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Varchild2008 (84.36)

Bank of America vs. TCF Bank



August 19, 2009 – Comments (2) | RELATED TICKERS: BAC , TCF

1)   In Q2 BAC produces a LOSS... a BIG LOSS...  Offset by a multi-billion dollar sell off in a stake in a Chinese Bank.  They can't do that again.  C.E.O. is BLEAK when it comes to the future of his bank and the economy.

2)   TCF BANK produces an 8 cent eps PROFIT....  The future looks pretty good with finally an increase in checking fees which makes up a big chunk of their business thanks to their June program to give people $50 or so for opening up a checking account.

So after the Q2 earnings reports you would think TCF's share price spiked up to $16.XX a share while (BAC) plummets to $12.XX or lower?  Right?  Make sense to me.....

Yet instead we get the opposite.  And why?  Cause BAC is a large cap and TFC is just a regional bank and regional banks don't deserve the same P/E multiple as Large Banks cause.. cause..cause... well no real reason why that it is.. it just is...

So yea.. I am a  bit TEED OFF and Disgruntled over this...  I dumped Bank of Collapse after making a big profit on it in favor of TCF.   Now TCF  gets nothing while the complete disaster that is BAC gets a share price boost and a Hedge Fund buying millions of shares.


TCF has no Tarp...  They did accept the Tarp but they did nothing with it other than hand it right back.  TCF never got into subprime mortgages.... They never got into debt swap derivative junk cess pool.... They were just as innocent in it as Comerica Bank.

So why the unfair treatment????  Why the BACKWARDS attitude from Wall Street?

2 Comments – Post Your Own

#1) On August 19, 2009 at 9:52 PM, Varchild2008 (84.36) wrote:

TCF is branching off into expanded business in Floorplan financing with Textron and a partnership with Toro.

These 2 announcements generate NO EXCITEMENT from the investor world.

TCF is expanding their business while everyone on the BAC bandwagon is basically chewing their nails hoping BAC stays afloat healthy enough not to have to shut down thousands of its branches.

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#2) On August 19, 2009 at 10:17 PM, DownEscalator (< 20) wrote:

You found a decent bank to invest in, I reckon.  I like TCF's business stragegy of convenience and, curiously, I'm thinking about switching my main checking activity to TCF from BoA.

The general lesson is to not be upset when you find a good stock and it drops.  Instead, embrace it as an opportunity to buy more if you have cash on hand.

A good company is a good company, regardless of what's happened during this junk rally (and things like this are being seen across the board, where bad companies with high risk of bankruptcy are being pushed past stable earners; personally, I love it, but that's another story).

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