NYCB book is about 1.4 Banks like this one will sell for a minimum of 2x book and sometimes because of a clean balance sheet and big insider holdings it will sell for 2.5 times Management has always said anything they might acquire will be accretive
Historically they've paid out what they earned. I'm not sure there is room for a buyer, unless they cut the dividend after the purchase. Don't think I would want to be a holder under those conditions.
Even the good ones are being sucked down. I've taken profits and might buy back when lower. There will be opportunities for people with cash in the next couple of months.
NYCB just appeared on a list of banks that MIGHT be acquired Because of a great management plan and senior officers What do others think could it be worth It is a short list furnished by Raymond James
The Fool's article contains little of substance. A well regarded analyst is saying BAC is on track to deliver a nice capital gain. I'm watching for BAC to start making its move.
And officers and directors continually flipped options into the market futher diluting shareholder value while continuing to draw their fat salaries and getting bonues at shareholders' expense.
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The earnings per share for BAC has finally started to show some life. It is up to about 45 cents last quarter compared to about 30 cents for nycb. And of course the share price is about the same at this point, $18.
So if you were to invest $5k new money right now, and hold it for 10 years, which would be better, assuming dividend reinvestment, no taxes, etc. Seems bac would be better at this point, mainly due to eps will continue to be better, and that will reflect in the investment, either through an increase in the dividend or rising share price.
Lewis wasn't coerced into anything. The initial announcement was August 2007, well before the Countrywide loan problems were discovered. BAC created a subsidiary Red Oak Merger to insulate themselves from potential poor performing loans. It didn't work. Lewis just performed incredibly poor due diligence. And his incompetence dragged a lot of stockholders like me down with him.
Or weak enough to be coerced into buying by the Feds. Plus they ended up with the liabilities - unreal.
I lost a bundle on BAC. I've made good money with NYCB. You can analyze them any way you want. But any bank dumb enough to buy Countrywide's junk portfolio just before the crash is permanently off my radar screen regardless of their dividend.