Tags: Bove | Bank | Stocks

Bove: Bank Stocks Are Way Undervalued, so Buy Now

Tuesday, 30 Aug 2011 12:00 AM

Bank stocks are so undervalued that some are worth less than the cash they hold, so investors should buy now, says famed Rochdale Securities banking analyst Dick Bove.

"There are half a dozen banks in the United States which are selling at discounts to their book value when their book value is 100 percent cash," Bove tells Yahoo! Breakout.

"When a stock sells at that low a price below the liquidation value of the company ... I am willing to buy it no matter how bleak the particular outlook may be."

Dick Bove
(Rochdale file photo)
This offer won't last, as investors will quickly realize that bank stocks are way oversold.

"Ultimately, entrepreneurs will recognize an opportunity here [and see] that the bank is not being utilized properly," Bove says.

Stocks have taken a beating lately on a string of unprecedented events, ranging from the debt-ceiling impasse and the Standard and Poor's downgrade of the U.S. debt ratings to a debt crisis in Europe.

The market has enjoyed a rally lately, although fears are growing that the rally will be short-lived.
Ben Bernanke Bet Hit Entire Portfolio On This One Stock. Learn More About It Here.

A fresh set of economic indicators is due out, especially the all-important unemployment figures on Friday.

Any disappointments could wipe out recent happiness on the floor of U.S. stock markets.

"With consumer confidence, the (U.S) ADP jobs report, ISM Manufacturing, jobless claims and nonfarm payrolls report all due in the coming days, there is going to be a lot of nervousness around," Ben Potter, strategist at IG Markets, tells Reuters.

"The market could also be seen as vulnerable given it has rallied ahead of these big economic reports. We think a lot of participants will be employing a 'wait and see' approach as we navigate through the next few days."

© 2015 Moneynews. All rights reserved.

Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.

You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved