The stock is down on this pullback in the market, so we're starting a stake below $37. We will begin with a 2.2% stake. I also added to PNC Financial (PNC) in the $74s.
So now we own 3 regional banks, 2 larger, one smaller. This group is cheaper than the JPMorgan (JPM), Wells Fargo (WFC) types but those companies have promised they will have accreditive earnings from their new acquisitions so it is hard to compare future PE ratios right now until we see how much truth is in that. It does want to make one to strike their head against the wall that people are rushing into JPMorgan at 25x 2008 earnings and don't want other stocks with double to triple the growth rates at 5x earnings... amazing.
Well we are all in now aside from our "money market/bond" ETF; it's up to the Plunge Protection Team to bail us out.
Long PNC Financial, BB&T in fund; no personal position
3 comments:
hbfh
I could be totally wrong but I dont think the market is gonna be happy until thae expected rate cut. This feels like the socgen low from january, market is greedy and wants that even if it wont help.
agree, the markets seem to want to force the world central banks to cut before we begin any rally. Rate cuts will definitely help banks.
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