$23.25
-1.18 (-4.83%)
US Bancorp (USB)
CAPS Rating:
The Company provides financial services including lending & depository services, also engages in credit card, merchant, ATM processing, mortgage banking, insurance, trust & investment management, brokerage, & leasing activities in domestic markets.
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USB may be a conservative bank but it is still a bank. That sector is a dog for the next 2 years. The dividend everybody crows about is already on the way out (how can you pay a dividend when there are no profits?). The extra 6 billion they took dilutes the shares substantially. The PE ratio is way too high. In other words, USB is a stock trading around $32 a share and it should be around $20 - $22 a share at current dilution and earnings. SELL before everybody figures it out! You could always buy back in in a year or two at MUCH better valuations. I think many people feel that if Warren Buffet is in, they should be, too. That is stupid. He can afford to buy it and forget about it. Personally, I would like to make money over the next 2 years, and taking a 33% loss on this stock won't accomplish that.
I did not read your comments before making mine, unbelievable that you wrote almost the same thing in the first line of your comments!