Monday, January 08, 2007

(PNC) - (CVX) - (HBAN) - John Reese, Validea Hot List newsletter

John Reese, editor of the Validea Hot List newsletter, details the performance of his Validea Hot List since inception, year to date and over the past few weeks. Find out how this featured expert's stocks stack up against the S&P 500. Afterward, learn about some of the Hot List holdings, including an addition to the portfolio that Reese describes as 'a very strong performing bank with a well-priced stock.

Validea Hot List Performance from December 29

Since inception, the Validea Hot List has increased 186.7 percent, versus 42.4 percent for the S&P 500. Year to date, the Validea Hot List has risen 29.2 percent compared with an increase of 14.1 percent for the S&P 500. Since John Reese and his team's last issue of the newsletter, the Validea Hot List is up 0.6 percent, while the S&P 500 is down 0.1%.

The Newbies

PNC Financial Services (PNC)

Pittsburgh-based PNC Financial Services is a bank with retail operations in Pennsylvania, New Jersey, Maryland, Virginia, Delaware, Ohio, Kentucky, Indiana and the District of Columbia. It owns 34 percent of BlackRock, an investment management firm. It is in the process of acquiring Mercantile Bancshares. The bank is favored by Reese and his team's interpretation of the David Dreman and Peter Lynch strategies.

The Peter Lynch Strategy

In addition to the Dreman strategy, the Lynch strategy is willing to bank on PNC. PNC Financial is a Lynch true stalwart because its earnings growth rate, 14.24 percent, is within the 10 percent to 19 percent range. The company's yield adjusted P/E/G ratio (P/E relative to growth) is a very strong 0.5 (0.5 or less is best of class). Also in its favor is its positive EPS, 11.0 percent equity-to-assets ratio (5 percent is the minimum) and its return on assets of 2.69 percent (1.0 percent is the minimum acceptable).

Overall, PNC Financial is a very strong performing bank with a well-priced stock.

Other Hot List stocks include:

Chevron Corp. (CVX), formerly ChevronTexaco Corporation, manages its investments in subsidiaries and affiliates, and provides administrative, financial and management support to the United States and foreign subsidiaries that engage in integrated petroleum operations, chemicals operations, coal mining, power and energy services. Petroleum operations consist of exploring for, developing and producing crude oil and natural gas; refining crude oil into finished petroleum products; marketing crude oil, natural gas and the many products derived from petroleum, and transporting crude oil, natural gas and petroleum products by pipeline, marine vessel, motor equipment and rail car. Chemicals operations include the manufacture and marketing, by affiliates, of commodity petrochemicals for industrial uses, and the manufacture and marketing, by a consolidated subsidiary, of fuel and lubricating oil additives.

Huntington Bancshares Incorporated (HBAN) is a multi-state diversified financial holding company. Through its subsidiaries, the Company provides full-service commercial and consumer banking services, mortgage banking services, automobile financing, equipment leasing, investment management, trust services and brokerage services. It also reinsures private mortgage, credit life and disability insurance, and sells other insurance and financial products and services. The Huntington National Bank (the Bank) is Huntington Bancshares Incorporated's only bank subsidiary. The Company has three lines of business: Regional Banking, Dealer Sales, and the Private Financial and Capital Markets Group (PFCMG). A fourth segment includes Huntington Bancshares Incorporated's Treasury function and other unallocated assets, liabilities, revenue, and expense.

This article highlights the commentary of John Reese for the Zacks.com audience. John Reese provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "The Validea Hot List" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "The Validea Hot List" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now.

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