Comerica, Inc. (CMA)
A financial services company that has strategically aligned its operations into the following segments: the Business Bank, the Retail Bank, Wealth & Institutional Management and Finance Division.
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still making money even with all of the issues surrounding it.
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Detroit lender has moved headquarters to Texas, certainly a better place to make real estate loans than Detroit. (One in six moving out of state are going to Texas.) Stock price has dropped substantially with the sub-prime credit confidence crisis. PE of 9.2 and dividend is 7.2%. Ourperform.
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#11 yield in S & P 500 as of 04/01/08.
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This CAPS account is tracking the 200 highest yielding S&P stocks.
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I believe Comerica is a good buy under 50 and that they do not have the residential mortgage exposure that other banks do. Yes earnings were off but I believe they are being dragged down buy the other banks. I bought today at 46.6 and they pay almost a 6% dividend.
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Probably unfairly thought of as a Michigan bank, they are in many more states than that.
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Cramer, Canadian Bank Takeover Target
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High dividend yield, benefit from steepening yield curve and declining interest rates.
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Move of HQ to Texas to be positive, and over-reaction to earnings report today
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Subprime loans bad for homeowners and business. CMA A WIN-WIN situation.

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