Believe we will meet the $.34 per share profit that the analysts expect. Will probably have to lower reserves to do that. Two ways to look at the at second quarter results. If bad we can average down. If good we will soon see $30 per share. My one big concern with BB&T is Kelly King (CEO). His big concern seems to be his $5 million salary. Just hope that John Allison is still guarding the hen house.
BB&T is extremely conservative, including Kelly King. Do not talk yourself into underestimating him.
It is very likely that reserves are overstated, possibly with a very conservative margin.
40 years of management consulting taught me a lot of stuff, one is that if times are bad, management would much prefer to get all of the bad stuff written off at the time of the crisis or whatever the bad times might be called. That leaves a lot of room for results in recovery to look much better.
Too timid in the write off sets a very high bar for the recovery period.
As a footnote, my projections for the stuff in my responsibility were always 5% to 10% higher than I expected, by design. I have never had a CFO or Comptroller complain because they had to go into their own projections and reduce the expense projections. Yes, a lot of times the end result came out very close to figures in my report, which I had expected to be too high.
There is an important survival strategy there. DHR