- Since June 1 when CEO Ralph Babb disclosed preliminary results of a strategic review by Boston Consulting Group, Comerica (NYSE:CMA) 9% decline has outpaced that of its peers.
- Investors were probably hoping for a sale or breakup, but the bank has ruled out a divestiture of one of its three main regional divisions -Texas, California, Michigan - and will instead focus on its Growth in Efficiency and Revenue plan (GEAR).
- Not a fan is Dick Bove who says the options are to sell now at a premium to the current stock price, or go through three years of pain to "bring the company into the 21st century ... Which would you choose?"
- Also hurting is the Fed's dovish turn as Comerica may have mad the most to gain from rate hikes, says Stephens' Terry McEvoy.
- The stock's lower by another 2.7% today.