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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (41353)	12/5/2012 4:03:12 PM
From: Keith Feral	Read Replies (2) \| Respond to of 222732

I LOVE BAC and C over all other bank stocks. There is a $50 billion mispricing between BAC and C relative to the other big banks like JPM and WFC. It's just a matter of time before BAC and C are trading back at TBV and paying dividends again. In the meantime, all the dividends they aren't paying are creating enormous amount of retained capital. This has been going on for 4 years now. C's retained earnings took a big dip in 2008, but they are almost all the way back to where they were before the crash. BAC already delivered the entire purchase of MER, by paying off all the LT debt they inherited from that deal. BAC is basically a long term option play against one of the biggest balance sheets in the world. Same with Citi.