Price is Stil close to what it was 8 1/2 years ago
A share of BBT stock was $40.31 end of day 12/31/1998. The ending price for a share of stock on 6/29/2007 was $40.68.
Would someone please tell me again how great this stock is and how great a job the management is doing.
For those who owned this stock on 12/31/1998 congratulations you've made 4 cents a year on each share's appreciation in value you owned since 12/31/1998.
I know, I know the dividends, but even considering the dividends check out your total return for the last 8 1/2 years.
For all those long term holders just check my previous posts and do the math. Yes, you could have paid the long term capital gains and found lots and lots of better investments. In fact a common CD would have probably given you a better 8 1/2 year return even after paying the capital gains taxes.
However, JA and company are Stil getting theirs regardless of what the shareholders get in stock share value.
Good post...well-known subject matter. Getting beyond the STIL banter, though, is the troubling question of how to get this company out of idle. Technical trading is the only way to make money here...price creeps up, investors are quick to sell, grateful to get any return out of this pig. Then, when even a moderate sell-off occurs, investors buy back to get the dividend. As result, the stock has "porpoised" for nearly a decade. BB&T's capital costs are vey high...some investors see this as a safety stock, if the financial markets implode it will be a good place to park money, but most investors do not hold capital in stocks for a period of 10 years waiting for doomsday. They can make money elsewhere, and if doomsday comes, they can plow money into stocks like BB&T. But that lasts only until stability comes back into the market, then you bail, as who would be a long-term owner of a bank with such poor management? Yoda's right, all the mediocre mid-level and upper level employees who pump on this Board are afraid, because they know that a professional bank would drop them like a hot rock in the event of sale. Advice - buy/sell in the narrow range, take the risk. Load up in the event of market tormoil, then dump as soon as you get a big pop. This is only a long term hold in the event of a sale. I pushed ignore on STIL, btw, and this is a much more enjoyable Board now.
Someone asked the question earlier about dividend payout as a percentatg of earnings. Just a quick check shows the following BASED ON LATEST POSTED ANNUAL EARNINGS AND MOST RECENT QUARTERLY DIVIDEND. Sorry to shout, but that's for Still who probably won't understand.
Bank Dividend Earnings Div as % BBT 1.84 2.79 66% ! STI 2.92 5.80 50% WFC 1.12 2.55 44% WB 2.24 4.74 47% BAC 2.24 4.68 48%
Could do more but this starts to show the picture. Obviously, BBT either needs to improve earnings, which they absolutely have no history of or to stop increasing dividend solely to keep some kind of record going. I hope it's the former but I guess we will see. The recent increase in the dividend can only lead one to expect that substantially improved earnings are just around the corner or that management continues to be irresponsible.
The only way that I see we are going to get a stock price increase is for BBT to have a big stock buy back. With a meager stock appreciation of 4%/year since '98 the stock price today would be about $56/share. 4% appreciation is not asking too much.
Hi Jimmie, good 2cu again. Folks who who play shorts like me have made gobs of $$$$. In fact just a few days ago I pulled in another nice chunk, for playing around ya know. I know you like 1998, man you should have been around in 58 and 68