The author is claiming it is a 6 percent yield, the yield of the securities as of last night is actually 4.13 percent. The 6 percent yield is probably considering the payout of the Synovous Financial subsidiary which was distributed as cash to shareholders as a dividend instead of return of capital which is what it was.
KRE continues to make lower highs. The top in KRE after the latest Fed action was 39.71 versus 41.93 for the December Fed action on December 12th when it was thought the FED was going to make KRE a buy (KRE is down 13.6 percent since then) : http://www.early-retirement.org/foru...eze-31811.html
Until KRE rallies to a higher high over the 200 day average I see no confirmation of an uptrend. However for anyone willing to play the KRE falling knife game with KRE at 35.07 you could buy the ETF with a stop at 31.75 risking about 10 percent loss for a potential gain of 20 percent plus if the bank stocks are actually going to turn around and exceed their December highs. Personally I find the 2-1 odds on that play unattractive myself but an understandable risk.
I will continue to await my 26-28 price range.
__________________ Oh, what'll you do now, my blue-eyed son? I'm a-goin' back out 'fore the rain starts a-fallin', I'll walk to the depths of the deepest black forest, Where the people are many and their hands are all empty,
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At what point is DVY going to be throwing out financial stocks that don't meet the dividend criteria? It would seem with 1/2 of their stocks in the financial sector that many will not meet their stated investment criteria and be replaced? I wonder how often they do that?
__________________ Oh, what'll you do now, my blue-eyed son? I'm a-goin' back out 'fore the rain starts a-fallin', I'll walk to the depths of the deepest black forest, Where the people are many and their hands are all empty,
usually you will see the average daily price for the last month or so start to trend up while it's still dropping. once that happens it's either a short covering rally, or the pro's buying in while trying to scare the sheeple on CNBC and in the print media
seeing this in BAC and JPM seems to be stabilizing
So you guys buying KRE at $22 - dropping 5-10% everyday now. Though the temptation to wait longer is always there
-h
__________________ Hope springs eternal in the human breast:Man never is, but always to be blest. The soul, uneasy and confined from home,Rests and expatiates in a life to come.
I bought KBE at $26 and change this past Friday. Apparently 2 days too soon though. Catching falling knives can be hard. If I had more money to throw into this puppy (or KRE) I'd be doing it, but I'm already 100% equities.
Anyone else jumping on the KRE/KBE bandwagon at these prices?
The problem I have with KBE is it contains too many potential IndyMac banks.
I prefer individual issues like ASBC which although missing earning still earned more .37 than its dividend .32 while increase loan loss reserves. Or BB&T which raises its dividend last month for the 37 consecutive year. Of course even relatively conservative banks like Wells Fargo are being trashed. I'd just like to think (or is more like hope and pray) when the dust is settled the banks that stuck with sound banking principals will still be standing with higher market share, while the IndyMacs are buried with the rest of the toxic waste.
there was a story last week about how Steve and Barry's going chap 11 is bad for malls. apparently malls gave money to Steve and Barry's to fund it's expansion. they were supposed to pay it back through rent. now they won't.
retail sales are pretty bad. i'm seeing discounts i haven't seen since 2001 and 2002. two weeks ago bought me 2 pairs of Ecco shoes at Nordstrom for $200. Last year they were $150 each or more. Now i have to work on replacing most of my 5 year old designer jeans
Sweet day to own good quality banks stocks.
WFC 27.23 +6.72
BAC 22.67 +4.15
BBT 24.50 +4.68
Wells raised its dividend by 10% and the chairman (and long-time CEO) bought a $1 million dollars worth recently. That makes three banks stocks that I own that have continued to raise dividends in the worse banking crisis in a generation.
There will probably be a bit of a sell off tomorrow but who knows.
Sweet day to own good quality banks stocks.
WFC 27.23 +6.72
BAC 22.67 +4.15
BBT 24.50 +4.68
Wells raised its dividend by 10% and the chairman (and long-time CEO) bought a $1 million dollars worth recently. That makes three banks stocks that I own that have continued to raise dividends in the worse banking crisis in a generation.
I probably own too much WFC (darn thing kept splitting and going up in the 80's and 90's) and I have hated selling it as I go along, but I have too much exposure. If I could find ten more companies just like Wells I wouldn't even look at the stock market except once a year.
__________________ "If everything is under control, you are going too slow." - Mario Andretti
I probably own too much WFC (darn thing kept splitting and going up in the 80's and 90's) and I have hated selling it as I go along, but I have too much exposure. If I could find ten more companies just like Wells I wouldn't even look at the stock market except once a year.
A real nice problem to have.
-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
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