Ok so what would be a reasonable price & can the smiths & shareholders block a low price that warburg would except. I figure at least $3o based on the fact that wp paid $10 and according to thier website they look for 3-5x return and hold on for usually 3 years
I don't think so. WBS is one of the few regional, if not one of the few banks all together, that are profitable. They also have a lot of money in reserve as well. I personally don't think we'll see WBS get bought out, they are just to strong. If, hypothetically they got bought out, combined with the facts they have a lot of cash and are now turning a profit every quarter, the asking price would be more towards $40-$50...certainly not for the "garage sale" price you guys are speaking about in the $30 range. WBS is in no danger of going out of business and has been around for decades. They won't go cheaply, and this more than anything else is why Niagra is just a rumor. Think about it and go back and research companies that get bought out for real, and aren't just rumors. The share price flies. Nothing is happening with the PPS here, so it tells me the insiders realize this is more myth than rumor.
Lance I was waiting for your input on this one. I was wondering about all the excess cash and a dividend for October, the CEO pays lip service to it on the website but even .10 would be nice!! I guess since it's considered a strong bank any chance of WBS buying out anyone! I know PBCT wouldn't be feasable for a few reasons I just hope this pushes back to 20-21 soon !!