Just looking and thinking. There is approx 700 million shares outstanding. If all upper mgt, CEO, CFO, etc, just received a reasonable wage and benefits, not their present outrageous benefits, and this saving applied to dividends: How much would the dividends on BBT stock go up?
Would the dividend go up 2 cents; 5 cents or more per share just from upper mgt being compensated at a reasonable rate? After all profits should be divided among share holder first, not last.
Just looking and thinking.
JAA and KKK inceasing equity lets see. JAA buys millions of shares at $35-$40 a share instead of paying to shareholderss via dividends. Geneus JAA said purchase of shares created more sharholder value. There is no sharholder value until you receive it in cash. Then Geneus KKK reissues share at $25 so he can repay tarp so in can raise his pay. THE BOD and all of management are a bunch of Dumbasses. Two years ago USB was $3 less than BB&T and now sales for $1.50 more. These guys cannot even beat the KRE regional bank index.
The benefits that pass between of D's and upper mgt appear to be more than just stupidity. When such wealth is being distributed at the expense of stock holders I believe there should be an investigation. Collusion or stupidity?
More of a company's profit should be distributed to stock holders and not to upper mgt, CEO's and B of D's.
Future is bleak. Mortgages are killing them. Thus far BAC is only bank facing the issues, rest are still in denial. No doubt bank sector will tank, accounting gimmicks wil stop working as more and more walk away from loans and monthly cash inflows keep shrinking.
Oh Norm, at it again? TBV (or more precisely tangible equity) is anything but tangible. You should know that. It is simply another version of valuation manipulation by means of "intangible" transactions. Sort of like the LLR dance. TBV is a tool, but not a primary investment one. Below is a short blubr about Citi:
"The bank released $3.3 billion from reserves set aside for losses, which obviously boosted (or more accurately, entirely created) the bank’s profit. Net income was $3.0 billion and net revenue was $19.7 billion, both up sequentially but down compared to last year’s figures. Looking at its balance sheet, Citi managed to raise its tangible book value by $0.24 per share up to $4.69 per share, leapfrogging its current share price. As always, this assumes a certain confidence in the firm’s ability (and more importantly, willingness) to properly evaluate its assets."
Just because its in a release doesnt make it true...you have to do the analysis, instead of aping the BB&T party filings. We can all go and read those.
Recently Henry Blodgett publicly stated that there is no way BofA's TBV was correct, as the market had discounted the common stock price so severely. BofA went on a PR campaign to discredit an analyst. Again, just becasue a bank tells you its TBV is a certain number does not make it so...only market pricing will determine the value of the enterprise. That is why the CEO needs to be paid for only the value appreciation and total returns in the common stock.
here is a question, would you invest in a comapny with negative tangible book value?
"Are you fairly sure of the $17 figure as Forbes only shows a $13.81 tangible value as of 6/2011? Hope your figure is accurate."
Reference page 18 of bbt 2nd qtr. 2011 financial tables found on their website. Shows tangible book value at $15.95 at 6/30/11. Bbt earnings in the 2nd half 2011 will substantially exceed their dividend which should increase tangible book value to about $17/ share at 12/31/11. Also, it is worth noting that the $15.95 includes a reduction of $.82 (per share) for temporary losses on investment securities. With treasury yields nose diving since 2nd qtr. 2011 this temporary loss should swing to a gain or even better bbt will sell their $22.5 billion of investment securities yielding 1.69% at 6/30/11 at a huge gain and reinvest the proceeds into fnm/fre mtg backed securities/municipals/AAA rated corporate paper.
You can also go to their 10q statement and calculate their tangible book value. I did and got about the same number.
Norm wrote the following:
"John Allison made a presentation in 2006 showing that bbt's roe in 2006 on their tangible book value was around 28%. At the end of this year bbt's tbv should be close to $17/share. 28% times $17 share = $4.76/share"
I see where you did indeed specify tangible book value not book value which most people more commonly use. I was wrong. Are you fairly sure of the $17 figure as Forbes only shows a $13.81 tangible value as of 6/2011? Hope your figure is accurate.