Just when people thought only the Canadians might be dumb enough to buy REPB, along comes Allison and pays 52 times earnings (which include one time positive items)for a real piece of junk. Every stat compares poorly to BBT's and most other regionals, so the logic is obviously compelling. Had they been so hot to trot for Florida, they could have bought the Huntington offices without paying to capitalize it twice. Now, they're paying 4 times their own p/e for a company with a tiny share of one of the most competitive markets in the US. Sell this turkey now!!!!!!!!
The real beauty of this transaction is that it makes a bigger bank of BBT so the top executives can get the board to give them more money and other perks because the size of the bank is growing. So they are worth more money and perks. Didn't say I liked it, just the way it appears to be operating. Doesn't have to make sense to the shareholders just as long as the good old boys get theirs. Anyone who doubts this take a look at the annual proxy statement and let me know how they justify the pay, incentives, bonuses and long term incentives that are paid. What has the sharehold return on this stock averaged in the last 5 years or so, but the top six executives have done very well.
"the good old boys" will always get theirs because the B of D's see's that they do get theirs. Question. Is there collusion going on between "the good old boys" and the B of D's? is there fraud among the B of D's? stock holders are supposed to own the company, how come we are the lowest paid? Just questions and observations.
Actually, when you look at the chart of BBt it hasn't done anything for 3 years. The"coiled spring" is in effect.Earnings have increased nicely in this time and book value has almost doubled. It will take off in due time. Is this acusition acretive or dilutive??