Personally my disappointment is that cfr has not bought any smallish Texas banks while they were and are cheap. maybe mgmnt doesnt trust the bookkeeping!
latest balance sheet I can see shows cfr with 8.3bil in cash.
how much interest do you think they are earning on that? Now ponder how can they be paying me a 3% divd earning that? that is a lot of "dead weight" to compensate for.
OT..how does this years peach crop look? too early to tell?
need to get out there for the festivities this year.
THIS is important stuff!
Peach pie. Wonderful. Peach cobbler fantastic.
CFR raise the divd again so I can buy both of the above.
BTW if CFR has near $9bil in cash making nada that's a lot of assets not making enough to cover their/our divd. In my more suspicious mood(s) I believe companies hold onto cash to ward off unwanted takeovers and ensconse mgmnt in those high paying jobs. not saying its true here but just maybe.....if you like companies with lots of cash take a peek at CBST a pharma company. FWIW
I like the way the bank is being run. You apparently don't. Rather than tell someone like me on some dumb message board, why don't you call evans and express your point of view? Even if you don't get him, someone will listen to you and pass the word. Here's my 2 cents. If they are doing what I think they are doing I think you will be pleasantly surprised with what they do with that cash over the next 12-18 months. And that's all I'm going to say because I am only speculating on what might be their plan and I have nothing to base my opinions on other than what I would be doing were I in their shoes in this banking market. Your milage may vary. I'm a reasonably smart guy and the Frost management types I've met are reasonably smart guys and girls, so I am merely extrapolating that they would be likely to take what I would consider to be reasonably smart actions over the next year and a half or so. The way I see it, there's no pressing need to get that money to work immediately, especially if you have plans for it that extend beyond the next quarterly earnings report. I've read your posts for awhile and you seem like a reasonably smart guy too, and I bet you could figure out a likely scenario if you were to scale out your time horizon from 12-18 weeks to 12-18 months.
Oh yeah....if you know where I can get a mmf these days that pays 3+% like clockwork, please let me know.
Yup...best bet is Huttons peach farm if you're out that way...a few miles west of town on 180..look for the big lone tree in the highway median, turn left there, then 1/8 mile on the right.
most of the "Parker Co Peaches" you find for sale come from Huttons. Call ahead for availability..they're in the book and online. buy direct and save...'course with gas at $4 might not be saving to drive out. we buy up ripe peaches they need to get rid of today, bring them home peel and freeze so we can have them year round.
well a guy could buy a lot with 8.3 billion in cash....might not have to settle for some "smallish texas bank", right? And let's not overlook the fact that the CFR payout ratio is only 52% of earnings, so I think they can afford to both pay you your dividend and hang on to that 8.3 billion on the balance sheet for the time being even if all that cash wasn't earning a dime. You'd be right that all that cash isn't earning in an optimal fashion at present, but I'm pretty certain you'll see that cash going to work when the situation is right.
Banking is a funny business. The government wants banks to lend, yet interest rates this low mean that they can't get as much on loans, while the risk remains as high or higher than ever.(100% default is 100% default) So healthy banks are sitting on cash and looking for opportunities that are worth investing in, and they just aren't seeing what they are looking for yet, on either the lending or aquisition side of things. But one or the other or both will fall into place eventually, and that's when you want a pile of cash.
I'm kind of the same way as an investor....it pains me a bit to not have my cash working, but I'm not going to put it in something that ties it up paying me a fraction of a percent when it's plain that interest rates have nowhere to go but up, and I'm not going to buy stocks that I consider overvalued, and right now that's mostly what I'm seeing. Companies like Frost are the closest thing I can find to a safe haven that will earn me a bit in the meantime. But the minute I can buy CD's paying 3% I'm gonna bank it all and go fishing.
this is from the 10K, which I realize hardly anyone reads...you probably do, but this is for the "hey tell me a good stock to buy" crowd. I have modified it slightly to be readable on yahoo, but the numbers are intact.
Cumulative Total Returns on $100 Investment Made on December 31, 2005, as of 12/31/2010
S&P 500 Banks...$ 85.52
during an economic crisis in which every sector got beat up, and none worse than banking, CFR got the job done for shareholders. why I like them.
OT - too early for the Peaches - I haven't checked with Hutton's yet but it will probably be june - I skip the Fest anymore because they always seem to manage to have it on the hottest, most humid day of the year, and nowdays I spend that day either enveloped in air conditioning or in a more northern clime.
if that's the case you may as well be holding a mmf. I don't like stock exposure(why the downside exposure) if mgmnt is sitting on cash. Yea, Evans can sleep better at night. But holding cash is not why he gets paid the big bucks.
Also why the r/a and r/e is lower.
YOu bet Id love a 3% mmf! Heck Id ssettle for 2! Im not greedy. And being that Ive been a cfr shareholder for a long time I see no point in cashing out my chips. But at some point mgmnt will need to do something with the cash horde. And you can easily deduce I respect them enough to sit tight for a while as mgmnt is also holding quite a few shares.
And pin me to the wall for what I see cfr doing with that cash.....more into money mgmnt than banking. Just a semi-educated guess.
we love going to K'ville and staying in a friend's condo rental in Hunt. not much to do in Hunt other than r&r!
cfr share price has held up surprisingly well even though this is the 2nd time to miss by a penny. Wall Street probably forgiving of small misses by banks right now as the rules and all else are like shifting sand.