Wednesday, October 19, 2011

Pick your poison - Tangible Book Value - major banks have reported


All of the major banking franchises have reported. 

5 of the 6 trade under their Tangible Book Value (TBV), some by a significant margin like BAC at 49%.  While I can understand trading under TBV when TBV is declining.  In every case, TBV is increasing YoY and some significantly.  I believe based on the numbers C is probably the best risk/reward buy right now with the second lowest ratio while having the highest growth rate. 

Long BAC, C, JPM, MS, WFC.  I am looking to sell WFC and potentially buy GS in the next 72 hours. 

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