TCF will survive. They make a profit. However, as an investment the only money to be made is if there is a takeover, and then the premium will not be very large.
Regional banking and TCF in particular are dead money. They can not generate new customers. They can not lend money on home equity. They can not charge fees as freely as before and they are not long term players at the size they are. A takeover will occur at some point but you get paid virtually nothing to wait and when it come it will not have been worth the wait.
While this stock is not a dangerous investment there are many other opportunities. Look at SDRL, NCT or csx. If you want incoem and appreciation potential look at cefs selling at a discount that sell options such as cii, bdj, etb or etv. All of these picks will do much better than tcf. They have had their day and should have sold when the stock was in the mid 30s. GLTA.
You are correct. They have had their day. And it’s looking like a long ways off before they’ll be basking in the sunshine again. I sold my relatively small TCF position a long time ago. Never was big for banking stocks. I’m just keeping an eye on some regional banks, which I like better than the big boys, should the economy ever turn around. That’s not looking like it’ll be anytime soon with the mess in the housing market. Only played a little with TCF in the past because I was a customer and was able follow/experience their business model. Boy has it changed as most of them have. Like you said they can’t get any new accounts even though they’ll you $100 for opening an account. Things are that bad. Their fees and rules change so frequently it’s ridiculous. It drove me away. Credit unions are blowing away all the banks in this market. They’re better than banks in every way other than possibly convenience of locations.
I’ve done really well with commodities (mostly energy and mining) since the crash in ’09. Appreciation has been wonderful. Dividends are solid. And unless the world markets collapse I believe they should continue to do well and will explode if the world economies ever recover to more historical growth rates.
There’s a couple of sayings. One is “never say never”. And the other is “never fall in love with a stock”. I believe in both.