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After a one-month mini-bear market to start the year, Bank of America (BAC +2.8%) has rebounded,...

After a one-month mini-bear market to start the year, Bank of America (BAC +2.8%) has rebounded, today touching a 52-week high, and - along with Citigroup (C +3%), also a 52-week high - leads the broader market to gains. DJIA +0.5%. Dragged by Tim Cook's dismissal of Einhorn, the Nasdaq is flat.
Comments (5)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    The XLF has a long way to climb to reach its 2007 high (it has to more than double). Cheap Fed money is doing wonders for TBTF bank balance sheets and earnings. Financials have led this rally. Can this continue? Yes. Should it? No, but let's not confuse the two. Trade accordingly, and watch out below, as NYSE margin debt has spiked to a multi-year high recently.
    12 Feb 2013, 02:24 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (3892) | Send Message
     
    The banks have been doing well. Now that SSE is getting bought, my favorite values with catalysts among the banks are OSHC and OBAF. Further reading if you are interested:

     

    http://seekingalpha.co...

     

    http://seekingalpha.co...
    12 Feb 2013, 03:49 PM Reply Like
  • Joe Springer
    , contributor
    Comments (1957) | Send Message
     
    Chris do you agree with Mr. Mason about there being a lot of smaller banks waiting to go under?

     

    http://seekingalpha.co...

     

    ..and if so, any candidates you like?
    12 Feb 2013, 04:21 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (3892) | Send Message
     
    Good question. Yes, a lot of smaller banks are waiting to go under. Many are uncompetitive at their scale, especially given corporate costs and the difficulties associated with regulatory compliance. If one looks at institutions such as SSE, they were too small and needed to get bought. If someone wants to buy such banks, as was the case with SSE, then they will be fine. Otherwise, they should file.
    12 Feb 2013, 04:25 PM Reply Like
  • MexCom
    , contributor
    Comments (3043) | Send Message
     
    Last night's call by the President to ease up on lending restrictions to allow people to refinance on on top of recent real estate value increases should continue to kick this baby up. Could see the 20's by EOY.
    13 Feb 2013, 06:16 AM Reply Like
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