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New York Community Bancorp Inc. Message Board

  • vanderyn58 vanderyn58 Jul 9, 2012 5:20 PM Flag

    Explain this to me the newbie

    Credit Suisse downgrades stock to a hold, but instead of holding, skillions of people SELL! This is very weird to me the ignorant stock newbie. Stockholders respond to the rater's advice as if it is really important, but they don't do what the rater suggests. Weird.

    And if the price drops precipitously and becomes an apparent bargain, shouldn't the downgrader become an upgrader the very next day!? With the price drop I just bought some of this stuff, so I could have some to "hold." What am I missing, all u stock market smart guys?

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    • Buy on dips. I added to my position on a downgrade two months $11.55. I'm up over a dollar on I get the 8% div. If a stock/company is on dips. I've always used downgrades to buy good stocks. Of course, stay away from the losers. This NYB is a good company.

    • there are only two ratings buy or sell hold means dead money

    • There is so much #$%$ in the market. Most holders of the stock don't sell it. What happens is the short sellers come in and dump un-owned shares hoping to cause a selloff of holders. If this doesn't happen, then the stock rebounds as the shorts cover their positions.
      Most day to day stock moves are caused by the traders.
      I always get a kick out of how the news reports the stock market.
      "today stocks were down because investors were disappointed the fed did not reduce rates etc."
      "Today the market was up as investors grew optimistic Europe will solve the debt issue."
      I'm and investor and nobody ever polled me as to why I did anything.
      So as I said it a bunch of #$%$ listen ti it but don't take it too seriously.
      If NYB can keep paying the divi, it will get back up in share price.
      If they cut, watch out below. I don't think they'll cut.

    • I'll try to explain. I have been in the market most of my life, and I am about the same age as you. I learned a long time ago that when an analyst says he's downgrading from buy to hold most stock buyers out there take the "hold" to be a "preamble" to a "sell" opinion. So, they don't literally follow the advice and hold, but skip to the "assumed" next step "sell". Also, I have found that once an analyst says hold or sell he rarely comes back with a "buy" even if the stock comes down and becomes a supposed bargain price again. Hope this is a satisfactory explanation.

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