Interesting, encouraging action. Nice rise in price, steady throughout the day, high-end volume, seems like at $11 there was a buyer for every seller and a seller for every buyer. Those taking profits were selling to those seeing potential. I had an $11 limit order in for about 20% of holding, happy to get it, want to rebalance. Will sell another 20% at $15, another at $20, then hold the rest. By then, it should have moved the dividend up nicely. Days like this, I can be an optimist, a rare thing for me.
Just looked at the long string of replies to shaggy's "Here ya go" post, and 11 of the 15 are blocked because I've put the posters on ignore. Can't stop them, but don't have to see them.
Just did a search on spam and message boards. It's like a war zone out there, with people developing weapons to prevent spam, others developing weapons to get past the preventative weapons. And there's really big money in some of the targeted websites. But I can't find anything about who would pay to have something posted on a Yahoo message board. Fascinating, right?
So, how did my reply to joco get repeated by a spamster? Why did you say this is a typical pattern? I've never seen it before.
Thanks, that's a lot of information packed into a short post. All makes perfect sense, after translation. And good news.
I think there are probably only four of us left from the olden days, because that's how many thumbs-down the shills get. Finally convinced wife to lighten up on RF position, so as the dividend is increased and price rises with it, we'll be selling into the movement up. Won't get out completely, but time to rebalance sectors.
Absolutely, I think you should take out a third mortgage on the farm and put all the money in RF. How could you lose on one of the strongest buys in the market. But you might want to put the address of the nearest soup kitchen on your speed dial, just in case.
So now you're worried about whether the FDIC will be able to maintain ability to guarantee solvency of US banks? Do you know how long it's been since that has been in doubt? And going back to your first post, brick and mortar isn't dying, but it is going to have to reinvent itself. I expect a decade or two of consolidation, with perhaps four regional banks surviving. There will always be a need for a building to walk into to do some sort of banking business.
ALLY trades as ALFI, trades about 40 shares a day, and it bounces around the $950 per share range. I don't think it's something that posters on message boards should invest in. But, if you insist, ALFI is planning a $1 billion, that's billion with a b, share sale to get its house in order. The sale will be divided among 30 investors, so if you want to pick up a $35,000,000 position, I'll give you my place in line.
Today looks to be a wild ride in the regional bank sector. With BoA reporting sharply increased earnings, all the regionals are up markedly right at the opening. Shorts beware, this isn't your kind of day.
If a dividend increase to at least $0.16 is not announced, that will be taken as a sign of low confidence on part of management, and price will fall back to mid-$9 range. If increased to $0.20, sign of great confidence, price to $11.
I did the same for years. Now I'm in my early 70s and living off my investments. Increasing dividends keeps pace with inflation or even gives me a bit of an income boost. Your method is a sound way to build wealth, stay with it.
$40 would mean a 15% increase in price, which would be doing just fine. I look at SE as a long term hold for dependable income. S&P is looking for $40, and their analysis looks right to me. If there's a pullback to around $30, I'll add to my position, otherwise just hold and bank the dividends.
shaggy, I think it wasn't just the upgrade, but the strength of the rationale for it. Also, the tone of the comments accompanying the upgrade were about as positive as I've ever heard. DB is highly respected for its analysis in the financial community. I'm optimistic about RF for the first time in several years. I think management is to be commended for bringing the bank through the crisis and coming out strong.
Standard & Poors 12-month price is $40. The dividend increase is exactly what S&P had forecast, and that increase is baked into their price prediction. At $40, the P/E and yield for SE will remain where it is, assuming the earnings increase in line with forecast, and more important, SE fundamentals will remain highly competitive and in line with others in the same sector. So, yes, SE price is expected to rise, but not to $50. You might want to broaden your due diligence research methods, just a bit. GLTA.
Oh absolutely, because SE would be so much more attractive with a yield of 2.7% than with a yield of 3.5%. What possible analysis leads you to conclude that a 10% increase in dividend (very nice indeed) would justify a 20% near-term increase in price?
Found this on a "Fly on the Wall" site:
Regions Financial upgraded to Buy from Hold at Deutsche Bank
Deutsche Bank upgraded Regions Financial citing reduced earnings expectations and potential benefits from rising interest rates. The firm raised its price target for shares to $12 from $10.
That's the most optimistic forecast for RF that I've seen. I think there would have to be a major dividend increase to justify a 20% price increase, like doubling the dividend.
I like your forecast and the way you reach it. But I'm just a bit concerned about your health -- "does show wart, math work" which sounds somewhat ominous. Happy new year to all.