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Old 11-02-2007, 05:55 PM
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petekoch petekoch is offline
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Re: Value Trail or Road to the poorhouse?

Quote:
Originally Posted by npg View Post
Hmmm, what made you buy it in the first place?
As stated above, I didn't buy it yet. In fact, it got into single digits today, but I was able to resist.

Instead, I bought USB, a total opposite and about as good a bank as you'll find. A Wide Moat, below average risk and Great Stewardship (according to M*), shareholder friendly, good Q3 results (not billions in losses), financially strong, conservatively managed, with only half of revenues generated by credit spreads. I reckon there's about a 35% MOS here and a juicy 5%+ dividend at these levels. Dependable ROEs for the last 10 years and scintillating ROAs north of 2%. Hell, it's almost a Rule #1 stock.

I'm still watching RDN, PMI and MTG, though. No telling how low they go.
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