Well, if banks think low interest rate environments are making things difficult, just wait till the rates get jacked up and inflation follows. Combine that with 9%+ unemployment down the pike, and we may all be looking at a cheap dollar and runaway prices for everything under the sun. So you think maybe the banks are going to like that better? We may all end up trying to get bank loans to buy the groceries.
If I were going to invest in defense, I'd invest in defense-electronics and communications. A company such as Curtiss Wright or Cubic. If you look at the defense area, they are focusing more on "modern warfare," such as drones, computer systems, etc.
Secretary of Defense Gates, appointed by Obama, has made it perfectly clear he has no interest in investing heavily on military projects, projects such as more navy ships, airplanes, etc. In Gates' words the US Navy has more warships than the next 9 navies combined, and 7 of those are allies of USA. NOC is spinning off it's shipbuilding business and that's the last thing I'd touch.
Further consolidation is expected in the sector.
Personally I wouldn't go off and invest in defense companies especially while Obama is in White House and there's such a concern over budget deficits. But that's just me. I don't try to trade based on what White House may do.
I'm monitoring a handful of profitable sub 100 m market cap banks and some of them are saying the same thing HCBK is-these low interest rate envirinoments are making things difficult. ASBI said as much in their last quarterly and further said demand for loans is anemic. All these extremely low loan rates aren't fostering demand. And in my opinion I'm not going to go off and buy something because I can borrow at 2% instead of 3%. In reality all these low interest rates do for me is not make paying loans back a priority.
lol another new alias just joined today? Welcome to the boards!!
Luckily we can spare the introductions because you already know your 100's of other aliases here --- as does Boiler Room, the scorned former bank employee whose penchant for 1-staring posts all day strongly suggests he's living in his parent's basement.
Thanks for the humorous posts though. You sure do care about the facts! Thankfully we have your sassy vocabulary and whimsical punctuation to help inform us! How about this gem from another one of your aliases the other day. Sound familiar lol ----
Strong support in the 11.50 area!! 19-Nov-10 10:22 am Be concerned should it drop to the area of 11.35!!!!!!!!! Precedent shows strong inhibitions dropping below 11.50 for a extended period of time!!!!!!!!
I thought HCBK was actually pretty strong today in comparison to the other bank stocks. There was a point today when every bank stock on my screen was red and down over 2% down. HCBK was roughly .50% better than most bank stocks for the majority of the day and it rebounded ended just fine.
This $11.50 area really seems to be a legit support area.
I would like to hear and read more about their debt, equity ratio, etc. I know that some concerns over this has been mentioned but what are the specifics.