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Banking Guru Tom Brown of Second Curve - Likes Bank of America to Go up 50% in 2013
Posted by: CanadianValue (IP Logged)
Date: December 28, 2012 09:52AM


- 2012 surprised Brown in how low interest rates went and how long they have stayed there.
- This is squeezing net interest margins for banks.
- He expected the economy to get better and have the Fed let off the gas on quantitative easing.
- For 2013 he thinks the biggest surprise will be the continued improvement in Bank of America (BAC) profitability.
- The BAC improvements will come from expense reduction and reduced funding cost (replacing long-term debt with short-term deposits).
- Thinks this is 1988 and 1989 all over again when BAC doubled in '88 and went up 50% again in '89.




Stocks Discussed: BAC, JPM,
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Re Banking Guru Tom Brown of Second Curve - Likes Bank of America to Go up 50 in 2013
Posted by: tkervin (IP Logged)
Date: December 28, 2012 07:19PM

[bankstocks.com]

I think BAC was about 26 at the time.

I love the caption....."This is what people were saying at the last bottom, too".

Perhaps the word Guru is a bit over used......I have always felt that the media trot out the same names and seldom hold their prediction record up to the light of day. Abby Cohen is my favorite....but I am an old dog....:-)

a bit more about Mr. Brown......

:4c8e:http://www.gurufocus.com/news/106174/big-time-investors-who-made-big-time-mistakes-example-2--tom-brown-prominent-bank-stock-analyst-of-second-curve-capital-calls-the-bottom-of-financials-in-the-fall-of-2007:/4c8e:-

Could Brown be right this time?......sure. A coin has two sides.



Stocks Discussed: BAC, JPM,
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Re Banking Guru Tom Brown of Second Curve - Likes Bank of America to Go up 50 in 2013
Posted by: shaved_head_and_balls (IP Logged)
Date: December 29, 2012 09:09PM

Do a Google search of "Tom Brown First Marblehead" if you want to see why one man's guru is another man's witch doctor. FMD collapsed as deeply and quickly as BAC, but today FMD is still a penny stock. I suspect that when the next, and hopefully final, stage of the credit crisis occurs (the Sovereign Government stage), we'll see yet another batch of guru statues knocked down and beaten with shoes.


Stocks Discussed: BAC, JPM,
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