tk77mann

Nobody Knows What Bank Stocks Are Really Worth

Great article and conclusion, but I think bank stocks are even more unpredictable than just their current earnings statements. Lots of banks (like NCC a year ago) said they were in great shape, their dividends were secure, they were buying back shares, etc. but the assets on their books turned out to be significantly toxic.

If we can not determine the quality of their balance sheets, we can not reasonably predict their earnings, and their cash flows are impossible to use for valuation, banks as an investment class are an unpredictable crap shoot.