Regional banking issue Comerica (CMA) is in focus today, after announcing last night that it will sell $800 million in common stock in order to repay its debt to the U.S. government. Under the terms of the Troubled Asset Relief Program (TARP). Comerica owes Uncle Sam about $2.25 billion. At this point, the Dallas-based bank is among the few remaining financial institutions yet to repay its TARP debt.

This morning, Comerica priced its common stock offering at $35 per share, representing a discount to Monday's close at $36.29. The shares have quickly backpedaled as a result, slipping below recent support at their 10-day and 20-day moving averages.

Continue reading Comerica Selling Stock to Repay TARP Debt

Comerica Selling Stock to Repay TARP Debt originally appeared on BloggingStocks on Tue, 09 Mar 2010 10:30:00 EST. Please see our terms for use of feeds.

Late Monday, The Bank of New York Mellon Corporation (NYSE: BK) unveiled its plan to sell $1.2 billion worth of stock in order to repay its TARP loan to the U.S. Treasury Department. The company priced 42 million shares at $28.75 a piece, a discount of 3% to the stock's close on Monday.

Even though BK passed the government's stress test with no trouble, the bank is nonetheless eager to raise funds and pay off its debt to the government. Other financial firms selling stock to repay TARP loans include Capital One Financial (NYSE: COF) and U.S. Bancorp (NYSE: USB).

However, investors seem none too pleased with BK's dilutive stock offering. The security shed 2.5% within the first 10 minutes of today's trading, extending BK's retreat from double-top resistance at the $33 level. The shares first shied away from this region in mid-April, and pulled back from the $33 neighborhood again last week.

Continue reading Put sellers target Bank of New York Mellon after $1 billion stock offering

Put sellers target Bank of New York Mellon after $1 billion stock offering originally appeared on BloggingStocks on Tue, 12 May 2009 10:10:00 EST. Please see our terms for use of feeds.

Continue reading BB&T reveals plans to repay TARP funds

BB&T reveals plans to repay TARP funds originally appeared on BloggingStocks on Mon, 11 May 2009 08:30:00 EST. Please see our terms for use of feeds.

After hitting a one-year high of $29.19 in December, the stock hit a one-year low of $21.60 in January. This morning, BKC opened at $27.36. So far today the stock has hit a low of $27.35 and a high of $27.94. As of 12:30, BKC is trading at $27.73, down $0.73 (-2.6%). The chart for BKC looks bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a June bear-call credit spread above the $30 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in six and a half weeks as long as BKC is below $30 at June expiration. Burger King would have to rise by more than 8% before we would start to lose money. Learn more about this type of trade here.

Continue reading Burger King (BKC) drops on stock offering

Burger King (BKC) drops on stock offering originally appeared on BloggingStocks on Tue, 06 May 2008 14:58:00 EST. Please see our terms for use of feeds.