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BB&T Corporation Message Board

  • dickerstein dickerstein Jun 22, 1998 2:57 PM Flag

    Virginia Resignation

    I don't know any of the particulars on the head
    man in Va. leaving the bank but if I had to guess his
    non compete clause is over (3years) and he will jump
    out and start up another bank. This happens all the
    time. No big deal. A small bank in SC sold out to
    Wachovia back about six or seven years ago. The #2 man
    stayed on for three years, and sure enough he left and
    joined up with the #1 man and they fired up again.

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    • I, like the rest of you have enjoyed the ride in
      bank stocks. Great efficiency has been wrung out of
      the system and the shareholders (and CEOs have been
      rewarded). Problem I see is who is holding the cards when
      the house topples. It will too. Not because
      management is not doing the job, but because every good
      thing comes to an end. End will come when the economy
      turns down or smart money decides valuations are just
      too high. I cannot predict when. My shares are 401K
      shares, so I am less inclined to live and die over a
      pullback in the next ten years. However, if BBT was
      acquired, I believe I would have to deversify and wait for
      more sane valuations. Just and opinion.

    • (With apoligies to Mick Jagger!)

      Dr. J.,
      What you might want (i.e., BBK as "growth stock" for
      5-10 years) is unlikely to happen unless they move
      very quickly. If the economy turns down - which I
      don't see soon - BBK will be hurt (portfolio is suspect
      in down econ.) and the stock will dive. It may not
      be good candidate for sale at that point because of
      risk in loan portfolio and other bank's stock will
      probably be off as well, so no big premium. If Mr. Allison
      dosn't do a MOE soon, he will be stuck with slowing
      earnings via slowing loan growth and poor expense controls
      (or so I am told). A big merger would possibly give
      them the mass to survive and pick off weaker rivals,
      but they need to move now. If not, BBK will move
      sideways until stock goes down on weakening fundimentals
      (I know they have been great the last few years, but
      that accelerates the shift away when the deterieration
      begins) or a poor economy.

      What to do? Either
      sell now (or on the next uptick) or prepare for a much
      lower & slower stock price than you have had in the
      last three years. That does not sound like a growth
      stock to me. ButI've been wrong before (havn't we

    • Readum:

      I understand your investing
      position. Bue I have a question for you:

      you rather see BBT continue to be a good growth stock
      over the next 5-10 years than to get a onetime bump up
      from a buyout? What if someone buys out BBT, you get
      there stock, and they do nothing? Maybe even go down.
      Not all banks will suceed in this new environment.
      Someone is going to get hurt ESPECIALLY now that a number
      of home town banks are starting up.

      I'll take
      a bigger BBT, one that can fend off the sharks and
      continue to REALLY serve their customers. And fills its
      market niche.

      Dr. JunJun

    • JIM, Please expound on the technical and empirical analysis that you are looking for. I am new to this type info and am trying to learn.

    • These 2 guys are only a very visible bankers that
      reflect the ongoing trend that runs rampant in the bank
      as a whole. Seasoned bankers are leaving by the
      ten's and maybe hundreds as King and Allison continue
      the stategy dumbing down the officer force in the
      field. Those positions that are filled when vacancies
      occur cost the bank much less, to make fewer and fewer
      independent loan decisions. It's all numbers, boys, and for
      the short term pre-sell out mode, that is all that

    • The word up here is that the two top men in the
      Tidewater area left. And yes, it was because their
      contracts were not renegotiated! This is normal - but BBK
      will probably see more of this in the future. With the
      exception of Glenn Orr, they have left too many S&L kings
      in place. These folks are good people, but for
      another time. Fast Eddie dosn't do it that way - here
      today, big payoff, and gone tommorow. This allows FU to
      get their folks in quick, cuts dead weight and start
      paying for the merger.

      Re: Glenn -- He always
      does what is best for Glenn.

      He's been gone for
      a while. Word is he asked off the Board. Why? Maybe
      he didn't want the same criticism he received when
      on the NC Banking Commision before he quit, i.e.,
      the Chairman of the Commision accused him of using
      his position on the commision to pressure folks to
      sell and/or used his position to gain insider
      information. So, Glenn either dosn't want to mess up brokering
      a sale to BBK of one of his clients or he dosn't
      want to mess up his sale of BBK to someone else. Don't
      think he'd try to sell BBK? He sold Forsythe and SNB
      with a smile on his face and a payoff in his pocket.
      At $1.6MM for life, he'd do it again!!

      Glenn if you chose - but the NC Banking Commision
      choses not too. Maybe we can still make some $ on BBK,
      but only if they sell out - at least for the near
      future. Keeping results up this year will be very, very
      hard. $64 dosn't sound so bad now and forget $70! We
      all missed it!

      • 1 Reply to Stockboy_II
      • Stock:

        Interesting posts. Enjoyed

        I disagree on one front, and thats BBK is
        definately a growth bank. There saying is "if we ain't
        growing, we ain't surviving." They got a whole group that
        does nothing but acquisitions. I still hold hope that
        they move bigger into Virginia and Maryland over the
        next few months.

        I still say they offer the
        public a great product with superior service (BBT has a
        very loyal following). I also don't see 70 by the
        split date in July, but mark my word, after the split,
        this one continues major growth!

        Its sad, but
        I'll bet the big boys have been salivating over this
        bank. How long can Allison hold out?

        Dr. JunJun

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