Tags: Bove | bank | stocks | buy

Bove: Buy Bank Stocks ‘Hand Over Fist’

Monday, 21 Nov 2011 01:54 PM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
If you favor a stock market sector, and it hits the skids, that’s a perfect time to load up on shares. And this is the dynamic in the banking sector now, says star bank analyst Dick Bove of Rochdale Securities.

Europe’s debt crisis has hit U.S. bank stocks hard, with the KBW Bank Index dropping 24 percent from early July and financial shares in the Standard & Poor's 500 Index down 22 percent so far this year.

"If we look at what's happening in the world today for banks, everything is moving in a positive direction," Bove tells CNBC. "I think you should be buying these stocks hand over fist. But I believed that when they were substantially higher than they are right now."
__________________________________________________________

‘This Is Your Bible’ — Dow Jones
Millions have already heard the prophetic warnings of a 2012 economic meltdown. Will you be prepared? Watch the Aftershock Survival Summit Now and See the Evidence.

__________________________________________________________

It’s not clear exactly why Europe’s debt woes should greatly depress U.S. banks stocks. American banks’ exposure to the debt of troubled European countries is small, and U.S. banks aren’t dependent on their European brethren for financing.

Dick-Bove-3-thumb-200.jpg
Dick Bove
(Rochdale file photo)
"On a fundamental basis, it's almost impossible to believe that these stocks are not dramatically underpriced," Bove says. "However, the market continues to freak out over every conceivable thing that they can come up with.”

Of course a variety of domestic woes bedevil U.S. banks too, including continued problems with their huge holdings of mortgage-related assets and fewer opportunities for them to make money from investment banking. A weak economy severely limits their lending possibilities too.



© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
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
 
Email:
Country
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.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved