Tags: Bove | us | Banks | bargain

Bove: 'Bargain' US Banks to Fuel Stock Market Rally

Tuesday, 08 Nov 2011 08:29 AM

Dick Bove, bank analyst and Vice President of Equity Research at Rochdale Securities, says bagain-priced U.S. banks are through the crisis and will lead the market forward.

“Their earnings are now starting to rise at a faster pace than people expect,” Bove told CNBC, “and once people stop freaking out about Greece and Italy or what have you, they’ll see the value here and buy them.”

“Once it’s recognized the financial system is solid, that the U.S. banks are moving forward, there’s no reason not to buy common stocks because the U.S. banks will, in fact, lead the market,” says Bove. “They always have.”
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Bove says U.S. banks are a real bargain now. He especially likes JPMorgan, U.S. Bancorp, PNC Financial Services, BB&T and Bank of New York Mellon.

Dick-Bove-3-thumb-200.jpg
Dick Bove
(Rochdale file photo)
”These are all really sound, solid companies.”

European banks, notes Bove, will have to substantially write down their debt, but are not in as bad a shape as many people believe.

“The market's there,” he said. “It’s working and the situation isn’t as bad as people represent it to be.”

The Wall Street Journal reports that U.S. banks tightened their standards for loans to European banks and fewer relaxed lending standards to businesses in the third quarter.

The Federal Reserve's quarterly senior-loan-officer survey, based on 51 domestic banks and 22 U.S. branches of foreign banks, showed that about two-thirds of banks that make loans to their European counterparts had tightened standards for those loans in the July-to-September quarter, reflecting growing uncertainty in financial markets over Europe's sovereign-debt crisis.

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Dick Bove, bank analyst and Vice President of Equity Research at Rochdale Securities, says bagain-priced U.S. banks are through the crisis and will lead the market forward. Their earnings are now starting to rise at a faster pace than people expect, Bove told CNBC, and...
Bove,us,Banks,bargain
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2011-29-08
Tuesday, 08 Nov 2011 08:29 AM
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