Dick Bove Sees 25% Growth in Bank Stocks for FY12
Tweet
Share
E-mail
Get Alerts GS Hot Sheet
Price: $1,021.65 --0%
Rating Summary:
16 Buy, 23 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 7 | New: 9
Rating Summary:
16 Buy, 23 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 7 | New: 9
Join SI Premium – FREE
Potentially adding to momentum in the Financial sector Wednesday was Rochdale's Dick X. Bove (DXB). Appearing on CNBC earlier, DXB pointed out to the oft-cited trend to "sell in May and go away." But DXB may convince investors otherwise.
Though earnings for financials have been up for the past 10 quarters, DXB expects the trend to continue straight through the 11th. He believes banks are in the best shape they've been in in over the last 30 years: loans are growing, trading ops are recovering, and pretax earnings are still firming.
DXB is modeling for banking stocks to be up 25 percent in 2012 alone! We'll have what he's having!
The analyst noted cash and book values within the banking group which are currently exceeding book value in many cases. Thus, stocks are selling at a discount to cash over a discount to book value.
On the recent op-ed submitted to the NY Times by a disgruntled employee at Goldman Sachs (NYSE: GS), DXB said that's only one opinion of one lower-level employee. He said if investors and shareholders were really concerned with operations at Goldman, the stock price would reflect the opinion. Earnings would go down, and the stock would go down. However, shares are up $30, or about 31 percent, since the start of 2012...with no signs of slowing.
Closing on the up-and-up Wednesday:
Though earnings for financials have been up for the past 10 quarters, DXB expects the trend to continue straight through the 11th. He believes banks are in the best shape they've been in in over the last 30 years: loans are growing, trading ops are recovering, and pretax earnings are still firming.
DXB is modeling for banking stocks to be up 25 percent in 2012 alone! We'll have what he's having!
The analyst noted cash and book values within the banking group which are currently exceeding book value in many cases. Thus, stocks are selling at a discount to cash over a discount to book value.
On the recent op-ed submitted to the NY Times by a disgruntled employee at Goldman Sachs (NYSE: GS), DXB said that's only one opinion of one lower-level employee. He said if investors and shareholders were really concerned with operations at Goldman, the stock price would reflect the opinion. Earnings would go down, and the stock would go down. However, shares are up $30, or about 31 percent, since the start of 2012...with no signs of slowing.
Closing on the up-and-up Wednesday:
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi cuts Lowe's price target to $260, keeps Buy rating
- Barclays Starts Bitdeer Technologies Group (BTDR) at Overweight
- JPMorgan Reiterates Overweight Rating on Marvell (MRVL)
Create E-mail Alert Related Categories
Analyst Comments, Insiders' BlogRelated Entities
JPMorgan, Citi, Richard Bove, Earnings, Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
