Shareholders of record May 12. I just added some more shares on this dip. I don't see much risk.
NYCB is a great buy now. The May dividend was declared last night. The price will be back up in short time.
Sentiment: Strong Buy
You are braver then me. I was worried I missed something in the numbers. I already had a lot into this stock(1/6th of my retirement portfolio and cash) - if I missed something I couldn't afford to take much more of a chance. I had already loaded up when the stock went down yesterday in anticipation of numbers.
If cost of raising deposits organically (all-in) is higher than brokered - my vote is brokered. Cost is quite high organically (branches, personnel, toasters, etc etc ). Again not always bad.
If and when NYCB crosses over the line of $50B in assetts(currently at $45B), they become a SIFI in the eyes of the government. They will be subjected to extra government oversight. One of these oversights will be that they will then have to get approval for their Div payout. Typically the Gov approves Divs in the 30-35% range. NYCB has been giving out 93% in Div. This all leads to alot of speculation on the Div shrinking and volatility in price.
My opinion on this is, that while most times a company shrinks its Div because of financial weakness, NYCB could be forced to shrink its Div because of financial growth and strength! So, a Div decrease might lead to a short term drop in price, as high Div seekers flee, but not a drop in value!
tiglet - you were quick to post messages saying a divi cut was impending - back that up with facts or are you just trying to scare people.
pg - it was a priority of the bank to try and increase the amount of deposits. Maybe they gave a way a bunch of "toasters"? From the filing I believe you will see in the K results to reflect what was said in the report. The attempt at increasing deposits probably has not stopped. I am going to do a little research as some of their banks to see what the programs are.
I don't think it was a fat figured trade - as I see the high consistent volume buying back the puked shares over the following hours. Of course I can never be sure - but there is a well known technique where a hedge fund will dump a lot of shares when they sense weakness - often done on earnings day to muddy the waters. This triggers a lot of people's stop loss which magnifies the fall. Then they slowly buy back that shares as more people panic on the big move down thinking that there was something in the numbers that they missed. They never do this on a Microsoft but only need 20 million dollars to execute it on NYCB and they buy back all their shares in the following hours. This is only allowed because the shorting rule changes that Cramer rallies against. You can see that all 1 million 400k shares have already been bought back and they are probably loading up on another million or 2 to keep or sell in the coming days as the price increases. This was especially effective now because financials in general are under a lot of pressure.
If I thought they would cut the dividend I would not be buying the stock.
Even if they cut the div, it will be because of rules for banks exceeding $50B in assets, not because of finacial weakness. The money for the Div does not disappear if they don't give it out. It gets reinvested in the bank and makes our shares stronger and worth more. Some investor's who are partial to high Div stocks will flee when that happens, causing a dip in price, but not in value.
The shorts will wait another few days before their chatter THAT the dividend will not be paid next quarter I have seen this now for the last 30 months YET it IS always reaffirmed The shorts have the capacity to trade big numbers and they do ;always making money while yo yoing the stock... Meanwhile we just keep loving the dollar a share every year
All done in a few seconds. No sane person does this - I am more and more thinking this was a hedge fund that saw the luke warm response to the numbers opening an opportunity for them to drive the shares down and then buy may more back to create a position. We should see above average volume for a couple days.
So someone puked this out at 13.75.... big boys running stops??? Or is it the always available fat finger explanation? Every day stocks are unfairly manipulated to the detriment of investors, and the exchanges responsible for oversight do nothing. It's why retail investors continue to leave the equity markets.
No argument that buying on this dip was a good move. I already have so many share that I could only risk buying 1k more on the dip. I had loaded up yesterday thinking that the lows of yesterday were a good price. Of course I also worry that in my hast this morning I missed something in the numbers. I am leaning at this point that this was done by a hedge fund that then gets followed up by the computer trading.
You could have bought as low as 13.75 this morning. Incredible. I increased my holdings in the mid 14's. What an incredible opportunity. My only explanation is many did not analyze the numbers properly. May dividend declared and Cramer has it as a BUY.
Sentiment: Strong Buy
I found this bit of info in the K.
Included in the year-end 2013 balances of NOW and money market accounts, CDs, and non-interest-bearing accounts were brokered deposits of $3.6 billion, $212.1 million, and $260.5 million, as compared to $3.7 billion, $793.8 million, and $189.2 million, respectively, at December 31, 2012.
Not that this bad as the cost of the brokered deposits may be cheaper but would like to see how this number changes in the next filing.
Market is telling us that something is not correct. Any idea on what that is? This may snap right back - but it looks like a large holder or hedge fund dumped after the open. If the divi wasn't so close I would think it was a hedge fund trying to push the stock down quickly so they could slowly buy the share back slowly(common hedge fund technique these days). Maybe they think that 2 weeks is enough to reacquire their shares and more