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BB&T Corporation Message Board

  • somealias somealias Nov 9, 1998 4:50 PM Flag

    Downgrade...

    AG Edwards has downgraded BBK from Accumulate to Maintain. Wonder why?

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    • To somealias - the downgrade by AG Edwards is
      only related to the price runup and not performance.
      The still rate the stock as one to keep (maintain)
      but at the price the stock had reached they don't
      think the near term return is as great as when they
      rated it a buy (accumulate) IMHO

    • Well, maybe not a true sell off, but a quick look
      at the chart over the last few weeks shows an
      incredable run up in BBK vs. the other regionals/super
      regionals. You can use excite and others to compare stocks,
      div, p/e's, etc. and BBK seemed to have blown by most.
      I think they have room to run in the future, but
      they clearly blew by at least two houses' near term
      stock price estimates and they pulled the plug. Market
      sentiment being what it is and there are traders in this
      stock, and I guess this is what happens. In any event,
      their change of opinion does not mean that they don't
      think BBK is a good stock.

      I do think much of
      the volume was supplied by BBK itself as they bought
      in for 401K, recent acquisitions, etc. and, given
      some latitude, they would like to purchase at lower
      prices themselves if possible. I not exactly sure how
      all that worked, but I believe I am correct in saying
      that they are not issuing new stock for any of this.
      I'd appreciate others' thoughts on this as
      well.

      Regards.

    • Wonder why?

      Because of the runup. Its not that unusual.

      You guys pay too much attention to the day to day.

      Dr. JunJun

    • My reasoning for an MOE is as
      follows:

      BBK's decentralization has been a big winner with the
      public, and their ability to pull off their "regional
      banking concept" is really helping combat the other boys,
      big and small. However, their efficiency appears to
      be hitting a wall (and may even be backsliding, even
      when excluding non-recurring, merger related
      expenses). This is due to the fact that the regions, while
      they have their own infrastructure, are growing faster
      than the corporate infrastructure and are therefore
      taxing the systems, recruiting/staffing/training,
      policy, and other necessarily centralized functions. This
      leads to a fair amount of redundancy between region and
      corporate functions, an obvious drain on efficiency. As it
      relates to systems, the question doesn't revolve so much
      around the operating sytems themselves, but the relative
      inflexibility of those systems to keep up with the ever
      changing demands of BBK, let alone the industry
      itself.

      As it relates to non-traditional banking products
      (i.e. trust, insurance, etc.) While BBK certainly has
      all the products, I'm not sold on their quality. Does
      anyone on this board invest in BB&T mutual funds?? I
      don't believe they have performed quite so well. My
      impression is that the other non-core products function much
      the same. Any thoughts?

      • 2 Replies to yankee_insight
      • Enjoyed your post. Really sums up the sentiments
        expressed here concerning superior customer service vs.
        winning the efficiency game. I am not sold on the idea
        that BBK has to be the MOST efficient to survive. The
        real question is will a sufficient number of people be
        willing to pay marginally more for this superior service?
        I believe they will, but JMHO.

      • Besides the stock I do have two of BBK's mutual
        funds. Five of 8 funds have had a down quarter. Two of 8
        a down year. Only the Small Company Growth fund has
        been negative for three years. (Of course I have that
        one.)When you talk about infrastructure are you speaking
        only about computer systems and the like? I didn't
        think they were regional. They only have one data
        center.Still undecided on whether to hope for an MOE or not.
        :)

 
BBT
35.29-0.380(-1.07%)Jan 30 4:02 PMEST

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