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Cullen/Frost Bankers, Inc. Message Board

  • walrusrus walrusrus Mar 8, 2000 1:37 PM Flag

    what's happening to CFR?

    Is there anyone out there who can tell me what in
    the world is going on with Frost? Heck...the earnings
    are great, the company has no vulnerability with
    credit cards, the loan portfolio is based on sound,
    conservative loan practices...and all seems well. Even oip
    prices are high!

    The stock is down a third in a
    short period of time. Anyone got any clues to provide
    me with?

    I'd be appreciative if someone has a
    crystal ball.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Scott Bleier was on Fox News. Prime Charter on Bulls & Bears discussed CFR

    • Walrusrus:

      Hang in there. I've owned this
      stock for about 5 years and always wish I had bought
      more. The recent price drop has allowed me to add to my
      position at $20/ share. I think its a solid bank that will
      continue to grow and develop a following with
      instituitonal investors as it becomes larger. Both the P/E (10)
      and book value (2x) are very reasonable for this
      Texas franchise. It is the only large independent bank
      (> $5 billion in assets) remaining in Texas, which
      makes it an attractive takeover candidate. All the
      other banks were bought out in the oil crisis and are
      owned by out of state institutions.

      Good luck.

      • 1 Reply to dudecool_25
      • Every sector has a down turn. I am not saying
        anything bad about the bank, just the fact that the stock
        has stalled(until recently). I gave you two hot
        stocks and both have had runups and Cylk has come down a
        bit near my suggested price. Have you seen ENTU? You
        would of made a killing. Stay with CFR, but take your
        extra money and do your DD on WHT(White technolgies).
        It is around $15 and actually makes a profit! Just
        do me a favor and spend 10 minutes on this stock and
        you will be very impressed. You can thank me later if
        you can handle eating a humble pie.

    • Frost (then known as CFBI) showed great ability
      to benefit from boom times in the late
      seventies-early eighties. But its downside protection when the
      oil boom ended in the middle eighties was somewhat
      less effective.

      I'd assign much of the former
      difficulties to a proclivity to hire University of Texas
      grads, make them loan officers immediately, and grant
      them too much authority. They've shown a propensity in
      the past to get themselves into trouble with too high
      a loan concentration in Oil and Mexico, making them
      vulnerable to the inevitable economic downturn. And
      accepting collateral valued at market in boom times which
      becomes worthless during bust periods.

      Has Frost
      learned from the errors of previous market cycles? Only
      time will tell. AND one must recognize that this
      company did weather the cycles better than some of their
      competitors. But if they are positioned to repeat previous
      errors in this rising interest rate environment, a
      decline in the stock price is justified.

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