Retirement fund manager EPFO's trustees today approved a proposal to resume investment in the scam-hit LIC Housing Finance, a subsidiary of the country's largest insurance company Life Insurance Corporation.
The decision to resume investment in the LIC Housing Finance was taken at the meeting of the Central Board of Trustees (CBT), the apex decision-making body of the Employees' Provident Fund Organisation (EPFO).
The CBT had suspended investment in housing finance company following disclosure of the bribe-for-loans scam in November 2010 in which top officials of the LIC Housing Finance were allegedly involved. "Amount invested in LIC Housing Finance is not much...approved investment is only about Rs 800 crore," CBT member and Secretary All India Trade Union Congress D L Sachdev told reporters after the CBT meeting.
The EPFO had invested Rs 454 crore in the bonds of LIC Housing Finance Company. The fund manager's prevailing investment norms allow for investment of up to Rs 846 crore in the company.
The EPFO's advisory body, the Finance and Investment Committee (FIC), took up the issue in its meeting on January 28 and recommended resumption of investment in LIC Housing Finance. LIC Housing Finance went through a bad phase after CBI in November arrested its CEO Ramachandran Nair and seven other senior bankers for allegedly colluding with real estate firms to sanction large-scale corporate loans, overriding the mandatory due diligence involved in such approvals, besides other irregularities.
NorthStar Realty Finance Earnings Hindsight: Down 14.1% in Last 16 Days (NRF) - Financial News Network Online
Two weeks ago on May 3rd, 2012 NorthStar Realty Finance (NYSE:NRF) reported earnings and analysts, on average, expected earnings of $0.33 on sales of $124.0 million. The company actually reported a loss of $0.33 per share on sales of $117.3 million, missing EPS estimates by $0.66 and missing revenue estimates by $6.7 million. Since the company's report, shares of NorthStar Realty Finance have fallen from $5.94 to $5.10, representing a loss of 14.1% in the past 16 days.
In the past 52 weeks, shares of NorthStar Realty Finance have traded between a low of $2.92 and a high of $5.96 and closed Thursday at $5.10, which is 75% above that low price. The 200-day and 50-day moving averages have moved 0.76% higher and 0.27% lower over the past week, respectively.
Potential upside of 15.2% exists for NorthStar Realty Finance, based on a current level of $5.10 and analysts' average consensus price target of $5.88. The stock should hit resistance at its 50-day moving average (MA) of $5.41, as well as support at its 200-day MA of $4.57.
NorthStar Realty Finance Corp. is an internally-managed real estate company. The Company makes investments in real estate debt, real estate securities, and net lease properties.
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