I have done very well with BBT. They pay a respectable dividend + capital appreciation. I think you are good to own this stock.
Problem with DOJ is that the way it reads law, there is NEVER a safe harbor, NEVER a clear case of legal and illegal,,, DOJ believes that it can interpret law any way it wants and go after whomever it wants... Neutral, objective, factual Law does not exist in the mind of DOJ leadership... just political power and buillism...
The DOJ late last year subpoenaed information relating to a HUD review over BB&T's (NYSE:BBT) FHA-insured loan origination process. BB&T says it's cooperating, the range of fines could be between $25M and $105M, and it's taking an $85M charge.
I like the story here. They appear to be going from a regional to a national bank. They did 3 acquisitions over the past year. This year could be slow with all the integration costs, but I like the long term story. Interest rates are going to go up sooner or later. Good time to buy.
Actually long term total market returns are more like 11%-12% per annum with liquidity. And Buffet doesn't make illiquid investments with 20+ year holding periods with the expectation of making an 8% pre-tax rate of return. If he did that he would not be the world's richest man...
BB&T Corp. (NYSE: BBT) was started as Outperform with a $44 price target (versus a $37.09 close) at Credit Suisse.
Would guess this opinion is based on the Fed starting to raise rates around June which would help the interest rate margin.
Based on your logic most of buffets holdings are illiquid. That doesn't make any sense. 8% a year is typically a # that outperforms the general market.
Does anyone else wonder if the stock is being driven down deliberately? I believe it is getting closer to the time that stock options are given out. Did a study a few years ago not recently and it was amazing how the stock price was low around stock option time. In any event sure seems to be a lot of options and grants given out for the performance of a share price since the EOY of 1998 price.
check the BBT facebook
Why is this stock still have any value. Did you see the hysteria that a "glitched" cause thousands of customers. Today, long lines at branches closing accounts.
You do realize that a 20 year hold is essentially illiquid and the kind of hold period for something like an office building. And you would expect more like a 15%-20% IRR for your trouble. 8% is pretty weak, and your annualized returns continue to shrink every year you hold. So if in five years this thing is still at $37 will you still be crowing the great investment?
friendat says: " Also maybe some of the shareholders of those banks acquired in Texas don't care to hold
shares in BBT."
You dunce, the branches BB&T purchased in Texas came in two waves and were being divested by CITI in a drawback. So I don't think there is any mass of Texan shareholders that will bolt from BB&T as a result of that any time soon. Try to understand banking in general, and BB&T in particular, before you shoot off your ignorant mouth. There are always real issues, pro and con, that can be discussed without being a total bozo and making things up to impress the rest of your second grade class.
palinbig says: "flash him or her your new credit union checkbook. The look on their face is priceless!"
What I think you're seeing is the comic reaction to your belief that pulling your $18 balance account had any meaning. You didn't notice him attempting to suppress a belly laugh did you?
S&P CAPITAL IQ KEEPS BUY RECOMMENDATION ON SHARES OF BB&T CORP.
(S&P Capital IQ) Print
We lower our 12-month target by $1 to $40, 13.5X our '15 EPS estimate of $2.96, at the high-end of BBT's recent historical multiples. BBT reports Q4 EPS of $0.76 vs. $0.75, beating the Capital IQ consensus view of $0.73, on strong insurance brokerage revenues (up 10% from year-ago), investment banking (up 11%), and mortgage banking (up 28%). We see fee income growth staying strong. Net interest margin was stable, down only 0.02% from Q3. On our slightly lower loan growth outlook, we trim our '15 EPS estimate to $2.96 from $3.00, and our '16 estimate to $3.13 from $3.21.
Want to see a BBT banker lose it? Close your account and flash him or her your new credit union checkbook. The look on their face is priceless!
I have been in this since the early 90's and have a 160% return with div reinvested. That is about an 8% return/year for that period. Not too shabby. :)
On the surface, a .03 earnings beat looks pretty good on good expense control. Haven't seen the details but looks very positive today. Will be interesting to see what the analysts have to say.