Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Flagstar Bancorp
So what: Driven by continued credit losses associated with its legacy balance sheet, Flagstar posted a second-quarter loss of $78.9 million, or $0.14 per share, versus the average analyst estimate of only a $0.04-per-share loss. Management also announced it is selling 27 Atlanta branches to PNC Financial Services
Now what: I'd continue to stay on the sidelines at this point. Although Flagstar's sale of the Atlanta branches will allow it to focus on its major markets, the company's highly volatile shares and continued string of loan-related losses make it a questionable pick for conservative, buy-and-hold types. Of course, with a price-to-book ratio of just 0.7, more enterprising bargain hunters might want to at least take a look.
Interested in more info on Flagstar? Add it to your watchlist.