DSX Lover

Is Bank of America Rethinking Countrywide's Value?

BofA can always do the MSFT Yahoo, walk away.
And like JPM, buy CFC for pennies, since no one will be willing to buy it for more. And let Helicopter Ben finance the transaction for free to take on the systematic risk.

Still Too Early For Banks

Banks are way to cheap right now, but you can't owe them, you can only rent them. They aren't going broke, and not all are the same, but the resets peak in June and July, they are worth the risk. Totally Agree with Papa Bear Doug Kass comments (The value of the Franchises are intact and the earnings power is there), Buy the DIPS sell the RIPS. You must owe some of these, because when housing inventory starts to decline they will be up 20-40% from where they are now and you will be late to the party.

Under The Radar News - Monday

at 12 Billion Pounds, RBS is issuing stock at Book Value, unlike U.S. smaller regionals that issued stock way below their book values like WM and NCC. When this clears, it does not mean WM, NCC, and anyone selling below Book will be safe for management, they will actually easier takovers. If you look at NCC, they are issuing Stock and convertibles at $5, when you take into account all new shares, the overall shares will have a Book Value of $10, and stock is selling for less than 7. Any foreigner like HBC, BCS, or STD can offer $12-$15 and take it for themselves. Current shareholders would be loved that, after the horrible take under offered by current management, and an incompetent board of directors.

The Worst Is Behind Us (unless massive bank failure is considered a bad thing)

Banks are BUY BUY BUY BUY at these levels.
Shorting these things at these levels is asking for a serious BOOT STUMP. And the worst is truly over. The more capital they raise these low levels the easier takeover for the Giants (JPM,BAC,HBC) when the cloud clears.

14 Bank and I-Bank Write-Downs

If you think the worst is yet to come, then give the disclosure of what you own, or short of. These article is not helping anyone make a better investment decision. 400,000 New houses in Inventory, 600K estimated 2008 sales, although I Don't believe any of those two(1.750 Million were sold in the peak year). 4 Million existing home sales on Inventory, 1 Million foreclosures last year, 1.3 estimated for these year. All the foreclosures don't add up to $1 Trillion in these estimates, and if they are repackaged at 50% discount, there's a maximum of $500 Billion in loses. I see $250 Billion in writedowns so far, so the worst is clearly over. Homebuilders inventory, has gone down considerable, and once Existing Home sales inventory drops, we can look forward. With Banks selling at 60-80 cents on Book, its the best time to go long NCC, RF, FITB, HBAN, because those Europeans monsters are full of cash, and looking to invest. Other midsize Regionals selling close to book are BBT, CMA without subprime crap.

Financial Stocks to Buy When the Market Reverses

UYG is the Double Long ETF

Financial Stocks Trading Near Book Value

Never compare a Bank's Book Value with a Broker's book value. Its a totally different animal. Broker's are leveraged up to the WAAAZZZZOOOO almost as twice as Commercial Banks. Therefore look for higher fluctuations in the. In the other hand, the Book Value of the banks, is less volatile, along with the assets it holds. Banks are less subject to leverages than brokers, therefore less risky, and more stable. The business model of banks is more stable too, you can't predict what dislocations in credit securities will do to Brokers, because they are more leveraged, and because they don't have a stable depositor base like the banks, who will always have an insight on the cost of funds, and don't have to worry about MARGIN CALLS.

Time for Greater Oversight of Mortgage Lenders? Duh!

Why would BAC, WB, and C cut the dividends? It seems totally ridiculous. Best time to buy ever, Banks are fully capitalized, and can absorb huge loses that will not materialize. WB has 73 Billion of Capital a wooping 10% of Total Assets with consumer loans totalling just 223 Billion. Banks will make 2.25% on Deposits, because CD rates have gone down, and with 75 points dropping on Tuesday it will be more. No need for any of these banks to cut the dividend, specially when at year end the payout ratio will be less than 50%, and there won't be a need to keep capital, because the growth in assets will be slowing down. Banks on average keep 5-6% Capital/Total Assets depending on their risk weighted assets, and right now they have much more than that. You will never have an opportunity to buy these banks so cheap in your lifetime. If you're not confident in U.S. Banks buy ING, BCS, RBS, or LYG all of them yielding close to 7.5% without the SUBPRIME debacle, trading at 6 times earning and being hit harder than the U.S. for stupid Reasons.
Can you imagine a 7.5% dividend or a 9% dividend for life with WB. Plus once the charges are finished and earnings are restored, the dividends will be increased year over year. Buy now put it on SafeBox, enjoy the rest of your life without having to worry about social Security.