1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
CanadianValue
CanadianValue
Articles (4624) 

Banking Guru Dick Bove Provides Some Hard Facts Suggesting Investors Should Buy Banks

February 04, 2013 | About:

Have you missed the run up in stock prices for American banks? Bank analyst Dick Bove doesn't think it matters because this industry is going to have a long run of growth ahead of it. He provides some facts for us:

- Bank earnings have increased for 14 consecutive quarters.

- Bank earnings were up 22% in 2012.

- Total bank earnings will hit $145 billion in 2012 which is close to the all time record for the industry.

- Fourth quarter 2012 will be the all time high for earnings for the bank industry.

- His point is that all of the concerns over the forced deleveraging, a weak housing market and increasingly overwhelming regulation do not fit with the facts relating to the performance of the industry.

- The earnings, dividends and stock repurchases of this industry are going to increase for a long time to come; the last cycle of earnings increases lasted 17 years. The one before that which began in 1959 lasted 50 years.







About the author:

CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 4.6/5 (5 votes)

Comments

dirt2624
Dirt2624 premium member - 4 years ago


IT'S KINDA HARD TO VALUE SOMETHING WHEN THE ACCOUNTING RULES FOR THE INDUSTRY SAYS THEY CAN JUST MAKE UP THE NUMBERS AS THEY GO.

I'LL WAIT FOR THE RETURN OF MEANINGFULL NUMBERS BEFORE LOOKING AT US BANKS!!!

Please leave your comment:


More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners


jlhpersonalJason's Net-Net + JAK + Intrin
BoubaNCAV EY DE
pbarker46Proj. FCF
pbarker46Median PS
pbarker46EPV
vinsandhuSchiller ASIA
emadvafaEmod Pick 2
vinsandhuSchiller EURO
emadvafaEmod Pick
steve.chatelainCanadian Growth
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK