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Reg. Banks are on fire (like that's something new)...

Recs

2

January 27, 2010 – Comments (6) | RELATED TICKERS: WBS , FITB , EWBC

Last Friday, I made a list of 11 regional banks (see this post here).

Today, all of those 11 stocks are up 2% or more: WBS is up 6%, FITB 5%, EWBC 5%, PACW 5%, FULT 4%, STBA 4%, ...    

6 Comments – Post Your Own

#1) On January 27, 2010 at 5:26 PM, ChrisGraley (29.70) wrote:

Let them burn down.

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#2) On January 28, 2010 at 10:39 AM, cthomas1017 (95.35) wrote:

Dragon, I'm wondering.  What has fundamentally changed at these banks since Nov. 2009?  For that matter, what has changed fundamentally since Nov. 2008?

From my vantage point, they'e improved their balance sheets, but they've done so by carrying assets on their books that are valued much higher than the market would support.  Witness home mortgage valuations that are the same as 2-3 years ago (pre-bubble) and delinquent card balances that are not being recognized with the higher risk for default they are carrying.

I've very interested in the rapid rise since I when short on two regional banks last week.  I just don't see this rapid rise continuing through the end of this year.  I'd appreciate your fundamental analysis on these banks. :) 

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#3) On January 28, 2010 at 12:31 PM, dragonLZ (99.39) wrote:

cthomas, I'm the wrong guy to ask about fundamental analysis... :)

The only thing I know is that when I posted this about media stocks, almost everybody said: fundamentally junk, no hope, nowhere to go but down for these stocks, etc.

You probably know what happened... :)

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#4) On January 30, 2010 at 9:34 PM, ken4aub2 (< 20) wrote:

cthomas1017....if you find out about FITB or the regionals strength, let me know. I shorted FITB at $12.30 thinking it is overbought.

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#5) On March 10, 2010 at 6:12 PM, dragonLZ (99.39) wrote:

Update...

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#6) On March 17, 2010 at 8:45 PM, dragonLZ (99.39) wrote:

ken4aub2, If FITB was overbought at $12.30, what would you say is now when it's at $13.90...? 

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