For that, I am already down 30%+ in this name; only $1200 or so in real terms (about -0.1% of performance) but now that it is under $5 its become a speculative stock in a speculative sector. I guess the new darlings are the Morgan Stanley's (MS) or such. Regions was actually a bank that the FDIC handed a failing bank to, so in theory they should not be in "this" bad of shape. I can only assume that if Obama does this bad bank fairly the common shareholders should be diluted to a massive level... without any details who knows. But the risk level/speculative properties have now passed my threshold.
- Regions Financial Corp (RF) may slash its dividend by 90 percent and there is no likelihood of the company's earnings turning positive in 2009, veteran banking analyst Richard Bove said.
- The Ladenburg Thalmann analyst cut his price target on the shares of the large U.S. Southeast regional bank to $7 from $14. Bove forecast a 2009 loss, compared with his prior profit view, and lowered his 2010 earnings estimates for the company.
- Bove, however, maintained his "buy" rating on the stock and said the bank retains the best franchise in the Gulf States, while states like Alabama, Tennessee and northern Florida continue to offer superior growth prospects.
I have Ultra Financial (UYG) to do the same "proxy" job as RF so I'm going to close out this mess of a position. These bank stocks can double in 3 days or drop 50% in 3 days - fun if your timing is perfect, but not for me.
Long Ultra Financial in fund; no personal position
1 comments:
Luckily i sold RF a while back. Have followed them for a long time thinking they'd be a good back to jump back into.
On the bad bank plan, just don't get why RF would have to sell common stock to the govt if they bought the bad assets. Govt should pay the 'fair price' and let it be done. Until the govt stops trying to make a huge profit, the stock market won't rebound. That concept defeats the purpose of trying to prop up the markets. Can't do that by causing people like us trying to invest in this concept to lose money. Everybody has this concept that the people in a stock like RF now were the people that caused the problems. Most of them probably jumped ship along time ago. Govt needs to wake up!
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