HCBK insider buying is old news. It was posted on this board sometime ago. But thanks anyway. Never hurts to have good news.
Speaking of insider buying does anybody own Washington Mutual (WM)? Also mentioned recently on CNBC as a favorite by one of the guests. There has been nothing but insider buying over the past year and at much higher prices. Even pays over 5%. PE is like 7 to 1. Any comments appreciated.
WILLIAM PESEK JR. in Barron�s says S&Ls have been terrible investments (stk prices dropping like I own them) the last 2 years and everybody hates them. Talks about future of S&Ls in general and WM in particular (Could be interesting).
Average P/E is about 7 for large thrifts.
Also take a look at the Current Yield and Trader.
I think P/E of NASD is about 250 and those are the companies that are making money.
The P/E on the S&P 500 is almost 30. A S&P P/E of 15 would bring the index to 700. It can�t happen till it happens. A 50% drop in US market capitalization would be equal to a 100% paper loss in US GDP since the US stk mkt market cap is 2 times GDP.
In 29 and 87, mkt cap was 82% and 79% of GDP. In 87, bond mkt cap was 2X stk mkt cap and bond prices rising cushioned stk price drops. Now the stk mkt is much bigger than bond mkt.
I remember Charles Allmon saying this about the 73-74 bear market. Those idiots are paying P/Es of 7 and 8 for those stocks. I was smarter than them, I bought the same stocks for P/Es of 5 and 6. The stocks eventually sold for P/Es of 3 and 4.
CHECK out http://www.berkshirehathaway.com/. - posted 1999 annual. http://www.berkshirehathaway.com/1999ar/acq.html - except for the sizes - these thrifts are it. What are thrift profits after all expenses (no R&D, not much advertising, etc). All profits are essentially free cash flow - can be used to grow business, buy back stock, or pay dividends. But branches are not very scalable - bad in one sense, but good in that it is in affect a good barrier to competition. - think of buying stk as buying the entire business.