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Meredith Whitney Upgrades Banks

December 18, 2012 | About:
Dheeraj Grover

Dheeraj Grover

18 followers
Influential banking analyst and chief of Meredith Whitney Advisers has upgraded banks, specifically Citi (C) and Bank of America (BAC), citing improving prospects of earnings and improved liquidity. She thinks banks are more than adequately capitalized and dividends are about to go up. BAC will quadruple its dividends.

Credit and source: cnbc, www.cnbc.com

Here is the video:







About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 1.6/5 (7 votes)

Comments

berryaf25
Berryaf25 premium member - 1 year ago
Do you have any more information on her analysis? I would be curious to see what all changed since April of this year for these banks in her analysis (excluding a potential dividend). In April, BAC and C were a hold (and were trading at 7 and 33 respectively.) I am going to search online for the latest report and compare with the previous report.

I am long BAC and C

I http://video.cnbc.com/gallery/?video=3000086398
dheerajgrover
Dheerajgrover - 1 year ago


Look at the new video which will be posted tomorrow. Meredith was on CNBC to explain why she has turned bullish on bank stocks. I am long BAC and C as well. I hold GS as well. If someone wants to play on the upside in the financial sector they can buy the ETF from vanguard, ticker VFH. BAC, C, WFC, BRK.B, JPM are some of the top positions of this ETF. I hold VFH as well
vgm
Vgm - 1 year ago
Sorry to be cynical, but I think what changed for Meredith is that she realized she was dead wrong (her zombie bank rants, etc) and that true value investors like Bruce Berkowitz were right all along.

Dick Bove was asked yesterday what he thought about Meredith's bank call. He replied she was right, but that she was 2-3 years behind in her timing. As Buffett said: 'if you wait for the robins the Spring will be over'.

As for her 'prediction' that BAC could go up 45% from here, it's much too little much too late. And ridiculous that anyone could believe in such accuracy.

Whitney's bank analysis is no better than her muni record. Yet another talking head. Jeez.

Long BAC, C
ramands123
Ramands123 - 1 year ago


I would aggree with Vgm. Difference bettween right 6-12 months late is missing 100 % ROI on stocks like BAC.

If all she does is banking how could she miss by a year huge cash flows and discounts to book value.

Her record is spotty at best.
ramands123
Ramands123 - 1 year ago


I would say Dick Bove is much more realistic and relaible analyst and has been pointing out banking stocks throughout the last year. Not only he truely pointed out difference bettween fundamentals and stock prices, he stuck to his analysis throughout the year, even as stock like BAC collapsed to all time low,

I think MW just got lucky on her bearish call in 2008 but has been on downhill slope since then. How can you (MW) be so down beat on a sector which you speacilize in when the greatest investor of all time (Warren Buffet ) is so bullish on it.
mocheng
Mocheng premium member - 1 year ago
Meredith said avoid bank stocks at all costs when BAC was 7 dollars...

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