I started buying at $13+,and dollar averaged down to 8.53, sold at 8.64,just covered commissions.
Lost faith in HCBK,huge debt. It was interesting what MTB said about FNFG 's accumulation
of 200 branches of HSBC getting out of New York.Deal was offered to MTB too.
I'd like to own MTB,and may buy in dip.
Didn't figure dividends in break-even tally. STUCE
MTB has hired consultants, i.e. a bunch of lawyers to ensure compliance. All needs this to come sooner rather than later. It is Hudson's best chance and reason it has done well of late except for dividend cuts. I remember Cramer once said "this was the stock to own". Haven't listened to Cramer since. Plus, he doesn't shut up about Apple.
Greetings! MTB's shareholders have already approved the "merger" with HCBK, so it's not their disapproval that puts the deal at risk of not being completed. I think what does put the deal's completion in jeopardy is any protracted delay in getting it done, along with the outlook for interest rates going forward.
I'm glad to hear you got out without suffering a big loss!
HCBK,small in coparison to MTB,however HCBK's debt is twice MTB. I think maybe MTB's shareholders don't
like assuming this debt.Merger may not go thru,then HCBK will drop to $5. I'm out, I sold all I had,and broke even. May buy back in dips,but I feel merger looks sour.Hermance disappoointed me,I'm gone.
Can anyone explain to me why this quiet stock began trading furiously at the asking price for the last 45 minutes? I'm not pumping or bashing: just asking.
Because it's still trading in lockstep with MTB. Remember, the "merger" of MTB and HCBK isn't dead, just "delayed", so HCBK is NOT effectively trading on its own performance. If it were, it would be back in the mid $6 range, where it was before the deal was announced...
Yep, go figure, huh? I'm not waiting around for the "merger" to be completed. If the Fed doesn't change course before the end of this year, I'm wondering if MTB will actually go through with the deal, when and if it ever gets approved. There are plenty of banks out there they could go after that don't have the debt load HCBK has tied around its neck. I'm just hoping to ride MTB's momentum a little while longer, and then I'll bid goodbye, and good riddance, to Ronald McDonald and his clueless cronies.
I was concerned that once the merger w/MTB was completed I would be rec'g a reduced div vs hcbk.
Thanks to Ron, I now will notice a higher div on MTB than I am currently rec'g on hcbk. Isn't that great!
Sorry to hear you're stuck with shares at such a high cost. The reason the other banks have recovered and HCBK hasn't is the enormous amount of expensive, long-term loans from the FHLB they're saddled with. As for the merger with MTB, I think it's going to take longer than they expect to get it approved, and if the interest rate picture doesn't change in the next six months or so, MTB may rethink the deal...
I bought lots of HCBK one time at over 13. It has since been one disappointment over and over and a money loser. Unfortunately, I am pretty much stuck with it. Other banks are recovering, why not this one. I think we will be ok when and if the merger takes place. Will be relieved when that happens. Right now I don't trust Hudson management at all.
Greetings, bigmmv1. HCBK's stated goal in reducing their dividend (AGAIN) is to "further strengthen our balance sheet." Now who do you think wants HCBK to maintain a "strong" balance sheet? The answer is their "merger" partner.
At this point, I'll be surprised if HCBK is paying ANY dividend by the time the "merger" is finally approved. Remember, these idiots are carrying an ENORMOUS amount of long-term loans from the Federal Home Loan Bank, at a cost of funds about 1.5% HIGHER than what they can make by lending to potential homebuyers at today's mortgage rates. As their net interest margin continues to DROP, they're going to need all the cash they have to meet their FHLB obligations. It's like trying to swim with a boat anchor tied to one leg, and they have nobody to blame except THEMSELVES.
Who is the main beneficiary by HCBK's dividend reduction? Since there is already a big cash position on
the books that is not being invested, this cash should be disbursed to the current owners--HCBK shareholders---not kept for some future possible owner. Who's calling the shots here?
Hernance has added nothing of value in years to HCBK, but he has lined his pockets real well nevertheless. He does not care about shareholders, only himself.
If you truly believe that fundamentals win out, as your screen name indicates you do, then surely you see that HCBK has NO fundamentals right now They're saddled with very expensive debt, and a clueless management team. That's not a formula for success....
HCBK still has a nice buyout discount... MTB is at 100.20... which translates into $8.42/sh... vs closing price of only 8.29
here's all you need to know, directly from today's release: "Borrowings amounted to $12.18 billion at March 31, 2013, with an average cost of 4.59%. There are no scheduled maturities for 2013."
Translation: we have absolutely NO chance of making any knid of meaningful profit this year, so unless you're a bunch of complete idiots, like we are, SELL our stock.
Of course Hermance will have a place at M&T; the janitorial department is always in need of qualified people. You've got to wonder how such an #$%$ sleeps at night.....
bendover so we can keep our balance sheet strong :) I wonder if Hermance will have a place at M + T ?
Ronald E. Hermance, Jr., the Company's Chairman and Chief Executive Officer commented, "Net income for the quarter amounted to $47.9 million which reflects the continuing reduction in the size of our balance sheet as well as our cash position which amounted to $2.76 billion at March 31, 2013. Both of these factors reflect the lack of reinvestment opportunities for the cash flows generated by our mortgage-related assets in the current interest rate environment. We will not reach for yield and will not take undue credit or market risk in this protracted period of unprecedented low market interest rates. As a result, our net interest margin and earnings have decreased and, as a consequence, we decreased our dividend. We believe these actions will help to keep our balance sheet strong."