Leading to crushing losses for the weaker banks.
Too much cost to run too many branches too close together with too many employees.
Net can't be that good. You will probably get that bogus N0N-GAAP accounting to make it look good. Every quarter it's a new one-time charge!!!
As I recall, the CEO of this bank is pretty young, right? So it's going to be a long wait! Snooze....
You will see ... as it takes a little time! Another Bloomberg article this week:
"Half of the 41 fracking companies operating in the U.S. will be dead or sold by year-end because of slashed spending by oil companies, an executive with Weatherford International Plc said.
There could be about 20 companies left that provide hydraulic fracturing services, Rob Fulks, pressure pumping marketing director at Weatherford, said in an interview Wednesday at the IHS CERAWeek conference in Houston. Demand for fracking, a production method that along with horizontal drilling spurred a boom in U.S. oil and natural gas output, has declined as customers leave wells uncompleted because of low prices."
Once the shale dominoes begin to fall, it will spread to the financial markets and real estate, devastating the energy region. Just like investors missed the tech bubble bursting in 2000, and the real estate bubble bursting in 2008, they are blind to the unfolding crisis! For example, read the Bloomberg article:
"Cheap Oil Is Squeezing Property Owners in Energy Hubs"
Rick too concentrated in texas!!! smart money is bailing!!! every bank in texas will soon fail!!!
Event driven short sellers covered after the settlement was announced, so Thurs. price spike was understandable. However, once the analysts have time to study the settlement, they will realize what a drain it will be on cash flow over the next two years. Plus, financial strength is weak, as plaintiffs probably realized $15M was the max RICK could afford to pay without going bankrupt on them. With settlement on Pole Tax looming, extreme drain on cash flow will starve RICK of financial oxygen for the foreseeable future. Faithful RICK followers will finally realize price can't increase without an increase in free cash flow, leading to further declines in price over the following two years. Nevertheless, once all the liabilities are settled, the prognosis for FYE 2020 looks bullish!!!
Also, a lot of restaurant leases include a "kicker" in the rent based on tenant gross sales. Say you are a landlord: What idiot is going to trust a strip club on sales?
Concerns are: Tenants not diversified by industry; tenants won't be financially strong enough; and landlords don't like restaurants.
According to WSJ article published June 11, 2013.