A colleague from Sandler told me that you can make a lot of money off of PBCT. Just short the stock. He says People's United Bank has the lowest customer satisfaction among all of the banks they cover. Obviously they know what they are doing up in Bridgeport.
It is a good bank according to its size. I am a member of this bank for the last 25 years.
It is doing OK. When big banks should have been bankrupt People bank survived on its own.
It needs guts. Even now they are paying 5 % dividend. If I lose 5 % in stock value I am equal.
We all paid to all big banks from our taxes. Not a single cent was paid to People's.
It is very easy to run business on our taxes. Government (in fact we) give banks money at
almost 0 % and they charge back to us upto 20%. Now tell me who is smart. Ordinary
people have no intelligence. We just vote for one of the two candidates. According to me there
is absolutely no difference between them after they are elected.
By the way USA is still the best country in the world.
Unfortunately, I don't see it happening as long as the present management is in control. They like their jobs too much to give them up for the benefit of the shareholders. Even if they did agree to a takeover, I think it's likely they'll do a deal similar to what NorthFork Bancorp did with Capital One; sell the bank at no premium in exchange for a "sweetheart" deal to keep their jobs and get big bonuses with fat paychecks and long term contracts. The NorthFork shareholders got royally screwed while management got a terrific deal for themselves. These guys are likely to do the same thing.
PBCT pays a big dividend that makes it an expensive proposition to short the stock. I just see this as a "dead-money" stock.
The more I think about it, the more I lean toward selling all my individual stocks and moving all the money into a total market index fund like the VTI. I've come to the conclusion that owning individual stocks is a loser's game. Most people think they can beat the market, but they seldom manage to do it. Most investors get euphoric when they hit a big winner, but they forget about all the PBCTs they've owned forever that have gone nowhere (or down.) They recall the big winners because the list is so short they're easy to remember.