peshkov
New York Community Bancorp (NYCB) made a couple of important filings with the Securities and Exchange Commission last week that caused the regional bank’s share price to tank by up to 30%. The bank announced that it would
New York Community Bancorp: Why I Doubled My Position On Friday
Summary
- New York Community Bancorp's share price dropped by about 30% after announcing a $2.4B goodwill impairment, a delay in its 10-K report, and identification of material weaknesses in internal controls.
- The bank will lower its fourth-quarter earnings by $2.4B due to a goodwill impairment charge that wipes out its full-year income.
- The resignation of the bank's CEO and concerns about deposit withdrawals add to the uncertainty and potential risks for the bank.
- Shares, however, trade at a huge discount to book value (and my fair value estimate).
- I increased my position in NYCB on Friday by 100%, and the bank now represents 1.3% of my investable assets.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of NYCB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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