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The Wall Street Greek blog is the sexy & syndicated financial securities markets publication of former Senior Equity Analyst Markos N. Kaminis. Our stock market blog reaches reputable publishers & private networks and is an unbiased, independent Wall Street research resource on the economy, stocks, gold & currency, energy & oil, real estate and more. Wall Street & Greece should be as honest, dependable and passionate as The Greek.



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Seeking Alpha

Tuesday, May 17, 2016

Bank of America - Ignore the Downgrade Says Former Wall Streeter

Bank of America
Bank of America (NYSE: BAC) shares received a downgrade Monday morning, but I'm advising shareholders not to give the move too much credit. As a former analyst, I know that downgrades to neutral that coincide with changes in the analyst covering the stock can be influenced by factors other than fundamentals. When such a downgrade takes a stock opinion to a "hold" or neutral view with a price target still 15% above market price, that possibility is even more likely. See the whole story at Insider Insight on Why the Downgrade of Bank of America is Unimportant.

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

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Wednesday, April 13, 2016

Bank of America EPS Preview – Don’t Fear the Reaper

bull
Heading into its earnings report, Bank of America (NYSE: BAC) holders and prospectors may fear the reaper so to speak. The bank’s earnings estimates have been cut significantly over the last 90 days, mostly due to altered interest rate expectations. However, I anticipate the Fed’s tightening rate trajectory is still intact, and expanding net interest margins will come. Also, the major consumer lender may be feeling some pressure of late due to February economic data, but I believe there is an anomalous cause for that. The latest GDP estimates are reflecting February’s softness and so are BAC shares apparently, but I believe March will show better. I suggest Bank of America (NYSE: BAC) holders look past the period and sit tight, and those seeking entry find value here. So don’t fear the reaper as the company reports its earnings this week. Better days are ahead. See the full story at Bank of America Q1 Preview - Don't Fear the Reaper.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

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Thursday, March 31, 2016

Bank of America & the Big Bad Fed Fairytale

time to relax
Bank of America (NYSE: BAC) sold off Tuesday, likely due to the media and market interpretation of Fed Chair Yellen’s speech. It has been portrayed as extremely dovish, which portends a poor interest rate outlook for the bank and its net interest margin. It’s a factor that could weigh against the stock long-term if it were to persist. Luckily, I believe the Fed perspective and the tone of its Fed Chair will turn in BAC’s favor over the next two months as her cause of concern is cleared up. So, I’m suggesting investors buy BAC on any weakness caused by a seemingly softer Fed perspective. It is a fairytale. See more of this report on Bank of America shares here.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

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Wednesday, March 30, 2016

Bank of America – Prepare to Bear Another Oil Spoil

oil prices
Bank of America (NYSE: BAC) shares have come a good distance from their mid-February trough, along with the broader market and oil prices. While I continue to favor Bank of America shares for the long-term, holders should prepare to bear another oil price swoon near-term. However, if BAC shares are impacted, it would mark another buying opportunity to participate in the appreciation I see for the financial sector and this stock ahead. See the full warning for Bank of America & oil near-term.

Big Bank
% of Loans to Energy
% of Reserves to Energy Loans
Bank of America (NYSE: BAC)
2.4%
2.3%
Morgan Stanley (NYSE: MS)
5.0%
3.0%
Citigroup (NYSE: C)
3.3%
3.0%
J.P. Morgan Chase (NYSE: JPM)
1.6%
4.0%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

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Wednesday, March 23, 2016

For Bank of America (BAC), Goldilocks Thinks the Fed was Just Right

Yellen
The Federal Open Market Committee (FOMC) meeting last week was important for Bank of America (NYSE: BAC) holders, but in a more complex manner than may have been expected. The Fed’s rate policy plans are critically important to the profit margins of the bank. However, the health of the American economy is even more important. That’s why the actions and statements of the Fed really produced the best result for BAC. Call it a Goldilocks type result, because the Fed backed off the brakes enough to ensure the economy continues to grow but at the same time it continues to anticipate two rate hikes this year and four next year. That’s why I say Goldilocks would call the Fed’s actions just right for Bank of America today. See more of this stock report on Bank of America here.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

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Monday, March 14, 2016

How the ECB Just Helped Bank of America (BAC)

Marley Maltese
You would not think the European Central Bank (ECB) could impact the shares of an American bank, but I believe the ECB just did. While most of what the ECB has been up to has recently served as an indirect hindrance to U.S. banks including Bank of America (NYSE: BAC), two things it did this past week helped BAC importantly. See A Positive Change for Bank of America Shares here.

Security
03-11-16
Bank of America (NYSE: BAC)
+3.9%
Financial Select Sector SPDR (NYSE: XLF)
+2.6%
SPDR S&P 500 (NYSE: SPY)
+1.6%

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

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Thursday, March 10, 2016

Buy Bank of America on Every Oil Dip

bull
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Bank of America (NYSE: BAC) shares were dipping with oil again as I started this report on Tuesday… and I was salivating. Every time the cyclical big bank is penalized by dips in energy prices it should be bought. It is an egregious exaggeration for BAC shares to be penalized by 3.5% on an oil decline in kind. Yes, the bank bears risk to energy companies and energy relative regions of the country, but that risk is limited and the bank is a national lender with much broader exposure than that. And there is opportunity for it in the growing U.S. national economy, with expanding employment and relatively lower gasoline prices serving consumers. And let’s not forget to mention an interest rate outlook that I believe still favors it, though that fact is still not perfectly understood by markets. Given its deep discount to a growing book value, I find it irresistible. Plus, you’ll get paid a 1.5% dividend yield while you wait for the stock to get its due recognition. See the full report on why Buy Bank of America on Every Oil Induced Dip.

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

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Thursday, March 03, 2016

Buy BofA - Bank of America (BAC) has Factor Favor Now

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If you own or follow Bank of America (NYSE: BAC), I am sure you have noticed a change of late. The stock of this deeply discounted big bank is turning around, and I believe it’s a move with traction finally. However, it has little to do with alpha or company specific factors, but rather is entirely the result of beta or macro-factor change. It should not be surprising, though, given that macro-factors were behind the stock’s tough year-to-date. See the report: The Factors that Sank Bank of America Now Favor it.

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

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Wednesday, October 07, 2015

What Just Happened to Bank of America (BAC)!?!

Shareholders of Bank of America (NYSE: BAC) were likely stricken with financial whiplash last week. Many of you may be wondering why the wild swing in your BAC shares, which exaggerated a similar move for the broader market. Let me lay out the reason for you, because it’s likely to come back into play again. I continue to favor the bank for the long-term. See my full report on BAC here. 

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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Tuesday, June 16, 2015

Bank of America – Why a BAC Breakout Happens on Lending Growth

May Motor Vehicle Sales offered fantastic evidence of robust business activity for Bank of America (NYSE: BAC). That fact is not just because the bank does a good deal of auto lending generally, but because it implies banks and BAC are lending more freely now after meeting the Fed’s raised capital requirements. While the interest rate outlook is certainly a support for the banks, this driver of lending activity will serve the top and bottom lines in an important manner. Thus, Bank of America remains of one my favorite long ideas. See the report on BAC here.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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Tuesday, March 31, 2015

Bank of America (BAC) Q1 EPS Preview

Bank of America (NYSE: BAC) shares have languished since the Federal Reserve’s dovish monetary policy statement release, which was a letdown to banks hoping for near-term margin expansion. BAC didn’t perform all too well before that either, weighed down by the Fed’s stress test results, which produced a qualified approval for Bank of America’s capital plans. But I suspect something else has been burdening the shares more recently and could make BAC shares irresistible soon. Bank of America disappointed investors when it last reported earnings in January. As a result, there is likely fear afoot today about the upcoming Q1 results, which should be reported on or around April 15. But the risk seems to me to have been built into the shares at this point, considering the positives that lay ahead for BAC. There is also the potential for an upside surprise when the company reports its earnings, which has not been considered by BAC bidders yet. The stock is approaching irresistible value in my view and should be accumulated into and after the report, even if it declines further. See our BAC EPS report preview here.

BAC Peers
03-16-15 to 03-27-15
Bank of America (BAC)
-5.1%
SPDR S&P 500 (NYSE: SPY)
-0.9%
Financial Select Sector SPDR (NYSE: XLF)
-2.8%
Citigroup (NYSE: C)
-5.0%
J.P. Morgan Chase (NYSE: JPM)
-3.7%
Goldman Sachs (NYSE: GS)
-2.0%
Morgan Stanley (NYSE: MS)
-2.5%
Wells Fargo (NYSE: WFC)
-2.9%
U.S. Bancorp (NYSE: USB)
-4.2%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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Tuesday, March 24, 2015

What’s Good for Citigroup is Great for Real Estate Too

When the Federal Reserve recently released the results of its stress tests of the financial sector, namely the major money center banks like Citigroup (NYSE: C), we got some fantastic news. All of the major money lenders passed the first round of the stress test with flying colors, and all got through the second round with permission to move ahead with their capital plans. The news was especially wonderful for Citigroup (NYSE: C), which was coming off its prior year failure. The stock is valued at a discount to even its weakest peers, and has upside to gain. But what many are missing here is that this is absolutely fantastic news for the real estate sector as well as for Citi. See my full report here.

Banking Peers
Tangible Book Value
Price-to-TB
Implied Value of C
Implied Gain to Peer Value
Citigroup (NYSE: C)
56.83
0.9X


Bank of America (NYSE: BAC)
14.43
1.1X
62.51
+10%
J.P. Morgan Chase (NYSE: JPM)
44.69
1.4X
79.56

Wells Fargo (NYSE: WFC)
30.81
1.8X
102.29

Morgan Stanley (NYSE: MS)
27.41
1.3X
73.88

Goldman Sachs (NYSE: GS)
153.79
1.25X
71.04

U.S. Bancorp (NYSE: USB)
17.38
2.6X
147.76

AVERAGE


$89.51
+58%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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Friday, February 27, 2015

Bank of America – Fed Favor in 2015

Federal Reserve Chairwoman Janet Yellen’s testimony this week served as a reminder to Bank of America (NYSE: BAC) investors that Fed favor will fuel BAC over the next few years. The bank’s shares have traded with high sensitivity to the rate outlook, and the Fed continues to work toward increasing rates. BAC shares climbed approximately 1.4% just after Tuesday’s release of Chairwoman Yellen’s prepared statements. BAC closed up 1.1% on the day. It’s my view that as we approach the first Fed rate hike, BAC shares will creep toward $18, where they made their home before last quarter’s earnings report. See my full report on Bank of America here.

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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Tuesday, February 17, 2015

Bank of America – Why A Greek Fix Fast-Tracks BAC to $18

Obviously, Greece does not have a significant direct tie to Bank of America (NYSE: BAC), but in my view the future of the euro does matter a great deal to BofA’s operational performance. It’s not an easy read, but for the discerning analyst you can see how a solidified euro-zone can help the dollar lower against the euro and help U.S. interest rates move higher. That is what matters to Bank of America’s profit margin and so a favorable resolution to the Greek issue can drive its stock upward to $18 quickly in my opinion. See the report on Bank of America. Report also interests Citigroup (NYSE: C), J.P. Morgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), Morgan Stanley (NYSE: MS).

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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Wednesday, February 04, 2015

Bank of America (BAC) - A Must Buy Here

Bank of America (NYSE: BAC) shares dropped significantly after its EPS report a couple weeks ago. Bank of America and its peers were harmed by an unexpected drop in interest rates that has squeezed their net interest margins. Central bank easing outside the United States has weakened foreign currencies against the dollar. Turmoil overseas has also driven capital to the safe haven store in U.S. treasuries. So interest rates have come down, and the margins of the banks have been squeezed as a result. Click to see the Bank of America (BAC) Report.

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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Thursday, September 25, 2014

What’s Good for Bank of America is Good for Real Estate

Bank of America (NYSE: BAC) reported some good news recently that I believe supports the case for the stock. The favorable benefits reach beyond shareholders, though, to serve the entire real estate sector in my opinion. And in turn, like a cycle of life, I expect the benefits from real estate to be paid forward again and back to Bank of America. See the full report on Bank of America here. Article should interest investors in Citigroup (NYSE: C), J.P. Morgan Chase (NYSE: JPM), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), U.S. Bancorp (NYSE: USB).

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Saturday, May 31, 2014

Bank of America is a Gift from God Here

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Bank of America (NYSE: BAC) took a hard fall after its executive team failed to accurately report its regulatory capital ratios to the Federal Reserve. The company had its capital plans frozen as a result. With expectations for a sharp dividend increase and share repurchases built into the stock price, investors were disappointed. And then the company’s earnings outlook required a second look, given the accounting errors and the absence of share repurchases. That leveled the stock, cutting 6% off its value in one day. But, after all that, I suggest Bank of America (NYSE: BAC) is now a gift for those who do not yet own the stock. The company has resubmitted its third-party reviewed capital figures and its financial plans to the Fed, and is now on a 75 day wait for approval. The stock is deeply discounted to peers, trading at just 1.1X tangible book value, versus 1.65X for Wells Fargo (NYSE: WFC), 1.34X for J.P. Morgan Chase (NYSE: JPM) and 2.05X for U.S. Bancorp (NYSE: USB). If BofA could attain the average value of itself and those peers and trade at a conservative 1.5X tangible book, it would be worth 37% more than it is today. That is a gift from God for new entrants. Please see our full report here for a more detailed analysis of Bank of America.

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Wednesday, January 15, 2014

Hold Your Horses! The Mortgage Report is Misleading

no
The Mortgage Bankers Association (MBA) today reported is Weekly Applications Survey, which measures applications for mortgages. It showed a surge in activity, giving real estate relative stocks and especially mortgage originators, a lift in early Wednesday trading. Temper your enthusiasm, though, as the latest gains are not to be misread; the mortgage market is not quite that hot.

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Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Mortgage Activity Report


The MBA showed that its Market Composite Index of mortgage activity gained by a seasonally adjusted 11.9% in the period ending January 10, 2014. Purchase activity, or mortgage applications on home purchases, rose by 12%, while refinancing activity improved by 11% on the week. That is amazing right? Wrong!

I have been following the real estate sector for over two decades now, and have gained some familiarity with the regular reports and their flaws. I have noticed something in particular about the MBA’s weekly mortgage report that keeps me from writing wildly varying summaries from week to week on the often volatile data point. For instance, last week we might have said the sky was falling given the decline in mortgage activity. This week, we would have climbed back off the ledge and celebrated life. Let’s take a closer look shall we?

Obviously, a weekly measure is going to vary around holidays. “But the report is seasonally adjusted Greek!” you might yelp in response. Yes, it is seasonally adjusted, as evidenced by the unadjusted 61% increase in the Market Composite Index week-to-week. Still, I have noted that around holidays, activity still seems to be more volatile than through regular periods. In the past, I’ve noted my belief that while the report may be adjusted for the one-day holiday, it may not adequately account for business drop-off that occurs on the day before and the first workday after the holiday, as Americans prepare for it and recover from it. This is something that number counters focused on the pure math might miss, but it makes perfect sense nonetheless. And the evidence is in the wild swings week-to-week, which I have noted in my regular following of this data point.



As you can see, the shares of nation’s most important mortgage originators are moving sharply higher Wednesday. Now, a good bit of that is due to the strong EPS report from Bank of America (NYSE: BAC), which we recommended again yesterday in our EPS preview piece. BAC is up more than 3% today after a gap open start to the morning, and we are proud to have recently called it our top real estate play of 2014.

Mortgage Originator
1/15/14 Morning Gain
Bank of America (NYSE: BAC)
+3.1%
Wells Fargo (NYSE: WFC)
+1.5%
J.P. Morgan Chase (NYSE: JPM)
+1.1%
Citigroup (NYSE: C)
+1.1%
U.S. Bancorp (NYSE: USB)
+0.9%

Certainly, the company’s good news had something to do with the gains of the other major mortgage originators for real estate today, but it did not have everything to do with it. That is evidenced by the 1.0% gain on the morning by mortgage insurer MGIC Investment (NYSE: MTG). This latest stellar mortgage report from the MBA certainly is providing some uplift. Unfortunately, it is a bit overdone, and so I suggest you temper your enthusiasm in the real estate relative stocks today.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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Monday, February 11, 2013

Mortgage Lender Shortage Affects Rates

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There's a good reason for it.
By The Greek:

In the boom time of housing, there were an abundance of lenders spreading funds to all sorts of borrowers. As everything unraveled, many of those firms went underwater or escaped bankruptcy through last minute deals, ala the Countrywide acquisition by Bank of America (NYSE: BAC). But with major mortgage lenders including BofA, Citigroup (NYSE: C) and Morgan Stanley (NYSE: MS) today burdened by MBS liability and tough mortgage memories, there may be a shortage of willing lenders, especially at the margin of borrower qualification. As demand for mortgages ramps up, a lack of commensurate supply could prove a factor behind higher mortgage rates. Such a change could impede the real estate recovery, though perhaps only temporarily until supply demand dynamics balance.

Many major mortgage lenders are still heavily in the game with Wells Fargo (NYSE: WFC) leading in terms of mortgage lending market share and J.P. Morgan Chase (NYSE: JPM) and U.S. Bancorp (NYSE: USB) pushing for more, but others including BofA and Citi have shied away a bit. Costs in the mortgage servicing business may also be serving smaller players willing to pick up scraps, as major banks have the impact to overall shareholder returns to consider.

With an absence of lenders at the margin due to the real estate & financial crisis baggage still born by BofA and others, there’s an allure for new players to enter the field. They have been, as indicated by the slipping market share of the five largest mortgage lenders as mortgage demand picks up. The share of those largest lenders is down from two-thirds of the market in 2010 to roughly 53% last year, according to Inside Mortgage Finance. However, if mortgage demand picks up faster than new lenders fill missing capacity, then rates could rise faster than normal market dynamics might otherwise dictate. Indeed, the Mortgage Bankers Association last week showed that interest rates on 30-year fixed rate mortgages have increased for seven out of the last eight weeks.

An opportunity has thus availed itself for relatively young firms filling the void, including for instance Guaranteed Rate, an independent mortgage lender. However, the increasing importance of smaller firms may also indicate a return of risk taking, though hopefully to a lesser extent than in the relatively recent past... Community banks and independent mortgage companies are making more use of the FHA than the larger banks. Furthermore, the management teams of smaller companies may be less seasoned than those on the big stage, which begs to question whether risk taking is ramping up again and whether the lessons of the crisis are perhaps already lost to newborn greed. Of course, the government has acted to safeguard against problems, but its protection is relatively untested. The Consumer Financial Protection Bureau (CFPB) will do its best to ensure consumers are not had. It’s also supposed to ensure that certain higher lending standards are employed, but whether it has the real resources, capacity, will and skill to do so is yet uncertain.

One thing is certain: the shares of companies in the mortgage business are on fire. Tree.com (Nasdaq: TREE), with its leading brand LendingTree.com, for instance, boasts a 164% 12-month appreciation after dividends and splits. Players like Impac Mortgage (NYSE: IMH) are back from the flat-line, with its shares 350% higher than last year. Everything mortgage finance and investment related is revived from the dead today, and some of the best yields in the market are offered by Mortgage REITs like Annaly Capital (NYSE: NLY) and American Capital Agency (Nasdaq: AGNC), though we’ve expressed our concerns about those very specifically recently.

For real estate investors, homeownership affordability may face several threats in the months and years ahead, but one thing is for certain today. Homes are extremely affordable for those who have the resources and staying power to cover the expenses that come with it. I’ve tried to voice my opinion on this subject as loudly as possible in recent months (Time to Buy Real Estate & Real Estate for a Powerball Jackpot for instance). Yet, in the near term, those bottom dollar mortgage rates we’ve gotten used to may come under pressure from simple supply demand dynamics. So here’s yet another reason to act on real estate today.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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