Took a large risk and put about 5% of my portfolio in this stock. I have been watching this for over a year now and it has low(ish) debt to assets, stronger overall financials, and roughly 48% of its holdings are FDIC insured (under 250k) as opposed to only 2.7% for SVB.
Banks are a risky bet right now with the entire sector under pressure and bonds competing with interest rates. For banks to stay profitable, they need bonds to match or outperform interest rates. However, PACW has plenty of assets.
PACW: the stock has tumbled 53% YTD upon the news unveiled on SVB bringing the price from $28 a share to $6.60 at one point. I bought a shit ton of this stock at $20 a share and then at $9.96 with a $14.8 average cost basis.
My question is how risky of a bet is this and what do you think? Do current times reminisce those of 2008? Are there going to be more dominos that fall? Is this just gambling at this point?
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