My only real concern is this is such a fast move in a few days, this will settle back in to the $12 range; just a few weeks ago it was at those real bad lows for year to date. The inflation report was not great in the news today.
Hi Pup. I'm noticing the gradual fall of the short interest. Considering that there are is almost a month (at normal volume) required to cover shorts, I'm not surprised at the price pop. Owners who didn't sell when it breached the $9 level are pretty strong hands.
There seems to be minucule recognition that some adequately capitalized regional banks, including UMPQ, are solid, long term equity purchase opportunities. It's not the end of the beginning,imo, but a candle light in the tunnel at this point.. Reflecting at the end of a given time-frame, perhaps three to five years, many will say, "I shudda, cudda" bought at less than $10, or $14, a once in 30 year opportunity.
At the near bottom of the market, this is not a time for UMPQ to merge. When equity is priced at 2.5 to 4 times book value, there is shareholder value to be captured, but certainly not at less than book. Now is time for UMPQ management to build profits, support dividends and build public confidence in their business. It's not glorious, but just good day-to-day business and that's exactly what UMPQ appears to be doing along with a bit of communication flair. Cool cats at work!
I would be surprised if Union Bank of California would be buying; yet I will need to look at that companies financials; just not sure any bank in California could be in the position to leverage their position for a buyout?
After hours trading of UMPQ, kind of tells me this was a run-up a bit to fast and will drop back given the weak morning trading: