The big run today would seem to be confirmation of the abrupt run up yesterday. Some sell activity kicked in around 2:45 yesterday and did slap the trend down to the end of the trading day but in the first 15 minutes of trading today gave that effort a huge dope slap and the market never looked back. It will be interesting to see if the profit taking in the last 10 minutes today continues tomorrow.
No matter how credible Compass Point might be I cannot see they could make the market move like we have seen. It will be interesting to see the other shoe or 7 drop. Quite possibly CP divined some message from the tea leaves that led them to steal a march. JMHO, honest but not at all meant to imply expert.
Sentiment: Strong Buy
BB&T Corp target raised to $43 at Compass Point
Compass Point raises their BBT tgt to $43 from $40. The firm says, in the near-term, there will be some headwinds in the fourth quarter due to "flattish" loan growth and a 10 bp decline in NIM. The relatively flat loan balances are partly due to seasonal items and the decline in NIM is due to the sale of a $500M loan portfolio and Colonial run-off (both of which do not effect core NIM). They say while management has been talking about expense management for some time, this is the first comments the company has made citing specific efficiency targets
They are Fools that fill-up the weekend news, said that about all banks. Looking for Eyeballs-Clicks and Subscribers.
Dividend Increase 2014
Big Bank CEO: No Dividend Increase in 2014
by John Maxfield, The Motley Fool Nov 17th 2013 9:01AM
Updated Nov 17th 2013 9:02AM
If you're a shareholder of BB&T and were hoping it'd raise its dividend next year, I have bad news for you. According to its CEO Kelly King, the mid-Atlantic-based bank isn't planning on doing anything of the sort.
"There is still this downward pressure ... in terms of dividend payout rates," Kelly said on the company's most recent earnings call. He then went on to explain that it will be "challenging to raise dividends at a high level because ... we already have a very high level in terms of payout and dividend yield."
What Kelly is referring to when he mentions "downward pressure" is the Federal Reserve-administered comprehensive capital analysis and review process, or CCAR, which gives the central bank an up-or-down vote on a bank's capital plans.
In this year's CCAR instructions, the Fed didn't mince words, saying that "requests that imply common dividend payout ratios above 30% of projected after-tax net income available to common shareholders in either the BHC baseline or supervisory baseline will receive particularly close scrutiny."
Herein lies BB&T's dilemma.
As you can see in the chart above, it distributed nearly 54% of its earnings to shareholders over the last 12 months. This is more than any of its close competitors. For instance, JPMorgan Chase, Wells Fargo, and U.S. Bancorp all sport payout ratios in and around the 30% threshold.
The net result is that, for better or for worse, BB&T will be left with share buybacks as the only means to return capital to shareholders
LOL....how true. There were investors saying this in the late 90s and they could have bought US Treasuries and done better than owning this stock for 15 years.
Would someone try to explain just what real incentive Kelly King, BOD and executives have to really increase the share price? In my opinion they get big bucks regardless of what the share price is and or does. Check back to about 1998 or so and I think you will find the share price at that time was much higher than it is today. In the meantime the BOD and the executives have been getting paid like they were doing a good job. Just have many times do the shareholders (owners) have to pay to plow the same field over and over? Share price below several years ago, dividend has been cut yet the executives are still making lots of money. Is this just the same good old boy network at work?
There is not much cost reduction either....see the worsening efficiency ratio. Information Technology (IT) is one of the biggest cost there...look at job boards for tech resources in NC...BBT will be on top!
I love how they state that mortgage has gone down over 45% due to market. It is because a ton of loan officers left BB&T to go to other banks.
What am I missing? This looks like a complete mess of a quarter. Sure they are cutting cost. But the shrinkage in the top line is very concerning. How long does a management group get to figure out how to make a reasonable return on a great franchise?
• A dividend of $0.23 per common share
• A dividend of $365.625 per share (equivalent to $0.365625 per depositary share or 1/1,000th interest per share) on BB&T's Series D Non-Cumulative Perpetual Preferred Stock (NYSE:BBT PrD)