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December 5, 2007
Bank Stocks Trading Below Book
With only a few weeks until the 2008 Wish List, Todd and I are trying to settle on what new names to purchase for 2008. If Santa doesn’t arrive and/or a healthy bout of tax-loss selling transpires, it is entirely possible that we will end up with more ideas than capital and time. After having coped with a few years of ‘excessive liquidity’ snapping up any and all values in the marketplace, this would be a welcomed change.
Like many value orientated investors, one area we are looking at for opportunities is U.S. financial stocks, and in particular bank stocks. Currently there are 163 bank stocks in the U.S. trading below book value (Excel File). The investment rational when looking at U.S. bank stocks today isn’t that sophisticated. Rather, if the company is going to be around say 10-years from now, it is probably a decent investment at current prices. Question is, which companies are going to be around?....
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