"Like a kid in a candy store ... and the candy's on sale One option is to search among the beaten-down banks. In that space, BB&T (NYSE: BBT) is an intriguing company. While it's increased its provision for loan losses, it isn't nearly as exposed to the subprime loans that were the bane of institutions such as UBS (NYSE: UBS). But that hasn't helped its share price, which fell in late 2008 and early 2009 with the rest of the market. This firm is looking tasty!"
....because they are thieves preying on economically disadvantaged people. Stealing money and strong-arming customers by threatening to push them out of the banking system all-together if you do not comply with their overdraft interest rates in the thousands of percents. You can get a better deal from the MAFIA. We will be protesting in front of our local branch next week.
Jerry, let's be realistic here, all the months before the severe crash of BBT from 46 to 13 you were telling everyone to load up the shares as a heavy buy in the upper 30s -- and you continued to tell everyone to load up all the way down -- the problem is not that i think that BBT will go down from here just yet due to the idea that any improvement off the Year-End Earnings of the S&P 500, cuz any improvement is a vast improvement comparatively speaking -- the chief problem is that you loaded up on all the shares too early at the higher end and if you're loading up at high prices, that doesn't leave you any money to load up at low prices -- i think money management was a primary fault on that recommendation -- had you scaled in on the long and saved the majority purchase while everyone was starting to pile into the long and shorts were just starting to leave the exits, that's when you know the stock will perform at huge gains for you -- had you said as an example, to buy 1,000 shares of BBT at 37, and then 3,000 shares of BBT at 22, and then after it bottomed at 13 you started to pile in another 7,000-15,000 shares of BBT on the way up at 15 area, you'd have an incredible gainer with a weighted average long entry of 16 1/2, and you'd be sitting on what is about to be a 100% gainer, rather than trying to recover the heavy purchase that still sits at break-even at best due to the 37 to 22 area buys, making your average entry of 29, where the stock is today
but lucky for you, the market will still proceed higher into S&P 500 LEVEL of 1121, whether we get a small mini-correction or not, and BBT should make its way back to 31 area -- interesting that it goes there cuz that was my original short entry position from year-end 2008 -- after we reach S&P 500 LEVEL of 1121, i will be able to see what the market will do, if it has a chance to reach 1228 or not, but i need to see more data to determine that
the Merill Lynch prediction of the S&P 500 is based on a 15% Earnings Growth Rate for the index, and i forgot the other firm that said something similar, but a continued 15% growth rate into year-end 2011 might not be sustainable -- once we reach the higher #s of the S&P 500 LEVEL, it's going to be hard pressed to grind out more growth in the P/Es
You're too high in your praise. A good opportunity would have been a better choice of words. I sold half my stock when they lowered the dividend. seeing potential growth in the future, I still own the rest.
Bbt delinquencies have shown a nice improvement over the last 2 qtrs dropping 19 bsp in the 1st qtr. 09 and 12 bsp in the 2nd qtr. 09. (Total us banks deliquencies increased 27 bsp 1st qtr 09 1st qtr of 09 and dropped 4 bsp 2nd qtr of 09.)
Also, bbt has only restructured loans amounting to 9 bsp of their portfolio vs. 60 bsp for us total banks which is further evidence that their delinquency improvement has not been disguised with "do overs".
Their unused commitments additionally are only 34 bsp of their portfolio which is about 65% below the average. Companies in trouble frequently draw on their unused commitments.