"So not only has BB&T's growth not stalled, they have been handily outperforming 3 of their competitors in the last year. If the average forward PEG of SunTrust, Regions, and PNC is about 1.90, you could make the case easily that BB&T should carry this PEG. With a PEG of 1.90, BB&T stock would sell for $45+. Even if we remove Regions from the equation, as they have clearly been underperforming, BB&T is growing much faster than either SunTrust or PNC. The average forward PEG of these two banks is 1.44. BB&T clearly is doing better than either company and should sell for a higher multiple. Even at 1.50 for a forward PEG, BB&T stock should sell for at least $36. When you add the fact, that BB&T also pays a higher dividend than any of the three we've looked at, I don't have any trouble assuming BB&T stock might fetch $40 a share."
These manipulating jerks just gave some of us another buying opportunity. We will probably have to put up with this baloney until earnings are released; however, a single very positive upgrade could change all of this any day.
More nonsense from the BB&T kool aid crowd. Loan growth is weak. 2009-2011 their loan portfolio increased from 96.1B to 98.1B, and all the net increase came from renewed residential mortgage lending (and there is not much more of that to be had), which saw yields drop from 5.7% to 4.8%. So they are NOT making new loans and the small net increase they are showing has lower yields. On top of that, they are still sitting on 30B in cash after 3 years...instead of lending it out and building a new loan portfolio they are just churning securities. So if you want to know why this is not at $45 read the K. The small community banks are making all the loans now, why? Because banks like BB&T don't have to, because they have all the cash from Uncle Ben. You are really buying an insurance agency (amongst other fee sourcing entities) when you buy this company
So if Norm is always right explain the price of the stock....and dont give me the Wall Street conspiracy theory, buy physical gold, etc. nonsense. And "in the next couple of years" eh? I guess you have waited since the 1990s, I guess you can wait a little more.
And hats off to quefoo, the numbers don't lie. Norm would have us think that there should be some big reward for simply making loans to replace those that are being paid off or are maturing. Geez, you think? I'll alert the media...that's a real chart breaker, that one!
The cyclical nature of the markets and the economy are pointing us back into recession in 2013-2014. You may be in for another pull back. Don't fall too far in love with BB&T, it will retrace like everything else, and worse, its pursuit of non real estate lending puts it a far greater risk, as it has never really understood non real estate collateral underwriting (well, didn't really understand real estate collateral either, but that's for another post)