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If you're going to invest in Zions... buy the bonds. The bonds are less riskier than the preferred stock or common stock.Getting a 13% yield-to-maturity over the next 5 to 6 years will double your money. The risk is bank insolvency... but Zions will weather the storm. Their deposits have grown during this last year of turmoil...that's the bank's life line. Next year consensus EPS estimates go down dramatically from this year... (2.05) down to (.97) for 2010.Their will probably be another secondary offering required for 2010. This will effect common stock dilution but will be POSITIVE for the bond holders.
I should add that total deposits went UP by 11.45% from the period of 9-30-08 to 9-30-09. This is based upon their latest 10-Q.