I was surprised that the earnings miss was so large. Mr. Kemper says the balance sheet is strong and liquidity is improving. Why then is he setting up for a dilution of the common stock to the tune of $200 million? If that is only as a worse case possibility I would expect that he would have indicated that. What it leaves you with is the suspicion things are looking bleak and this stock is going south. Will it hold around $28, it's recent low? If the overall market corrrects sharply, I doubt that it will. I wouldn't put money in it even at that level because I think, now, that this stock is going to languish for years. WW
Not sure what your comment is on the dilution but not surprised by the rest of your comments--I have been thinking it will languish for quite some time as I have stated in previous blogs
Loan losses and nonperforming loans creeping higher like several other regionals---loan loss reserve equaled 500-600% of non performing loans just a year ago and now is down to less than 200%---could bode for bad times ahead unless they can get it under control
Regds. to the possible dilution. From the Bank's press release"
" in February 2009, the Company entered into an equity distribution agreement with a broker dealer pursuant to which the Company may, from time to time, offer and sell shares of the Company’s common stock having aggregate proceeds of up to $200 million."
That doesn't give much encouragement to the present stoch holders view that CBSH is not facing some serious problems. WW