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Strategies & Market Trends : Value Investing
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To: blankmind who wrote (21221)5/4/2005 1:21:20 PM
From: MCsweet  Read Replies (1) of 78486
 
Blankmind,

When you look at your strategy of buying these banks, how much are you factoring in the shape and value of the yield curve for valuing these companies?

Isn't it that lots of banks are becoming cheap because of concerns of higher short-term rates cutting into margins. Interest rate profit spreads could tighten, and carry trades become unattractive. If the return on book value decreases, maybe these stocks should trade at lower Price-to-book multiples.

When you say you are holding because of continued great results, do you mean for your strategy or for CSBK?

That being said, I'd be happy being financial assets trading below book value if they can earn a decent return. What kind of eps do you think they can generate in the next year or two?

Thanks
MC
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