.11. This compares to a historical PE ratio of 17.90 and a historical PB ratio near to 1.63. Moreover, the stock is trading at a price to cash flow ratio of 10.03 and price to sales ratio of 2.19.

Diamond Rock Hospitality Company, a lodging focused real estate company, owns premium hotels and resorts in North America. The company operates its hotels under the Hilton, Marriott, and Westin brand names in New York, Los Angeles, Chicago, Boston, and Atlanta; and in destination resort locations, such as the United States Virgin Islands and Colorado.

Shares of Radian Group Inc (NYSE:RDN), declined -0.89% to $13.39, during its last trading session.

Radian Guaranty Inc., the mortgage insurance partner of Radian Group Inc., declared that it meets the Private Mortgage Insurer Eligibility Requirements (PMIERs). The PMIERs, which go into effect on December 31, 2015, are the set of requirements for private mortgage insurers to be approved to insure loans attained by Fannie Mae and Freddie Mac (GSEs).

In order to comply with the PMIERs and maximize financial flexibility, Radian has taken the following fourth-quarter actions:

  • Radian Group transferred $325 million of cash and marketable securities to Radian Guaranty in exchange for a surplus note. This surplus note has a 0 percent interest rate and will mature on December 31, 2025. Based on positive trends reflected in its capital projections, Radian Guaranty anticipates to seek to redeem a portion and possibly all of the note in 2016, and any remaining amounts in 2017. Any redemption of the surplus note improvements holding company liquidity by the corresponding amount of the redemption.
  • Radian Group contributed $50 million to an exclusive associated reinsurer of Radian Guaranty. The combination of the surplus note and capital contribution will provide Radian Guaranty with an initial cushion above the projected amount required to satisfy the PMIERs’ financial requirements. This cushion is predictable to improvement based in part on predictable future financial performance at Radian Guaranty; as a result, Radian Guaranty is not predictable to require any additional capital contributions in order to remain compliant.
  • Radian Guaranty had the option to recapture a portion of the risk ceded under its existing Second Quota Share Reinsurance Transaction on December 31, 2015. The company has chosen not to recapture that risk and has received a profit commission of about $8 million based on performance to date, which will improvement net premiums earned in the fourth quarter of 2015 by about $1.5 million. In addition, Radian Guaranty received an $8.5 million prepaid supplemental ceding commission, the recognition of which has been deferred and will be amortized as a reduction to our policy acquisition costs over about the next five years.

After giving effect to the actions above, Radian Group is predictable to maintain about $300 million of presently available liquidity as of December 31, 2015.

Radian Group Inc., through its auxiliaries, provides mortgage and real estate products and services in the United States. It operates through two segments, Mortgage Insurance, and Mortgage and Real Estate Services (MRES).

Finally, American Capital Ltd. (NASDAQ:ACAS), ended its last trade with 0.07% gain, and closed at $13.79.

AAI Pharma Services Corp. / Cambridge Major Laboratories, Inc. (AAI/CML), a leading provider of custom manufacturing and development services for the pharmaceutical and biotechnology industries, declares it has upgraded its small molecule manufacturing capabilities at its site in Weert, Netherlands with the installation of a DE Dietrich Agitated Filter Dryer for controlled isolation of Intermediates and Active Pharmaceutical Ingredients (APIs). The filter dryer, first introduced early this year, provides a completely closed system unit for isolation and drying, which minimizes operator exposure and provides a safer manufacturing environment.

“The investment in this technology has improved containment around isolation, improved the safety of our operating environment, and assisted improvement yields. Our highly active compounds can also be processed using this filter dryer with ancillary equipment, for customers that need additional protection for Occupational Exposure Limits (OELs),” stated Ted Dolan, Chief Operating Officer. “We are happy to continue to offer more options for customers with our expanding capabilities.”

The DE Dietrich Agitated Filter Dryer also provides packaging efficiencies and the ability to re-dissolve using a second solvent within one system. The unit boasts a useful volume of 490 Liters, cake volume of 180 Liters and nominal filtration area of 0.6m2.

American Capital, Ltd. is a private equity and venture capital firm. It is a business development company specializing in administration and employee buyouts, subordinated debt, leveraged finance, mezzanine, acquisition, recapitalization, middle market, early venture, mature, industry consolidation, and growth capital investments.