AFTER the eye of the financial storm has passed, and BBT has come through the crisis as one of the few actually making a PROFIT every quarter, Moody's comes along and tells us that if things go bad from here on out, BBT is a riskier investment!
Go back to sleep Moody's! I'm putting you on IGNORE!
Moody's is nuts. As I recall, they downgraded bbt and usb, two of the strongest regionals. They upgraded sti and zions. I ignore moody's. Zions financial conditions stinks! Interesting that they came out with downgrades after the bell but I bet you a bunch of folks knew of the downgrades in the morning. That's why bbt tanked so badly. I suspect it was a bunch of short selling so in the short term I expect bbt to move up just as abruptly as it moved down today as shorts cover.
You could get mad on this but I prefer to look at it as an opportunity to buy more bbt on the cheap. In 6 months I think their will be an abrupt improvement in their loan losses. As I said the residential and commercial adc bad stuff will be largely gone by then. Right now they make up around 1/2 of the charge-offs.
Yes, I bought more at $22.79 and will continue to add should it go down.
KK talks this friday. I hope he has been taking lessons from Dimon on public speaking. There's nothing wrong with KK telling investors that the bank has been hosed on raw land which has driven chargeoffs and the valuation adjustment. The market is dysfunctional. But KK should note that the raw land situation is coming to an end. I think the total balance of adc residental and commercial raw land is around $4.2 million with a reserve probably of $1.4 billion. I would think at least half of the balance is good because it's personally guaranteed by builders and developers with immense wealth.