SPDR KBW BANK ETF (AMEX:KBE)

tribouletr (86.15) Submitted: 7/5/2011 10:04:13 AM : Start Price: $23.87 KBE Score: +8.60

guaranteed

SlowAndSteady123 (35.13) Submitted: 1/26/2011 11:16:18 PM : Start Price: $25.77 KBE Score: -18.69

KBE is an ETF for the banking sector that should do very well over the next few years as banks recover from the recent crisis. It is up over 15% in the past year, and I think that kind of growth in share price could reasonably continue over the year ahead. A lot of banks are seeing their share prices fluctuate up and down, even as they are starting to turn in successive profitable quarters. I think a lot of that concern has to do with the need for banks to continue to clean up their balance sheets, which means getting rid of their toxic assets and bad loans.

The factor that would really help KBE is a growth in its dividend payout, which was impressive prior to the financial crisis. Dividend payout has been very weak for the past few quarters, and that is largely a result of banks themselves having slashed their dividends to shore up capital in order to ensure that they can cover loan liabilities. As it stands now, many banks have quite good capital ratios but still have not reinstated significant dividends -- partly as a hedge against possible unforeseen future losses and partly because many of them need the government's approval to move forward with dividend increases. As those dividends are increased in the next year or two, the dividend of KBE will likely go up significantly. That will help the return for investors, as will the increased interest in the fund itself. I think the combination of increased dividend and increased share price will result in a very nice return on this ETF, which will outperform the S&P 500.

There is risk with investing in an ETF that tracks the banking sector, just as there is with investing in banks themselves. But if you think that the future for banking is positive - and I do - then that means KBE represents a true value investment possibility: Potential strong dividend payouts combined with considerable appreciation in share price due to the fact that banks are, in the end, going to once again be solid, profit-earning companies.

tad40 (99.78) Submitted: 1/5/2011 5:43:47 PM : Start Price: $26.33 KBE Score: -22.15

Banking sector will improve along with the economy. This is America baby.

ablengata (70.99) Submitted: 11/5/2009 1:30:41 PM : Start Price: $20.62 KBE Score: -19.92

Financials have to improve or else we are all broke.

Paramnesia1930 (31.86) Submitted: 8/18/2009 12:15:40 AM : Start Price: $21.38 KBE Score: +34.67

Excluding the 19 biggest banks that underwent the stress test, banks with nonperforming loans above 5% had combined deposits of $193 billion, according to Bloomberg data.

yragelok (87.49) Submitted: 2/25/2009 12:30:47 PM : Start Price: $11.26 KBE Score: +15.41

Someday the muck will clear and finacials left will soar.

Dart65GTConv (84.30) Submitted: 10/16/2008 9:02:30 AM : Start Price: $27.21 KBE Score: +70.50

too many holes left

7iles (< 20) Submitted: 6/24/2008 4:38:06 PM : Start Price: $29.46 KBE Score: -31.02

Continuing with the financials...

Roberto1212 (63.86) Submitted: 4/4/2008 3:10:22 AM : Start Price: $38.56 KBE Score: -44.57

Banks have been beaten down. there may still be more downside, but this ETF looks attractive.

NoDrachmas (52.25) Submitted: 3/28/2008 11:51:02 AM : Start Price: $36.80 KBE Score: +45.55

short banks/long insurance