At 5:05 today Karen Finerman (Fast Money - CBC) again announced that she is short BB&T. She did say that she did NOT add to her position today (big disappointment to me). After hours BB&T is still trading with Wells Fargo (both down about 30 cents) even though Wells Fargo wrote off $480 million.
Later: Guest interviewed who said that financials are going to be in trouble in the fourth quarter. Karen begged him to identify third quarter problems. Would say that Karen would cover at $30 in a heartbeat if she gets the opportunity before 3rd quarter ends. Does anyone else watch fast money??
I used to watch Fast Money everyday when they had the show re-run at 8:00. Very entertaining for those of us who like to watch/play the market. Very fair to say the panelists are traders and believe strongly in momentum. I think (hope) that Finnerman's play on BBT was based on that (momentum) and not based on any real investigation or insight into BB&T. There was a time when the "word" was out that "the Regionals" were the "next to go". What better Regional to short than one which had not been as hurt as others because of its recent run-up (remember going from 19 and change into the high 20's?)? Unfortunataly for KF, since she began her position others who rely more on analysis (Bove, Motley Fool, some dividend oriented Funds) have started to uncover our little gem. As people started to try financials again why should they not get a taste of one with an allegedly safe dividend and monster yield? The short position is enormous (I'm told by other posters on this board) and much of the stock is held by people such as I who own it and are willing to wait for 2 or 3 years because we are damn well paid to. That creates an upside that we have seen playing out for several days (remember 29?). I'll trade in and out to make a quick buck but my block is not for sale at 33 or 37 or 40. If earnings and yield go up a measely 2%/yr over the next 3 years and the markets return to historicasl norms where a bank like BB&T pays a 4% dividend, this thing will be near 50 or taken over beforehand.
Saying all that, it is still possible that the 3rd qtr results could be tough. Maybe some commercial RE loans are in trouble. I have no idea. What I do know is that previous claims that the BBT sky is falling were wrong. I'm taking the chance that they are wrong again.