New York Community (NYB) trades at one of the lowest P/E’s in the industry and yields 10%. Its short term and long term outlook is positive. NYB will benefit from increased lending, lower funding costs since rates are almost at 0. Its loan losses are almost zero, this is primarily from focusing on multifamily mortgages in rent regulated buildings. In New York these dwellings are highly demanded and almost always fully occupied. Look to sell Jan10 @ 7.50 for a premium of .65cents. on 10 contracts. The requirement would be around $3,000 and would return $650.00 for a yearly gain of 21% or if entered into today, 42% as there are only 6 months left.
Cash rich tech companies: HPQ, CSCO, ORCL, EMC
Facebook lost 5billion in just over a year: In October of 2007 Microsoft Corp. invested $240 million for a 1.6% stake that valued the company at $15 billion. Today Russian internet company Digital Sky values the social networking giant at $10 billion. Facebook has no real earnings and their business model depends on advertising, both companies have overpaid for their stakes.