Stewie

'The Time to Buy Financials' Is Still Not Now

This is part of the problem, value stocks and distressed companies are not one in the same. Value stocks are overlooked situations where the street has underestimated the the earnings and growth potential. Distressed companies are crappy situations where the street had overestimated earnings and growth. They are almost polar opposites.

'The Time to Buy Financials' Is Still Not Now

"You got to take advantage of market panics. This is as close to a panic as I have ever seen."

What market panic are you talking about ? Look to FITB as an example, they slashed their dividend 66% and cut their earnings guidance by 50% plus. So how is the stock halving in price a panic ? It looks pretty damned efficient to me. Just face the fact you bought into the small rally in financials in late January when you should have realized the macro situation would only worsen.

'The Time to Buy Financials' Is Still Not Now

I am always shocked when I read these responses. The "it must go back up because it used to be higher" mindset has never been more prevalent and busted more dopey investors than it has in Financials the last three months. Get it through your head the pain won't end until late 2010 and the recovery will be slow and measured. I don't think many of you realize how mismanaged some of these regional banks are. Banks are a haven for palm pressing suck-ups not financial managers, which is why bank run investment portfolios and bank run mutual funds are usually a disaster.

Value in Regional Bank Stocks?

Very nice article, both from a fundamental evaluation and market psychology standpoint.