NEW YORK (TheStreet) -- Thursday was a light trading day in the finance sector as a fake private equity firm, PTG Capital Partners dominated headlines with its (fake) bid to purchase Avon Products, Inc. (AVP).
RealMoney Contributor Ed Ponsi predicts small regional banks will perform well when the Federal Reserve finally lifts rates. Ponsi points to the SPDR S&P Regional Banking ETF (KRE) hitting its one-year high on Tuesday. The exchange-traded fund is up 10% since February when Ponsi first recommended the buy. That's not to say you should avoid large banks, though, as the S&P Select Financial SPDR Fund (XLF) is also ticking upward, though just at a lower clip.
MetLife (MET) traded down for most of Thursday, and CEO Steve Kandarian advised investors to review the company's free cash flow when judging performance. Unfortunately, that figure is provided only once a year which means investors have a nine-month wait ahead of them. Free cash flow is calculated by subtracting capital expenditures from operating cash flow. The figure is an indicator of a company's ability to develop new products, issue dividends, and reduce debt.
In MetLife's defense, calculating the figure on a quarterly basis can be difficult.