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NCC $3.29 pre-market up again I wonder if it will stay up again today...Looks like everything is trading up pre market today so far...But its only 9 am ....
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I am not telling you what to do leatherssonny, but I have flipped NCC the last few weeks for small gains and have been able to stay safe in this market because you never can tell what will happen from one day to the next, and I do not have a margin account now so I can trade more often ,but if you can I would suggest having a margin account , not to use the margin leverage but to be able to flip your shares faster in this market.Being able to get in or out a quick as possible in this market situation can make all of the difference in the world , I am adding margin account status to my account next week so I can trade faster.. I dont know what type of account you have and who you have it through, but that is my recomendation.. I am just giving my opinion on this and do your research on all of this BEFORE you pull the trigger on any opinion that I have. I am still learning and just got back into the market this september when all of the crap hit the fan, And I would HIGHLY recomend spending a few days reading all of the research threads here on allstocks forum and ask as many questions as you can to keep you out trouble, Because I know first hand you can come back to your account one day and notice half of your money gone before you have a chance to salvage it.. There are tons of good traders on this site that are more than happy to help you out.. I found that they are more than happy to even take PMs to get a better idea of what their opinion is . Sorry for the long post but I dont want you to make the same mistakes I did and lose as much as I did when I started... And anybody chime in if I said something wrong.. Good luck on monday
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National City Corp. (NCC) and Fifth Third Bancorp (FITB) delivered more bad news from regional banks as they reported third-quarter losses amid large credit-loss provisions and worsening credit quality. Still, the Ohio banks managed to improve their results from the second quarter, when both companies had even wider losses. Nonetheless, National City announced plans to cut 14% of its work force, or 4,000 jobs, as it moves to cut $500 million to $600 million in costs by 2011. The results come as investors remain worried about how the regional banks will make it through the financial crisis when their larger counterparts, considered better equipped to withstand troubles due to their expansiveness, have fallen victim to the credit crisis.
National City 3Q Net Loss Widens From Year Earlier
National City posts its fifth-straight quarter of red ink amid mortgage-related losses for the embattled bank, which has formed a $21 billion "exit portfolio" to manage loans remaining from exited business and discontinued products separately from its core retail banking. Its third-quarter net loss was $729 million, or $5.86 a share, compared with a prior-year net loss of $19 million, or 3 cents a share. Revenue - tax-equivalent net interest income and noninterest income - fell 18% to $1.41 billion. Analysts polled by Thomson Reuters were expecting a loss of 31 cents a share on $1.72 billion in revenue. The company, which has more than 1,400 branches in nine states, recorded $1.2 billion in loan-loss provisions, down 25% from the second quarter but more than triple the prior-year amount. Net charge-offs - loans the bank doesn't think are collectible - jumped to 2.67% of total loans from 0.54% last year and 2.61% in the second quarter. Nonperforming loans - those near default - climbed to 3.19% from 1.08% and 2.74%, respectively. Net interest margin, the difference between interest earned and interest paid out to depositors, fell to 2.99% from 3.43% a year earlier. The bank's Tier 1 capital ratio rose to 10.98% from 6.78% a year ago and 11.06% in the second quarter. National City, for years a conservative commercial lender until it made a nationwide push into subprime and home-equity loans, is still considering whether it will seek to participate in the U.S. government's program to provide new capital to the nation's major banks. Analysts and company executive have said National City has more than enough capital to handle the mortgages on its books, yet rumors persist that it may sell itself. The fact that the bank has been hobbled by loans has led investors to draw connections between it and other banks that have recently failed or agreed to sales to larger companies.
Fifth Third Bancorp Swings To 3Q Loss
The Cincinnati bank - a Midwestern stalwart that, like many rivals, expanded into hot markets such as Florida during the housing boom and is now paying for it - swung to a net loss of $56 million, or 14 cents a share, compared with prior-year net income of $325 million, or 61 cents a share, a year earlier. The latest results included a net 10 cents in charges. Revenue climbed 24% to $1.79 billion. Analysts polled by Thomson Reuters were expecting earnings of 18 cents a share on $1.66 billion in revenue. The bank's loan-loss provision soared to $941 million, up nearly sevenfold from a year earlier 31% from the second quarter. Net charge-offs - loans the bank thinks are no longer collectible - rose to 2.17% of average loans and leases excluding those held for sale from 0.60% in the prior year and 1.66% in the prior quarter. Nonperforming loans, those in danger of default, increased to 3.3% of total assets from 0.92% and 2.57%, respectively. Net interest margin, the difference between interest earned and interest paid out to depositors, fell to 4.24% from 3.34% last year and 3.04% in the second quarter. National City closed Monday at $2.92, while Fifth Third ended at $12.23. Neither was active in premarket trading. -By Donna Kardos, Dow Jones Newswires; 201-938-5963; donna.kardos*dowjones.com
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Reuters PNC to buy ailing National City for $5.6 billion Friday October 24, 10:10 am ET
NEW YORK (Reuters) - PNC Financial Services Group Inc (NYSE:PNC - News) agreed to buy Ohio's National City Corp (NYSE:NCC - News) in a $5.6 billion transaction that would save the ailing Cleveland-based bank.
PNC said the transaction values National City at $2.23 per share -- a value roughly 19 percent below the Thursday closing price of $2.75. Each National City shareholder would receive 0.0392 PNC share for each National City share.
National City has been hit by home loans it held onto after selling its First Franklin Financial Corp subprime mortgage business to Merrill Lynch & Co Inc (NYSE:MER - News) in 2006. Acquisitions of two Florida banks in 2006 and early 2007 also hurt National City.
In April, National City raised $7 billion of capital from private equity firm Corsair Capital and other investors, but that extra capital was not enough to save it. Regulators have been pressuring National City to sell itself for months.
Pittsburgh-based PNC would buy National City with about $5.2 billion of its shares, and $384 million of cash payable to some owners of warrants. PNC plans to sell $7.7 billion of preferred shares and warrants to the U.S. Treasury under the Troubled Assets Relief Program.
National City posted a $729 million quarterly loss earlier this week. In an interview on Tuesday, Chief Executive Peter Raskind told Reuters the economic environment remains tough. "It probably gets worse before it gets better," he said.
PNC expects the transaction to close by the end of 2008. Citigroup, JPMorgan, and Sandler O'Neill advised PNC, while Goldman advised National City.
-------------------- "When you're in a hole, the first thing you do is stop digging." -H. Ross Perot
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The CEO is an IDIOT!!!!! "We will do what's in the best interest of the shareholders". "We intend on creating wealth for the shareholders" "we are of the best capitalized banks out there"
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quote:Originally posted by metal1: I can't imagine much of a premium considering most of the deals lately have been take unders. i have been know to be wrong though, haha.
Not really a surprise when you look at the other deals that have been done. Like i said earlier, most have been take unders. still too many bad assets on the books. you're getting stock in the new company so a long term hold could work out in the end.
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DJ National City Mulling Participation In Government Plan
. By Ralph E. Winters For DOW JONES NEWSWIRES
CLEVELAND (Dow Jones)--National City Corp. (NCC) is still considering whether it will seek to participate in the new government program to provide new capital to the nation's major banks, said Peter E. Raskind, chairman, president and chief executive.
The bank is "very well capitalized" as the result of a transaction last April that provided $7 billion in new capital, Raskind told a meeting of Cleveland securities analysts Wednesday.
In fact, as of June 30, National City Bank was "the most strongly capitalized" of the nation's large banks, he said.
However, the definition of a strongly capitalized bank "may creep up" as a result of the additional capital being injected into leading institutions, he said. National City will consider that as well as implications for the company's shareholders before deciding whether to seek participation, he said.
"I am actually quite optimistic about the future of the company," Raskind said, while "not glossing over the challenges we face."
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thats what the bear stearns and lehman chiefs thought too. seems like forclosures where coming faster than incoming capital infusions in most cases. like WAMU, their problems caused a classic run on the bank despite the new capital they received just a few months before. their capital ratios crapped out and the Fed stepped in. you're still getting new stock so if the company really is in good shape then it should pay in the long run. interesting times.
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quote:Originally posted by metal1: thats what the bear stearns and lehman chiefs thought too. seems like forclosures where coming faster than incoming capital infusions in most cases. like WAMU, their problems caused a classic run on the bank despite the new capital they received just a few months before. their capital ratios crapped out and the Fed stepped in. you're still getting new stock so if the company really is in good shape then it should pay in the long run. interesting times.
Yes, but that was before government intervention. Those banks went under before all of the infusion. He just stated that he may take the government up on there offer to lend them money. I think he was trying to use the media to boost his stock price. Either way, it was at the very least deceptive.
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quote:Originally posted by metal1: thats what the bear stearns and lehman chiefs thought too. seems like forclosures where coming faster than incoming capital infusions in most cases. like WAMU, their problems caused a classic run on the bank despite the new capital they received just a few months before. their capital ratios crapped out and the Fed stepped in. you're still getting new stock so if the company really is in good shape then it should pay in the long run. interesting times.
Yes, but that was before government intervention. Those banks went under before all of the infusion. He just stated that he may take the government up on there offer to lend them money. I think he was trying to use the media to boost his stock price. Either way, it was at the very least deceptive.
yes, but the gov deals are extremely dilutive in most cases so the stock probably wouldn't go anywhere with that either. either way, it's over now.
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quote:Originally posted by BuckeyeMatt: NCC is currently trading at a premium to the PNC proposed buyout price... Wondering if anyone knows the possible reason(s) for this?
Well the price of PNC stock could increase, increasing the value of the NCC stock holders. Second it's not finalized for a month or so. There was a recent bid for a bank W.... by Citi and then was bought completely by someone else for multi times the original.
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That is exactly what I was thinking. Today is the first day it traded at a premium since the announcement. I think I'll hold a little longer and see what develops...
-------------------- I get lucky just like the rest of you.
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Arbitrage indeed, but currently offering a negative premium on your investment. I think I'll stick to more positive arbitrage spreads like the Huntsman/Apollo or the Fording/Teck deals.
-------------------- I get lucky just like the rest of you.
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Hey Rockster,,I had posted then noticed I was on the wrong thread, cant delete so i cleared it.. Havent seen you around a lot you must be busy ..
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quote:Originally posted by Gary59: Hey Rockster,,I had posted then noticed I was on the wrong thread, cant delete so i cleared it.. Havent seen you around a lot you must be busy ..
Im here and there. Have my portfolio set up the way I like it for now. Throw in a few new ones or quick buy sells. Around once a month, more frequently on occasion. Had my kids over last week, so tried to stay off.
If the market goes up, I'm set. ABK, XLF (financial) and a few other main ones. plus a boat load of pennies.
Take care. I try to read up occasionally
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