January 27, 2010
– Comments (6) |
RELATED TICKERS: WBS
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%, ...
Let them burn down.
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. :)
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... :)
cthomas1017....if you find out about FITB or the regionals strength, let me know. I shorted FITB at $12.30 thinking it is overbought.
ken4aub2, If FITB was overbought at $12.30, what would you say is now when it's at $13.90...?