AlphaHunter

1 Comment

    • U.S. Bank Dividend Yields Revisited [view article]
      I think finanical sector is still not out of woods even after 340 billion dollar worth of writeoffs and around a trillion dollar wipped out of the market capitalization of this sector. There are number of reasons for that
      1) Securtization cycle is completely broken off, most of the big investment bank/brokers earned a third of the earnings from this. And i don't see this returning back anytime soon.
      2) Regional banks still have to recognize all the losses on the loans that are still on their balance sheets and not yet securitized.
      3) All the recently raised capital(convertibles/p... Debt) will have a highly dilutive impact on the number of shares outstanding 3-5 years down the road.
      4)Banks/Brokerage houses has yet to recognize the losses/reduced earnings due to general economic slowdown
      So any recovery before 2010 is highly unlikely for financial sector.
      i look forward to the Comments/suggestions from fellow alpha seekers.
      Jul 06 01:02 PM
Contribute an Article Become a Seeking Alpha Contributor