and here is hoping we shareholders get a good number today!
notice how insiders sold prior to cfr floating more shares? smart huh?
I've said this before and I will say it again. No point in holding CFR shares if all they are going to do is sit on a pile of cash. I can do that in a Southside(SBSI) bank acct.
Apple too has a lot of cash, so does MSFT and INTC. There shares just sit there. I like the divd play is why I'm in INTC with some cap gains hopes. If I wanted a bond like return I'd buy a mutual fund Hi-Yielder.
well that's looking in the rear view mirror right now. but yes I have or did. I suspect cfr will bounce back up. and if you look at my post date and the Western buy out date you will realize I was "spot on". I suspect cfr will do another buyout pretty soon,
I got where I am (pls dont comment on that!0 by looking at sinister plots in corporate America all the time. Sinister may be too strong a description here. But cfr has been in the $60s before so it just "smells" to me that the share price needed a kick start. Hopefully they can kick start it into the $70s!
The big question in my feeble mind is what they will do with all that "idle" cash.
The price has risen steadily since January 13 (more than 10%). The "bump" in price was minuscule in comparison. Not seeing anything remotely sinister here.
hope you enjoy that yield! looks good by todays standards. I just do not see hwat it does for the common holders. wonder if any insiders bought the preferred.
I see in the SA article that they are paying about $60.40 for the shares, so one of my arguments goes out the window. I did just buy a chunk of the new preferreds though--they're trading OTC for $24.50--I think they're a bullet-proof rock solid 5% yield, and being able to buy them at a discount to par right now is a good deal. Not the best yield out there in bank preferreds, but might be the safest, IMO it will get snapped up by lots of institutions in TX. Good safe place to park some cash for a couple years.
I see your points but it still seems awfully expensive to me. Plus they have plenty of cash just sitting there that could be used for a takeover. Maybe mgmnt just wanted to bump up the share price to they could cash out some of their options. Hate to be so cynical but having been playing this game for a good while one does get that way. Lets watch to see if there are any mgmnt cash outs.
"The total number of shares that Cullen/Frost will receive and the total consideration paid ultimately will be determined based on the volume-weighted daily average price of its common stock during the repurchase program"
It is possible that they are getting a better price buying the GS block than if they bought in open market, if the "volume-weighted average price" is actually somewhere in the mid-upper 50s. Also, they are paying 3.6% fee, not the usual 6% underwriting fee, depending on what the ultimate price is, this might not be a bad deal. They're not increasing capital, just replacing common equity with the preferred, or they might have their eye on an acquisition target that they can buy with the purchased shares instead of issuing new common.