XRTrader

Cautious on Banks as Delinquencies Rise

People on this site never fail to amaze me. Why does it seem so many people have an agenda? Who cares that the banks are profiting off of taxpayer money? Isnt our job to make money in the market ourselves??

BAC was a great buy at $5 a share, and remains undervalued relative to its peers at $14. You can grouse and complain about the unfairness...or you can hop on board some of these stocks as they gain another 50% (which, by the way will still keep them down significantly from their 52 week highs).

Its stupid not to realize that the yeild curve, free government money, decreased competition, among other factors more then make up for the credit card losses. Yes, some divisions of banks wont be profitable for years, but as the write-offs decrease, bank profits will explode. Stocks will rise ahead of this expected recovery in 2010.