Imo, most bank analysts are beginning to realize that bbt bad loans are peaking at 140 bsp and should be trending down. Historic average is around 40 bsp which would drive eps to about $1 per share. Look for analysts upgrades in the near term.
Bbt eps will also benefit from increasing net interest margins in the second half (up 3% from 2nd qtr 08 actual), expanding insurance business and good loan growth. Capital is not an issue and the dividend is secure.
Shorts are like molecrickets. Hard to get rid of. However, once investors realize that bbt "normalized" quarterly earnings power is $1 per share and growing, shorts will cover unless they want to commit suicide.
About 14% of bbt shares are short which is very nice if you are long the stock. Unless shorts want to commit financial suicide, they'll cover their short position unless they want to commit financial suicide.
No one can predict exactly when this will happen but imo, it should be in the near term. This is evidenced yesterday by Jim Cramer giving Bbt a ringing endorsement!
Goldman has lost all credibility with this downgrade. Why downgrade a bank that has raised it's dividend (yoy) and is buying up not only deposits but real estate pennies on the dollar. What other bank is known for it's conservative nature and long standing history of building value. Get your shares cheaply this morning in my opinion. This is a head fake.
I agree. The upgrades are surely going to come soon. BBT has been so conservative and it is going to pay off BIG TIME for all of us longs. I'm ready for the shorts to go away...and they will...very soon.