Flagstar Bancorp Inc New (FBC)

FBC bank is now owned by NYCB

Deal closed late last week. So go to NYCB board for the new combined bank.

As a group, banks always have better numbers when interest rates are going up than when they're coming down. The tens of trillions in U.S. Debt are just beginning to be felt by the international markets, so the bank sector can expect rising profits.

This analysis doesn't imply a vote either way in the merger.

Vote AGAINST under valued takeover by NYCB

Here's why:

Quality comparisons NYCB Flagstar
MRQ Return on average assets 1.03% 2.00%
MRQ Return on average equity 8.63% 25.70%
MRQ Net interest margin 2.48% 2.82%
MRQ Efficiency ratio 39.9% 67.7%


Flagstar is by far the better bank with higher returns and much more efficient. So a larger rubbish bank is taking over a smaller better run bank. However as Warren Buffett pointed out when a good business buys a bad business and good management buys a bad business the bad business’s reputation and record will survive the takeover.
Flagstar manages to earn almost twice the return of NYCB on its assets. And after this Flagstar’s expenses must also be lower as the return on equity is over four times greater than the inferior NYCB.
For shareholders in a bank the key is the return on equity and here NYCB is particularly awful with a return of less than a quarter of Flagstar’s. For Flagstar’s shareholders to get the same return from NYCB they would need to invest around four time the capital.
On all of these metrics

Valuation comparison Peer group Flagstar
Price/2021E earnings PE median 13.8 6.2
Price/2021E earnings PE bottom quartile 13.1 6.2
Price/2022E earnings PE median 13.4 8.7
Price/2022E earnings PE bottom quartile 12.5 8.7
Price / Stated Book Value per share median 1.2 1.1
Price / Stated Book Value per share bottom quartile 1.0 1.1
Price / Tangible Book Value per share median 1.6 1.1
Price / Tangible Book Value per share bottom quartile 1.4 1.1

To add insult to injury NYCB is not even offering a takeover premium to Flagstar shareholders. NYCB labels the takeover a merger to try a disguise its nil premium takeover. When Flagstar’s valuation is compared to a peer group on all the metrics used by Goldman Sach’s employed by NYCB Flagstar is considerably undervalued.

To crush financials, this has traded like a duck since. Low volume. No interest in a good company. A company with iffy financials and never made a profit, 25% per day for no reason.

We could be trading at new all time highs, between $40 and $50 this year at FBC. Giddy up!

News: $FBC Flagstar Reports Fourth Quarter 2018 Net Income of $54 million, or $0.93 Per Diluted Share

TROY, Mich. , Jan. 22, 2019 /PRNewswire/ -- Key Highlights - Fourth Quarter 2018 Completed Wells Fargo branch acquisition, providing low-cost, stable liquidity for continued banking growth. Results include a $29 million pre-tax benefit for hedging gains recognized in conjuncti...

Find out more https://marketwirenews.com/news-releases/flagstar-reports-fourth-quarter-2018-net-income-of-54-million-or-0-93-per-diluted-share-7411128.html

Just figured out why this bank is getting hammered with the market, in the case of FBC it is dropping home sales and less mortgage business as the FED is choking the markets, raising interest rates. The Market is the FED a message. Third week of January these shares may look cheap as a repeat of the last 3 quarters will cut the PE in half easy. Looking for a bottom to load shares here.

We have FBC news and a rally sweet!

Nice 3% bounce here today, but will it last? Earnings are out in 8 days, 5 trading days away.

FBC news

https://ih.advfn.com/p.php?pid=nmona&article=78435602&xref=ff_sidebar_quote

Next 10-Q is going to be real interesting. This may be a great awesome buy if there is tax loss selling here in to the year end, if the profit trend continues. The next 10-Q will be very telling I think. Dec year end quarter and this 10-Q, if they continue to show solid profits will replace a one time loss quarter in Jan 2019 that will blow up the price to a possible $50/share price next year. The 4th quarter this year will replace a loss quarter that will turn what was 30:1 PE to what might be 5-7:1 PE mid Jan 2019

Watching for a bottom to buy this winter.

Super strong quarterly profit just reported on $FBC.

The Market is loving the news. P/E should make a huge change fro 30:1 to under 10:1 based on the last quarter. The last quarter by itself is about 7:1 PE a huge change. May need several repeat quarters to see the annual rate change. need to see what the last 4 quarters were to see where the bad quarter was that needs to drop out to change the annual....

There is that bounce buy signal!!! All aboard folks, time to test $40/share

Getting too cheap to ignore now, I think, but we will see.

May go lower, but in the long run I think this a sleeper

Time to load this one up here I think.

FBC BOOM, big-a-boom

https://ih.advfn.com/p.php?pid=nmona&article=77596679

Buying Wellsfargo bank locations

up 4.4% today

We break out over $40 this trip!

$FBC is on the run again, finally, and leaving the crashing market and Dow stocks in the dust today as they sell off.

Place your bets folks, this is either going to end in a nice buying opp at about $30 or it will bounce real hard on earnings shortly back to $40? Or they might announce a dividend and ram up it way up since the float is super, super small. Massive insider ownership on this regional bank

This is very close to a correction bottom buy now IMHO. Oversold, and not yet bouncing. Higher interest rates are said to be good for the banks, like this regional one in what was one of the hardest hit markets in 2008-09. Growth should have far less headwind for this regional bank. Dividend news may trigger a wave of buying if they declare a return to paying them, and the PE is very reasonable.

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Ecomike Friday, 11/03/17 04:38:23 PM
Re: Ecomike post# 1323 0
Post # of 1324

Looks like a down day for bank stocks today, perhaps they did not like the home sales news. Over reaching no doubt, due to the hurricanes...Next stop here is $40/share

Looks like a down day for bank stocks today, perhaps they did not like the home sales news. Over reaching no doubt, due to the hurricanes...Next stop here is $40/share

I am calling a buy on US Regional bank FBC again, new 5 year high today, the rally shows a rising a channel target at a little over $33, maybe a good bit higher if the new bank reg law gets into actual law that the house just passed and taxes get lowered. Strong buy at 29 to under $30.

PE is under 11, and the bank is growing.

Buy sell or hold now???

Glad I held onto this one, up 13% in one day, no news today that I can find, something big must be up. There was news a week ago, but the market did not react much to it...Looks like we may break $30 finally, then test it for support.

New 52 week high here the last 2 days, Bank stocks are on a bull run, day 2 since the election. Stay tuned!!!

Why the big sell off here today? Earnings today were double the current annual average.

FBC finally repaid the TARP funds to the Treasury, no more expensive interest payments. The stock is making new 8 year and 52 week highs.

Timber

FBC had a Major insider, key insider at that, buying this week on FBC!!!! Also we rallied to a new 52 week and 7 year high this week in a bull break out move!!!

http://ih.advfn.com/p.php?pid=nmona&article=69065984

So what hit the US bank stocks like FBC so hard today?

FBC has been hot recently and has neared long term break out territory on the charts, and now we have confirmed retail insider buying by a risk management VP!!! Latest earnings were awesome to.

http://ih.advfn.com/p.php?pid=nmona&article=68294822&symbol=FBC

One more timely buy call I made. See the chart now, FBC!!

FBC looks way oversold to me!!!

FBC news 8-K is out and an after hours rally back up to the prior days close so no real drop like the close showed.

http://ih.advfn.com/p.php?pid=nmona&article=65217738&symbol=FBC

FBC boom , I called it folks, going much higher here, way up in a down market, up we go up 8% today WooHoo!!

$FBC bottom is here or near, great regional bank stock I am long



More charts here

http://investorshub.advfn.com/Ecomikes-Favorite-stock-picks-and-Stock-DD-topics-26971/

8-K out, new Auditor hired.

http://ih.advfn.com/p.php?pid=nmona&article=64234765&symbol=FBC

The shorts and their legal-vulture bashers with their PR scare tactics are no longer working on FBC as it keeps rising in price now.

Time to go long FBC and make shorts cover.

http://ih.advfn.com/p.php?pid=nmona&article=64185623&symbol=FBC

We have a huge, early warning, buy the dip Form 4 buy signal (old favorite of SA, regional bank, Might be a call option or just buy more shares, I have been long FBC since 2010),

http://ih.advfn.com/p.php?pid=nmona&article=64166916&symbol=FBC


See the job description of the Officer that just bought shares. First one in years!!!! And the stock murdered the last 6 months on law suit news (BS suit, shorts, and the recent world market panic sell off), so this may be a perfect buy or call option buy?

Looks like the law firm and their shorts are trying to cover their shorts and loosing the battle of FBC

http://ih.advfn.com/p.php?pid=nmona&article=64119496&symbol=FBC

My target on FBC is $40/share

I am still haunting it, still holding shares, I love this weeks news

"Flagstar Reports Fourth Quarter 2013 Net Income of $160.5 Million or $2.77 per Diluted Share:" That is huge for a $20 bank stock

GOOD BYE!
Sold out I must be moving on.
I wish anyone that still is around all the best.
Ran this one for a 5 bagger and now it's time to move on!
GLTA... That still haunt this board!

Man large block trades and this one is screaming TODAY!
20.13 NOW

WOWZER, that sounds like great news for FBC longs!!!! $50/share here we come.

Compass Point analyst Kevin Barker reiterated a Buy rating and raised his price target on Flagstar Bancorp (NYSE: FBC) from $21 to $23 citing several near-term catalysts. The stock was also added to Compass Point's Focus List.

The price target hike take into account higher estimates for book value recovery following the rep/warrants settlement with Freddie Mac and higher fair value (or gains) on mortgage servicing rights.

"With this settlement, FBC has effectively settled the vast majority of rep/warrants claims from the GSEs and screens as having excess rep/warrants reserves," Barker said. "In addition, we expect the company to report either a gain on sale or at least a material markup in the fair value of its mortgage servicing rights during fourth quarter earnings."

He adds, "These two events, should put the company in a better position to report positive earnings in the face mortgage banking headwinds and potentially release the valuation allowance on the deferred tax assets."

The firm is moving 4Q13E GAAP EPS to $0.53 from $1.17 and operating EPS to $0.09 from $0.02. They are also adjusting our FY14E GAAP EPS to $0.89 from $0.44, FY14E operating EPS to $0.54 from $0.08 and FY15E EPS to $0.94 from $0.66.

For an analyst ratings summary and ratings history on Flagstar Bancorp click here. For more ratings news on Flagstar Bancorp click here.

Shares of Flagstar Bancorp closed at $19.73 yesterday, with a 52 week range of $12.29-$19.88.

Flagstar made a top pick at Compass Point
Jan 7 2014, 09:22

The deal with Freddie Mac means Flagstar (FBC) has effectively settled the vast majority of its rep and warranty claims with the GSEs and will likely be shown to have over-reserved for them, says analyst Kevin Barker, who also expects the bank to report either a gain on sale or material mark-up in the value of its MSRs in Q4.
"These two events, should put the company in a better position to report positive earnings in the face mortgage banking headwinds and potentially release the valuation allowance on the deferred tax assets."
The stock is added to Compass Point's Focus List and the price target is upped to $23 fro

Yea,We should run into the twenty's going into earnings and depending upon what they say will tell us if we go mid twenty's or go back to the teens.

Good year once again for me anyway.
Most headwinds are gone.. No where to go but to a real value pps and that is at or above 25.00 with DTA's that puts us close to 30.00.

More to come!

IMHO

HAPPY NEW YEAR!!!!!!!!!!!!!!!!

last time I looked we were getting near $20/share here again

Another settlement and 9 mill out the door
TROY, Mich., Dec. 30, 2013 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) ("Flagstar" or the "Company"), the holding company for Flagstar Bank, FSB (the "Bank"), today announced that the Bank has entered into an agreement with the Federal Home Loan Mortgage Corporation ("Freddie Mac") to resolve substantially all of the repurchase requests and obligations associated with loans originated between January 1, 2000 and December 31, 2008 and sold to Freddie Mac.
The total resolution amount is $10.8 million, but after paid claim credits and other adjustments, the Bank will pay $8.9 million to Freddie Mac. The amount of Flagstar's current representation and warranty reserve specific to the loans covered by the agreement is sufficient to cover the payment amount. Less

A bit surprised over our current PPS vs Last years PPS

Last year we were in the twenty's until the MBS litigation started.
This year the headwinds have all but gone away. We have 2.5 billion + cash on the BS (watch for updated info around Jan 22, 2014)
Biz is ok (see last sentence)
We are currently trading at 18.34 as I type.
We have a BV of 17.98
We have 5.22 cents in TDA's
So a true book around Twenty-three
So if you took Twenty-three divide that by 2 that is twelve fifty
You then take 12.50 add that to 23.00 so we get 35.50 is where a profitable bank including the mortgage side should be trading.

BIG DISCONNECT HERE.
The talk on the street is BANKS IN 2014
SO YOU BETTER NOT POUT YOU BETTER NOT CRY FBC IS COMING TO TOWN!
(town = above 30.00 + in PPS in 2014)
IMHO!!!! Less

40.7 billion in MSR sold by EOR.
That should add 500 million to the bottom line!
C'mon 18.00!