1. I really enjoy Still's posts...
2. I'm not yodaknowsbbtbest - "he" is a friend, though.
3. I used "yoda" and, of course, "kayspeare" and was "TOS'ed" from Yahoo...by who, or should I say what, I don't know.
4. I think several of you know who I am--that's ok! :) I'm happy.
5. Plastic surgery--please, you don't get the booty I have under a knife! LOL
6. BB&T is one of the larger and poorly managed banks in the country (more on that)
7. If you want to chat, join in on my blog, and get acquainted, go to my Yahoo 360 page... It should be set-up tomorrow with photos (for friends only) and blogs (for all!)
8. Still here and remaining true to form,
Because BB&T has a VERY EXPENSIVE structure with weak management in key positions. BB&T has over 30 regions, which means there are 30+ regional presidents, 50+ credit officers, 30+ regional banking managers, 30+ wealth management heads, 30+ trust dept. heads, etc., etc. etc. If they would reduce it to one department per state, just think of the savings.
Another problem is that a lot of people in management create fiefdoms and surround themselves by "yes" people. Good people aren't promoted, losers stay in the same position, talent leaves at unprecedented rates, and then you are left with a mediocre institution. The only ones who stay are the ones that could not make it at other banks, or they are from NC and hope that one day the bank will send them back. They are actually the best employees at the bank because they actually stick it out. The problem there is that they want to go back to NC and not stay in the local markets. More churn...
I know that Virginia is a mess. I know people who are leaving in FL.
Another problem with the bank is that the only focus is on new business. It is so easy to pick off existing clients because they are quickly forgotten about once it no longer helps "the matrix".
Lots of problems, lots of good (insurance, sales culture, etc.), but probably best fixed by an acquiror. JMHO.
Kay: Haste me to know �, that I, with wings as swift
As meditation or the thought of love,
May sweep to revenge.
Ghost: I find thee aspt,
And duller shouldst thou be than the fat weed
That roots itself in ease on the message board
Wouldst thou not stir in this. Now, Kay, hear:
The serpent still resides here that did sting thy life
And now wears a crown in Winston-Salem.
Married to the inside,
Ay that incestuous, that adulterate beast,
With witchcraft of his with, with traitorous gifts�
O wicked wit and gifts, that have the power
So to seduce to numb and Koolaid fed masses,
Begging to hold on till pension time befits, but
Alas, the I P gives way to the traitor�s pledge and
Found, he is, begging for cover, finding none,
Other than under his antiquated threats,
Censor T O S skills, and sweating profusely,
Knowing Kay Knows, who the traitor is,
And where he resides�
Kay: What bounty and manner of revenge
Is there, Ghost of mergers past?
Ghost: None, the traitor will drop on his
Own sword, not by will or consent, but
By accident, a plague of thinking he is but
Smarter than the rest, when in fact,
An Ass of proportions never likened in past
Nor present has been found.
Kay: T O S �ed again, alas, I rescind to the quash,
Of growling maggots, but leave with a
Reminder from fond and fair Kay,
To run and hide, s� poor one and
Be sure to C Y A ;)
Who says we haven't been invested in other companies? I have. I got rid of this POS a long time ago. But I still look at it, just as I look at many of my old investments. I got out of this stock because its a poorly run company. I want back in, because there is optionality in the long term value of the shares....value that can be reached if the company is sold, if Mgmt is proxied out, or both. I would love to own this stock at 38, or 40, or 43....but only if I know its going to 55, or 60, which is only going to happen if the above-mentioned things occur. It certianly has not happened for the last 10 years.
I consider myself a long-term investor as well. But when the whole market sells off based on irrationality, it makes perfect sense to jump in. Doesn't have to be BBT only. Pick a financial stock that's been pummelled. My whole point of the last message was to point out the irony of those who continually post the "I-love-the-90's" song while the market is moving all around them. While they've been complaining month after month and year after year, they could've been investing in something else providing decent returns. Instead, they just gripe and hope that someone will buy this co. What kind of investing strategy is that?
As Charlie Murphy would say: "Wrong...Wrong....Wrong" So you are another investing wizard who magically bought on the low and have locked in a return back up to $43. Good for you Einstein. I invest....I do not trade. Investment decisions are predicated on long term holds, where I am investing in business models, strategy, and management. All three are lacking here...the only reason to monitor this company is that there is an embedded option as the assets are worth something, and if there is a mgmt change, that option will have value, up to the mid 50s. Should we all have invested at $38, sure, but I don't plan on timing these trades. I want to invest in companies that are "built to last" and deliver solid returns, not see-saw returns.
While all you guys have been whining the last few days, did ANY of you happen to take advantage of the 7.5% rise in the stock? Oh, that's right...you guys are still stuck on the stock price from 1999. Go back to your whining now...
As BBT has grown by acquisitions in the past 10 years, it appears JA keeps diluting the stock at more than the rate of axquisitions. At a minimum this stock should be worth $56/share, based on the 4% annual growth of the world economy. I think this would be a fair value today. As I see it, the only thing that will raise the stock price is a massive stock buy-back.
How can a company that keeps growing like BB&T not have the stock keep growing? Good reputation. High emphasis internally on training. Moderately conservative. Great diversity. Why does the stock price not go up?