Top 5 Financial Stocks To Buy For 2014

Two of my 35 stocks have short interest ratios over 10 days. [Short interest ratio = amount of shares shorted / average daily volume.] I look at this statistic, and force myself to re-examine companies where the ratio is over 10. Maybe there is something that I don't know.

The two stocks in question are Stancorp Financial (SFG) and National Western Life Insurance (NWLI). The short cases for both are based on a naive view of how insurance companies work.

Stancorp is a disability insurer. Disability insurers often do badly in a recession because disability claims increase - people who are unemployed claim they are disabled.

There are two models for disability insurance: 1) Underwrite carefully, and pay all legitimate claims. 2) Accept all business, but when claims come in litigate with vigor.

Top 5 Financial Stocks To Buy For 2014: North State Bncorp(NSBC.OB)

North State Bancorp operates as the holding company for North State Bank that provides various commercial and retail banking services to professional firms, professionals, property management companies, churches, non-profits, and individuals located primarily in central North Carolina. It accepts various deposit products that include savings, NOW, and money market accounts; time deposits; checkings and investment accounts; and interest-bearing and non interest-bearing deposits. The company?s loan portfolio comprises construction, land development, and other land loans; farmland loans; one to four family residential and multifamily residential loans; non-farm nonresidential loans; commercial and industrial loans; installment and mortgage loans; and consumer and other loans. It also provides safe deposit boxes; savings bonds; wire transfer; wealth management and brokerage services; trust preferred securities; and other associated services. The company operates six full-serv ice banking offices located in Wake County; and one full-service banking office in Wilmington, New Hanover County. The company was founded in 2000 and is headquartered in Raleigh, North Carolina.

Top 5 Financial Stocks To Buy For 2014: Renasant Corporation(RNST)

Renasant Corporation operates as the bank holding company for the Renasant Bank that provides various financial and insurance services to retail and commercial customers. The company offers checking accounts, money market accounts, savings accounts, certificates of deposit, time deposits, individual retirement accounts, and health savings accounts. It also provides commercial, financial, and agricultural loans; construction loans, including loans for the construction of single family residential properties, multi-family properties, and commercial projects; residential mortgage loans; home equity loans or lines of credit; consumer loans; and equipment leasing, as well as safe deposit and night depository facilities. In addition, the company offers various fiduciary services; and administers qualified retirement plans, profit sharing and other employee benefit plans, personal trusts, and estates. Further, the company provides annuities, mutual funds, and other investment ser vices through a third party broker-dealer. Additionally, the company offers commercial and personal insurance products through carriers. As of October 21, 2011, it operated approximately 75 banking, mortgage, financial services, and insurance offices in Mississippi, Tennessee, Alabama, and Georgia. The company was founded in 1904 and is based in Tupelo, Mississippi.

Top 10 Healthcare Technology Companies To Watch For 2014: Sussex Bancorp(SBBX)

Sussex Bancorp operates as the holding company for Sussex Bank that provides commercial banking and related financial services to individual, business, and government customers primarily in the United States. The company?s deposit products include personal and business checking accounts, time deposits, money market accounts, and regular savings accounts. Its loan products portfolio comprises commercial, consumer, mortgage, home equity, and personal loans. The company also operates a general insurance agency, which offers commercial and personal lines of insurance. As of April 27, 2011, Sussex Bancorp operates through 10 offices, including 8 offices located in Sussex County, New Jersey; and 2 in Orange County, New York, as well as serves Pike County, Pennsylvania. The company was founded in 1975 and is based in Franklin, New Jersey.

Top 5 Financial Stocks To Buy For 2014: Louisiana Bancorp Inc.(LABC)

Louisiana Bancorp, Inc. operates as the holding company for Bank of New Orleans that provides commercial banking services to individuals and businesses primarily in southern Louisiana. It offers deposit accounts consisting of interest-bearing and non-interest-bearing checking, money market, savings, and certificate of deposit accounts. The company also originates one-to four-family, multi-family residential and commercial real estate mortgage, commercial, land mortgage, and construction loans, as well as consumer loans, including student loans, loans secured by deposit accounts, automobile loans, home improvement loans, unsecured personal loans, and home equity loans and lines of credit. As of December 31, 2010, it operated through its main office located in Metairie; and 2 full-service banking offices located in Metairie and New Orleans. The company was founded in 1909 and is headquartered in Metairie, Louisiana.

Top 5 Financial Stocks To Buy For 2014: AMERISAFE Inc.(AMSF)

AMERISAFE, Inc., an insurance holding company, provides workers? compensation insurance focusing on small to mid-sized employers engaged in hazardous industries, primarily construction, trucking, agriculture, logging, oil and gas, maritime, and sawmills in the southeast United States. It also offers general liability insurance policies for its workers? compensation policyholders in the logging industry. The company?s workers? compensation insurance policies provide benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. AMERISAFE, Inc. sells its products and services through independent agencies, as well as through its insurance agency subsidiary, Amerisafe General Agency, Inc. The company was incorporated in 1985 and is based in DeRidder, Louisiana.