Hudson City Bancorp, Inc. (NASDAQ:HCBK)
The Company serves as the holding company of its only subsidiary, Hudson City Savings Bank.
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Banking sector will continue to feel squeeze between deposit inflows and margins.
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Bank stock. Company trying to turn around.
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Missed it at lower prices, but holding in CAPS long term.
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Good managment, good dividend, and not crippled from glutonous dealing in subprime. Too bad the big banks took so much cord they could hang themselves, then got rescued by the Gov't to hang itself & us all, in their place!
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Yield starting to put a floor on this share price. Banking not going away any time soon, especially not regional commercial lending and jumbo home loans.
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Simply undervalued.
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Too much upside in this little engine that could. Well run bank, oversold. Dividend.
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good divident strong balance sheet
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One time charge pushed down stock enough it will recover over next year or two and dividend will also go back up within a year.
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Good valuation. Should improve once they begin increasing their dividend.
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Long watchlist
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Price has been punished through no fault of it's own. A good opportunity at a bargain price.
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Good dividend, limited downside, just be patient and it WILL crawl back up to $15, $20+..
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Covestor Model Manager James Hofmann bought HCBK in his Dividend Growth Covestor Model ( http://covestor.com/James-Hofmann )
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Hudson City Bancorp was not a financial institution that needed federal bailout money. That fact alone should put this regional bank on a "company to watch" list.
The stock was recently decimated by news that regulators will be asking HCBK to raise capital and to find additional sources of income due to fluctuating income rates. (see the story here: http://www.reuters.com/article/2011/03/02/hudsoncity-regulation-idUSN0221842920110302?rpc=77)
However, HCBK caters to a middle-upper class community in the metro-NYC region, so the risk of sub-prime loans are relatively small (and the bank has consistently followed conservative accounting practices).
In addition, have you seen interest rates fluctuating at all? Seems to me they've been consistently low. If inflation begins rearing it's ugly head (food prices rising? Oil rising? Gas costing $80 a gallon...) will the fed respond by raising interest rates? Perhaps, but my gut tells me that the government wouldn't be interested in making money more expensive, especially when unemployment is still so high.
HCBK will pull through these "murky" times. $10 a share is simply too cheap for a quality company such as this.
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The bottom is in, financials have proven to be a great profit machine, this is lagging for no reason, it will bounce.
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Great entry point. Solid bank with very real concerns over the continued tightening of interest spreads. The profits may suffer, but the portfolio is impeccable...
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http://caps.fool.com/Blogs/high-yields-from-nasdaq-100-as/546142
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1. CROIC (if it even works for bank stocks?) is sitting around 7%. Not great. But when I do a DCF using 80% of CROIC as the growth rate, I get a value of about $20/share. It’s sitting at $11.17.
2. P/E of around 10 confirms the potential cheapness of it
3. Management is awesome. They didn’t go for all the craziness of the housing boom. They in fact shunned the “cheap” growth they could have got by altering their underwriting standards. That means they didn’t take on NINJA loans (No Income No Job or Assets). They hoarded cash during the boom and managed to keep their dividend secure during the crisis. That to me is stunning.
4. The dividend. 5.5% with a payout ratio at around 50%. That payout ratio is high, but I am confident management can hold it together.
5. Have an above 6 in Piotroski Score (but I’m unsure if that is helpful for banks)
6. Look to be growing, and are in a sector I like.
7. Probably aren’t evil.
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