Forced to buy a banking stock...

Yes, Big Buts and Tits is up about 130bps at 2:00 pm Eastern. (We call BB&T Big Butts and Tits in our area. LOL!)

They were at $36 exactly a Month ago. Now $24. Probably one of the "better managed" banks, if there is such a thing as a well managed bank.

Good call on BBT!

 

Good call! Btw, if you don't mind me asking, what did you pay for the Aug 20's?

 

Even if you buy a good bank, they still are dragged down by the whole sector

 

Thanks for your comment. Paid 2.50 ... slightly under water at the moment - which is fine with me .. means the larger short play is doing what it's supposed to. (no accidents even though we have the insurance) ;-)

 

I'd go with UCBH because at current price risk to reward is very small. See my two other threads on UCBH in the stocks forum for details of why I like this bank. By the way the stock is going to close about 10% up today and was 20% up at one point. I think a squeeze may be starting.

A conservative bank investment would be BXS, BancorpSouth headquartered in Tupelo Miss. Elvises home town. They have very little exposure to bad paper (virtually none). They keep their mortgages. So they don't loan to deadbeats. Pay a nice dividend now that they have been found guilty by association with the deadbeat regionals. This one is good for your Grandmother's portfolio. I've got some and am going to try to add if I can find a sucker to sell me Oct 20 puts at 8 which will get me in at 12. Its at 17.37 at the moment. It was last $12 in Dec 2000.

 

Retail have to be WB. Feels like they have a target on their head for a buyout. But... do they get taken out at a nice price or get bullied into only selling pieces like retail, leaving them, and longs in a tuff spot

Brokerage would be JPM they secretly run the world lol, and see above

 

A blue chip Japanese bank. Conservative lending standards (the ones that weren't conservative went bust over the last 18 years), no property bubble, ultra-low interest rates.

 

remember tma?The ceo bought 1 million shares at 20$ when it was falling.2 weeks later the stock was at 1$...Jeff imelt bought 1 million GE at 32.50 recently...ge at 27$ now...not sure if insider buying is a great indicator during a bear market and recession.

 

None. Seriously. Why would you step into the unknown abyss that is their impossible to value or decipher balance sheets, with all of their paper denominated assets, whether dollars or mortgages or financing statement (all precarious)?

Go to the casino.