... going on this stock.
I do not understand why the stk price has been weakening lately and not at least holding at 24 ! All of its data and ratios look great. AROW keeps reporting how their loan portfolio is very strong. Never took the TARP. Increases divs. Expanding business. What am I missing?
I keep coming back to ... the stk is SO thinly traded. Can't get 30k shs on some days.
I added a significant amt of shs recently and don't want to get burned. Thanks in advance for comments/ discussion.
From what I see, over the past few years, earnings are flat. There's been no real growth in stockholder equity over the last year. Fundamentals are good, but there doesn't appear to be any growth. Cash flow is mixed... I can't get a handle on a trend.
I am concerned that savers in seeking higher returns, will pull their bank deposits where they currently earn a pittance, and move funds into equities. In doing so they will erode the deposit base.
That said, I'm holding for the dividend, relative price stability and my belief that the bank will prosper as the economy improves. I'll consider adding on dips, especially if the PE should fall to about 8-10.
While doing some DD on AROW I was surprised at AROW's failure to keep up with the Dow and S&p 500
The 4% cash div and 3% stock dividends are attractive but over the past two years AROW has lagged the averages badly.
You said you have recently added to a previous position in AROW. May I ask-- What do you see that has attracted you to "place a significant amount of shares" in your portfolio?
What am I missing?
Thanks in advance
Buy & Win:
I'm holding very old shs of AROW in a jt acct. Taking the cash divs . We are nearing retirement age and I was looking for a income vehicle. I looked at annuities and compared them to AROW. If I bought at the AROW at right price and left it for 6-7 years ... reinvesting divs & stk divs... I could pull some nice div income at 71 years off AROW. And my principle grows nicely.
So I put shs in both of our IRA's. Put an order in at 22 and change and filled last year.
To your point... how would I invest in S&P 200 or 500... reinvest divs... and start drawing from it in 6-7 years. Thanks.
Ok... now we are talking and expressing about AROW.
I waited to reply and someone else noted that in addition to the $1.00 div , there has been an occasional 3% stk div. So it is true we are getting 7% a year.
Stk buy back is a good thing. This company has been doing stk buy-back for several years . This is not just a 1 year deal
Also there was a chart that AROW HAS BEEN increasing their cash div steadily over time. I need to find that reference and post it.
I still don't understand why this stk trades lower with the category when I feel it is way better that the category. It's got no ties to EUR. So why trade lower like the BIG banks .
Maybe a NE erner can tell me if this stk is over-rated in the area ! I thought it was highly regarded.... but I'm here in the Mid-West.
I'm not that smart .However,What are you missing?
Not much from what I see.Through December 2, 2011 , the Company had repurchased approximately $4.3 million of Company common stock.Also ,it looks like they want to repurchase even more.
So best of luck to us all.
GLENS FALLS, N.Y. , Dec. 2, 2011 /PRNewswire/ -- The Board of Directors of Arrow Financial Corporation (NasdaqGS® – AROW) on November 30, 2011 approved a new stock repurchase program authorizing the repurchase, at the discretion of senior management, of up to $5 million of the Company's common stock over the twelve month period starting January 1, 2012 in open market or negotiated transactions. This new repurchase program will replace the existing $5 million repurchase program authorized on April 27 , 2011. Through December 2, 2011 , the Company had repurchased approximately $4.3 million of Company common stock under the existing program...
I just wish they would take the stock buy back money and increase the dividend with it. What has the previous buy back done for the stock price? Nada thing. Buy backs never do. If the price is going to be stuck here, I would be happier with a larger divy. They only pay out about 50% of their income. Plenty of room to raise it. How about 60%?