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People's United Financial Inc. Message Board

  • footballpaul_wi footballpaul_wi Jan 21, 2011 4:29 PM Flag


    So I can buy in cheaper.

    Due to decrease in book value (temporary) I will lower my price target (18), until the next deal comes along anyway.

    They still have 3 billion in short term investments to play with dont forget.

    However, once the first federal rental company of pbct or whatever they call it now starts to pick up, who knows what can happen.

    They will buy the 20 million shares over a long period of time to keep cash for deals, but if stock gets too cheap I'm sure that will change too.

    No rush to buy, but also cant hurt. Its slow money, but its a guarantee.

    I love looing at the NE map of bank locations every Q, I hope the next deal is also on long Island, or Jersey.

    Buy and hold on this one.

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    • I agree with your outlook. I am concerned however with a possible dividend cut which makes the long hold period less attractive. If the dividend holds this is a no brainer with 2 year time frame.

      • 1 Reply to cololamahahual
      • The acquisitions have been very sensible from a geographic standpoint with a fill in of markets in their existing foot print and in contiguous areas. While not on the cheap, the acquisitions have been done with a combination of cash and stock which has preserved their cache of cash. For the time being there is sufficient cash to fund the dividend as the income builds back up to a level which is self sustaining. While not sexy from a opportunistic standpoint in terms of forgone opportunity to acquire failed banks on the the cheap, the overall plan is sound and will ultimately produce both solid income and value. Once the banking sector recovers sufficiently, if they do not provide reasonable shareholder value they will become a nice target for someone either looking to enter the northeast or consolidate their hold there. I think this will provide a decent return over a 3-5 year period for those patient enough and the downside does not appear to be very significant.

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