norm: I have always liked your postings. Believe that major concern for BB&T (and other banks) is still loan liabilities. If economy gets worse loan losses will go up. Some bank share prices are forecasting worst case (ie. BBT and WFC). I have again started to repurchase and plan to average in either over the next six months or as share price declines. Will not sell till price gets back above $40. Might take a few years but I can wait. Have been very outspoken about Kelly King. His 2010 pay package is criminal in my opinion. How do you think the employees who earned that money feel about his pay package? Good luck to all
Not only the CEO of BBT but CEO's of all American corp are way over paid. I do believe there is collusion between B of D's and upper mgts. There is no logic what so ever that ANY CEO receive the kind of pay package they receive. The profits do not belong to the CEO, they belong to the share holders. If the exorbitant salaries were reduced to reasonable, the dividends could be higher. This is a problem that could be remedied by the stock holders if they were ever to wake up.
You will not sell until share price hits $40? When did this stock last have sustained trading at this level, and how long do you intend to hold? There is a cost in this strategy. The best trade here is volatility, not buy and hold. You could be looking at treasuries at 7% in a few years and you are stuck with a BB&T hold strategy that is paying 4% with no chance in hell of the price moving up to $40. You might be sitting on this investmenet for a decade. As for Norm, he often gets "paralysis by analysis". He goes to great ends to show the positive metrics of the company, but in reality, the street is not looking at these things and have not for many years. BB&T has no loan growth...zippo.... and they pay NOTHING for their deposits (thanks to the fed keeping rates at zero). This does not a bank make. You should stay away from financials for some time.
"BB&T has no loan growth...zippo.... and they pay NOTHING for their deposits (thanks to the fed keeping rates at zero). This does not a bank make. You should stay away from financials for some time."
Pure hogwash. Bbt has increased its pretax pre-provision earnings 12 fold since 1995. Their net interest margin in the 2nd qtr. 2011, I believe, hit an historic high. Going forward, their loan losses will swing to the other side of the pendulum. Even with a slow growth economy, their loans will show decent growth driven by many different factors.
Bbt is a solid bank but it has been a bad investment over the last 10 years. Their fortunes however, will start to reverse over the next year. I'm banking on it.