H.J. Huneycutt

Rating the Top 12 U.S. Banks - From Hidden Gems to Zombies

Great article!

Guess the only area I would challenge is the "hidden gems" and the investment perspective --- it's not that I necessarily disagree with the analysis of the banks; it's that most of the "hidden gem" banks haven't been greatly discounted by the market so they don't necessarily look appealing to me as investments. I'm of the opinion that banks (even the good ones) are going to continue to suffer for another year or so at least as delinquinces increase.

I think there are definitely better sectors to invest in -- unless you can find the bargains. So the best investments here are the ones that have been substantially discounted by the market, but that should survive relatively in tact. To me, that makes STI and RF the best candidates; even if they have considerable risk. BBT is also looking increasingly appealing and probably relative safe compared to many others. WFC might also be a good investment candidate, but admittedly, I'd fear taking on a company with so much junk floating around on their books --- even if they appear to be in relatively good shape overall. Unless WFC gets discounted a bit more substantially, I'll just stay neutral on them.

STT, BK, and USB have less junk on their books and look poised to survive, the market in general doesn't really seem to disagreement with that assessment --- hence, I see little value there. You could probably make equal or greater returns investing in an index fund over the next few years and you'll have less worries.