My view is at 6% divâs its better then a cd rate plus youâre buying it at a nice discount. Whatâs the real down side besides the easy answer of 35 points?
Financials are a Bad investment here. Way too early. Newbie investors always seem to like to catch the falling knife....don't do it. Dead Money in the least.
Nothing has changed with their core position to improve their outlook, nor have they cornered any burgeoning market to allow for a flock of new customers,, they have diversified to offshore primarily away from being a US consumer servicing bank, except for the wealthy, so any change in banking conditions in the US won't really add or subtract from their profits too much to make much difference, so, what has changed to make them a better investment?
My gut likes this short term here but I have to say reading what people think on a few sites is giving me a complex.
if they have to cut the dividend that 5.6 doesn't matter much. stocks exposed to the subprime mess carry a ton of risk. the accounting for this stuff is horrible.
There has to be a bottom somewhere down here. I mean the stock was almost $50 2 weeks ago. However I wouldn't try to pick the bottom here with all the bad news out. I'd wait for it to start turning back up and then take it for a swing trade.