The following is from an article at SEEKING ALPHA about the value of stocks according to Graham.
BB&T Corporation does not qualify for either the Defensive Investor or the Enterprising Investor. The company has not demonstrated sufficient growth over either the 5 year or 10 year period. Value investors seeking to follow the ModernGraham approach based on Benjamin Graham's methods may find better opportunities elsewhere through research,
I was going to post this exact same thing. Well said. It would have been smarter to buy US treasuries in 1998 than to buy this stock. Wow! A bank full of mediocre managers with mediocre skills, mediocre talent who cannot find a job anywhere else...so they work at the BB&T corp. welfare office. All those great minds from East Carolina University at work. I wonder if they understand the concept of annual compounded rates of return. And at the top of the heap is that gem Kelly King. What a mess, form their stupid scheme to avoid taxes that will cost 700M to bad land loans, a failed credit model, to ripping off pro football players, this is just a bunch of rank amateurs who try to make their numbers by over-managing expenses and massaging their loan loss reserves form 2006. The only winners here have been the EVPs and BOd for the last 15 years.
Dog of a stock! I know one BBT employee, he's in a commercial mortgage outfit BBT acquired. Pure jerk named Lund, he speculated on a piece of land across the street from me and we warned him it was a illegally filled in pond so it wasn't suitable for building. He went in added rip rap, more illegal fill and the city nixed his scheme to divide it into four residential lots. I goad the city engineering department with fishing reports from Lake Lund from the flood going into the neighbors yards from his mess.
A share of stock in BBT EOD 12/31/1998 was $39.16. A share of stock in BBT EOD 2/11/2014 was $37.62. The quarterly dividend in 1998 was 17.5 cents a share and it is now 23 cents a share.
In the years between 1998 and 2014 just how much has the BOD and executives received in salary, bonuses, stock optiions and additional insurance and perks? Was this pay based on the job done?
What happened to the concept that the shareholders were the owners and were suppose to receive the benefits of ownership?
I'm assuming that is a 12 month target? Not bad, at today's close of $37.09, Morgan Stanley is looking for a 18.4% gain this year. (including dividends)
Surprising considering the stock has broken out of its $30-$35 trading range. Would be interested to hear the regulars take on earnings. I notice that net interest spread continues to fall. It has for every bank reporting except BofA.
BBT – Analyst Ratings
Jan 7, 2014 07:03 AMJPMorgan Upgrades BB&T Capital (BBT) to Overweight
Jan 6, 2014 08:57 AMRaymond James Upgrades BB&T Capital (BBT) to Strong Buy
It is an interesting analysis that leads you to think of buying back common shares. I suppose that if they buy back enough you think that they might then raise the dividend.
It may be so, but a better strategy might be to buy back preferred shares, since they pay dividends at a higher rate than the common. Consequently, the same money spent on preferred shares would mean even more cash next quarter for dividends,
FASCINATING! This stock has a history of sharp moves at opening with almost equally sharp corrections, and that has been true with moves up and (less frequently) down.
I guess that could be some market maker seeking to moderate price movement and avoid major disruptions.
We now in the 3rd day of major spikes up among the past 4, with Friday the 13th appearing to my simple eyes to be a confirmation of a sort.
If it is not a market maker it now would appear to be someone determined to sell into the teeth of a fire-breathing dragon in hopes of grabbing a few points and running for cover.
For their sake I do hope they are not selling naked shorts, it could be disaster if their shorts catch fire.
Sentiment: Strong Buy