CFR, a core holding in CG/B, announced a transaction to change their capital structure today, issuing a preferred stock in order to repurchase common stock (a la Einhorn's suggestion for AAPL!). The stock cleared 60 and appears poised for its all-time high in the 62.50 area (absent a spike in 2008). My one-year target based on 18PE is 72, but this will allow me to raise it somewhat due to earnings accretion. Every now and then I like to review my long-term performance with a particular name. We added CFR in October and are up 10.37%. Here is the entire rest of the history - never a loss:
While this deal doesn't likely change the EPS by more than 1% or so (on a 4% repurchase), it's a very strong signal from a conservative institution.
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