Market Features Hudson City Stands Out Among Regionals By Philip van Doorn 04/23/10 - 09:30 AM EDT Loading Comments... Add Comment Stock quotes in this article: HCBK , PBCT , AF , BXS , BOKF NEW YORK (TheStreet) -- The smaller regional banks will be among the financial sectors to get a competitive boost if reform legislation puts new clamps on the big banks.
More on HCBK Five Financials That Benefit From ReformPeoples United First-Quarter Profit Off 42%States Play the Slots, Benefiting IGT Market Activity People's United Financial Incorporated| PBCT DOWNBancorpSouth Inc.| BXS DOWNBOK Financial Corporation| BOKF UPWith that thesis in mind, TheStreet.com Ratings did an analysis (see table above) to find regional bank and thrift holding companies with low stock valuations for investors looking to get some exposure to the group to consider. The exercise found Hudson City Bancorp(HCBK) to be a standout with Astoria Financial (AF) and People's United Financial (PBCT) not too far behind. Honorable mentions went to BancorpSouth Inc.(BXS), and Bok Financial Corp.(BOKF).
Yes -it is an awful stock if you are a short term investor. But the numbers show it's a great stock for the long term investor.
Disappointment with any stock can often come from our own personal expectations of it's performance and our time frame of making money on it.
So the frameowrk and perspective for being disappoint or happy will vary from investor to investor.
Cool minds make money - minds that panic do not make money.
If you are long on HCBK - as another posted mentioned - put your money where your postings are and purchase more now.
If you are short term AND you have the patience to wait another 3-5 months for the value to get back up to $14.50 - buy more.
Noone is debating that HCBK isn't a solid bank and well run because we all know it is just the opposite.
However, Hermance has to tell Wall Street how he plans on expanding the business. One way of expansion that did NOT seem to impress was the move to change regulatory entities. That change would allow HCBK to enter into various commercial loan business that they are current not allowed to do.
I think it was a mistake for Hermance to "tease" Wall Street with expansion into the Florida market by mentioning the possibility of opening branckes there and then not delivering or even giving a comment about it during the Q1 report. When the CEO teases Wall Street and then doesn't deliver - the stock pays the prices and so shareholders.
I own 1400 shares of HCBK and will HOLD onto them because while I'm disappointed in the short term (especially with the recent 7% drop in stock value) - I do have faith for what the LONG TERM return on my money is.
If Hermance want's to have branches in Florida - he has got to start NOW and get them established BEFORE the next snowbird season arrives in Oct 2010. That way he can promote this to current depositors and also bring into the bank NEW depositors who would be happy to have their northeast bank branch in Florida as well.
People that invested in low yield CD`s would have made more money then holding this stock-and these fortune tellers that know where this stock will be in the future amaze me-they must muti millionaires and do this for fun.
HCBK is a $20 to $30 stock I agree. It will just take a bit for Wall Street to get a clue (it always does) and then the stock will rise. Wall Street would rather buy this at $20 on the way up and pay more as it moves to $30 then buy it here.
Remember most retail investors and fund managers prefer to sell low (why do you think the price goes low?) and then they buy high (why do you think stocks go higher?). It's always this way. Traders move with daily trends and investors panic out or panic to get back in. They panic out at bottom and panic in as it rises.
I do the opposite per Buffett's instructions. Be greedy when others are fearful and fearful when others are greedy. Street is fearful on HCBK at same time that the bank is putting up great numbers, has great future, pays solid dividend that is not in jeopardy and is coming off a nice quarter. There are no signals here to do anything but accumulate other then a few day traders and fund managers panicking out. Use their fear to your advantage and be greedy while they are being fearful. Soon enough they will be greedy and you can be fearful and sell them shares much higher