Conservative Cullen/Frost Conveys Confidence

After the close on 2/12, Cullen/Frost (CFR) surprised me and probably the market with an announcement that it had priced $150mm preferred stock and repurchased $144mm in stock. For those not familiar with this Texas-based bank holding company that turned down $330mm TARP funding in late 2008, it has a solid record of shrewd business decisions that have led to stable earnings growth and years of consecutive dividend increases. When a conservative institution like CFR repurchases its stock in a bold and swift action, as it did today, it is making a loud statement. Before today, I had expected the stock to trade to 72 over the next year, based on achieving 18 P/E, but, in light...