ZenInvestor

Insider Trends in the Financial Sector

ETFC had all the officers buying, and holding in January and February. That and compensation for the new CEO that is almost all in stock and options made me a believer in that stock, and I look for it to break out.

Most of the financials have so far written down their mortgage portfolios to two or three times any anticipated 'net losses'. The earning surprises in the future will all be to the upside. Two more quarters and liquidity will return, and the vintages will have seasoned to the point where you can accurately predict the 'real losses'. That is why financials are moving from the 'insider' point of view, they are closer to knowing what the real losses will be, and the strength of the franchise going forward.