Granted that the stock price has been flat since 1998, as a long term holder and a member of "the glass is half full" society, consider short and long term comparisons:
. In 2002 BB&T total return ,(price appeciation and dividend) was +5.5% while S&P 500 was -22.1% and the S&P bank index was
. From 1999 - 2002 the total return was + 13.9% ; S&P was -14.5%
. Over 10 years ending 2002, total return was 17.6% annually; S&P was 9.3%
. 10 year Dividend compound annual growth rate was 16.1%; S&P was 2.6%
. Smart Money magazine named BB&T one of it's top five income stocks in 2002.
. CEO magazine called BB&T the number 1 bank in terms of "Market value added" for Shareholders.
. Barron's ranked BB&T 2nd best performing bank in the country and 17th best performing company among the Barrons 500.
. Money mag. rated BB&T 2nd highest in employee benefits.
Short term dissapointment should lead a thinking investor to sell. Longer holders will pick up the shares and the price will ultimately rise as it always has. I'm sure there are better performers out there that someone can point out in hindsight, but pickin'em before they get hot is the trick.
Everyone's hindsight is 20/20.
Source of these and other recognitions and rankings: 2002 Annual Report
Nice accolade for BBT this morning. This stock is a core holding for me and I never miss a conference call with Allison because I believe he is one of the nation's top bankers. From time to time the stock gets cheap and I believe it is again. Sure, mortgage revenue will decline at some point but according to the survey, BBT is building strong alternatives in their investment business. The industry is still compressing and I believe BBT will remain an acquirer and do it successfully. National banks have a new friend in the Comptroller of the Currency which will ease their compliance requirements to the State regulators. Lots to like.
Interesting quote Jim.
"Just for the record I do not short or long stocks and do not deal in options. I put my money in stocks period."
If you don't go "long" on stocks, wouldn't that mean you were either a short-term investor or trader? That being said, why would care what management does as you would only be in it for the short-term? You had plenty of opportunities over the last 5 years to make money on this stock. Back in 2000, the price was around $23/shr. Nice little return there. In 2003, after the FV merger, you could have bought around $31 and sold at $38. About 20% there.
Please clarify that statement if I'm off base, but I've never met someone with such a short-term view who is so tied up with what the company does, rather than the quick buck.
Your goals are very very much as mine. I live very well with the assistance of BB&T dividends. If the stock is down at the time it passes to my family that helps with the estate tax. Like you I play golf two or three times per week, travel with the wife and enjoy life. That's what I worked hard for in the textile business for over forty years.
I can see why someone buying BB&T in 1998 and later is in a rush for a big increase in stock price. However, the dividends I receive based on what I paid for it is a great return.
One thing the younger generation may find out if they stay with this stock for twenty or thirty years is that history will probably repeat what has happened over the previous thirty years.
Fan, I would like to think we could get together for a round of two of golf one of these days.
All the best,
This is part of an earlier post. This is the point I was trying to make.
"My original post raised the question of why is the company giving hundreds of thousands of stock options each year salary increases, bonuses and Long Term Incentive Pay increases to the top six executives regardless of how the stock price performs. This is happening even when the stock decreased from $40.375 in Dec,1998. Options were issued in 2000 at $23.975. Shareholders including myself might have the right to be bitter. I thought the reason for investing was to make a good return, not to enrich the executives."
Now let me see. I have 40,000 options at $40.375 issued in 1998 and 40,000 options at $23.975 issued in 2000. So let's see have I have done so far. Stock closed at $37.89 today.
40,000 at $40.375 have no value
40,000 at $23.975 have gained $13.915 in value
40,000 x $13.915 is $556,600
So this executive has gained $556,600 and what has the shareholder who bought at $40 gotten?
In addition the executive still has several years before he has to cash them in.
Looks like simple math to me.
I've read a lot of your posts and even found some over on the aol board. You're either complaining about management compensation and poor stock performance or trying to start a shareholder revolt. If I felt that strongly about BBT, I think I'd sell it all and go find something I liked before I blew a valve. Life's too short.
If you just like picking on management fine but you need to understand that the options are very much an incentive. When they're underwater, its a pretty strong incentive to get the company's performance in shape.
I personally think its a great company. I've been involved with it for a while now and have found the management honest and hard working; the same they expect from everyone else.
Step in down a notch and you'll live longer and enjoy it more.
From one of your previous posts, I'm guessing you and I are probably the oldest frogs in this pond and the longest holders of BB&T on the board. Although overweighted, I find there's nothing I like better. Most of my portfolio is in mutual funds which are all well diversified and I haven't changed any of them in three years. I go to BB&T annual meetings and read the reports cover to cover and am comfortable with the mgt. team and the strategy. I built up this position over thirty+ years, (living near the original home city), but am now more interested in my grandchildren, golf, and travelling with my wife than trying to outguess money mgrs. and research individual stocks which has become a losers game. 30 years ago, 90% of trading volume was individuals, 10% institutions, foundations and funds. Now the percentages are reversed and I firmly believe the best individual investment strategy (called the "sleep well at night strategy")today is to use balanced index funds or total stock market index funds for equities and individual bonds for the fixed income side. We simply cannot get out of the way of the train when money mgrs. and funds decide to shift sectors or sell a stock. These guys are interviewing mgt. and watching screens all day long while we're on the golf course or at the kids school plays.
As to BB&T, our dividend yield on our first shares is unbelievable, and I don't plan to reevaluate this position unless there is a drastic strategy change I can't understand or a new CEO comes in singing a song I don't agree with. Otherwise my kids will inherit these share and get a stepped up basis.
Hope you have more birdies in 2004!
Gotcha. Which means Heard and Acknowledged.
Hope you get your FRM ask price.
And also, those are 2 very good quotations.
I would add one I've learned the hard way, "Catch them doing something RIGHT." Operating from that perspective sometimes helps put a better light on folks' words and deeds.
Hey! I'm specificly talking about Fan, NOT BBT...
Still curious about your plan for BBT.
Fan, BB&T has been good to me for a long time and I look at the present time as just another one of those bumps in the road that makes me wonder if this is the time to dump BBT and try to find something else. I look around the market for a replacement and I cannot come up with one that I have confidence in. So for now I am going to stay with BB&T until I see something better.
Just for the record I do not short or long stocks and do not deal in options. I put my money in stocks period.
Some of my recent buys:
FRM 5.60 on 11/19/03
WYE 41.90 on 12/30/03
SPG at 31.88 on 12/31/03
DLX at 40.90 on 1/02/04
Mike be sure to check out the return on FRM and I do have a sell in on it for today if it gets to my price. Now just for the record for the above information and a dollar you can still buy a Coca Cola at a lot of places.
"Also would like to state that all great changes in this old world and through out history have been started by just two people talking and discussing what needs to be changed." This is a statement from far smarter people than I am. I do believe that one person does make a difference in this old world and one can work to make it better for oneself and others in whateve one wants to get involved in doing.
I'll close the post with the following quote
"It takes a lot of things to prove you are smart, but only one thing to prove you are ignorant.�
-- Don Herold
Hope this answers your questions.
If I owe you an apology then please accept this as a sincere apology. As I said before the last thing I would want to do it misrepresent you or anyone's else view.
However, I still would like you to clarify exactly what you meant by your original statement as I did indeed misunderstand your intend.
Hope this clears the air. I sincerely thought that was what you were inferring.