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There's more clarity on financials today than at any point in the past 5 years, says Meredith...

There's more clarity on financials today than at any point in the past 5 years, says Meredith Whitney, taking to CNBC to talk about her upgrade of several in the sector yesterday. Going into 2012, investors weren't giving Bank of America (BAC) much credit, she says, giving it plenty now by upgrading after a doubling in price this year (she sees another 35% upside).
Comments (14)
  • tom brown_
    , contributor
    Comments (3) | Send Message
     
    Who is Meredith? Muni bond analyst?
    18 Dec 2012, 03:55 PM Reply Like
  • MexCom
    , contributor
    Comments (3051) | Send Message
     
    She seems to have a lot of clout. The market responded appropriately. Now for the bandwagon train of other analysts to follow. Better late than never.
    18 Dec 2012, 04:19 PM Reply Like
  • perk
    , contributor
    Comments (44) | Send Message
     
    I guess she did not believe Mr. Buffett when the stock was at $5
    18 Dec 2012, 05:44 PM Reply Like
  • wil3714
    , contributor
    Comments (1838) | Send Message
     
    all of a sudden financials are hot and now you jump on the bandwagon, why upgrade it after it more then doubles. You are late lady because you were fixing your makeup.
    18 Dec 2012, 06:13 PM Reply Like
  • jclyak
    , contributor
    Comments (165) | Send Message
     
    The lady is a one hit wonder...called the bank collapse...batting a goose egg since. However, I totally believe that the financials are grossly under-priced....8 year junk bonds yielding 4%...wfc common will yield close to that in March (based on current stock price) after the dividend increase and still have kept 65% of its earnings...go figure.
    18 Dec 2012, 08:53 PM Reply Like
  • jzut
    , contributor
    Comments (51) | Send Message
     
    When BAC was $5 all the banks were going out of business. Now it is $11 and it is a buy. This women ceases to amaze me!!
    19 Dec 2012, 01:12 AM Reply Like
  • wil3714
    , contributor
    Comments (1838) | Send Message
     
    I'm more inclined to follow Dick Bove since he called the layoffs in BAC and its move toward commercial banking
    19 Dec 2012, 01:56 AM Reply Like
  • dictionshunary
    , contributor
    Comments (208) | Send Message
     
    buy
    19 Dec 2012, 02:23 AM Reply Like
  • arthurbuchner1
    , contributor
    Comments (43) | Send Message
     
    UBS fined , Barclay fined ,credit suisse fined ,bnp next then Deutsche and when the governments finished with the world they will be coming for your banks too.There is more clarity now than ever before but there's also less opportunity to rip average Joe.The piano has bounced after falling from a dizzy height,Not sure i d like to be a fundamental long right now
    19 Dec 2012, 06:23 AM Reply Like
  • wil3714
    , contributor
    Comments (1838) | Send Message
     
    nice try are you short the banks?

     

    firms are out of the headline news litigation costs are on the decline and arent gonna hit billlions like they did in big money center banks and banks are earning all-time highs
    19 Dec 2012, 09:21 AM Reply Like
  • arthurbuchner1
    , contributor
    Comments (43) | Send Message
     
    I am square all banks ,long some resources and short south african retailers , just saying easy money been made,let the fund managers who listened to the likes of whitney at the bottom when she was fearful of them follow her here . The risk return is 50/50.My 100 % rule is that if a trade is 50/50 the side you choose is 100% going to be the wrong one.
    19 Dec 2012, 09:41 AM Reply Like
  • wil3714
    , contributor
    Comments (1838) | Send Message
     
    taking the large money center banks out of the headlines is what drove them down so far and fast. Once the market knows what the litigation costs are then they can price in what companies have to pay out for those costs. Look at BAC, they written down around $16 billion, which is in-line with market-to-market standards, which is why it is rallying now and for most of 2012 into 2013.

     

    Look at the housing market, it is improving and helps lifts banks balance sheets and BV. Most of these firms trade at .5 or .6 BV tells you they are undervalued. Buyouts, M&A & IPO acttivity that have happened in the markets in the recent months shows confidence for investment banks. So many catalysts are out there with imropving banks balance sheets and normalized earnings.
    19 Dec 2012, 07:28 PM Reply Like
  • arthurbuchner1
    , contributor
    Comments (43) | Send Message
     
    Agree housing is improving ,and there's a reason hsbc are trying to sell all their mortgages to hedge funds as finally someones looking to buy ,that said they still only interested at very low prices and not at the face value.Banks have been the whipping boys for a long time, my pre tax estimate weighted average return on equity for the last 12 months as a percentage of the top 11 banks is around 12% ,compare this to 37.4% in 2006 so if they can turn it around skys the limit but they face huge constraints and are not a sure bet.UBS now targeted in HK for rate manipulation , the fannies say they may have lost 3 bil to manipulation of libor.I can almost guarantee that all banks were in on that ,banks give great trading opportunities but I still think they not for widows and orphans .Too many skeletons in the closet
    20 Dec 2012, 08:56 AM Reply Like
  • wil3714
    , contributor
    Comments (1838) | Send Message
     
    banks are the hottest sector now and looking forward. Even in this flat tape, financial are all green vs everything else flat or floating in the red.
    Even the fiscal cliff cant keep em down.
    20 Dec 2012, 10:10 AM Reply Like
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