Regional Banks

kang_wang

A lot of stocks and sectors have more than doubled since March 2009. It's very difficult to pick out high growth-potential stocks. There are still stocks that can grow a lot in the future. One sector I like is the regional banks.

1. First of all, you need to believe that the economy is recovering and will grow again. (Citibank!)
2. Then you need to pick banks that are unlikely to go bankrupt (KEY, MI, BPOP).
3. The region where the bank does business needs to support recovery and growth. (CRBC is in Michigan where Ford is based. If Ford grows, Michigan will grow. BANR is Washington, which was affected the least during the crisis. Another one is TSFG.)
4. The bank's stock is very depressed, which gives it more room to grow.

All thoughts and opinions are welcome.

mengtt

FED may not have enough money to rescuer regional bank.  I think many of them will gone away.

kang_wang

Thanks for replying. Sure, there is a lot of risk. No risk, no reward. JPM, BAC, MS, and GS are all good financial stocks, but what are the chances that they will double, triple in the next couple of years? Maybe BAC...

FED can't save everyone. True recovery comes from the people.

demand

MI is my favorite bank pick.
Bac may be the best?

kang_wang

BAC is a solid bank, but it's not a regional bank. It's increased 4 times from its low already. I think it's a good buy for the long term.

kang_wang

For those of you that are interested in banks, AIB is another potential.

ranchgirl

BPOP:

2.56 0.30 13.27% 2.25-2.65 1.00-3.66 Popular, Inc.

Up huge

good call!!!

Seal

H@T

mayoutu

TSFG已经完蛋了。

azzz