Dick Bove: US Banks May Quadruple by 2012

T

turkeyneck

March 24 (Bloomberg) -- Bank stocks, the leaders of the biggest U.S. market rally since the 1930s, may quadruple over the next two to three years as loan defaults decrease, according to Dick Bove of Rochdale Securities LLC.

“Stocks are going to go much higher,” Bove, who is based in Lutz, Florida, said in a telephone interview. “The catalyst is the reduction in loan losses. That’s all that investors in banks care about.”

http://www.bloomberg.com/apps/news?pid=20601109&sid=ayRy5Vg0RLGM&pos=13
 
Bank stocks going to the moon, eh?

Might be time to break out those bear claws, gentlemen. And I ain't talkin' `bout no doughnuts. . .
 
Dick Bove has been spot on. He was the first to call BAC and some of the other banks a buy when the whole world thought they were going to zero. He then called a sideways to down correction in the banks which was again spot on.

I have no idea if he can make it three for three, but he has "street cred" IMHO.
 
Of course its easy for the banks to keep rising when they change a "few accounting rules", lend them money at 0%, have the tax payer foot the bill, bail them out and create rules and regulations that only help them reap billions in profits. How can the banks not make money when everything is in their favor.
 
So citi market cap will be 450 bln and BAC 700 bln?

and before crisis has started each of them cost around 225 bln

So is that correct that in 2012 things will be 3 times better than in 2007?

Wow. I guess if that happens bubble will pop and we probably will celebrate Dow 5000
 
Quote from kashirin:

So citi market cap will be 450 bln and BAC 700 bln?

and before crisis has started each of them cost around 225 bln

So is that correct that in 2012 things will be 3 times better than in 2007?

Wow. I guess if that happens bubble will pop and we probably will celebrate Dow 5000
More...


+1
Reality is unfortunately not Dick Whatevers strong point.

His dumb comments is almost tempting me to email bomb him "You are an idiot!"
 
Quote from kashirin:

So citi market cap will be 450 bln and BAC 700 bln?

and before crisis has started each of them cost around 225 bln

So is that correct that in 2012 things will be 3 times better than in 2007?

Wow. I guess if that happens bubble will pop and we probably will celebrate Dow 5000
More...



Great point, why would these companies be valued more in 2012 than in 2007 when the US economy was on top, there is no way the US economy gets back to 2007 levels in 2012. The 2007 times are many, many mannnnnnnnnnnnny years away.
 
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