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

Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. Read More.

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.

Read More.

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."