$16.44
-0.54 (-3.18%)
International Bancshares Corp (IBOC)
CAPS Rating:
The Company is a financial holding company. Its bank subsidiaries are in the business of gathering funds from various sources and investing these funds in order to earn a return.
RSS Headlines
Fool UK
Recs
Commerical real estate construction in Texas, like most of America is in severe decline and appears likely to stay down even after the recession economy improves. This was IBOC's cash cow. IBOC has greater exposure to this market than any of its competitors, yet they denied the harsh reality of pending defaults and severely-limited new business in their earnings forecast. The share price doesn't fully reflect this predicament because investors seem to believe all banks will continue to be bailed out beyond TARP money and reason.
The State bird of Texas is still the tower crane. I'll admit that the commercial real estate market has softened in Texas, but it is certainly not going to crash.A lot has been written about IBOC and its commercial real estate loan portfolio in the last couple of months, but a lot of the projects mentioned in these articles are condo projects...many of them in Austin. The residential real estate market in Austin is healthy, if not the healthiest in the United States. In fact, the market has picked up since the announcement of the first time home buyer tax credit. One more point from someone living in Texas...people are flocking here from states like California, Nevada, Florida, Arizona and Michigan. Why??? Jobs, quality of life, cost of living and cheap real estate.
You have no idea what you are talking about.
Texas is one of, if not the best performing states in the nation.
Texas real estate is in its own bubble. You and your idiot Citron cronies should never make a comment on CAPS again