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Varchild2008 (85.25)

Varchild Dumps his BAC Shares in favor of another bank

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April 15, 2009 – Comments (4) | RELATED TICKERS: BAC , TCB

Yes.... Not going long on BAC afterall.  But, this is as I mention often one method I use especially if I have a good sizeable profit.  If I eyeball another stock in the same sector that I simply prefer over the stock that I have (BAC) then guess what?  I'll dump BAC and I will throw some of the cash into that other BANK that I prefer.

I am doing a with-in sector trade to go long on a different bank I feel more comfortable going long on.

Trading out of a TARPed bank in favor of a Bank that has already gotten rid of their TARP.

Am I making a mistake?  Maybe... But seeing that I don't do any business with BAC and I do have a savings account in this other bank that I prefer.... I see no problems with the switch-out.

I think this other bank has room to grow while BAC is going to be stuck at $14 as a ceiling for awhile.

I want to raise the ceiling and to do so I must perform a swap.

Dump BAC
Buy TCB

4 Comments – Post Your Own

#1) On April 15, 2009 at 9:25 AM, lenri (71.20) wrote:

Var, at BAC's illogical runup in price that is probably a smart move. How is TCB's fundamentals and what is mortgage, commercial debt and credit card exposure?

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#2) On April 15, 2009 at 10:21 AM, Varchild2008 (85.25) wrote:

They carried only a 5% exposure to Debt (mortgage + credit card) give or take.   S&P loved how low the debt was and boosted their ratings of the company from Hold to a Buy.

Plus.... TCF simply is THE BEST bank to open a savings account in.   My savings account generates over 2% each month of interest payments.  That is awesome.

I can also go there and dump my change... No rolling up the change necessary... into their change machine and for NO CHARGE.. I can take the receipt print out and deposit all of my change to my account.

They are a smaller scale operation that has so much less exposure to the downturn of the economy.

They operate in Michigan, Ohio, and a few other states.  Michigan's housing market bottomed out already and that simply is bullish for TCF.  

Fundamentals for TCF couldn't be any better and brighter and I look forward to their earnings release in April 23rd.

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#3) On April 15, 2009 at 11:24 AM, Schmacko (59.32) wrote:

"How is TCB's fundamentals and what is mortgage, commercial debt and credit card exposure?"

They have about 12billion in outstanding loans with a very rough breakdown like this:

Residential Real Estate - .5 bil

Res Home Equity Loans- 6.8 bil

Commercial Real Estate- 2.7 bil

Commercial Business Loans - .5 bil

Leasing and Equip Finance -2.2 bil

 

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#4) On April 15, 2009 at 4:35 PM, maxhoffa (< 20) wrote:

that's a mistake.  you should keep your BAC.

you've been warned.

but for god's sake, if you're insisting on selling it, wait until after earnings are called on the 20th before doing so.

 

 

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