1. BB^T shares have dropped 11.5% from high 9 trading days ago. No good or bad comments from the company. 2. No change in analysts sentiment. Citibank, Morgan Stanley, Bernstein and Stern Agee have either "buy" or "accumulate" rating. 3. Cramer likes BB&T. 5. SmarTrade (assume a pay for subscription service) put a "sell" on BB&T shares on May 9th. Since then shares have dropped 27&. Read todays comment on google finance. They said that shares would move up to $23.25 then drop. They comment a couple of days each week on google finance. It's like they are getting inside information. I will not sell my shares but I will not buy more until more information comes out about bad loans. Seems like the big investors are betting on a cover up of big time bad loan problems. Good to see participation on this board. Appreciate your contributions, norm. Believe you have confidence in BB&T and that makes me feel better. Wells Fargo seems to be falling like BB&T (misery likes company).
There are many good and bad trends in the economy. Since the spring, bank stocks have been clobbered with bbt dropping more than the average bank stock.
I think the bank's business model and financial position are solid. Their new originations are performing well. Bad adc and lot loans will largely dry up by year end. I continue to buy bbt and will likely buy more this am. I'm also buying several other banks - usb, jpm, stt, bk, and pnc. My biggest bank position is bbt. I may add wfc. I stay away from bad banks.
My portfolio is well diversified. My closed end bond fund positions have offset much of my losses on banks.
Also am long intc, glw, xom, aa, tgb, dsx, abt, pfe, nvs, fcx, and some other equities.
Cash is about 20% of my portfolio.
These are tough times. I suggest a well diversified portfolio. I only buy quality names. I also day trade alot. I think we're in a trading range in the djia of 9000 to 11500 and my cash position slides up and down accordingly.
There is no question that something is wrong here. The stock has really underperformed its peers and it does not owe TARP, loans are increasing and it pays a dividend. I remember this happening last year. It seems the street does not get BBT. As soon as we get more clarity on the economy and people realize that BB&T does not have anymore bad loans and has been very conservative, the stock will jump up quickly.