UNDERVALUED WITH THE DRASTIC DROP. Management (& L)is not stupid and will fix the problems with their network. I bought in at $12.50 and will continue to watch. As I've said before this is similar to in OFG, OFG preferreds, MBI. I would rather buy a existing business below book any day then a high flyer that is selling on extreme forward earnings. In a down market which stock drops faster?
We would say good buy to our dividend. Once they go over 50b NYCB will not be able to pay 100% of earnings as dividend. They will add a layer of regulation.
DOUBTFUL THIS WOULD HAPPEN. Regulatory issues would have pieces being sold to third parties. Also Income investors in this stock would get PNC dividend rate.
Good advise. I loaded up 1000+ shares + div reinvest when $14-15 range and sold a couple $16 puts. I don't regret selling the put but I'm sad that I will lose 200 shares in April. The dividend is so rich its hard to let go. I have cash earning 1 basis point so 600 basis points seems amazing. My advise every time under $16 buy shares and when over $16 sell the $17 calls.
To all income holders of this stock. Sell it please so we can get all the people with a unrealized loss through the stock. It will help on the way back up. Remember you can always buy it back in 31 days.
Not sure but I saw this same thing a couple of years ago with OFG and a little more than a year ago with MBI. I got my feet wet with selling three naked puts. If I get delivery of the stock my net cost would be $11.00 on the dot and I can start collecting dividends and sell covered calls. I don't know what you all are earning on your money but I only earn 1 or 2 basis points on my money. I'd rather have it in a story like this. Lastly, Loews Corp has been good to me so I do not see why this will be much different.
I agree in principal about what you are saying, but if they are saving 400m a year from the dividend reduction and paying off debt of 3B then in 6-8 years they would be debt free. In addition, each chunk of debt repaid will reduce interest expense which will also improve the bottom line. This is not a home run by any means but it will be better than 1 or 2 basis points on my money market. If I can earn a minimum of 6% (dividends, appreciation, covered calls) I'm in.
The people that run Loews Corp are not dumb! The are the majority shareholder here and it was really their decision to do this. Think about this people. BTW to the guy that was long at 25 and short at 13 thanks for making other people rich.
ATT will cut their dividend in the next 12 to 18 months. Their cutting prices to compete.
Sears or JCP will file for bankruptcy in the next 12 months. My guess is JCP retail is changing in big ways.
AVLY (a local bank) will be merged in the next 12 months. Look at the major shareholders STBA & WSBC - both of these banks battled it out for Fidelity Bank last year and WSBC won. AVLY is beginning to look the same way.
I went ahead the other day and sold 3 naked $12.50 puts and walked with $1.50. And I will do upto nine more if the price of the stock falls more. I made a nice amount of money on OFG and MBI over the last couple of years. I believe the battering this stock received to lower the dividend and payoff debt is smart. The dividend is not sustainable if the balance sheet is not in order. Lastly, due to the significant market decline I would give it a 50% chance that it will be taken out by a company like PAA or KMP that needs to keep expanding and raising their payouts.