I was, for quite some time, a believer. It is sheer blindness to hold on to hope on bbt. The drop below the $40 floor is an emotional train wreck. Those who know are obviously selling ahead of next week's earnings. For those who have forgotten, the stock usually inches up ahead of earnings and falls back a little after. Not good that there probably won't be a cushion going in.
The reality is that $30 is now much more likely than $50. Didn't believe that for a long time, but do now. That's when it's time to sell.
I looked thru your chain of posts, I have said the same thing about this stock in several previous posts. Regardless of a poster telling you how he has a 40 year old basis in this company and he always knows how to buy exactly on the right dips, for most investors, we buy on long term success And over the last, oh 10 years, this company has not been able to adjust to the more sophisitcated, global, sales-driven, fee-based, ABS model that other money center banks have pursued to success. They run this like a 1970s thrift, because its all they know and like most folks who are not fundamentally bright nor entreprenurial, they are threatened by Wall Street and the way the banking industry has evolved over the past decade or two. They don't understand it and are too scared or stubborn to bring in a bunch of 45-year old outsiders with 20 year track records at BofA, Citi, Wachovia, etc., pay them correctly, and get this thing back on track. Congrats to Stil if he can market time and trade this stock...but for investors, look somewhere else.
Successfully day trading a stock is not a defense of its fundamentals. Anyone who tells you they have traded a stock 100% correctly for years is lying anyway.
The discussion is about fundamentals and opportunity costs. Are there banks that clearly better merit one's investment? The answer now is yes.
Well well, I see you found a way to crawl outa your hole and demonstrate more unhappiness at your plight in life. You like good ole Ernie, can't function on your own, but must find a nother Yodee to verify your ineptness at life, employment, and ability to make money, while showing weak attempts at dissing me, which the neighbor ladies guffaw at. Then you recommend selling at a low. Hard to imagine you ever had a decent job at a bank
Looks like all the bad news is out and in the price of this stock. The sector has been hit hard daily and many of the warts have been revealed in this company, and guess what? There is good support for this stock in the $39-40 area. Clearly priced to the �worst� unless another shoe drops.
These days I am neutral on the stock at best, think the management is not the strongest but typical of the sector yet NOT convinced the end is near. So we have an earnings announcement this week and the stock sells off before the announcement expecting the worst, and if there are no big surprises, and it would have to be big given all the news in this sector, I think the stock goes back over $40. Does not mean it is going to be a great performer, will likely linger until JA does something, but the end is not near as we all fall asleep holding this baby.
As I said before, I am perfectly aware that you could have made money trading the dips--the point is that if management was doing its job and maximizing value for the shareholders then you wouldn't be trading in and out of a static channel but rather off of higher highs and higher lows as you have consistent appreciation in the share price. In investing and in life, there are always bumps in the road--you may be satisfied with a round trip ticket, but I think most of us want to end up in better position then where we started. Management has either created value which it is unable to translate into a higher share price or it has failed to create value at all--either way, you need a new approach or new management. Some on this board have expressed concern about executive compensation--I'm concerned too--where's the incentive?? I would be thrilled for John Allison to be paid twelve million dollars a year, provided that compensation was substantially performance based so when he makes money, we all make money. What would be wrong with paying 15% of the total package in cash and the balance in options which vest in each successive year at a price which exceeds by 15% the high price for the preceding year? To paraphrase an old quote famous on Wall Street: "... and where are the shareholders yachts?"