Wrong-Way Wednesday: No QE3 For You [View article]
I am not long USO, DIA and GLD, perhaps I hit the wrong button on SA's question thing but we have not changed our short-term bearish stance (which is sucking for us so far!).
If today ends at or near the highs - we then may reconsider.
HCBK did not take (or need) TARP money. They are very conservative, hence the conservative guidance. In short, they are bankers and the kind of guys you want to invest in if you are looking to buy a bank.
Also, Northeast US has an actual scarcity of land so, long-term, real estate prices tend to hold up better.
Since you ask, here's last night's comment to Members on HCBK:
“The continued elevated levels of unemployment, the weak housing market and the unprecedented level” of competition from Fannie Mae and Freddie Mac have pressured results, Chief Executive Officer Ronald Hermance said in a statement. “Going forward we expect these conditions will significantly hinder our ability to continue earnings at recent historical levels.”
For the 12 months ended Dec. 31, net income was $537.2 million, compared with $527.2 million in 2009. The company has posted 11 straight years of record earnings.
“However, our fourth-quarter earnings are more reflective of the trend we expect in 2011,” Hermance said. “Conditions in the mortgage market continued to produce substantial headwinds.”
HCBK is still solid with a 4.5% dividend (.60) that’s not in danger. At $11.50, you can just sell the 2012 $12.50 puts for $2 and $10 calls for $2 for net $7.50/8.75 and that pops the dividend up to 8% and you still get 33% if called away at $10 or into 2x at net $8.75 which is 24% below current price.
Wrong-Way Wednesday: No QE3 For You [View article]
If today ends at or near the highs - we then may reconsider.
Dippy Thursday - Do We Buy It? [View article]
Dippy Thursday - Do We Buy It? [View article]
Also, Northeast US has an actual scarcity of land so, long-term, real estate prices tend to hold up better.
Dippy Thursday - Do We Buy It? [View article]
“The continued elevated levels of unemployment, the weak housing market and the unprecedented level” of competition from Fannie Mae and Freddie Mac have pressured results, Chief Executive Officer Ronald Hermance said in a statement. “Going forward we expect these conditions will significantly hinder our ability to continue earnings at recent historical levels.”
For the 12 months ended Dec. 31, net income was $537.2 million, compared with $527.2 million in 2009. The company has posted 11 straight years of record earnings.
“However, our fourth-quarter earnings are more reflective of the trend we expect in 2011,” Hermance said. “Conditions in the mortgage market continued to produce substantial headwinds.”
HCBK is still solid with a 4.5% dividend (.60) that’s not in danger. At $11.50, you can just sell the 2012 $12.50 puts for $2 and $10 calls for $2 for net $7.50/8.75 and that pops the dividend up to 8% and you still get 33% if called away at $10 or into 2x at net $8.75 which is 24% below current price.