U.S. bank and financial stocks, which had been in a funk since interest rates fell close to zero, have a good shot at beating the broader equity market in 2017. So the questions for investors are: “Which banks should I buy?” “Which banks that have already soared should I buy?”
This post was just published on ZYX Buy Change Alert. We came into the election heavy into financials. Financials have been the best performing major sector since the election. Here are updated target zones. At this time, other zones are not being changed. Those following ‘The Good Way’ and are not heavily
After the Brexit vote, European banks were hammered. American banks held up comparatively well as the prevailing wisdom is that large American banks are fairly insulated from European banks. One good way to generate high risk-adjusted returns is to find anomalies that run counter to the prevailing wisdom. One such
This post was just published on ZYX Buy Change Alert. SAN is one of the largest European banks headquartered in Spain. The stock has been hit hard along with other European banks, in part due to concerns about loans to oil and gas industry. The concerns about loans to oil and
I first wrote about a strategy I use when finding beaten-down stock in a February 2014 column titled “An Evergreen Strategy For Unstable Times.” In the column, I illustrated the strategy with an example using Walgreens WBA. Our buy in was around $29. Subsequently, Walgreens hit a high of $97.30.
This post was just published on ZYX Buy Change Alert. The new buy zone for SAN is $4.31 to $5.52. Our long-term target for SAN remains $16.00 to $18.00. What To Do Now? It is important not to buy all at once. Consider scaling in on down spikes. You are receiving less
This post was just published on ZYX Buy Change Alert. SAN is the largest Spanish bank. If our models are correct regarding Greece (please see Morning Capsule), then it is time to initiate or add to SAN. The new buy zone is $6.13 to $7.31. The stock is trading at $7.20
This post was just published on ZYX Buy Change Alert. The position is long with an average price of $6.90. Currently, 40% of the full core position size is being held. Profits have been taken as high as $9.74. Consider taking profits on a 20% tranche in the zone of $7 to
This post was just published on ZYX Buy Change Alert. This is the largest bank in Spain. The bank is experiencing rapid growth outside Spain, especially in Latin America. It is one of the cheapest banks in the world due to its holdings of Spanish sovereign debt. The position is long
This post was just published on ZYX Buy Change Alert. Banks in our portfolio include BAC, BBD, C, ITUB, JPM, SAN, and ZION. The Swiss National Bank removing franc’s peg to euro resulted in extreme volatility in forex. The impact on the banks in our portfolio is not know at this time. It is