Seems to be holding this morning at least in pre-market also. Is it because the banking sector was strong yesterday led by BAC? Not complaining here. Is it just rumors or does someone know something. Yesterday there were some large buyers that were in a hurry to load up.
where did you get "the word"? Is it just the old news or is there something credible. We all know they may get someone.
antwan - not much of an investor are you? Making a statement like that removes all doubt if they questioned your investment knowledge and experience.
NYCB makes profits off of the spread between what it needs to borrow at and what it can lend at.
It has an advantage over many other banks in that its default rate on loans is comparatively low.
It has a disadvantage compared to some other competitors in that it doesn't have large amounts of savings deposits which pay very low or no interest, so it needs to go to the marketplace and borrow.
If the yield curve steepens then NYCB could possibly benefit, but only if it takes risks and borrows short term money and lends it long term. If it matches its assets and liabilities then it will immunize itself from that risk but will not benefit from the steepening curve. However, if the long end of the curve rises (independent of the short end, and not a yield curve issue per se), then NYCB should benefit as one would expect their spread, and hence their profit margins, to widen proportionately.
If anyone sees problems with this analysis please reply - thanks!
Sells calls on bonds? Really?
Sentiment: Strong Buy
I will no longer post here///
it was suggested when NYCB hit $17 to sell covered calls; wasn't it?
rule 72...Divide yield into 72 - how many years it takes to DOUBLE your money.
12 years if you reinvest the dividend
I started buying this stock at $8 and continued to buy up to $16. 10 years ago it was a bad time to buy as a growth stock, but 5 years ago it was a great time to buy. Forecasting and fuzzy math aside, if you think that the economy is getting better and the housing market is recovering, then the banking sector should be getting stronger, and NYCB is one of the best run banks.