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Stephen Rosenman

 
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  • CVS Health: Uninspiring Yields [View article]
    The $10 billion is a big deal - equal to a tenth of CVS's market cap.

    As for your thought the company will only spend $6 billion of the $10 billion: During CVS's last analyst forum in 2013, the company announced a $6 billion share repurchase to also be completed over a "multi-year period" and said it expected to spend $4 billion in 2014 buybacks. Instead, CVS exhausted the whole $6 billion in 2014.

    I expect the same pattern in 2015: CVS takes back $10 billion of stock, a very nice tailwind for shareholders.
    Dec 18, 2014. 11:03 AM | Likes Like |Link to Comment
  • Can Banc Of California's Rapid Growth Overcome Its Sky-High Overhead? [View article]
    Management is considering offering senior debt in 2015, presumably to improve the costs of its existing debt. BANC has rather burdensome debt and reducing that will give them breathing room. So yes, expect to have BOCA called away.
    Nov 18, 2014. 02:28 PM | Likes Like |Link to Comment
  • Update: Valley Financial Corporation Q3 Earnings [View article]
    Nice call.
    Nov 17, 2014. 01:34 PM | Likes Like |Link to Comment
  • BofI Holding: Powerball, Legal Settlements, Costco, MultiFamily, And Soon H&R Block's Bank [View article]
    Nicely said.
    Nov 2, 2014. 01:43 PM | Likes Like |Link to Comment
  • Why New York Community Bancorp's Shares Are Essentially Bonds [View article]
    NYCB does trade like a bond - a very good bond. As long as management can keep assets below $50 billion for at least one out of four quarters, NYCB can maintain a nice profit to cover its bountiful dividend. In fact, management is voluntarily curtailing growth in order not to go over the dreaded $50 billion mark, something Ficalora believes he can accomplish for years. Ficalora would love to do a big deal - and gain much needed low cost deposits to ensure the bank's growth. Unfortunately, that would entail going over the $50 billion - and draw all the extra costs and regulation brought by joining the TBTF. In the meantime, NYCB and other banks near the $50 billion level bide their time until Dodd-Frank is amended.
    The stock isn't for those seeking growth. Quite the opposite - NYCB is for dividend-seekers. You could do a whole lot worse than NYCB with its 6+% dividend. And sleep well. After all, NYCB has paid the 25 cents divi for 43 consecutive quarters.
    Oct 23, 2014. 08:29 PM | Likes Like |Link to Comment
  • BofI Holding: Powerball, Legal Settlements, Costco, MultiFamily, And Soon H&R Block's Bank [View article]
    Efficiency ratio is noninterest expense divided by interest and non interest income. An high ratio means the bank's costs are high relative to its revenue. Unencumbered by physical branches, BOFI has an extremely low overhead and, therefore, a low efficiency ratio.
    Oct 23, 2014. 05:21 PM | 1 Like Like |Link to Comment
  • Yes Virginia, The Market Can Go Down - Part I [View article]
    Bret, why only 25% in cash?
    Sep 25, 2014. 01:51 PM | Likes Like |Link to Comment
  • The Dark Side To The Buckle's Earnings Release [View article]
    The company pre-announces its revenues so no surprise is ever possible on earnings day. Buckle's outperformance today was due to the quarter's lower inventory per store despite limited promotional activity - refreshing and remarkable considering the rest of the shopping mall.
    Aug 21, 2014. 04:23 PM | 2 Likes Like |Link to Comment
  • Peregrine Semiconductor: Heed Management's Warnings Of Further Market Share Loss [View article]
    Thanks for the kind words. And you are correct about AVGO, LSI will be a major contributor to revenue. And true, SWKS is the leader.
    Aug 21, 2014. 06:53 AM | Likes Like |Link to Comment
  • Bad News Is Oversold At First Republic Bank [View article]
    Enjoyed your take.

    Frank-Dodd practically mandates a bank slowdown when it hits the $50 billion asset wall. Shares of FRC have outperformed NYCB for years now by wide margins but the Market understands growth at FRC is about to stall. Investors would rather go over that $50 billion cliff with NYCB's 6.4% dividends than FRC's 1.2% dividends.
    Aug 14, 2014. 06:41 AM | Likes Like |Link to Comment
  • Bancorp Of New Jersey: Growth At A Discount [View article]
    Agree with you, Loonsong: Not for your retirement. These micro banks are just too speculative. However, BKJ, UNTY, PKBK, TRCB, or FCCY - any or all are potential acquisition targets. Likely several will be acquired at substantial premiums, but it is equally possible the one you choose could be left without a bid. I suspect they are all open to an offer, it is just so hard to be below $1 billion asset. Whether one comes along is another story. Still, the bigger banks are looking: A performing loan is worth a lot more in their portfolio than it is in BKJ's.
    Jun 26, 2014. 09:09 PM | Likes Like |Link to Comment
  • Bank Of The Ozarks: Investing With The Smartest Banking Team [View article]
    Nice response.

    I wrote this about Gleason in 2011. It still applies.

    http://seekingalpha.co...
    Jun 23, 2014. 03:32 PM | Likes Like |Link to Comment
  • Bank Of The Ozarks: Investing With The Smartest Banking Team [View article]
    To date, OZRK has greatly expanded its Real Estate Specialties Group throughout Texas and now NYC, Atlanta, and LA. These have contributed the vast majority of the bank's organic growth. It has been a combination of choosing the right place and aggressively making complex loans with deep equity requirements.
    Jun 23, 2014. 01:26 PM | Likes Like |Link to Comment
  • Bancorp Of New Jersey: Growth At A Discount [View article]
    Thanks, ArtfulDodger. I already own a fair number of banks. While BKJ is a good one, I have reached my limit.
    Jun 23, 2014. 10:48 AM | Likes Like |Link to Comment
  • Bank Of The Ozarks: Investing With The Smartest Banking Team [View article]
    Ed,
    The 10-K helps but OZRK's conference calls are a must read. CEO Gleason is a masterful bank strategist. He reads the market like no one else. First, OZRK purchases failed banks throughout the Southeast at a massive discount and benefits from these high-yielding covered loans. Next, the bank builds a deposit factory in Arkansas, North Carolina, and Georgia and invests the money in highly lucrative CRE and construction mortgages in Texas - and later in New York, California, and Atlanta. OZRK's new move: expanding its C&I and leasing divisions - to parallel its success in CRE and construction.
    Jun 23, 2014. 10:21 AM | Likes Like |Link to Comment
COMMENTS STATS
625 Comments
410 Likes