CanadianBanker

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    • Tue Jul 29th 07:04 AM
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      Spotting Banks In Danger
      Are you kidding me?? Ratio analysis of banks & Savings & Loans? Are you stupid or do you think investors are idiots? Recall GAAP my friends: Banks are allowed to book the negative amortization portion of loan payments as Income. Stop for one minute & THINK!!! Bank's balance sheets are completely & totally over-valued (or over stated). Don't get burned by this crap about looking at ratios. If ratio analysis were that good, we (the investor) wouldn't be sitting here today on worthless paper - i.e. stock certificates. To be sure, Bank's, particularly Savings & Loans are trying to "manage their earnings" (actually their losses) to avoid or defer the inevitable run on their banks. If you have your money deposited in a regional bank, you would be wise to pull it & put it into a larger, national, more well know institution. We are in the middle of a very wide and very deep banking / financial crises. If you live in Southern California, you would be very smart to put your money in Wells Fargo, Bank of The West, or Union Bank (maybe Bank of America). Yes, there is FDIC (but can take up to 8 weeks for a bank to accept a check on a failed bank, or may not take the check at all). Pull your money from S&Ls including First Federal Bank, Downey Saving, Imperial Bank / Comerica and other small local banks. First Federal is trying to convince depositors to keep their money in the their bank - a total hoax and based on, what I believe to be misrepresentations - about the bank's financial stability. Most notably, First Federal is on the watch list of the federal regulators and on Friday (July 25) announced the appointment of a new board member which appears to be a dissidant shareholder (look at their website). However, most alarming is that the bank is departing from its normal practice of announcing its earnings of the last Thursday of the month to this coming weekend (Saturday, August 3rd) in what appears to be their effort to hide / shield their ongoing problems. President Geraldin & CEO Hiembech should be fired!! Should have been fired a long time ago given the stock decline from over $70 to under $7 in about a 12-month period (that represents about 20 years of shareholder value wiped out in 12 months)!!!!. How ironic that Prez Geraldin sold over 50% of his stock holding last Novermber (2007) for over $34 per share & grossing over $1 million (again, look at their website: "Insider Trading"). Talk about a bunch of crooks in my opinion. Stay away!!!
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    • Tue Jul 29th 06:36 AM
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      Who’s Really Getting Bailed Out Here
      First Federal Bank is a train wreck in progress. First, the Sr. Mgmt is, I believe, making its greatest attempt to decieve investors. Note the following: (a) A new member was added to the board of directors on Friday - read the bank's press release (has "Shareholder dissent written all over it), (b) where's the bank's press release on 2Q earnings - normally announced on the last Thursday on the month following the quater end? Well, this quarter will be announced next Saturday - hopefully to keep the expected bad news as quiet as possible. This bank has all the markings of a government take-over. Consider this: (a) The bank is on the watch list of feds (in fact First Fed is considering a ludicrious lawsuit for disclosing this info in the LA Time, (b) core deposits continue to shrink - their base depoist is "brokered deposit" - those investors w/ excess cash of $100k looking to spread their money such that it's covered by FDIC, (c) Look closely at the reserves. The Bank is less then 50% reserved for loans on non-accrual - an accounting gimmick. Expect reserves to increase substantially w/ their 2nd quarter resuts. (d) Speaking of 2nd quarter, do you wonder why First Federal is announcing its 2nd Quarter next weekend? Expect bad news & management is hoping to diminish its impact on the street - love the arrogance but won't work. (f) Speakding of arrogance, did any investor fall for Prez Giraldin or CEO Hiembech's shock that so many loan applications proved to be untrue!!?? What, borrowers who applied for stated income loans actually lied on their application. This "surprise" from two seasoned executives in the S&L industry (I was hearing about these "Liar Loans" in 2004 - are you kidding me?? They are either idiots or think their shareholders are greater fools (read the 2007 annual report if you don't believe me). (g) Prez Giraldin conveniently sold over 50% of his stock (about 32,000) in November for orver $1 million. Ah, you fools, no you idiots. But keep buying FED stock & please continue making your deposits, even if Senior Mgmt doesn't believe in the Company (think Indy Mac, Countrywide, Bear Sterns)!! But read on my investor friends: according to CEO Hiembech, First Fed repurchased over 1 million shares of its stock at an average price of $48.00 (that is $48 million dollars FLUSHED down the toilet). First Fed stock won't see $48 in most of our lifetimes (unless you are 20; which in that case, by 40 it might hit $40). (h) Ever wonder why a CEO would post a non-sensical, gravellling letter begging customers to keep their deposits w/ First Fed (don't believe, look at FED's site; yes Hiembeck is reduced to gravelling for your dollars, which means things must be really bad given that for the last 10 years, she hasn't given a shit about anyone but herself. Please, please do not buy her crap about how well capitalized First Fed is, it is all in how you account for revenues and losses. The bank (more specifically, Hiembech & Geraldin have way under-reserved for loan losses and non-accruals). Ask any analyst: how can a bank be at 19% risk based capital with non-performing assets at over 6% and rising - you can't & they would tell you the books are cooked. Like I said, watch for 2Q08 - particularly cash. IF I WERE YOU, I WOULD PULL MY DEPOSITS FROM FIRST FEDERAL!!!!!!!!!!!!!!
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