For all you people crying foul over BB&Ts umpcomming job cuts how does BB&T's 4% expected layoffs look compared to BofA's (and Fleet's)expected 7% layoffs. Job cuts are a part of mergers, deal with it.
Forgot to mention. The worst possible comparison was the 1 year comparison.
They underperformed both the S&P and the S&P Financials by double digits. I think it was something like 20% and 23% less than the above.
Just wanted you to know that I did read your post.
The comparison in my previous post was not my comparison. It is what BBT used in their preproxy statement. They used it as in previous proxies time frames.
Guess who is the worst performer this year in the 24 member Philadelphis KWB Bank Index? This is according to a newspaper article on March 20, 2004.
Didn't say everything was bad, but for a fact all is not rosy and good either. I can admit that all is not terrible, will you admit that all it not good ?
Just trying to make the point that there are two sides to this debate.
For better investing,
Amazing, after you read 1 through 10 year total returns, you can only see the worst possible comparison I posted, then said it was "forgotten?" My table has the good news and the bad news..you're only interested in the bad..your prerogative..consider your motive.
You sent lots of good information, but forgot to mention the fact that according to their DEF14A (proxy statement) the following.
$100.00 invested in BBT stock in 12/1998 with reinvesting dividends would be worth $110.95
The same $100.00 invested in their peer group would be worth $124.31. This is comparing banks to banks and forgetting the awards that do not reward the shareholders.
Just a little fact that might be of interest.
What conclusions would you draw from this?
Jim, you asked
"Please tell me again about the fact that this is a very good company. Haven't they just reduced earnings forcast today for the second time this year? "
I agree reduced earnings is not good..will affect earnings til turned around which will happen.
Here are a few additional facts you asked for:
.Fourth consecutive year in Forbes platinum 400 list of America's "Best Big Companies"
.Picked by Smart Money as one of top 5 income stocks
.JD Powers survey: Best bank in mortgage servicing
.JD Powers survey: #1 prime lender to auto dealers
.BB&T Capital Markets: best on street analysts
.Money MAgazine: Top ten in employee benefits
.SBA ranked BB&T #1 in small business lending
.Forester Research: BB&T #1 in client advocacy
.Training Magazine: BB&T in top 6% quality of employee training program
. Compound Annual total return to S/H 12/31/03
BB&T S&P500 S&P financials
1Yr. 8.2% 28.7% 31%
3Yr. 4.3% -4.0% .6%
4Yr. 12.4% -5.3% 6.4%
5Yr. 2.0% - .6% 5.9%
6Yr. 6.0% 3.8% 6.8%
7Yr. 14.5% 7.6% 11.9%
8Yr. 17.6% 9.4% 14.6%
9Yr. 20.2% 12.2% 18.4%
10Yr. 18.1% 11.1% 16.0%
10Yr. compound annual dividend growth of 14.3%
compared to S&P 500 rate of 3.4%.
Just the facts..draw your own conclusions
After taking a "time-out" for several days I am back, but this time with perhaps a positive spin vs. my past posts. Stock is almost to the point where it would make a good buy. I figure $34 or less will peak my interest enough to get back into it. With reference to BB&T being a good company, I think it basicly is a well run organization excepting that their(your) eyes are bigger than their(your) ability to pay. I would back my statement with the fact that the stock value shows a "non-growth" direction over the past few years whereas other financial institutions show a positive growth. Still, their(your) management can make BB&T a shining star once more by simply following the BB&T "Values". The ones to work on, in my opinion are 1)independent thinking (currently is CYA) & 2)productivity. If these "values" can be established (re-established) by the management, BB&T will increase in value and I will make a couple of bucks in the process.
Now, how about that for a positive response.
This is from one of your earlier messages.
"4. Disagree totally with Jim that truth is somewhere between opinions. Truth is facts. My respect for the board and unknown readers is such that I try to stick to facts I can back up and identify opinions as such. Will confess to occasional impatience with garbage posted & even sometimes call it what it is supported by facts.
This is a very good, not perfect company, that has been one of my better investments. "
Please tell me again about the fact that this is a very good company. Haven't they just reduced earnings forcast today for the second time this year?
Reducing earnings forcast is a fact. Your opinion is that this is a good company and others have different opinions. There is a difference and some people confuse the two
For better investing and making money,
Thanks for your excellent post! I totally agree with your comments regarding how everyone's views are important to this board.
Picking-up bowling pins sounds like hard work to me! I bet it was a noisy environment, too!
1) Why are you fixated on layoffs?
2) Are you a BBT shareholder?
3) Where do your concerns lay? With the success of BBT or with the personal concerns of those folks who are laid off?
4) What were your reasons for investing in BBT?
5) I assume you are a MD from your yahoo name. Why did you go into medicine? To save lives? Help people have higher health quality of life?
From reading your posts the past week or so, you leave the impression that saving folks from being laid off (benefiting those affected) is more important than seeing BBT operate a lean, efficient operation that benefits the many (the other 96% of employees, the customers the bank serves, the communities where the banks are located and lastly, the shareholders who provide BBT's equity structure). I'm wondering if we've got a "culture clash" going on here with the MD's Hippocratic perspective not able to fully reconcile with the "creative destruction" aspect of a healthy capitalistic eco-system. In short, if BBT does not make all of the "right" moves to stay healthy, the remaining 96% of employees, customers, communities and, yes, us shareholders will be adversely affected.
Think of layoffs as excising gangrenous skin. If it is left on the affected leg, it can spread and eventually kill off the entire body. Maybe being an investor in a growing banking company like BBT that trims redundant jobs as it moves forward acquiring bank companies is not your cup of tea. I'm trying hard to think of a quality long-term investment that will not likely have future lay-offs, but I can't think of one that offers more than a 70% probability of no future lay-offs. The only one that appears to come close to meeting the no lay-off criteria and still offer good long-term investment growth is Berkshire-Hathaway (BRKA or BRKB). However, your investment (and mine, too!) may be adversely affected one day when the Good Lord gives Mr. Buffett his pink sheet.