While I was disappointed to see STD miss, it stayed profitable and the provision is just that...a provision. The market is reacting favorably in pre market trading. I am staying long. I currently hold June 8 calls and added to my January 13 $10 calls in addition to several hundred shares.
Yesterday spooked me a bit...but I am definitely feeling more confident this morning after ea?rnings. I am just hopeful that Greece gets its money and the market can move on for at least a little while.
Agreed with your concerns about profits falling. The good news is that revenue is still climbing, so at least the decline is not because of taking revenues, as is the case at most other banks right now. Hopefully, the provision expense is a one time thing.
It will be interesting to see how analysts react to their forward liking comments. If the street likes what it heard, we could blow past 8.10 and test the 8.50 range in the coming days/weeks. That is what I am banking on. To compound this, if Greece goes to the back burner, we could run even higher.