Sat, Nov 1, 2014, 3:39 AM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

BB&T Corporation Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • nobankersplease nobankersplease Jul 15, 2011 12:29 PM Flag

    Att: nobank & boat.

    As you asked:

    I am only going to buy the yield.
    Loan Loss reserves are a paper drill. Meaningless. Loan growth is not robust. Acquisitions would be nice, but other than Colonial (not a home run), I have not seen anything. Dividend increases will come, but not sure when and in what amount. I look at what my risk should be in owning this bank at its current yield agaisnt what i can get owning either an equivant maturity treasury or even gold. Right now I would certainly expect to get more than 2.5% for owning a stock that is still highly risky. I think you will see an $0.80 or better dividend going forward. (that will be the first incremental step back to $1.50, but that will take years). Given my expectaiton of the dividend, and assuming I want to lock in a yield at 4.5% or better for now, I would not pay over $18. Oddly, my investment criteria for owning the bank is similar to the way the bank views its own credit. It wants a lower price (ie. more collateral) and a higher yield. The bank cannot have that and perhaps neither can I....is it any wonder our entire eceonomy is in a state of limbo?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Thank you nobank. Think you have it right. You do know that the old dividend (2008) was $1.88. Your forecast of $1.50 ain't no big deal. Thanks anyway. Let me know when you buy the banks.
      Thanks again.

    • "Given my expectaiton of the dividend, and assuming I want to lock in a yield at 4.5% or better for now, I would not pay over $18."

      Sell price for a january 2013 put is $1.12 per share at $17.50 strike. There's your trade. I've been doing it on both bbt and usb at these levels.

      The math is simply - bbt normalized earnings are $4.50/5.00 share. Don't think you'll ever get the opportunity to go long bbt at $18 which is close to their current tbv.

      Next week I think you and many other folks will be surprised that their delinquencies are quickly approaching a normalized level. Plus, their loss severity rates will start to approach zilch on 09,10,11 defaults so their losses will be very small.

 
BBT
37.88+0.40(+1.07%)Oct 31 4:02 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.