Bank Stocks

[Running_Man]

Growth (!?!?) of $10,000: KBW Regional Banking Index Through Feb 2008 Dividend Yield4.13%

Quote:

Note to the technicians and the Bollinger Boys - KRE doublebottomed recently. KBW Regional Bank ETF Making a Double Bottom? - Seeking Alpha Time to pick me up some...

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.

[al_bundy]

this richard howard guy doesn't know what he is talking about

first no person who is into technical analysis uses the regular line chart, we all use candlesticks

second the supposed second bottom is not a bottom and too high to make it a real double bottom

third kre just bounced off another resistance line a few days ago and is now heading back down

[al_bundy]

XLF back under the 50 day line, way under

[al_bundy]

this technical analysis thing doesn't work, we had a double bottom

[Marquette]

Quote:

Originally Posted by al_bundy this technical analysis thing doesn't work, we had a double bottom

So did the lady in front of me at the grocery store last night

[Art G]

CFC deal approved

[JohnDoe]

Is anyone taking a look at WB? I was considering it in the 12-13 dollar range perhaps closer to the next earnings report - or after.

I would guess they have to cut their div again and will take another loss.

[Dawg52]

Quote:

Originally Posted by JohnDoe Is anyone taking a look at WB? I was considering it in the 12-13 dollar range perhaps closer to the next earnings report - or after. I would guess they have to cut their div again and will take another loss.

I would like to say no but I'm sure DVY owns this piece of crap. And I own DVY.

WB: Summary for WACHOVIA CP - Yahoo! Finance

[Running_Man]

Quote:

Originally Posted by Dawg52 I would like to say no but I'm sure DVY owns this piece of crap. And I own DVY. WB: Summary for WACHOVIA CP - Yahoo! Finance

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?

[JohnDoe]

WB to 5? Some of these bank stocks are going to be good long term holds at some point. lol

[al_bundy]

i'm watching the charts every few days

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

[lswswein]

So you guys buying KRE at $22 - dropping 5-10% everyday now. Though the temptation to wait longer is always there

-h

[73ss454]

I bought KRE starting at 44 and kept buying all the way down to 26, I give up but I'm holding.

[FUEGO]

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?

[clifp]

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.

[al_bundy]

a lot of regionals have a lot of CRE exposure

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

[clifp]

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.

[Leonidas]

Quote:

Originally Posted by clifp 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.

[clifp]

However much WFC you own, be assured that Buffett own more!

I am short puts on WFC at 27.50 so I kinda of hope it hangs around this level for a while.

[CCdaCE]

Quote:

Originally Posted by Leonidas 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