At the rate the stock is falling, it won't be long before the 1 cent dividend per quarter is going to represent an attractive dividend rate. Damn, this is ugly. I've made some nice money on this stock, buying in the 7's and 8's, selling in the 10's to 12's. Did it 3 times and should have called it good. This time I jumped in at 7.25 thinking I'd be out at $8.5 in a week, ugh. Oh well, win some, you lose some. I'm so tempted to average down at this sub $5 but I just don't know, can't tell if this is a golden buying opportunity or this is on it's way to nothing. Guess that's what makes it so much fun.
My problem with management and the fact that nobody has been fired or even demoted, is that they keep saying they were one of the first institutions to see the slowdown comming.
Why didn't they dump the bad assets sooner when they could have gotten more than 52 cents on the dollar?
Why didn't they stop expanding the commercial lending arm of the Bank, which is where all the bad loans are located?
Why pay 16 cent dividends last year when they were making 10 cents a quarter?
If they were so smart and saw this comming they would have taken the hit upfront, but by continuing to keep their head in the sand makes them look stupid.
There is a slowdown and it is affecting all institutions but they have done business with some people with wweak individuals and when these go bad someone has to be accountable.
Good point. I think the other poster was questioning the capability of the management team - thinking they were not capable and therefore needed to be fired.
I have no idea about that. I just know and agree with you that SBCF did the same thing that all other banks did in terms of making loans...they were no different. I do thing the Florida area is ripe now for rebuilding and will recover sooner that other parts of the country. Therefore, I think SBCF will turnaround more quickly. Just mho.
It's easy to see fault with many of the loans by hindsight, but they were doing the "right" things at the time. There were no sub-prime, show me a pulse & I'll give you a loan, deals, but the extent of the problem in overall housing, including large development loans, was not forseen by any banking organization or Greenspam or Bernanke. Nobody saw the extent of this problem.If you want to survive to prosper another day, firing capable people is not the answer.
ok...gottcha'. Thanks. I hope management has learned their lessons and can right their ship. I think the opportunities in Florida for rebuilding will be present. Let's see if they can go down the right path this time!
Look at the insider activity...Doug Gilbert(probably the smartest guy working at Seacoast) has been selling his stock.
That can't be good.
I wonder if Mr. Hudson who a year and a half ago said a buyer would need a big checkbook (stock around $20) is so smug these days? They keep saying things are good and they are selling bad assets at 52 cents on the dollar and they have a lot more to get rid of.
Maybe I am reading it wrong, but isn't he acquiring vs. selling? I think this stock will come back. I really don't have any "proof" but seems to me that Florida went downhill first in the country and may be one of the first areas to straighten themselves out. Just my feeling. I hope I'm right 'cause I'm holding to see what happens.