Bove on Banks: They are Ridiculously Cheap

[BargainValueHunter]

http://finance.yahoo.com/news/US-Banks-Capital-Positions-twst-2678541851.html?x=0&.v=1

 

What is evident is that these banks are selling below their liquidation values in many cases.

 

Citigroup © just screams at you, and it is my favorite stock by far. I cannot see why a bank should sell at a discount to its net cash value, because as I say its tangible book and its stated book value is 100% cash.

 

Is it post-S&L Scandal valuations all over again?

[ERICOPOLY]

He is a total crackpot though:

 

Bove stated in a report published Tuesday that Citigroup will be worth $24.75 per share in 2015, more than 6.5 times Monday's closing price of $3.78 and twice the book value he is projecting for the bank in that year. Assuming Citigroup can attain the $12.37 book value Bove is projecting, that $24.75 price would not be far-fetched by historical standards. Citigroup has traded at a price-to-book ratio as low as 0.19 and as high as 4.59, according to Bove's research. The bank currently trades at 0.72 times book.

 

Assuming the same price-to-book ratio for Bank of America in 2015, Bove believes the bank's shares will be worth $99.37 in 2015, well over six times Monday's closing price of $15.40. Bank of America currently trades at 0.73 times book value.

http://www.thestreet.com/story/10766588/citigroup-bofa-to-sextuple-by-2015.html

[Guest]

If BAC is trading at $99 or whatever, wouldn't that put it's market cap at nearly a trillion dollars?

[ERICOPOLY]

How does Rochdale get paid?  Are his clients big holders of the stock, or rather big holders of short term options?

[Kraven]

He is a total crackpot though:

 

This is absolutely right.  He vacillates between telling people to run for the hills and to jump in with both feet.  I've learned not to pay much attention to him.  He does have a "name" in the area though and he can move things both positively and negatively.  Used to be that his words could cause major moves, but now they seem to be smaller and more temporary, if at all.

[Santayana]

Didn't he call pretty much all the finanicals a "generational buy" in April 2008?

[BargainValueHunter]

He is a total crackpot though:

 

Bove stated in a report published Tuesday that Citigroup will be worth $24.75 per share in 2015, more than 6.5 times Monday's closing price of $3.78 and twice the book value he is projecting for the bank in that year. Assuming Citigroup can attain the $12.37 book value Bove is projecting, that $24.75 price would not be far-fetched by historical standards. Citigroup has traded at a price-to-book ratio as low as 0.19 and as high as 4.59, according to Bove's research. The bank currently trades at 0.72 times book.

 

Assuming the same price-to-book ratio for Bank of America in 2015, Bove believes the bank's shares will be worth $99.37 in 2015, well over six times Monday's closing price of $15.40. Bank of America currently trades at 0.73 times book value.

http://www.thestreet.com/story/10766588/citigroup-bofa-to-sextuple-by-2015.html

 

You...may have a point about Mr. Bove...

 

http://www.youtube.com/watch?v=wEeSjp3Acs4&feature=channel_video_title

[ERICOPOLY]

He is a total crackpot though:

 

Bove stated in a report published Tuesday that Citigroup will be worth $24.75 per share in 2015, more than 6.5 times Monday's closing price of $3.78 and twice the book value he is projecting for the bank in that year. Assuming Citigroup can attain the $12.37 book value Bove is projecting, that $24.75 price would not be far-fetched by historical standards. Citigroup has traded at a price-to-book ratio as low as 0.19 and as high as 4.59, according to Bove's research. The bank currently trades at 0.72 times book.

 

Assuming the same price-to-book ratio for Bank of America in 2015, Bove believes the bank's shares will be worth $99.37 in 2015, well over six times Monday's closing price of $15.40. Bank of America currently trades at 0.73 times book value.

http://www.thestreet.com/story/10766588/citigroup-bofa-to-sextuple-by-2015.html

 

You...may have a point about Mr. Bove...

 

http://www.youtube.com/watch?v=wEeSjp3Acs4&feature=channel_video_title

 

He says in that video that "everyone is selling bank stocks".

 

To whom?  One could just as likely say that people are frantically buying banks stocks -- look at the volumes.

 

 

[ubuy2wron]

He is a total crackpot though:

 

Bove stated in a report published Tuesday that Citigroup will be worth $24.75 per share in 2015, more than 6.5 times Monday's closing price of $3.78 and twice the book value he is projecting for the bank in that year. Assuming Citigroup can attain the $12.37 book value Bove is projecting, that $24.75 price would not be far-fetched by historical standards. Citigroup has traded at a price-to-book ratio as low as 0.19 and as high as 4.59, according to Bove's research. The bank currently trades at 0.72 times book.

 

Assuming the same price-to-book ratio for Bank of America in 2015, Bove believes the bank's shares will be worth $99.37 in 2015, well over six times Monday's closing price of $15.40. Bank of America currently trades at 0.73 times book value.

http://www.thestreet.com/story/10766588/citigroup-bofa-to-sextuple-by-2015.html

 

You...may have a point about Mr. Bove...

 

http://www.youtube.com/watch?v=wEeSjp3Acs4&feature=channel_video_title

 

He says in that video that "everyone is selling bank stocks".

 

To whom?  One could just as likely say that people are frantically buying banks stocks -- look at the volumes.

 

 

  It looks like to us?

[ERICOPOLY]

He is a total crackpot though:

 

Bove stated in a report published Tuesday that Citigroup will be worth $24.75 per share in 2015, more than 6.5 times Monday's closing price of $3.78 and twice the book value he is projecting for the bank in that year. Assuming Citigroup can attain the $12.37 book value Bove is projecting, that $24.75 price would not be far-fetched by historical standards. Citigroup has traded at a price-to-book ratio as low as 0.19 and as high as 4.59, according to Bove's research. The bank currently trades at 0.72 times book.

 

Assuming the same price-to-book ratio for Bank of America in 2015, Bove believes the bank's shares will be worth $99.37 in 2015, well over six times Monday's closing price of $15.40. Bank of America currently trades at 0.73 times book value.

http://www.thestreet.com/story/10766588/citigroup-bofa-to-sextuple-by-2015.html

 

You...may have a point about Mr. Bove...

 

http://www.youtube.com/watch?v=wEeSjp3Acs4&feature=channel_video_title

 

He says in that video that "everyone is selling bank stocks".

 

To whom?  One could just as likely say that people are frantically buying banks stocks -- look at the volumes.

 

 

  It looks like to us?

 

I think somebody wrote a song that goes like this (he was complaining about pop songs at the time, but you could just as well apply it to the folks like Bove and MSNBC):

 

Burn down the disco

Hang the blessed DJ

Because the music that they constantly play

IT SAYS NOTHING TO ME ABOUT MY LIFE

 

 

[Kraven]

I think somebody wrote a song that goes like this (he was complaining about pop songs at the time, but you could just as well apply it to the folks like Bove and MSNBC):

 

Burn down the disco

Hang the blessed DJ

Because the music that they constantly play

IT SAYS NOTHING TO ME ABOUT MY LIFE

 

 

 

Nice.  I loved the Smiths back in the day.