Hey Red I put this on the BPOP board for since you probably forgot, BPOP is the biggest leader and people there should know how bad the economic activity is.
Red_tsar put this information on the DRL board which I thought this board should know since BPOP holds the most loans in Puerto Rico, he probably just forgot to post it here.
Puerto Rico's economic activity hits 20-year low
Puerto Rico's economic activity has slumped to its lowest level in two decades, according to an index released by the commonwealth's Government Development Bank (GDB), which also showed a sharp drop in electric power generation and cement sales.
The bank's economic activity index fell 1.1 percent in August year-over-year, putting the headline index at the lowest level since 1994.
Veteran investor Warren Buffett has lost over $700 million on his investment in U.K. supermarket operator Tesco (London Stock Exchange: TSCO-GB), which has seen shares fall around 43 percent this year.
Buffett, often referred to as the Oracle of Omaha, has consistently backed Tesco, holding a stake in the firm since 2007. But his investment firm Berkshire Hathaway (NYSE:BRK-A - News) is now dealing with a hefty loss after the retailer slumped over 20 percent in the last month.
I wouldn't quiet agree with that. When it comes to banks Buffets history has been pretty clear. If you look at all the to big banks that cant fail, Buffet put 5 billion on BAC, BAC have Countrywide to deal with, lawsuits and losses. Buffet believes in the under dog who are determined to make it, I believe he would bet on Doral, because Doral has proven they are there to help the Puerto Rician people, and Buffet knows people will end up going to that bank.
Hello George, they all try to settle on a lawsuit even right before the judge gives his verdict, both parties have to appear in court to hear the judges verdict and most settlements are done before the judge gives a verdict. If PR feels they didn't have a case they might be worrying about punitive damages that Doral can have rights to if they win.
Warren Buffet invested 1.4 billion in Tesco a year ago, today his investment is worth 720 million, he probably will be dead before he gets his money back, everything is a gamble these days, it doesn't matter how good a stock may look, it can reverse to the downside fast. Any market correction and banks get hit hard every time and will take 2 or more years just to break even.
Hello bmygc, I just found were they are paying dividends thanks for correcting me. I see they pay monthy, also in 2009 most of the preferred shares were 5 dollars a share and 16 months later they hit 18 a share
Hello Front I bought DORLP also, those are 50 dollars preferred shares, I don't think your going to get investors to give up 50 dollar preferred shares with the gamble we took, maybe swap out the 25 dollar preferred shares at 1.5 common share. I think Don knows no one will sell for less then 50 cents on the dollar and that's a heck of a deal for a bank.
Hello Don, DORLL is valued at 228 a share with options to convert shares into commons at 6.9 common shares, the convertible rate can be adjusted as time goes on, first one to get convertible options will probably be DORLL. Regarding the other preferred shares 50 cents on the dollar is the going rate, most Greek Banks offered 50 cents on the dollar with heavy diluted commons, current 25 preferred on a Greek bank is around 13.50 and no dividends. BPOPN, BPOPM and BPOPO are 25 dollars preferred and they don't pay dividends, 2 are worth 21.86 a share each and the other is at 21 a share, seems high for not getting a dividend. IF Doral can get the preferred for 50 cents on the dollar by paying cash, by buying 100 million for 50 million it increases the banks books an extra 50 million, that's why the Greek banks did it, but I think Doral will have to pay more, I would be happy with 50 cents on the dollar, I make a little over 100% profit and the bank makes a 100% profit.
so basically you are saying boyt shouldn't expect a dividend for many years and the waiting time is less for preferred share holders correct?
oops made a miscalculation, preferred shares need to go up 115% to be valued at 50 cents on the dollar with total vale at 175 million
Before DRL pays a dividend they have to pay all the Preferred share holders their dividend first, Preferred shares get paid before commons, that's why I keep saying pay close attention to the preferred shares they are cheap and the best buy for a long term holder with the cheapest dividend being 7.5% once they start paying.
Take the 350 million for the preferred then it leaves 300 million for the common which is 47 dollars a share times 6.4 million shares, with loses on nlp`s we can reduce it the value of commons by 50%, want to make a high loss that brings book value at 23.50 but heck I am not greedy, lest reduce that even more say another 50% which would make it 11.75 a share, and if the preferred shares go up 70% I make another killing on my DRL preferred shares which would make total value of Preferred shares 175 million with an increase of only 70% its fun doing math isn't it?
the euro is suppose to fall to 1.10 vs the dollar, Europe to start QE to get them out of recession, billy is making a good bet in my opinion if he is shorting the euro
Hello Brenda I hold my CLF in my IRA and flip it on my private account. CLF price will move with iron ore prices which are dropping every day, no one thought Australia would flood the market. When I buy a stock I usually buy 1/3 1/2 positions to start incase of drops like this, CLF could go even lower and that why I have not added to CLF yet. Brenda on Sept 15th I sold the CLF and you bought it the next day at 14.98 which I couldn't understand, just like buying BBD in the 18`s, I haven't said anything but I am curious why you buy in high? RSH I said was a high gamble but AT, DRYS and RAD are solid companies and all moved up, I don't include RSH move today, its was a big gamble and I bailed and I never recommended anyone to buy one of my triple FTF`s as they are dangerous plays, I think I am better off not mentioning any of my buys anymore, i don't want people to follow my investments.
The Founding Committee of the Western New York Investors Conference announced today the presenting companies for its 2014 conference, which is scheduled for Friday, September 26, 2014. The conference will be held at the Embassy Suites Buffalo, located at 200 Delaware Avenue, Buffalo, New York, with presentations beginning at 8:00 am ET and running through 2:35 pm ET
Seeking Alpha writers always seem to forget other issues of a stock. If you went with lowest valuation it was 89 cents a share in June of 2013 then a 1 for 20 reverse split made it 17.91 a share, at 17.91 is the same valuation as 89 cents but rather then owning 100 shares you have 5 shares. A win brings this close to 10 a share, we take profits while the bigger guys buy from us as they know its worth more then 10 a share then they will make money. The AS writer must be short, even though they might say they don't hold a position their spouse does, besides no one checks up on SA writers holding, the SEC doesn't have the man power or time.;