BB&T like many other banks is undervalued in comparision to the market as a whole. Sure, Many investors are rightly pissed or worried about the more than 30% drop in BB&T's price; but we need to remember that's of the past year, it's a done thing, and we're stuck with it if we haven't sold. Now we need to look ahead from where we are at, and that view looks mostly up to me. Regardless of wether or not BB&T is bought out soon, the upward pressure will be there once we're past the Y2K barrier.
appropriate? It appears to me that BBT is still selling at a high PE compared to most banks. Why will price go up go up in future? Will bank PE's move up across the board in the face of sure interest rate increases from the Fed? I'm not trying to be argumentative, just practical. I agree selling now may be too late, and I do have some liquidity to buy stocks, but I can not find a compelling investment reason (that is what this is all about, remember?) that sez that BBT is the place for my cash to invest. As I've said before, I admire management and think this is a good bank, particularly as long as the economy stays relatively strong (bail fast on all banks if the economy tanks - IMHO none are currently ready for a bad economy - it's been too long for them to remember!), but I think the devotion shown here should be more along the lines of - "If I was going to pick a bank to invest in...." - or something like that. Particularly for newbies to investing. IMHO, there are better general investments out there compared to any bank.
Last but not least, I am convinced that BBT is really not for sale - MOE as close as they would come and only if JA stays on top. I still like ASO as a candidate, but they havn't listened to me yet. Hype on this BB that this is a good investment because of takeover, ignores current PE and dilution to any acquirer. Hey, I could be wrong, wouldn't be the first or last time, but I don't see why BBT would have to sell unless they stumble. Then, all bets are off.