Stockchase Opinions

Stephen Weiss, Founder, Short Hills Capital Partners New York Community Bankcor Inc. NYCB-N DON'T BUY Mar 01, 2024

Shares are plunging 22% on more inner turmoil. It's troubling. They're not managed well. Troubling that NYCB bought a company recently and the Feds didn't pick up on the company's woes. Avoid regional banks and buy the big, established ones like JPM.

$3.605

Stock price when the opinion was issued

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TOP PICK
Stockchase Research Editor: Michael O’Reilly We again reiterate this top services bank in Metro New York, New Jersey and other other regions, as a TOP PICK. Ranked as one of the top customer service banks in 2021, it trades at 9x earnings versus peers at 14x, and is currently trading under book value. Rising interest rates will enhance their profitability. The dividend yield is high, backed by a payout ratio under 60% of cash flow. We recommend keeping $10.50 as a tight stop loss, looking to achieve $15.00 -- 33% upside. Yield 6.2% (Analysts’ price target is $14.98)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

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PAST TOP PICK
(A Top Pick Mar 29/22, Down 5.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with NYCB has triggered its stop at $10.50. To remain disciplined, we recommend covering the position at this time. This results in a net investment loss of 9%, when combined with the previous buy recommendation.
DON'T BUY
Doesn't grow enough. Don't reach just for its dividend. Prefers Morgan Stanley among banks.
DON'T BUY

Don't be awed by their 10% yield. Pay more attention to the principal, which could go down.

BUY

Last week she was going to sell this, but this morning she woke to see the game has completely changed. (Shares soaring 32%.) One bank's loss is another's gain. Signature Bank is hugely accretive to NY Comm's earnings with total book value rising 15%. NY is paying down debt, reducing reliance on costlier wholesale borrowing and the yield is capital neutral, so there's no need to raise capital.

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1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

NYCB is the second largest multi-family portfolio lender in the US, it trades at 8x earnings, under book value and supports an ROE of 30%.  We like that cash reserves are growing, while retiring debt and buying back shares.  It pays a good dividend, backed by a payout ratio under 20% of cash flow.  We recommend a stop-loss at $10, looking to achieve $15 -- upside potential over 21%.  Yield 5.6%

(Analysts’ price target is $15.34)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 12/23, Down 17.3%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with NYCB has triggered its stop at $10.  To remain disciplined, we recommend covering the position at this time.

DON'T BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

NYCB tried to calm investors today, but also at the same time said it was exploring asset sales. These situations are often binary. Either it survives, and the stock doubles, or more, or it goes to zero. We would consider any long position in options as exceptionally risky, essentially a lottery ticket. The stock is at 27 year lows. One thing to remember in the banking sector is that it runs on confidence. If confidence goes, the company often follows. We would not endorse such a trade unless one just wants a pure 100% speculation with money they don't care about. 
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TOP PICK

new york community bancorp, inc. (nyse: nycb) is one of the 25 largest bank holding companies in the nation, with assets of over $48 billion and a market cap of over $7 billion. with 270+ branches in metro new york, new jersey, florida, arizona, and ohio, we also rank among the 25 largest depositories in the united states. our mission, to excel in all we do for all we serve, applies across the board to our customers, the communities we are a part of, our employees and shareholders. nycb operates its branches through two banks (new york community bank - member fdic and new york commercial bank - member fdic) with eight local divisions, reflecting our growth through acquisition strategy. Social media mentions are up 800% in the past 24h.