Yes, everybody who posts regularly on this board knows why this stock doesnt trade with a 4 handle. But we don't share that information with strangers. I'm sorry, but you'll have to get help elsewhere. And hurry, because it's REALLY important to know.
Market up 1.3% on earnings reports from several sectors, combined with hints of continued support from the Fed. And RF is struggling to avoid the red, on fairly normal volume. Despite the good news of the day, and despite continued positive analysis. Investors see RF as fully valued, fairly priced, and range bound. Maybe our only hope short term is for RF to become a takeover target.
Are you concerned at all about Ford's decision to convert the F-150 from steel to aluminum? I've lived out pick-up country for a long time, and I'm not sure brand loyalty will keep the good old boys from switching. Anybody who can remember how hard it was to crush a steel soda can, compared with how easy it is to crush an aluminum one, will be worried about the strength and durability of an aluminum truck body. Won't it make it harder to do body work repairs? I think most shops don't have capability to weld aluminum, and will it require different paint mixes? I don't have any hard information on the subject, but for a company to make such a drastic move with its best known product is certainly high risk.
The payout ratio is only 38%. They can absorb this temporary fall in earnings and still increase the dividend with no problem. XOM is neither fat nor bloated. It's a great company for a long-term hold in an income account. And this is a buying opportunity for those who want to start a position. I have one already, so I'll just hold.
Hope they're running. You know, you could have asked the board's fauxMBA to manage your account while you're off fishing. And you could stand out in the water and cast up onto the beach. Equally good ideas.
Large upward market recovery movement, RF struggles to get back to unchanged. There is no enthusiasm for buying RF above $10. My JPM was up, and my RY and BNS were down, but those banks respond to factors than a large regional. I'm starting to think that RF won't really recover until a successful middle-class redevelops itself. Those are the customers for regional banks, and for the next few years, they will struggle.
What possible reason can you offer for that? Do you even know what a reverse split is? Or why they are ever done? They're done when share price falls so low the stock is in danger of being delisted from the exchanges, typically when they go below $1. Then the company can carry out a 5-1 or 10-1 split to bring the price up. So if PFE did a 2-1 or 3-1, the price would be increased to $58 or $87. And shareholders would have 1/2 or 1/3 as many shares, value unchanged. And how would that benefit anybody?
I remember that FRB approval/permission was the case, but I thought that all those requirements had been met. Don't know for sure, good question.
OPEC has announced that it won't cut production despite a growing oversupply. Here's what I find strange about that. There's no place to put the excess. There are no storage facilities for crude oil, as far as I know, and we're talking about millions of barrels. The entire oil-to-fuel industry is one, continuous flow, which operates at near capacity, which is equal to consumption. From in the ground to a pipeline to a tanker to a pipeline to a refinery to a pipeline to a truck or train to the consumer. So what happens if the well-to-pipeline supply exceeds consumption? I'm finding this situation hard to comprehend. Unlike the rest of the world situation, which I fully understand. That'll be the day.
If you're saying that you're asking, as a long time share holder, you're certainly not a very observant long time share holder. I'm not sure how far back it goes, but at least since 1998 there has been a dividend increase every year, starting with the May dividend. So that's at least 16 years of annual dividend increases, every time beginning in May. How could you not know that? How could you not know how to find that information with about two mouse clicks? In any case, if May qualifies in your long term view as near future, then yes is the answer to your question. If 6 months doesn't qualify as near future, then no is the answer.
A bit more research has allowed me to answer my own questions. If you do a search on "crude oil production cost by country" you'll find that the OPEC countries costs are by far the lowest in the world, about half those for US producers. As oil prices fall, OPEC makes less, but still makes money, while other countries will have to stop producing or produce at a loss. So, there's no reason for OPEC to cut production. They know that basic financial considerations will force others to cut production. Supply -- Demand -- and cost of production. There won't be any need to "store" excess, because there won't be any. Now I can get on with my Christmas shopping.
In case you're wondering, no, I didn't buy in 1993, just making the point that an argument can be skewed by choice of reference point. I bought 3 lots from 2006-08, have a cost basis of about $21, 2000 shares, for an unrealized gain of almost $18,000. Plus I've collected $1500-2000 per year in dividends, another $12,000 or so. For me, this has been a VERY good investment. A real success story. Looking forward to holding the three companies PFE will divide itself into. Wonder which will get the new cancer-immuno drug.
Shaggy, I've been trying to figure out the connection between crude oil prices (falling) and the stock market (falling). I've not found an explanation that makes sense so far, other than the forecast that long term demand for energy is down, which signals contracting economies world wide. It's starting to look to me as if the bull market has run out of energy and is looking for a reason to switch to bear mode. As primarily an income investor, I'm sufficiently invested in energy stocks, also heavy in pharmaceuticals. At present, the only position I'm building is in WPC, a triple-net REIT with world wide holdings.
I'm expecting a 10% broad market pull back, wouldn't be surprised by 20%. At present levels, stocks aren't terribly overpriced, based on PE levels. But, if economies start to contract, E will fall, PE will rise, and selling will begin.
Two years ago, when we had to start taking IRA distributions, we turned them over to a management group recommended by our Fidelity office. At our request, they're turning our entire IRA holding into individual bonds, which balances the stock portfolio I still manage. So far, they've hit the target of maintaining or growing portfolio value while paying out the distributions and their 0.5% annual fee. Of course, as we age, the distributions grow and the value will inevitably fall. But, because we don't need the distributions to meet expenses, we pay the taxes and reinvest the balance.
Don't know where you are on the age-retirement curve, but you might want to start developing a strategy for building a fixed-income holding. I found it much harder than equity investing. The bond market is not set up for individuals. Funds are one way, I prefer the individual manager approach - but you have to have an account worth $500K or more to go that route.
Hope the coming year or several years will not be too turbulent, but not optimistic. Good returns to all.
I agree with the liquidity argument. Since the 1960s, JNJ has split 6 times, with the compounded result being 128-for-1. If everything else had remained the same, JNJ would now be trading for over $13,000 per share, and I'd be wondering what to do with my 5 shares. So, yes, splits are necessary, but given the difference between the value of $100 today versus in the 1960s, I'd be happy to see them adjust the split price to something around $500.
Oh, for sure, you can tell from the sophisticated financial investment strategic comments posted on this board, we're a bunch of players. Remind me again, how do options work?
Doesn't seem to matter what the ratings are. There's just no enthusiasm for RF. In marketing terms, there's no "hook." Dividend isn't bad, but you can do better. Growth prospects aren't bad, but you can do better. Fundamentals aren't bad, but you can do better. Until something shows up in the "WOW" column, it's stuck as a $9.85-$10.25 range-bound stock.
Perhaps you should (a) put a few of the persistent political posters on IGNORE and (b) read the board before you criticize it. There are numerous posts about (a) splitting up the company, (b) the dividend, (c) earnings, (d) mergers and acquisitions, and (e) why PFE is down despite earnings. And in answer to your question: Yes, many who post on this board, including me, have positions in PFE. And in response to your criticism, it's simply not true that "all anyone talks about is their political agenda." There's some of that, but this is far from the worst board in that respect. Do you have anything to contribute to the discussion of any of the above?
Beats a penny on earnings, meets on revenues, and share price ZOOMS up - exactly in line with DOW and less than S&P. Resistance/profit taking at $9.30. RF has become entirely predictable which, if I remember Lesson #1 in Banking 101, is exactly what a regional bank should be. Double the dividend? Fine, now it's yielding 4%, which is just slightly above average, might carry price to $11, bringing yield down to 3.6%, back to stable price. I'm not complaining, not negative, planning to hold for expected income. But growth? Not so much, and only if there's real growth in the economy of the region served by RF.
You have a "bank book." How quaint. I hope you're putting your weekly allowance into it. Maybe one day you'll have enough saved to buy yourself a bicycle.
I'm not saying this isn't a good entry point, just that there isn't any enthusiasm for RF in the market. The fundamentals are about as good as they're going to get - clearly nobody is expecting a big lift from the coming earnings report. An increase in the dividend from 20 to 24 would be a 20% increase, but I don't think that would result in a proportionate price increase to $11. Hope your investment does well.