The Zacks Analyst Blog Highlights: Bank of America, Fannie Mae, Freddie Mac, BB&T and Mallinckrodt

For Immediate Release
Chicago, IL – February 28, 2014 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Bank of America Corp. (BACFree Report), Fannie Mae (FNMAFree Report), Freddie Mac (FMCCFree Report), BBT Corp. (BBTFree Report) and Mallinckrodt plc (MNKFree Report).
Today, Zacks is promoting its ”Buy” stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday’s Analyst Blog:

BofA Challenges $2.1B RMBS Claim
As per a report from Reuters, Bank of America Corp. (BACFree Report) has challenged the Federal authorities’ claim of $2.1 billion as penalty. In January, the authorities had sought this amount from BofA for the sale of risky residential mortgage-backed securities (RMBS).
While responding to the case, BofA stated that the authorities had committed a mistake by calculating the penalty amount on the total gain from the sale of loans. As per the law, the penalty amount should be based on net gains made while selling the risky RMBS. Since the company did not make any profit from the sale, it claimed that no penalty should have been imposed on it.
The RMBS were sold by Countrywide Financial Corp., which was acquired by BofA in 2008, to Fannie Mae (FNMAFree Report) and Freddie Mac (FMCCFree Report) between Aug 2007 and May 2008. The company was accused of selling the loans underlying these RMBS without properly assessing the creditworthiness of borrowers.
The Federal prosecutors accused Countrywide of creating the program ‘high-speed swim lane’ (:HSSL) or ‘Hustle,’ which rewarded employees for the quantity rather than quality of loans. These loans were then bundled and sold to Fannie Mae and Freddie Mac.
Earlier, the authorities had sought a fine of nearly $864 million from BofA. However, the figure later rose to $2.1 billion, after calculation of the total revenue that was derived from the loans. Notably, U.S. District Judge, Jed Rakoff, will decide the final penalty amount after the hearing that begins on Mar 13 is over.
BofA continues to suffer from flaws in Countrywide’s transactions prior to the financial crisis. The company has incurred more than $40 billion in losses from bad loans, RMBS claims and lawsuits. Though BofA has settled quite a few cases pertaining to Countrywide, it is still braced with several litigations that could weigh on its financials going forward.
Currently, BofA carries a Zacks Rank #3 (Buy). A better-ranked major global bank worth considering is BBT Corp. (BBTFree Report), with a Zacks Rank #2 (Buy).
Patent Update from Mallinckrodt
Gaining patent protection for drugs is an essential part of the pharma and biotech sector. Companies seek strong patent protection so as to prevent the entry of generic competition for their drugs. Innovator companies often spend 10-15 years to develop a drug and bring it to market. With a lot of RD dollars invested in the development of these drugs, innovator companies look to gain exclusivity so that they can recover their investment in product development.
Earlier this week Mallinckrodt plc (MNKFree Report) said that the United States Patent and Trademark Office granted a patent (U.S. Patent Number 8,658,631) to Xartemis XR containing composition claims with regard to its design, formulation, pharmacokinetic and release characteristics.
Xartemis XR (oxycodone HCI and acetaminophen), an extended-release oral formulation, is currently under FDA review for the management of acute pain in a post-surgical model. The company said that it will launch Xartemis XR in the second quarter of fiscal 2014, provided the candidate is approved by the FDA.
We remind investors Mallinckrodt recently launched another pain drug, Pennsaid 2%.
Meanwhile, Mallinckrodt is actively focusing on strengthening its pipeline and promoting new products in the pain market. The company expects to file for approval for another pain candidate, MNK-155, in the second half of fiscal 2014.
Today, Zacks is promoting its ”Buy” stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on BAC – FREE
Get the full Report on FNMA – FREE
Get the full Report on FMCC – FREE
Get the full Report on BBT – FREE
Get the full Report on MNK – FREE
Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The SP 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

Comments are closed.