Yep. If I squint my eyes, blur my vision and use my imagination, I can see it too. This pup has been dead for 6 months with no sign of recovery, despite both IAT and KRE showing the same recovery pattern since August. NYB’s 50 and 100 day averages are converging – flat lining to the same value. Payout is high, but the bank appears sound. Any idea of what’s delaying NYB's participation in the recovery?
lack of improvement in margins. The bank has to grow its loan base on the existing capital which hampers its ability to run. The catalyst is 2014-2016 where the rates on the wholesale funding will reprice and allow for large earnings improvements. Until then, earnings will continue to be level.
Still think it is undervalued, but market is concerned on the funding side more than the loan side.