The Brandon Futbol Club 99 Girls Black soccer team recently won the Mississippi U13 Premier State Championship. Alexis Lowe (back row, 5th from left) and Savannah Lowe (front row, 3rd from left)are daughters of Pinnacle Trust Client Services Manager, Rhonda Lowe.
Filed under Events
Just as we predicted, stocks have settled into a correction period after a good first quarter. The decline of -8.7% on the S&P 500 from the early April highs through the end of last week, while unsettling, is quite normal and within our forecasted range of 6%-10%. There have been twelve corrections of –6% or more since the cyclical bear market bottom reached on March 9, 2009, with –7.6% representing the average decline of the 12.
5 Year Price History S&P 500 (May, 2008 – Current)
Global problems have turned supply/demand issues for stocks slightly negative, but deeply pessimistic sentiment has offset for the time being. We’re watching further developments very closely, but at this point remain with our first-of-the-year forecast of a mild correction and are currently neutral towards stocks. – Stacey Wall
Filed under Market Update, Stacey Wall Commentary, Stocks
Jana Parrish, Pinnacle Trust Executive Vice-President, recently completed her 10th half marathon. The Flora Half Marathon raised money for Sunnybrook Children’s Home.
Located in Ridgeland, Mississippi, Sunnybrook is a Christian ministry-based, professional childcare organization helping children who have had challenging beginnings.
Filed under Events
Stacey Wall, Pinnacle Trust President & CEO, was recently elected to the Advisory Board of the Edith and Marina Alexander Memorial Foundation Trust Fund. The fund, founded in 1992, works with the Mississippi Council of the Blind to supplement transportation costs for blind and visually impaired people in the Jackson, Misssissippi, metro area.
Wall (far right) is pictured here with Board members (l to r) Peggy Maddox, Ken Maddox, Jimmy Hood and Liles Williams.
Filed under Events
The retail investment world seems consumed with the initial public offering of Facebook stock, the second largest in history. I have had more inquiries about this stock than any since the infamous days of WorldCom, and suppose that’s understandable. According to their registration statement, Facebook boasts 901 million active users, 3.2 billion “likes” and “comments” per day, 300 million photo uploads per day, and 125 billion friendships. Even this blog will be posted on our own Pinnacle Trust Facebook page.
Yet, all along we have discouraged investors from taking an aggressive stance in just one stock, particularly one surrounded by so much hype. Now, issues have surfaced regarding Morgan Stanley’s handling of the IPO as lead underwriter when Reuters reported that the bank’s consumer Internet analyst trimmed his outlook for the social-networking firm’s revenues just days before the deal went live.
If history is any guide, IPOs of high-profile technology stocks tend to have most of their short-term upside already priced into the stock by the close of the first day of trading. On average, these stocks were down six months later, as shown in the table below.
PERFORMANCE OF SELECT HIGH-PROFILE TECH IPOs
|
Company |
IPO Date |
IPO Size (millions) |
IPO Price |
% Gain after 6 months |
| America Online |
03/19/92 |
61.8 |
$11.50 |
+10.17 |
| Netscape |
08/09/95 |
140.0 |
$28.00 |
+132.62 |
| Yahoo |
04/12/96 |
33.8 |
$13.00 |
-37.88 |
|
08/19/04 |
1,670.0 |
$85.0 |
+97.24 |
|
| Baidu |
08/05/05 |
124.3 |
$27.00 |
-62.76 |
| Renren |
05/04/11 |
743.3 |
$14.00 |
-65.80 |
| Median |
-13.86 |
Source: Ned Davis Research
We strongly believe that proper diversification, tactical adjustments and an emphasis on risk management is a much more predictable formula for success than “betting the ranch” on a hyped-up IPO. –Stacey Wall
Filed under Market Update, Stacey Wall Commentary, Stocks
Jim Petersen has joined Pinnacle Trust as a Financial Advisor. A graduate of the University of Mississippi, he received a B.A. in Recreation Management with a Minor in Tourism in 2004.
Jim began his professional career with the Ridgeland Tourism Commission as a marketing director. After six years, he moved to Morgan Keegan as a financial advisor. Jim completed his Series 7, Series 66 and insurance requirements in 2010 .
He is active with the Make-A-Wish foundation of Mississippi and Ridgeland & Madison County Chambers of Commerce. Jim graduated from high school in Collierville, Tennessee.
Jeremy Nelson, Pinnacle Trust Chief Investment Officer, said, “We’re thrilled to have Jim join our staff. His professionalism and work ethic will serve our clients well.”
Wall Speaks to AGC
The Associated General Contractors of Mississippi was chartered by AGC of America in April of 1946, representing the interests of general contractors, subcontractors, material suppliers and providers of construction services and products throughout Mississippi.
Members of the American Bankers Association and the Mississippi Bankers Association, Pinnacle Trust is one of Mississippi’s largest and fastest growing financial service companies.
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Filed under Economic Outlook, Events, Market Update, Stacey Wall Commentary