Bank Stocks

[Paws]

What is everyones opinion on bank stocks? With all the subprime fears it seams like bank stocks have been drivin down. For example one of the local banks (Huntington Bank HBAN $16.97 div $1.06) around me price has dropped now itsdividend yield is 6.2%. Key Bank (KEY) $33.22 div $1.46 yield 4.4% National City $26.55 DIV $1.64 Yield 6.1%. These are just a few. Anyone think this could be a good source of income?

[brewer12345]

Bank stocks in general are an amazing bargain, IMO. You can pick single names if you like, or you can just buy KRE, a regional bank ETF.

[fmhealth]

You may want to take a look at BTO. It's a CEF that specializes in the Banking industry. Pays a 13% Div.!!! Please do your own DD. Full disclosure, I own this CEF.

[Gpond]

Quote:

Originally Posted by brewer12345 08-30-2007, 07:56 PM Bank stocks in general are an amazing bargain

[haha]

Gpond, this could be considered bad form, especially for someone with 8 posts.

[Bestwifeever]

Quote:

Originally Posted by haha Gpond, this could be considered bad form, especially for someone with 8 posts.

Agree--what's the point in scouring the boards to find old posts that prove hindsight is 20/20?

[Gpond]

Quote:

Originally Posted by Bestwifeever Agree--what's the point in scouring the boards to find old posts that prove hindsight is 20/20?

I started reading the post from the start. Sept 07 was the top for the bank stocks.

[ERD50]

Quote:

Originally Posted by haha Gpond, this could be considered bad form, especially for someone with 8 posts.

I'm not sure how Gpond intended it, but one could look at it as an observation that even someone as obviously bright, and connected to the financial world as the poster in question, can still misread the tea leaves.

And where does that leave most of us?

But even if that was the intent (tough to say), some people will (reasonably) see it as 'bad form'. I kinda thought it was bad form myself ( I ought know!), but I was much more interested in the message within. It does say something, no?

-ERD50

[Danny]

Quote:

Originally Posted by ERD50 ...still misread the tea leaves...And where does that leave most of us? -ERD50

Blowing In The Wind?

[packrat44]

Bank stocks have done well for me. Presently have KEY.

[Leonidas]

Quote:

Originally Posted by Paws These are just a few. Anyone think this could be a good source of income?

When I first started investing I let my then adviser talk me into WFC. I don't think they were paying a dividend back then, or it wasn't much of one if they were. I wasn't in love with it when I bought it but I had a lot of trust in the woman advising me and she was really a believer. So I went with it, but just a couple of hundred shares. It just sat there in my portfolio for years before I noticed that it had slowly been gaining share price, was paying a dividend and split. It's steadily grown, split and increased the dividend over the years to where it's the biggest single issue in my portfolio and by far the biggest source of dividend income. I love it - best thing I ever got talked into decision I ever made. I hate the fact that I have to make some sales to trim it's size in the portfolio, but even with this consistent winner I don't think it's wise to have too many eggs in one basket.

[unclemick]

The Norwegian widow has: BAC(bought as Fleet Boston), JPMorgan, Citigroup(bought as ??) and UBS - Ag(Paine Webber). Also a tad of Suntrust(STI).

heh heh heh - she likes those dividends!

[maddythebeagle]

I have been a shareholder of National City for some time and have been adding...6%+ qualified dividends sounds good to me...

[FinanceDude]

Quote:

Originally Posted by Paws What is everyones opinion on bank stocks? With all the subprime fears it seams like bank stocks have been drivin down. For example one of the local banks (Huntington Bank HBAN $16.97 div $1.06) around me price has dropped now itsdividend yield is 6.2%. Key Bank (KEY) $33.22 div $1.46 yield 4.4% National City $26.55 DIV $1.64 Yield 6.1%. These are just a few. Anyone think this could be a good source of income?

Huntington Bank is one of the best run banks in the US...........

[Gumby]

I just bought Barclays (BCS). Now that they have lost the battle for ABN Amro, I expect that they will recover some of the swoon in share price that occurred after they started their campaign for ABN. Right now, the dividend exceeds 5.5% and they have share buyback authorization exceeding $3 billion by the end of the year. A major global player with earnings largely outside the US, so it is a hedge on the dollar. I think the suspicions around their potential trading losses is overblown. Finally, during the last several months, this stock has been heavily shorted. If the trend reverses strongly with this news and the shorts need to cover, there could be a nice pop ahead.

[Dawg52]

Quote:

Originally Posted by Gumby I just bought Barclays (BCS). Now that they have lost the battle for ABN Amro, I expect that they will recover some of the swoon in share price that occurred after they started their campaign for ABN. Right now, the dividend exceeds 5.5% and they have share buyback authorization exceeding $3 billion by the end of the year. A major global player with earnings largely outside the US, so it is a hedge on the dollar. I think the suspicions around their potential trading losses is overblown. Finally, during the last several months, this stock has been heavily shorted. If the trend reverses strongly with this news and the shorts need to cover, there could be a nice pop ahead.

I bought it on 9/10 at 47.51/sh. I wasn't expecting a quick rebound like we have seen, but I will take it. S & P still has it rated a strong buy with a $67 target. Nice dividend too.

[Gumby]

..

[RetireeRobert]

WM sold off another 3=% tpday on news of SEC investigating WM mortgage unit using inflated real estate valuations for issuing loans. WM says they have internal investigation and confident there was "no systematic inflation of RE appraisals.(They didn't say anything about "unsystematic" inflation of appraisals).

WM shares down to $13.66 I believe today.

[poyet]

Quote:

Originally Posted by Gumby One of my poorer decisions. Down 25% to today. I just sold to harvest the tax loss. I may buy back in next month once there is more knowledge about the bond insurer problem (MBIA/Ambac)

BCS over 20 years lies in a channel when displayed with a semilog scale. This demonstrates (among other things) that apart from accidents the company is well managed and matches the 3 1st Buffet's primary principles. The low band is somewhere @ 30$. But I would not buy @ 30$, would wait if I were to buy (they're heavily loaded with debt) to see a positive ROC on MM200. As long as the derivate is negative, it goes down ! I prefer to buy @ 35$ when updward motion will have resumed (if it does), than to buy @ 30$ and crack the support to dive to 25 or 20 or less and be stuck with it for month or years !!! Lost of money is cash painful, but is also a waste of time and opportunity, so it is painful twice.

BCS will certainly not match the criterions I've reminded above next month, and though a short squeeze (but just 500k short for 1.6B shares) could easily push it back to 49$ (MM150 expo), the trend so far is down. Of course it could make kind of a double bottom @ 40 but as nobody knows you have to put the odds on your side.

Wait and see. It is very difficult to refrain oneself in order to make rare (good) decisions and so tempting to keep pressing buttons to execute orders that one regrets three days later...

I know, I struggle against myself everyday and before passing an order fill in my "decision form" to check that all flags are green. Otherwise stand aside, cash is king aspecially at the bottom !

[brewer12345]

BCS is probably a good choice. Just never gets cheap enough for a dirty bottom fisher like me.

BTW, the market seems to have decided banks aren't so bad after all. Lately, even banks that announce big write-offs from mortgage nonsense are going up. Not a bad sign for those of us who took the plunge and bought.