Jimmy Lathrop

14 Beaten-Up Financials That Now Offer Real Value

As long as hedge funds, pension funds, investment banks and insurance companies are unloading securities to meet margin calls, investing in any one of these companies is a waste of money. There will be no positive earnings until home prices stabilize. The dividend has been slashed at all of these companies. Many insiders are exercising options because they have seen other companies get swallowed up by acquirers, making their options worthless, so the purchase by insiders probably has nothing to do with the health of the company. I strongly disagree with your claim that these stocks are value - they may be cheap, but that does not mean that they will have value in future, it means that they are crippled and should be avoided at all costs.