Bank Stocks. Who do you like?

EwaDawg

Of the big four - all have been recently downgraded. BAC and JPM by Morgan Stanley and WFC by another lesser known (to me) analyst.

These three were not just downgraded from buy or overweight, to hold, but identified as sell or underweight.

It also looks like one of seven analysts that I follow has downgraded C from a buy to a hold.

I have loaded up on bank stocks over the past few months (now at 10 % + return) and am noticing that most have backslid a little in the past few weeks.

SBNY is the only regional ? bank that I have ever owned and it looks more attractive than 2 of the 4 big banks.

What financial institutions do you like that are smaller than the big 4?

I've set some trailing stop sell orders for JPM and BAC (at 1.5%) and will likely take some profits soon.

Would you reinvest in other financial institutions or leave the segment with the proceeds?

This was discussed a few weeks ago but the above has happened since. Is any of this related to the (recent) wealth destroying block trades?

Thanks for any input.

Baseman

I'd weigh in but Creeper Coug will either delete or alter my post. Good luck the rest of the way.

USMChawk

I used to own WAFD but sold it long ago. It’s a solid, but not glamorous, stock.

creepycoug

Baseman said:

I'd weigh in but Creeper Coug will either delete or alter my post. Good luck the rest of the way.

By all means, weigh in. You're of course welcome here. If you stopped by to continue pouting, I'll just say, not the best look and leave it at that.

Doog_de_Jour

I got two hot ones for you:

PurpleThrobber

Fuck Wells Fargo.

That is all.

godawgst

Biggest % upside is still WFC 20-25%, but you get no dividend from them as a fyi

JPM best ran but at current valuation, will go up/down as market goes.

BAC/C fully valued imo

Sold Majority of bank stocks last 6 weeks. Will sell last 1/2 position of C when it gets to mid 70's.

WIll keep last 1/2 position WFC b/c of capital gains reasons thru rest of 2021.

Baseman

Last year I sold my airlines stocks at a massive loss and rolled into banks (BAC, C, and JPM) mostly in my IRAs.

If you hold banks in a taxable account, I'd hold or trim a small portion. If you owned less than a year you're going to have to achieve a 28% higher gain on your next investment to break even.

Ive pared 5% of my BAC and am holding on Citi which I think has room to run. Currently, Citi trades at 8x next years earnings and the banks are sitting on massive sums they can deploy once the govt. releases the moratorium on share buybacks and dividend increases.

I talked with a senior exec with Columbia last week who reported they've seen very few delinquencies as a percentage related to Covid. Even residential landlords not receiving rent are keeping current.

That said, the short-term upside opportunity in banks is low.

godawgst

Baseman said:

Last year I sold my airlines stocks at a massive loss and rolled into banks (BAC, C, and JPM) mostly in my IRAs.

If you hold banks in a taxable account, I'd hold or trim a small portion. If you owned less than a year you're going to have to achieve a 28% higher gain on your next investment to break even.

Ive pared 5% of my BAC and am holding on Citi which I think has room to run. Currently, Citi trades at 8x next years earnings and the banks are sitting on massive sums they can deploy once the govt. releases the moratorium on share buybacks and dividend increases.

I talked with a senior exec with Columbia last week who reported they've seen very few delinquencies as a percentage related to Covid. Even residential landlords not receiving rent are keeping current.

That said, the short-term upside opportunity in banks is low.

C book value is somewhere between 70-80 I believe. They have had a string of CEO's last 20 years that have had difficulty moving the stock vs. other banks and rest of market. Maybe the new one has the magic touch. To say they have alot of moving pieces to try and manage is a understatement.

Gov't is supposed to release the moratorium on buy backs and dividend increases in June. Events like those have generally produced after hour pops in the stocks, and a bump the next day in the market, but week later my experience shows them closer to back where they were trading b4 the announcement.

You trading in your IRA to avoid Capital Gains is a Genius move. Great idea.

Baseman

godawgst said:

Baseman said:

Last year I sold my airlines stocks at a massive loss and rolled into banks (BAC, C, and JPM) mostly in my IRAs.

If you hold banks in a taxable account, I'd hold or trim a small portion. If you owned less than a year you're going to have to achieve a 28% higher gain on your next investment to break even.

Ive pared 5% of my BAC and am holding on Citi which I think has room to run. Currently, Citi trades at 8x next years earnings and the banks are sitting on massive sums they can deploy once the govt. releases the moratorium on share buybacks and dividend increases.

I talked with a senior exec with Columbia last week who reported they've seen very few delinquencies as a percentage related to Covid. Even residential landlords not receiving rent are keeping current.

That said, the short-term upside opportunity in banks is low.

C book value is somewhere between 70-80 I believe. They have had a string of CEO's last 20 years that have had difficulty moving the stock vs. other banks and rest of market. Maybe the new one has the magic touch. To say they have alot of moving pieces to try and manage is a understatement.

Gov't is supposed to release the moratorium on buy backs and dividend increases in June. Events like those have generally produced after hour pops in the stocks, and a bump the next day in the market, but week later my experience shows them closer to back where they were trading b4 the announcement.

You trading in your IRA to avoid Capital Gains is a Genius move. Great idea.

That's how Warren Buffett has crushed the SP the past 40 years through avoiding capital gains and redeploying the cash flow into new businesses.

Use your taxable accounts for long term hold growth stocks that pay little or no dividends. QQQ, Berkshire Hathaway, Google, Amazon, etc.