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Want to buy banks? Look at some of the regionals, says Dick Bove. The big universals are dealing...

Want to buy banks? Look at some of the regionals, says Dick Bove. The big universals are dealing with a multitude of issues that impede their competitiveness, while community banks are being weighed down by regulations that are driving them out of the business. Firms in the middle tier however, are growing their key commercial and industrial lending portfolios while their competitors have had to pull back. His picks: US Bancorp (USB), PNC Financial (PNC) and Capital One (COF).
Comments (7)
  • Regionals? Has Dick been on the pipe again?

     

    USB - 8th largest US bank
    PNC - 11th largest
    COF - 13th largest

     

    How does this guy still have a job? That's the mystery to me.
    25 May 2012, 08:32 PM Reply Like
  • No Dick Bove... lets not try to hide the fact that you've been repping ALL of the banks and anyone who listened to you is at least 50% in the hole.
    25 May 2012, 09:05 PM Reply Like
  • He is absolutely right about PNC, Dividend yield 2.6% currently, representing a 25% payout ratio, EPS 5.51 and Bk. Value $63.27
    25 May 2012, 09:18 PM Reply Like
  • YTD shares performance for selected regional banks:

     

    S&P500 +4.8%

     

    USB +15%
    COF +22%
    PNC +08%
    FITB +06%
    STI +28%
    RF +47%
    HBAN +17%

     

    Not too shabby.
    25 May 2012, 09:25 PM Reply Like
  • Bove is totally clueless. He wanted to built ''huge banks''. I think he claimed that the JP loss was ''nothing'' or something like that. He, like most people like him, is a salesperson for the industry, not somebody to listen to.
    26 May 2012, 02:43 AM Reply Like
  • Almost all the banks are terrible right now. If you really want to buy shares in a bank right now, buy Wells Fargo (WFC). Already fully compliant with Basel III unlike most big banks. Very responsible compared to most of its counterparts and good management. Also, great figures, performance, and shareholders returns over the last couple of years. Furthermore, it pays a nice dividend.
    26 May 2012, 07:36 AM Reply Like
  • "If you want to buy banks" look at the Australian and Canadian ones. Look at the long term performance, look at the p/e ratios and the dividend yields. Look at how they weathered the Great Deleveraging of 2008. Look at how the Australian and Canadian dollar have held their value much better than the US dollar over the past decade. A no brainer!

     

    Long several Australian and Canadian banks. No positions in any American banks.
    26 May 2012, 10:05 AM Reply Like
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