Break up Bank of America
Rochdale Securities analyst Dick Bove says Bank of America (NYSE:BAC) should follow the example of Citigroup (NYSE:C) and break itself up, saying the model used by the giant banks no longer workds.
Bove isn't just thinking of minor surgery either for Bank of America, he's talking major cuts to the point of getting rid of Merrill Lynch, managing investments, the mortgage and credit card business.
What Bove sees as the perfect situation for them would be to have a company that takes in deposits and then lends money out. Now that would be a radical concept wouldn't it.
Showing posts with label Dick Bove. Show all posts
Showing posts with label Dick Bove. Show all posts
Sunday, April 11, 2010
Wednesday, March 31, 2010
Citigroup (NYSE:C), J.P. Morgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) Ready to Explode in Growth says Dick Bove
Banking stocks could rise to 4 times what they are today
According to Rochdale Securities analyst Dick Bove, the shares in companies like Citigroup (NYSE:C), J.P. Morgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) could explode in value as high as 4 times what they are today in the next few years.
This is a little different from a recent report that said Bove asserted the time-frame would be in the next two years.
Bove maintains the banking stocks have the potential to go that high, but covered himself saying, that could change if there "is a breakdown in either the economy or the financial system.”
In other words, this assumes everything goes right with little in the way of economic bumps along the way.
While I agree the banking stocks will eventually rise in a significant way in the future, the current economic situation is still so uncertain, that making these types of predictions, while interesting, and could come about under the best of circumstances, are still more about marketing the names of analysts like Bove than anything based on proven fundamentals of the companies or the economy, as far as the real condition they're all in.
According to Rochdale Securities analyst Dick Bove, the shares in companies like Citigroup (NYSE:C), J.P. Morgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) could explode in value as high as 4 times what they are today in the next few years.
This is a little different from a recent report that said Bove asserted the time-frame would be in the next two years.
Bove maintains the banking stocks have the potential to go that high, but covered himself saying, that could change if there "is a breakdown in either the economy or the financial system.”
In other words, this assumes everything goes right with little in the way of economic bumps along the way.
While I agree the banking stocks will eventually rise in a significant way in the future, the current economic situation is still so uncertain, that making these types of predictions, while interesting, and could come about under the best of circumstances, are still more about marketing the names of analysts like Bove than anything based on proven fundamentals of the companies or the economy, as far as the real condition they're all in.
Monday, March 29, 2010
Shareholders Sticking with Citigroup (NYSE:C)?
Citigroup and Treasury Selling Shares
We have the usual contradictions in a hyped stock in Citigroup (NYSE:C) as those like Dick Bove say it's time to buy and others are questioning whether shareholders should run from the stock now that the Treasury Department has said it's going to divest of their stake in common shares in the company in 2010.
The question is whether the sale of shares in the company will result in the price being knocked down for some time, or if the anticipated sales has already been priced into the stock.
The other concern is about the assets held in its specially-created Citi Holdings unit which exists to sell off the non-core or poorly performing assets. There's over $500 million held in that unit of the company, and until they're sold off, it lingers over the head of Citigroup.
Bove has stated he believe once the assets are divested and the company restructured, Citigroup should generate 70 cents a share in earnings.
As far as the government goes, it's an odd situation in that people consider the government holding onto the shares is a negative, the government selling them could dilute them, the government can sell them so they're considered strong, and the shares of Citigroup will be strong because the government says it is able to sell them.
Citigroup will remain a contradiction and anomaly for some time, and no matter what the many people say, it's very uncertain in the short- to mid-term where the company will head in share price, in my opinion.
We have the usual contradictions in a hyped stock in Citigroup (NYSE:C) as those like Dick Bove say it's time to buy and others are questioning whether shareholders should run from the stock now that the Treasury Department has said it's going to divest of their stake in common shares in the company in 2010.
The question is whether the sale of shares in the company will result in the price being knocked down for some time, or if the anticipated sales has already been priced into the stock.
The other concern is about the assets held in its specially-created Citi Holdings unit which exists to sell off the non-core or poorly performing assets. There's over $500 million held in that unit of the company, and until they're sold off, it lingers over the head of Citigroup.
Bove has stated he believe once the assets are divested and the company restructured, Citigroup should generate 70 cents a share in earnings.
As far as the government goes, it's an odd situation in that people consider the government holding onto the shares is a negative, the government selling them could dilute them, the government can sell them so they're considered strong, and the shares of Citigroup will be strong because the government says it is able to sell them.
Citigroup will remain a contradiction and anomaly for some time, and no matter what the many people say, it's very uncertain in the short- to mid-term where the company will head in share price, in my opinion.
Time to Buy Citigroup (NYSE:C) Says Dick Bove
Buy Citigroup now says Dick Bove
With the renewed commitment by the Treasury Department to divest of its stake in Citigroup (NYSE:C), and that action already being priced into the shares, Dick Bove says now is the time to buy Citigroup.
Bove has also raised his continually increasing target in the company from $7 to $8.50, and has upgraded the stock to a buy.
He doesn't think there will be a major upheaval from the sale of the shares by the Treasury because of the huge number of shares being sold on a daily basis, which should keep it from being overly diluted.
As far as the fundamentals go, Bove believes Citigroup can generate 70 cents a share in profits once the restructuring period is over.
With the renewed commitment by the Treasury Department to divest of its stake in Citigroup (NYSE:C), and that action already being priced into the shares, Dick Bove says now is the time to buy Citigroup.
Bove has also raised his continually increasing target in the company from $7 to $8.50, and has upgraded the stock to a buy.
He doesn't think there will be a major upheaval from the sale of the shares by the Treasury because of the huge number of shares being sold on a daily basis, which should keep it from being overly diluted.
As far as the fundamentals go, Bove believes Citigroup can generate 70 cents a share in profits once the restructuring period is over.
Monday, March 22, 2010
Dick Bove Upgrades Citigroup (NYSE:C) to Buy
Citigroup upgraded by Bove
Citigroup (NYSE:C) got some more wind in its sales as Rochdale analyst Dick Bove upgraded the stock from neutral to buy.
Interestingly, he viewed the government getting rid of the 7.7 billion shares it owns in Citigroup as the major reason behind his thinking.
Essentially he through out the actual condition of the company and the long term challenges it faces.
But it is understandable concerning Bove's reasoning, as many investors feel as long as the government is wrapped around the neck of Citigroup they'll be held back and not able to take the necessary steps to move forward.
Bove increased his target price for Citigroup from $3.75 to $5.
Citigroup (NYSE:C) got some more wind in its sales as Rochdale analyst Dick Bove upgraded the stock from neutral to buy.
Interestingly, he viewed the government getting rid of the 7.7 billion shares it owns in Citigroup as the major reason behind his thinking.
Essentially he through out the actual condition of the company and the long term challenges it faces.
But it is understandable concerning Bove's reasoning, as many investors feel as long as the government is wrapped around the neck of Citigroup they'll be held back and not able to take the necessary steps to move forward.
Bove increased his target price for Citigroup from $3.75 to $5.
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