Interstate/Johnson Lane has downgraded BBT, and
the price is falling! Ouch! But why did I/JL
downgrade? As I/JL is owned now by Wachovia, could that lead
to a bias?
P.S. I have carefully proofread
this and I hope it passes inspection by DiotimaOnce
whose input I do appreciate.
WINSTON-SALEM, N.C. -- BB&T Corporation
(NYSE:BBT) reported today record 1998 earnings totaling
$512.8 million, or $1.75 per diluted share, before
after-tax nonrecurring charges of $11.0 million associated
with completing mergers with Life Bancorp, Inc. (Life)
of Norfolk, Va. in the first quarter and Franklin
Bancorporation, Inc. (Franklin) of Washington, D.C. in the third
quarter. Excluding nonrecurring charges, net income
increased 19.7% and earnings per share increased 19.0%
compared to 1997. BB&T�s 1998 results produced a return on
average assets of 1.58% and a return on average equity of
20.16%, compared to prior year ratios of 1.48% and
Even if they do screw up once and a while, BBT
still is ahead of the pack. At least they are not "WE
ARE WACHOVIA!!!! WHO THE H..L ARE YOU?? (and who
cares?) I doubt they are losing many customers - where
would they go?
I think the sell off (sic.) is a
normal function of a stock getting ahead of itself. We
still don't know 98 earnings yet (although whispers had
them .02 ahead for the quarter compared to the
expectations) so some may have sold anticpating some sales
when/if EPS is not what some expected. And remember, even
stock analysts have mothers so speak kindly of them. At
24-25 mutiple, BBT could stand some breathing room.
That's all they are indicating by lowering the "buy"
recomendation to something else. As EPS grow again or other
factors favor a higher PE, they will get back on board.
And remeber, Interstate was the only one to downgrade
- at least so far. Stay tuned for earning report -
I assume sometime this week.
BBT has had a lot of complants lately about miss.
chgs & errors, maybe they have got to big to fast, I
hope not, but some of the customers have left and went
to other banks that do not have these chgs. The
stock has been losing ground the last few days. I hope
they do not have a large sell off, it would hurt.
Maybe things will get better, I hope so.
Once again, thank you BBTFan. You're a very
welcome addition to this board. What should we expect now
in regard to BBT's share price? Mostly sideways
movement for a while? Is the good doctor's prediction of
41 now on hold?
There's a small banking institution in the
Hampton Roads area called Cenit, a reformed S&L. For
several years, shareholders have been split on selling
vs. continuing to compete. Rumor has it that BB&T is
the prospective buyer this time. This doesn't seem a
good idea since BB&T already has the largest market
share in the area after buying Commerce Bank and Life
Savings. Any ideas?