Large Cap / Banks / Mid Cap / Market Capitalization

Bank Stocks: Can't Get No Respect

Will Bank Stocks Ever Recover?

Although bank stocks have recovered somewhat from the drubbing they received last autumn, they still seem like the Rodney Dangerfield of the stock market.  Every time a bank reports improving results these days, investors treat it with skepticism and disdain.  Because of this, we thought it was worth revisiting the banks even though we have written about them several times over the past year or so. 

Despite a number of headwinds – such as increased regulation – many of the banks look quite cheap to us.  Many are currently trading well below their book value per share.  Before 2008, many healthy banks traded at more than twice book value. Today, earnings are improving, and the risks have been reduced.  Most U.S. banks have reduced their overall leverage significantly since 2008.  In addition, the recent government “stress tests” should provide at least some measure of comfort.  

 In the subscriber-only version of this article we discuss 10 bank stocks that look quite attractive.

 

Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Is there value in bankrupt PG&E’s stock?

In nearly every case, the shares of a company in bankruptcy become worthless. In very rare cases, however, they can become great investments. W.R. Grace (NYSE:GRA) shares produced a 75-fold return, as an example. With California utility PG&E (NYSE:PCG) now in bankruptcy, the range of possible outcomes for its equity is wide.

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EV/EBITDA: What Is It & Why Are We Using It More?

In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple.  We thought it might be useful to describe this measure and why we like it.

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Turnaround Letter Stock Pick Named Top Performer of 2017

 

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What Last Year's Top Stock Pickers Are Buying in 2018

 

This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.

 

George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."