3rd GDP Revised Down to 2.8%/MDT & HNZ Earnings/UBSI Dividend Raise/More on ZBPRA/EHL/ Case Shiller Index

1. GDP: The first revision of 3rd quarter GDP was released this morning. GDP was revised down to 2.8% from the prior estimate of 3.5%. News Release: Gross Domestic Product Consumer spending was revised down from 3.4% to 2.9%. It is going to take a long time to recover from the Near Depression. It may take as long as 5 to 7 years to recover the jobs lost from October 2007 to the date the U.S. shows its first monthly job gain sometime next year. This is my current view, always subject to change based on new data, and it dictates the overall strategy going forward of continuing to emphasize the purchase of income generating securities, other than low yielding treasury notes and bonds.

2. Medtronic (owned): Medtronic reported earnings for the 2nd quarter of its fiscal 2010 year of 78 cents (.77 non-GAAP), on a 8% increase in revenues on a constant currency basis. This beat the consensus forecast of 74 cents. Medtronic also raised its forecast for fiscal 2010 to $3.17 to $3.22 from $3.1 to $3.2. The Old Geezer, acting Head Trader, was trying to remember what the game plan was for Medtronic, and may need to request LB's assistance on that issue. MDT is trading up over $3 per share in early trading today. ADDED: LB replied that it had calculated $50 as a potential upside target back in September: Item # 7 Added to Medtronic

3. United Bankshares (UBSI )(Own): This is one of the banks that I placed in category 2 of my bank stock purchases, as explained in yesterday's post. United Bankshares increased its dividend yesterday for the 36th consecutive year. The quarterly increase was from $.29 to $.30 per share. UBSI noted in the release that its dividend had increased at an average rate of 9% per year over that 36 year period. At a 9% rate of increase, a dividend will double in 8.04 years. While the rate of growth may be slower in the future, and is ultimately unknowable now, UBSI is still a relatively small bank with a market capitalization of around 750 million, and it is included in the S & P 600 small cap index. I discussed my purchase in a blog dated 11/17: Bought 50 of UBSI UBSI is one of the banks that refused TARP money. MONEY magazine ran an article in September about how the stocks of banks which refused government bailout money have outperformed those who received TARP funds. UBSI is up almost 4% in early trading this morning.

4. Entergy Louisiana (own First Mortgage Bond-EHL): I noticed that this subsidiary of Entergy issued some more First Mortgage bonds recently. www.sec.gov/ The new issue was for 400 million with a 5.4% coupon and a 2024 maturity date. EHL which I own has a higher coupon of 7.6% and is currently selling at over its $25 par value. It is possible that some of the proceeds might be used to redeem outstanding bonds. At a minimum, that possibility will keep me from buying any additional shares of EHL above par value. My existing holdings were purchased last October at $22.75: END OF DAY TRADES (IR, INTC, TE AND EHL)

5. Saturday Night Live Skit of Hu Jintao and Obama Joint News Conference: Video - NBC.com This is a funny and scorching satire of Obama's policies, and raising a few interesting points with the comedy.

6. EX Interest or EX Dividend: For Wednesday 11/25/09, I noted that the following securities which I own will go ex dividend or ex interest. Both XFL an PJL, the TCs containing the same Verizon senior bond, go ex for their semi-annual interest payments. EMO, the first mortgage bond from Entergy Mississippi, goes ex interest on its quarterly payments. Some of the synthetic floating rate securities, which make monthly interest payments, GJN and GJT, will go ex. GJN has a guarantee. The TP from Zions, ZBPRB, goes ex with its quarterly interest payment. METPRA, a floating rate equity preferred from Met Life, goes ex dividend with its quarterly payment. GXP, an electric utility, goes ex dividend. And lastly, KTV, a TC containing a TP issue from First Union, goes ex with its quarterly payment (First Union was acquired by Wachovia who was in turn acquired by Wells Fargo) Rounded KTV to 100 Shares When I look at the WSJ dividend page each night (Dividends - Markets Data Center - WSJ.com), I sometimes see one or two securities that look interesting to me that I do not own, which is another reason for this exercise.

7. Zions Offer to Exchange Common Stock for ZBPRA (own): My shares of ZBPRA rose almost 25% yesterday on Zions second offer this year relating to those shares. I refused to tender my shares in response to the dutch tender offer which was completed at a $11.5 price for this $25 par value floating rate equity preferred stock. Form 8-K

I am not going to participate in this second attempt to get rid of ZBPRA shares on the cheap. Besides, I would rather own my ZBPRA shares bought at $7.8 than common stock currently paying a penny a quarter in dividends. At my cost, the guarantee provided by ZBPRA is worth almost 13% to me. Bought 100 ZBPRA at $7.8/Corrections Corporation Earnings I will receive a higher yield when 3 month LIBOR rises above 3.48% during the relevant computation period set forth in the prospectus. My ZBPRA is in parity with the government's preferred stock and senior to the common stock. As long as dividends are paid on the common, Zions has to pay me and the government. And, it would have to defer paying the government its dividend in order to eliminate the non-cumulative dividend for ZBPRB. I go into these issues in great detail in an earlier post: See Item # 7 Bought 50 ZBPRB in Roth at $19.9

In the SEC filing for the exchange, Zions make it clear that ZBPRA is a parity stock with the government's preferred D:

"Shares of the Series A Preferred Stock rank senior to our common stock, equally with our Series C Preferred Stock and Series D Preferred Stock and at least equally with each other series of our preferred stock we may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series A Preferred Stock, the Series C Preferred Stock and the Series D Preferred Stock and any other class or series whose vote is required) with respect to the payment of dividends and distributions of assets upon liquidation, dissolution or winding up." Page 33 Offer to Exhange

I have previously discussed the stopper provisions and the exchange offer filing summarizes this important provision for the equity preferred owners:

"So long as any share of Series A Preferred Stock remains outstanding, on any day during a dividend period (1) no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on any junior stock (other than a dividend payable solely in junior stock), (2) no shares of junior stock shall be repurchased, redeemed or otherwise acquired for consideration by us, directly or indirectly (other than as a result of a reclassification of junior stock for or into other junior stock, or the exchange or conversion of one share of junior stock for or into another share of junior stock, and other than through the use of the proceeds of a substantially contemporaneous sale of other shares of junior stock) nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by us, and (3) no shares of parity stock shall be repurchased, redeemed or otherwise acquired for consideration by us otherwise than pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series A Preferred Stock and such parity stock except by conversion into or exchange for junior stock, during a dividend period, unless, in each case, the full dividends for the immediately preceding dividend period on all outstanding shares of Series A Preferred Stock have been declared and paid or declared and a sum sufficient for the payment thereof has been set aside." Page 28 Offer to Exhange

The terms of the exchange offer is contained in this recent filing with the SEC: Offer to Exhange So why would I give up ZBPRA for common shares paying me almost nothing, and what I would view as another miserly offer to boot? The LB says no and HK concurs. The OG was too busy trying to finish Taleb's book, Fooled by Randomness, which contains a lot of philosophy, to offer an opinion on such mundane matters. OG has made it to page 45. After all OG added, HK named the LB the new acting Department Head in Charge of Responding to Exchange Offers, a post that gives it plenty of opportunity to be a Nerd and to show off.

Separately, Zions said that it would be seeking a tax refund for a substantial majority of the 340 million in federal income taxes paid in 2007.

8. Heinz (owned): This was one of the consumer staple stocks bought in March 2009 : Buy of HNZ at 31.67 Heinz reported earnings for its 2nd quarter of 76 cents from continuing operations, better than the consensus forecast of 69 cents. While earnings were down 10 cents from the second quarter of fiscal 2009, that quarter included an 18 cent gain from currency hedging. Heinz also increased it earnings estimate for fiscal 2010 to $2.72 to $2.82 from $2.6 to $2.7.

At the current quarterly dividend rate of 42 cents ($1.68), the yield at a total cost of $31.67 is around 5.3%. Heinz has an erratic dividend history from my perspective. Based on the VL data, it was raising the dividend every year starting in 1993 to 2002, when it reached $1.6 per share. The dividend was then reduced all the way back to $1.08 in 2003. Since then it has been raised every year and finally worked its way back to a tad more than the level in 2001. The pay out ratio is close to 60%. I would put this holding in the category of a hold provided the dividend is raised every year.

9. Case Shiller Index: The index for 20 large metropolitan cities rose .3% in September. www.standardandpoors.com The 10 city composite was up .4%.

10. 2 Year Treasury Note Auction: The 2 year note was auctioned yesterday to yield .75% on the coupon and .802% with the OID. www.treasurydirect.gov/ This was for 45.321 billion in 2 year notes. The weekly 3 month treasury bill was auctioned at .04%, in effect and for all practical purposes free money for the U.S. government. http://www.treasurydirect.gov .pdf

The volatility index for the DJIA, VXD, is currently under 20 again.

Regional Bank Stocks/Divorcing Demand For A Service From Any Responsibility to Pay for It/CPB/ Existing Home Sales/ZBPRA

Rather than listening to more whining from the LB about its dismissal as Head Trader here at HQ, Headknocker has generously decided to mollify the LB by giving it several new titles, including Head of Research, Chief Market Theoretician, Department Head for Macro Economic Analysis, and Chief Nerd.

In one of its new job descriptions, and not exactly sure which one is applicable, LB notes that there is unusual activity in ZBPRA to the upside, rising on heavy volume almost 25%, based on Zion's offer to exchange those shares for common stock. Zions LB notes that it bought those shares at $7.8 (Bought 100 ZBPRA at $7.8), further noting that two dividends have been received so far with another about to be paid, so it was curious whether HK would reconsider LB's dismissal as Head Trader or at least remove from the profile section the reference to ZBPRC. HK responded that it would give the LB another title, Department Head in Charge of Responding to Exchange Offers.

1. Home Sales: The National Association of Realtors reported a 10.1% surge in October's existing home sales. Existing Sales activity was at the highest level since February 2007.

2. Regional Bank Stocks: I was reading Jim Cramer's new book (Getting Back to Even) at my local library, Barnes & Noble, and he does make a cogent case for some of the regional bank stocks, at Chapter 6 pp. 140-162. I have elected to monitor just two of the five, and will try to figure out a decent entry point for 50 share purchases in keeping with my strategy in this area. Cramer's theme is that the current situation is analogous to the last major debacle for the banking system circa 1990-1991, primarily known under the rubric of the S & L crisis. Once that was cleaned up at a tidy cost to the taxpayers, several banks emerged as winners, and he discusses one of them Fleet Boston. I have mentioned in the past that, once the garbage was removed, a large number of surviving banks entered a long secular bull market for the banks, lasting from around 1993 to 2007. This can be verified by simply going to YF and pulling up a number of long term charts.

The Old Geezer remembers this period, and cautions that history may not repeat itself. RB came up with idea, and the LB formulated a strategy, and started to implement it back in March to play a possible repeat of history without risking too much of Headknocker's capital. The first prong of the strategy is patience and time. The second is to divide the banks into two categories of risk. The first category is viewed as having the most risk, and my investments in those banks are classified as lottery tickets with a maximum capital exposure of $300. The second category consists of banks viewed as less risky and even with those institutions my capital limit is around $2000. Based on my evaluation of the bank's progress, I may take a buy out of the LT category and place it in the second category. I have already done this with EWBC and WL, both originally classified as LTs and now part of the second category which allows me to increase my investment. I do not intend to do that with EWBC, but may with WL. I will sell a position before five years if I become convinced that the bank is sliding toward oblivion, which has happened once so far with a bank that was later seized by the FDIC, UCBH, and where I took about a $50 loss earlier in the year. Sold UCBH at a Loss/ I expect failures. The trick will be to cut the losers before the loss hurts and allow the others to run. Two of the purchases have already doubled or more in price, with the biggest gainer so far being EWBC followed by WBS. The lottery ticket purchase links which includes the banks can be found in my Gateway Post for all LTs which is one of the posts which I try to update with new links: LOTTERY TICKET PURCHASES: LINKS IN ONE POST

So far, and this post will be continually update with new purchases, I have initiated LT positions which I will just call Category 1 in the following banks:

Category 1: Less than $300 : All Stocks in this Category Sold or Elevated to Category 2 as of 2011

Regions Financial (RF) at $3.47 Lottery Ticket in 50 shares of RF Sold 50 RF @ 6.57 

Key Bank (KEY) at $5.88 Bought 50 KEY-Lottery Ticket SOLD Sold KEY at 8.12

Huntington Bank (HBAN) at $4.27 & 3.7 Bought 50 Huntington Bank as Lottery Ticket /Added to LT HBAN Sold 90 HBAN at 5.83

Synovus Financial (SNV) at $3.73 Bought 50 LT SNV at $3.73/ SOLD NEAR BREAK-EVEN 4/22/2010

Susquehanna Bancshares (SUSQ) at $5.85 /Bought 50 SUSQ AS LOTTERY TICKET Sold 50 SUSQ @ 7.5

Marshall & Ilsley (MI) at 5.84 Bought 50 MI at 5.84 Sold: 50 MI at 7.14

Bank Mutual (BKMU) at 5.51 Bought 50 BKMU at 5.51 Sold BKMU at 5.93

Sterling Bancshares (SBIB) at $4.63 Bought 40 SBIB Sold SBIB @5.6

Bank of Commerce (BOCH) at 4.46 Bought 50 BOCH at 4.46 Sold BOCH at 3.8

Summit State Bank (SSBI) at 6.3 Bought 50 SSBI at 6.3 Sold: SSBI@ 6.77

Enterprise Financial Services (EFSC) Bought 30 EFSC at 8.48 Sold 30 EFSC @ 8.97

Wilshire Bank (WIBC) Bought 40 WIBC at 6.09 Sold 40 WIBC @ 6.8

Category 2 $300 to $2000- RAISED TO $3000 FALL OF 2010; Raised to $5000 in 2014

BOLD Names=Currently Owned 

Access National (ANCX): Bought 50 ANCX Sold 50 ANCX at $14.9 

American National Bankshares (AMNB): Bought 50 AMNB at $21.16 Sold 50 AMNB at $23.03  Bought:  50 AMNB at $22.07

Astoria Financial (AF) Bought: 100 AF @ 13.08   Bought  50 AF @ 12.08 Sold 50 AF at $14.09 Sold 101 AF at 14.89  Bought 50 AF at $8.9 Sold 50+ AF at $9.39 

Banc of California (BANC): Bought 50 BANC at $11.3 Sold: 50 BANC at $13.5  Bought 100 BANC at $11.7

Bank of South Carolina (BKSC):  Bought 50 BKSC at $14.6 Regional Bank Basket

Bar Harbor Bankshares (BHB) Bought 50 BHB at $30 (stock underwent 3 for 2 split after purchase) Added to BHB at $26.34

BCB Bancorp (BCBP) Bought 50 BCBP at 9 Rounded BCBP to 100 at 7.5 Bought 50 BCBP @ 8.82 Sold: 150 BCBP @ 9.4

Berkshire Hills Bancorp (BHLB) Bought 50 BHLB AT $21.66 Sold 50 BHLB at $28.74+ Bought: 50 BHLB at $24.51 Added 50 BHLB at $23.75 Sold  50 BHLB at $25.75 

BOFI Holdings (BOFI) Bought 50 BOFI at 11.84 Sold: 50 BOFI @ 12.66

Boston Private Financial (BPFH): Bought: 50 BPFH at $12.35

Bridge Bancorp (BDGE) Bought 50 BDGE at 23.11  Bought: 50 BDGE @ 22.14 BOUGHT 50 BDGE AT $18 Sold 50 BDGE at $23.5 Bought Back 50 BDGE at $19.65 Sold 50 BDGE at $23.01 Added 50 BDGE at $20.76 Pared BDGE Selling Highest Cost 56 Shares at $24.71

Brookline Bancorp  (BRKL) Added 70 BRKL at 8.45 Bought 30 BRKL at 9.06 Sold 101+ BRKL at $8.23 Bought 100 BRKL at $8.48 Sold 101+ BRKL at $9.53 

Century Bancorp (CNBKA) Bought 50 CNBKA at 20.53 Sold 50 CNBKA 22.92

Citizens Holding (CIZN) Bought  50 CIZN @ 18.7  Bought: 50 CIZN @ 18.25 SOLD 100 CIZN @ 20.56  Bought Back 50 CIZN at $18.76-Regional Bank Strategy Averaged Down: Added 50 CIZN at $17.62
Citizens & Northern (CZNC) Bought 50 CZNC at 11.77 Added 50 CZNC at 10.46 Sold 100 CZNC at 16.53  Bought 50 CZNC at $19.15 Bought  50 CZNC at $18.5 Sold 100 CZNE at $19.52 

CNB Financial (CCNE) Bought 50 CCNE at 11.06 Added 50 CCNE at $16.11 Regional Bank Basket Strategy: Added 100 CCNE At $17 - South Gent | Seeking Alpha

Community Bank System (CBU) Bought 50 CBU @ 23.18  Added 50 CBU @ 25.19 Sold 51+ CBU at $26.82 

CVB Financial (CVBF) at 7.94 Bought CVBF  Sold 50 CVBF at 9.65


EAST WEST (EWBC) (originally in Category 1) at $5.7 Buy of 50 EWBC SOLD 50 EWBC at $19.04

Enterprise Bancorp (EBTC) Bought 50 EBTC at 11.75 Added 50 EBTC at 10.33 Bought 50 EBTC at 11.27  Sold   50 EBTC @ 13  Sold 100 EBTC at $15.95 

Fauquier Bankshares (FBSS) Bought 50 FBSS at 14.08 Bought 50 FBSS @ 13 Added 50 FBSS at $11.79  Sold 154+ FBSS at 13.05 

Financial Institutions (FISI) Bought 50 FISI at $15.55 Added 50 FISI at $19.8 Added 50 FISI at $18.8  Sold 50 of 150+ FISI at $21.26

First Bancorp of NC (FBNC) Bought 50 FBNC at 12.58 Bought 50 FBNC at $12.01 Sold 50 FBNC at 13.25 

First Community Bancshares (FCBC) Bought 100 FCBC at 13.89  Sold 100 FCBC at 14.44 Bought 50 FCBC at $12.5  Sold 50 FCBC at 15.54 

Fifth Third (FITB) Bought 50 FITB at $19.36

First Bancorp (FNLC) Bought 50 FNLC at 13.6 Bought 50 FNLC at $12.79 Sold 50 FNLC at $14.25 Bought: 50 FNLC at $15.6  Added 100 FNLC at $16.81

First Financial Bancorp (FFBC) Bought 50 FFBC @ 16.85  ADDED 50 FFBC at $14.87 Added 50 FFBC at $15.95 Sold 50 FFBC at $17.51  Added 30 FFBC at $14.24  Added 50 FFBC at $14.65 Sold 57 FFBC at $17.03-Highest Cost Shares  Pared Highest Cost Shares by Selling 55 FFBC at $17.31

First Interstate BancSystems (FIBK) Bought 50 FIBK at 15.64 Sold:   51+ FIBK at $19.33 

FirstMerit (FMER) Bought 50 FMER at 16.96 Added 50 FMER at 16.18 Bought 30 FMER at 11.35 Sold 50 FMER at $17.3 Added 50 FMER at $15.2  Added 50 FMER at $15.09 Sold 50 FMER at $16.9-2nd Pare of Higher Cost Shares 

HopFed Bancorp (HFBC) Bought 50 HFBC at 9.1 Added 50 HFBC at 9.26 Sold 102 HFBC at 8.01

German American Bancorp Bought 50 GABC at 17.05 Sold 52+ GABC at $19.62

Great Southern Bancorp (GSBC)  Bought 50 GSBC at 18.55 Added 50 GSBC at 17.27 Sold 50 of 100 GSBC at 19.27 Sold Remaining 50 GSBC at $19.5 

First Niagara Financial (FNFG) Bought 50 FNFG at 13.7 Added 50 FNFG at 12.62 Bought 50 FNFG at 11.7 Bought 50 FNFG at 11.74 Added 50 FNFG at 13.97 Sold 50 of 250 of FNFG at 14.67  Added 50 FNFG at 12.8 Bought 50 FNFG at $8.88

First South Bancorp (FSBK) Bought 50 FSBK at 10.15 Added 50 FSBK at 9.81 SOLD 100 FSBK @ 10.1

Flushing Financial (FFIC) Bought 50 FFIC at 12.18 Added 50 FFIC at 11.05 Sold 50 FFIC @ 14.51 Sold 50 FFIC at $13.53 

F.N.B. (FNB) Added 50 FNB at 7.8 Bought 50 FNB at 8.42 Bought 50 FNB at 9.36   Pared FNB: Sold 50 at $10 and 50 at $10.18  Bought 50 FNB at $11.25

HF Financial (HFFC): Bought 50 HFFC at 9.71 Sold: 50 HFFC @10.6

Horizon Bancorp (HBNC) Bought 60 HBNC at $17.55 Sold 60 HBNC at $24.96 

Hudson City Bancorp (HCBK) Bought 50 HCBK at 13.27 RB Adds 50 HCBK at 12.15 Sold 111+ HCBK at $8.74 

Glacier Bancorp (GBCI) at 13: Bought 50 GBCI at 13  Sold 50 GBCI at 14.58 Bought 50 GBCI at $10.15  Sold 50 GBCI at $12.53

Huntington (HBAN) (promoted from LT Category) Added 40 HBAN at $7.04; Bought 30 HBAN @ 7.25 as LT; Added 30 HBAN as LT at $4.8 Sold 100 HBAN at $9.53 

KeyCorp (KEY)(promoted from LT category) Added 70 KEY at $8.77 (and removed 30 shares from LT Category 10/4/12); Bought 30 KEY at 8.75; Added 40 KEY at $7.87 Sold: 140 KEY at $11.8025  

Lakeland Bancorp (LBAI): Bought 100 LBAI at $9.46 Sold 100 LBAI at $11.04 Lakeland Bancorp: Bought 100 LBAI at $10.91

Landmark Bancorp (LARK) Bought 50 LARK @ 16.6 SOLD 52 LARK at $18.75 Bought  50 LARK at $19.7-Sold 50 LARK at $23.5  Bought 50 LARK at $19.76 Sold 50 LARK at $22.42 

Merchants Bancshares (MBVT) Bought 50 MBVT at 22.9  SOLD 50 MBVT at 26.5 Bought 50 MBVT at $26.25 

Monarch Financial (MNRK): Bought 120 MNRK at $8.65 (split 6 for 5); Sold 100 MNRK at $10.59  Bought 80 MNRK at $9.97 Sold 100 MNRK at $11.5

National Bankshares (NKSH): Bought 50 NKSH at $30.4

National Penn Bancshares (NPBC): Added 100 NPBC at $10.68 Added 50 NPBC at $9.85 Added 50 NPBC at $10.12

NBT Bancorp (NBTB) Bought:  50 NBTB at $22.76

New Alliance (NAL) at 11.76 Bought NAL at 11.76 Sold 50 NAL at 12.7

New Hampshire Thrift (NHTB) at 9.51 Bought 100 NHTB at $9.51  Sold 100 NHTB at $12.15 

New York Community Bank  Bought 50 NYB at $11.3 50 NYB at 10.9 50 NYB at $11 Added 50 NYB at $10.57 Sold NYB in IRA at $17.51 Added 50 NYB at $12.79  Bought 50 NYCB at $12.94-Regular IRA Sold: 50 NYCB at $14.25 

Northeast Bancorp Bought 100 NBN at $8.7 Sold 100 NBN at $9.5 

Northrim BanCorp (NRIM) Bought 50 NRIM at $16.66  Sold 50 NRIM at 20.05 

Northwest Bancshares (NWBI) Added 50 NWBI at 11.88 Bought 50 NWBI at 11.47 Added 50 NWBI at 11.10 Bought: 50 NWBI at 10.45  Sold 50 NWBI @ 12.5 Sold 156+ NWBI at $12.52 

OceanFirst (OCFC) at 10.4 Bought 50 OCFC at 10.4  Sold OCFC at $12.45 

Old National Bancorp (ONB) Bought 100 ONB at $11.85 SOLD 100 ONB at $13 Bought Back 50 ONB at $11.9  Sold 50 ONB at $14.12  Bought 50 ONB at $13.29

Oneida Financial (ONFC) Bought 50 ONFC at $7.7  Sold 50+ ONFC at $9.35  

Oritani Financial (ORIT)  Bought 50 ORIT @ 11.58 Sold:  50 ORIT @ 12.49

Pacific Continental (PCBK)(promoted from LT Category) Added 70 PCBK AT $9 (and removed 30 shares from the LT Category 10/19/12 Bought 30 PCBK as LT at 9.42 Sold PCBK at $12.99 

People's United (PBCT) Bought 100 PBCT at $11.47  Sold 100 PBCT at $14.61 

Porter Bancorp (PBIB) Bought 50 PBIB at 14.1/ Sold 50 PBIB at 14.7 Bought 50PBIB at $14.1 Bought 50 PBIB at 13.27  Sold 1/2 PBIB at $10.18  for a Loss  

Premier Financial (PFBI) Bought 50 PFBI at 7.95 Sold 50 PFBI at 6.46

Provident Financial (PFS) Bought 50 PFS at 12.74 Added 50 PFS at 11.68 Sold: 50 PFS @ 14.4 SOLD 50 PFS at 14.88

Provident New York Bancorp (PBNY) Bought 100 PBNY at $7.4 Sold 100 PBNY at $9.05

Renasant (RNST) Bought 50 RNST at 14.14 Bought: 50 RNST at 13.70 Sold 50 RNST at 14.91  Added 50 RNST at 15.85  Sold:  155+ RNST at $23.9 

Southside Bancshares (SBSI) Bought 50 SBSI at 19.49 Bought 50 SBSI @ 18.73 (5% Stock Dividend 5/11) Sold 107+ SBSI at 20.5 Southside Bancshaers (SBSI) Bought 100 SBSI at $20.4  Sold 100 SBSI at $21.53  Bought 50 SBSI at $20.2 Sold 50 SBSI at $21.27 

Southwest Bancorp (OKSB) Bought 50 OKSB at 6.84 Sold 50 OKSB at 13.19

Sterling Bank (STL) at 6.58 Bought 50 STL at 6.58  Sold STL at 10.5 BOUGHT 88 STL AT $8.98  Added 112 STL at $8.69

Susquehanna Bancshares (SUSQ): Bought  100 SUSQ at $10.15  Sold SUSQ: 100 at $13.2 

S.Y. Bancorp (SYBT): Bought 50 SYBT at $21.84 SOLD 50 SYBT at 24.31 Bought 50 SYBT at $22.16  Sold 50 SYBT at $26.2 

Tower Bancorp (TOBC) Bought 40 TOBC at 21.35 Bought: 60 TOBC at 21.75 Sold 100 TOBC at 23.12 (acquired by SUSQ)

TrustCo (TRST)  Bought 50 TRST at 6.3 Added 70 TRST at 5.9 Bought 50 TRST at 5.45 Added 50 TRST @ 5.48 Added 100 TRST at 5.94  Bought 50 TRST at $4.01 ADDED 50 TRST at $5.1 Added 150 TRST at $5.17 (Bought 50 at $5.65 5/20/11-not discussed) Sold 308 TRST at $6.64 Sold 315+ TRST at $6.92 

Trustmark (TRMK) Bought 50 TRMK at 19.57 Sold 50 TRMK at 24.7 Bought 50 TRMK at $21.54  Sold 50 Trustmark at $26.52 Bought: 50 TRMK at $22.73 Item # 1 Sold Taxable Accounts: 50+ TRMK at $24.63 (7/19/14 Post) Item # Bought 100 TRMK at $23.12 (8/9/14) Sold 100 TRMK at $24.45  Bought Back TRMK at $22.25-Regional Bank Basket Strategy

Umpqua Holdings (UMPQ) Bought 50 UMPQ at $12.05  Sold 50 UMPQ at $16.12 

Union Bankshares (UNB) Bought 50 UNB at 18 Sold 50 UNB at 19.5 Bought 50 UNB at $19.45 Sold 50 UNB at $24.56 

United Bancorp (UBCP) Bought 50 UBCP at $8.49 Bought 50 UBCP @ 8.13 Bought 50 UBCP at 7.99  Sold 50 UBCP at $10.05  Added 50 to at $8.08

United Bankshares (UBSI) at 16.65 Bought 50 of UBSI

Univest: Bought 50 UVSP at $15.1  Sold UVSP at $20.5 Bought  50 UVSP at $18.8

Valley National (VLY) Bought 50 VLY at $15.06 /Added 50 VLY at 16.6 (5% stock div 5/2010)Bought 55 VLY at 13.24 Bought 40 VLY 12.61 (5% stock dividend 5/2011) Bought 40 VLY at 10.58

Wainwright Bank (WAIN) Bought 50 WAIN at 8.72 SOLD 50 Wain at $18.7-Being Acquired

Washington Banking (WBCO): Bought 100 WBCO at $13.46 Added 50 WBCO at $13.3 Sold 151+ WBCO at $15 

Washington Trust (WASH) Bought 100 WASH at $15.26  Sold 50 of 100 WASH @ 22.44 

Webster Financial (WBS) at $4.58 Buy of 50 WBS: Lottery Ticket Elevated out of Category 1 in 2010  Sold 50 WBS at 22.49 

WesBanco (WSBC) Bought 50 WSBC at 13.3  Sold 50 WSBC @ 20.01 

West Bancorp (WTBA): Bought 100 WTBA at $11.67

Wilbur (GIW) Bought 100 GIW at 7.03 Added 50 GIW at 6.55 Sold 151 GIW @ 9.26 (acquired by CBU)

Wilmington Trust (WL) (originally in Category 1) at $9.98 & 12.36 BOUGHT 30 WL /Added to WL 12.36  Sold 100 Wilmington Trust (WL) at $14.13

Wilshire Bank (WIBC) at $6.54 /Bought LT WIBC/ Took Wilshire (WIBC) out of Category 1 and Added 65 Shares at 8.6 Sold 110 WIBC at 10.99

A more recent discussion of this strategy can be found at REGIONAL BANK BASKET STRATEGY GATEWAY POST, where I will be providing snapshots of the gains/losses, provide a running total of the net realized gains and the total amount of dividends received on an annual basis. 

3. 10 Dividend Stocks Recommended by Barrons : The Barron's web site was down most of Sunday, and I was not able to read most of the articles in the magazine, including the one just about AT & T until this morning. For those who do not have access to Barrons, which is subscription based, this article in Reuters summarizes the 10 dividend stocks recommended in this week's issue and this article summarizes the story about AT & T- Reuters. I subscribe to both the online editions of Barron's and the Wall Street Journal which costs somewhere around $160 per year, with about $49 of that for Barron's. The Barron's article about AT & T (own common and bonds) is generally positive, while acknowledging that the end to exclusivity on the IPhone will be a negative for AT & T and a positive for Verizon. Barrons

4. Howard Dean's Memory Lapses: Howard Dean claimed recently that the Democrats pushed Medicare in 1964 and Social Security in 1935 without Republican support until the very end "when they realized they had to get on board". This did not square with my memory. Both Medicare and Social Security had substantial support within the Democratic party, and were initiated by Democrat Presidents. And, to be sure, most of the opposition came from members of the Republican party. But the GOP had not been kidnapped by the American Taliban movement, which is a recent phenomenon, occurring gradually after Reagan's presidency. There were many Republicans, particularly from the Northeast, who would be viewed as liberal or moderates by the mainstream GOP voter today, who would work tirelessly to defeat them in a primary if any of them were still around. Now, those individuals are gone from the party, and there is no longer a single Republican congressman from New England. So Politifact rated the Dean statement as false. PolitiFact Although no house republican supported social security until it reached the House floor, 81 House republicans did vote for final passage of Social Security (Vote tallies on 1935 law) and 70 voted for Medicare. Only 13 Republican senators voted for the passage of Medicare. In both 1935 and 1965, as now, the Democrats were the majority party with one of their own in the White House, and enjoyed solid majorities in both houses of Congress.

The public perception, possibly embedded by years of Democrat campaign commercials, is that the GOP opposed Social Security and Medicare, and that is an incorrect perception. A number of prominent members of the GOP opposed Medicare and called it socialism, including many who were prominent within the party. Investments for Unexpected Inflation/ Jesus & the Prosperity Gospel/More on Sarah and her Death Panels/

But those programs also had significant support within the old GOP at the time of their passage.

It does not appear likely that there will be any GOP support for the Democrats' latest health "reform" legislation, possibly a few votes. Over the short term, I suspect that this united opposition will be beneficial to the GOP. If the Democrats succeed in passing a bill similar to the one being debated now in the Senate, and it becomes anywhere near as popular as Medicare, then in the longer term the GOP's unanimous no will turn into a negative, and Democrat campaign commercials could accurately convey the GOP's hostility to the program. Over the years, I think the Democrats have frequently mislead the public in their commercials when discussing a GOP candidate and social security. I focused in October 2008 on one such commercial from the Obama campaign. Trust Certificate JZJ AT & T BOND FactCheck.org: The Whoppers of 2008

5. Sarah Queen of Gibberish: Maureen Dowd quotes a passage from Sarah's interview with the fawning Bill O'Reilly, referring to Sarah's Yoda syntax. NYT I listen to Sarah and frequently say to myself, what did the Queen of Gibberish just say. I thought that Maureen was being most unfair to Yoda.

6. LionsGate (owned-Lottery Ticket category): The movie "Precious" expanded from limited release to wide release, showing in 629 theaters over the weekend. The estimated gross starting last Friday through Sunday was 11 million, or around $17,500 per theater. Apparently, investors are not impressed with that result as LGF continues to slide, trading around $5 in early trading today. More information about LGF's upcoming movie releases can be found at LIONSGATE.

7. Elizabeth MacDonald & Forbes Join Limbaugh and Beck on Health Care Rationing Scare-Emblematic of the Ongoing Problem of Divorcing Demand for Service and the Responsibility to Pay for It: I was listening to Forbes on Fox Saturday, and I heard Elizabeth MacDonald claim that Great Britain, with its national health care system, denied treatment for cancer, MS and virtually every major illness that her brain could then remember Media Matters for America Maybe Ms. MacDonald is suffering from that TB illness called hyperbole, a common affliction. So if I understand the argument, if the Democrats succeed in passing their health bill with a public option, those without health insurance would be worse off. It is also interesting to me that the so-called conservatives want unlimited access to health care with no cost controls which they call rationing to give it a pejorative connotation, basically turning healthcare access into an unlimited constitutional right without regard to costs and effectiveness of treatment. It is hard to see that view as the conservative one, more like what you would expect from liberals of the irresponsible persuasion.

A less hysterical view of Great Britain's health care system is in this article published in the this Wikipedia article and this more general article from the The New Yorker. Every health care system rations healthcare, as that term is being used in discussions today, and that would be apparent to those who have had coverage issues with HMOs and private insurance plans in the U.S. We Already Have Health-Care Rationing in U.S | Newsweek.com And healthcare is already rationed in the U.S. based on ability to pay.

When you listen to the TBs and their publicists at Fox, one fact which escapes their attention is that Medicare is a government run insurance plan, and one is hard pressed to find "rationing" in that system. In fact, the government is barred by law from making any decisions based on cost and the result, as made clear in a 60 minutes segment last night will be spiraling out of control costs. 60 Minutes - CBS News The bottom line is that the U.S. will spend and borrow itself into financial ruin, probably though not in my lifetime but within fifty years. For spending on healthcare, just part of the overall problem, the underlying cause is that demand for healthcare has been completely divorced from any responsibility to pay for it, primarily through government and private medical insurance. So, for example, if a Medicare patient wants a cancer drug which possibly may prolong life for a month or two, and costs $50,000 a month, they have a right to have it at the expense of the government. Or as shown in the 60 minutes program, a patient has the right to receive expensive treatment in an ICU at the end of life, rather than dying in peace at home or in a hospice, and taxpayers have an obligation to pay for that individual decision. Any change in that system is called rationing, or the creation of "death panels" by those who pretend to be concerned about federal spending but frequently make it impossible to control it.

One reason that I oppose the Democrats' health "reform" is that it will create more demand for medical services without any restraint or consideration on the costs of providing that service, or any meaningful attempt to relate cost with effectiveness of treatment or the improvement in the patients health or prospects for recovery. It will be more of the same so the critics miss the point. In the end, it will become another bottomless pit like Medicare because there are no meaningful cost controls.

8. Tidbits: DKR, the TC with the senior Hertz bond, goes ex interest today for its semi-annual interest payment. The shares were bought at $6.45 (DKR) , and this will constitute the third payment since the purchase of those shares. DKR Stock Quote - Saturns Hertz Corp Ser 2003- UNIT A 7% 2012

The NYT has an article that makes some obvious points: the interest rates paid to finance the national debt are abnormally low, the debt is ballooning at an unprecedented speed, the government has to constantly refinance the debt and the low rates will eventually end as financial conditions improve. It is not hard to predict now that the nation will be paying more than a trillion dollars a year to service its debt due to a combination of those factors in the not too distant future. Prior to the downturn in rates, the interest expense for fiscal year 2008, ending in September 2008, was 451.154 billion dollars. Government - Interest Expense on the Debt Outstanding Both parties are responsible for this inevitable, and brewing disaster, but ultimately it is the responsibility of the American people as a collective who have been conditioned to expect services as their birthright without having to pay anywhere near the full cost.

It is estimated that 42% of the 25 billion dollars in outstanding condo construction loans were delinquent in the 3rd quarter. NYT Apparently, some of the Wall Street bankers funded this disaster based on the premise that everyone else was doing it so it must be smart. As I have said in the past, never before in the history of mankind has there been another group of people who were paid so much to be doofuses. Masters of Disaster-Talented?

9. Campbell Soup (owned): Campbell reported earnings for its 1st quarter at 87 cents per share, excluding items, which was six cents better than the consensus estimate, and CPB raised its fiscal 2010 EPS growth and sales levels. The shares currently owned were bought at $25.35. CPB Buys of CPB LQD SYY XKK Sales decreased 2%. Currency added 1%. Volume and mix subtracted 4%. The weakness in the dollar is starting to add to results. I have mixed opinions about continuing to hold CPB, but I do not need anymore cash earning zero in a money market account. So, for now, as long as the dividend continues to be raised, and I have a low fixed cost, I will probably keep the shares.

Unlike other consumer staple stocks bought in March, like Coca Cola and Sysco, Campbell Soup does not have a history of dividend growth. The VL data shows that dividends were increased from 1993 to 2000, moving from 46 cents to 90 cents, which is what I like to see. Then, CPB ran into some trouble and cut its dividend to 63 cents in 2002, and the stock slid from a high of $62.9 in 1998 to a low of $19.7 in 2002. CPB started to raise the dividend from this reduced level in 2004, and by 2009 the annual dividend exceeded the the amount in 2001. In my classification system, this is an inconsistent and unreliable pattern of dividend growth. Possibly CPB will continue to increase the dividend for years to come, but I give it less credence on that score than I would a KO, SYY or many other consumer staple companies based on CPB's prior history which I will never disregard. CPB did just raise its quarterly dividend by 10% to 27.5 cents.