I sold everything on Monday at $15.25. The sustainability of the dividend concerns me. Moreover, the mention of expanding to Boston and NYC strikes me as imprudent. I just don't see the present management as being ready for prime time in those hugely competitive markets. IMO, there are already too many bank branches in the big cities. PBCT needs better management from the top down to the local branch managers that will provide a better customer service experience, not more branches.
Stocks that get stuck in a narrow trading range can often be good money-makers if you spend the time and effort to stay on top of them. Identify the top and bottom of the range and use it to your advantage. If you happen to catch a dividend along the way, it's an added bonus. I've done this successfully for many years. You just have to resist the temptation to "get married" to a stock when it hits your sell target. I just look for stocks with clear sideways channels and an 8% to 10% spread between the tops and bottoms. Commissions are so low nowadays that they're not really a factor. Just stick with stocks that have good fundamental value and reasonable stability in their financials to avoid unpleasant surprises. PBCT seems to fit the bill very well.
It is a good bank according to its size. I am a member of this bank for the last 25 years.
It is doing OK. When big banks should have been bankrupt People bank survived on its own.
It needs guts. Even now they are paying 5 % dividend. If I lose 5 % in stock value I am equal.
We all paid to all big banks from our taxes. Not a single cent was paid to People's.
It is very easy to run business on our taxes. Government (in fact we) give banks money at
almost 0 % and they charge back to us upto 20%. Now tell me who is smart. Ordinary
people have no intelligence. We just vote for one of the two candidates. According to me there
is absolutely no difference between them after they are elected.
By the way USA is still the best country in the world.
Mxayyzexlyl (Just to protect me)
I'm against paying taxes. Every tax dollar you pay is money that is gone forever. It's money that will never earn you another cent. The only way to avoid paying a capital gain tax is to die. The cost basis will be adjusted to the price as of the date of death. That doesn't exempt you from inheritance and estate taxes, but the federal estate tax doesn't kick in until $5-million. If your estate is under $5-million, you're home free. The only problem is that you'll be DEAD! I'd rather pay the 15% long-term capital gains tax and just move on. It's a huge mistake to think you're locked in to a stock because of tax considerations. You just have to weigh the cost of continuing to hold a dog like PBCT against the opportunity value of using the money to invest elsewhere. My holdings in both VTI and VIG are up over 25% (not counting dividend distributions) so far in 2013. That beats PBCT hands down.
only problem is I have owned and big gain taxable gain from DSB--do agree with you on summary of owning stocks/ win some / lose more
Unfortunately, I don't see it happening as long as the present management is in control. They like their jobs too much to give them up for the benefit of the shareholders. Even if they did agree to a takeover, I think it's likely they'll do a deal similar to what NorthFork Bancorp did with Capital One; sell the bank at no premium in exchange for a "sweetheart" deal to keep their jobs and get big bonuses with fat paychecks and long term contracts. The NorthFork shareholders got royally screwed while management got a terrific deal for themselves. These guys are likely to do the same thing.
PBCT pays a big dividend that makes it an expensive proposition to short the stock. I just see this as a "dead-money" stock.
The more I think about it, the more I lean toward selling all my individual stocks and moving all the money into a total market index fund like the VTI. I've come to the conclusion that owning individual stocks is a loser's game. Most people think they can beat the market, but they seldom manage to do it. Most investors get euphoric when they hit a big winner, but they forget about all the PBCTs they've owned forever that have gone nowhere (or down.) They recall the big winners because the list is so short they're easy to remember.
A takeover does not, by any means, guarantee the shareholders will make the killing you seem to expect. NorthFork Bancorp is a good example of how you might be sadly very disappointed. Furthermore, I see interest rates staying artificially low as the economy still struggles. This could easily last through 2014 and perhaps into 2015. Then comes the 2016 election cycle that will be an incentive for the Fed to hold rates low for another year. Don't worry about inflation; they'll just lie and say it's only your imagination.
It may be time to question present managements ability to take PBCT to the next step.
should of sold at 15 -- what a putz I am.
Made a boat load from DSB -- no reason to hang on. Off's are useless
A colleague from Sandler told me that you can make a lot of money off of PBCT. Just short the stock. He says People's United Bank has the lowest customer satisfaction among all of the banks they cover. Obviously they know what they are doing up in Bridgeport.
Total earnings for the third quarter increased by a whopping negative $3.6 million. It is a good thing shares were bought back at an overpriced 2x TBV, or per share earnings wouldn't have looked as spectacular as they do. Also, the CEO should be commended for increasing TBV to $8,14 today, all the way up from a very low $8.77 at this time last year. Maybe he can get TBV up into the mid $7 range by the end of the year.
It is also nice to see that the bank is driving off all of those checking account customers that they pay no interest to. Who needs that free money anyway. At least loan loss reserves are up.
Everyone in the executive offices should be getting their full performance bonuses this year.
So very very true.
It happens across all industries during a downturn, not just the financials.
Wallstreet types steal from the stockholders in an upturn, and the Boardroom steals from the stockholders in a downturn.
When it turns to s**t the insiders always get theirs and it's always at the expense of the stockholders.
If ya look REAL close, the "Worlds greatest capital markets" aren't so "great".
I am continuing to accumulate this stock. Look ahead people and not in the rear view mirror. The best is on its way.
Sentiment: Strong Buy
That's why the stock is sinking inexorably lower even as the overall market goes up. The move by the Fed is going to have the effect of holding interest rates where they are while inflation goes up. Management is holding out for a sweetheart deal for themselves, not the shareholders. This one will be another NorthFork/Capital One deal where the NorthFork management got paid off handsomely, and the shareholders got a zero premium for their shares.
The only thing that is increasing rapidly is the size of the short position. The smart money is betting that there is no merger/takeover of PBCT in the works. Shorting any stock that has a reasonable likelihood of a takeover is a recipe for disaster. The shorts are probably betting that PBCT will make an acquisition that will adversely effect the price of PBCT. The fact that it was down today in an extremely strong market environment is a very bad sign. Management is looting the company for their own gain.