August 1, 2007
Tip the Chairman and Discover His 10 Favorite Financial Stocks
I had a chance to put together a list of my ten favorite financial sector stocks right here. Once again the market is overly pessimistic about things and that’s forced a number of stocks to levels where they’re deeply undervalued, in some cases stupidly undervalued. If you want me to email you the list (a Word document that has a chart and some basic information), just make a donation.
Time for some high pressure contribution tactics:
- My 15 Ideas Portfolio is losing money and has hugely underperformed the S&P 500 (to date).
- If you think the housing crash has just begun, you wouldn’t want to touch any of these stocks.
- If you wear CROX, are addicted to RIMM’s BlackBerry, and think GOOGle is the shiznit, none of these stocks will interest you.
Thanks for toking the dealer during these dark days, guys.
Cat: | Time: 8:40 am (utc+8)
July 31st, 2007 at 12:32 pm
Hi C. Maoxian…I am afraid of offending you by donating a small amount $…could you give me some hints about the average range? thanks.
July 31st, 2007 at 2:48 pm
anno: The range is huge and I’m not offended by any amount… whatever you think is appropriate for you is fine.
August 1st, 2007 at 11:41 am
[…] Stock Du Jour (LFC) & Random Observations | Home | Tip the Chairman and Discover His 10 Favorite Financial Stocks […]
August 1st, 2007 at 7:39 pm
I wish you would say $50 minimum and then start publishing more ideas, you nailed the correction the day before it began
Many would pay for macro calls to go long or short futures and etf since there are so many avenues out there
One big call like this last one is all you need,
be more specific if you can
thanks
August 1st, 2007 at 8:12 pm
I think Redwood Trust (RWT) is a bargain here. Book value is $38-ish, stock trades at $29, and management is top-notch and very conservative.
They will be able to buy a lot of these distressed CDOs and clean up.
(I am long RWT)
August 1st, 2007 at 8:44 pm
@Jack: Even my most faithful dozen readers aren’t willing to pay me $50 a shot, and these are very long-term investment ideas, not quick in and out trading ideas. I’d rather spread the love far and wide by making it a voluntary contribution.
@Doug: I think Wally Weitz would agree with you though book value is something of a moving target thee days. ;-)
August 2nd, 2007 at 10:17 pm
Doug, if book value is any useful, I will long a crapload of homebuilders. Some of them are trading way below book value….what a BARGAIN that make ;)
The undervalue stocks IMHO, are the U.S. companies that have a good international exposure.
August 3rd, 2007 at 9:38 am
Book value ? Book value of what ? Who is valuating the assets ? Book value of the home builders who are holding assets that are diminishing in value ?
Uhhh, ok.
Best wishes bub.
August 3rd, 2007 at 10:30 am
Todd: It’s true that book value is a moving target but what we’re excited about is the sentiment … there’s so much gloom and doom about this sector that you could cut it with a knife.
August 3rd, 2007 at 7:31 pm
Mr. Chairman, from where I sit in my little part of the world, there is indeed NOT ENOUGH fear or doom and gloom to properly represent the full extent of the problems or to signal a bottom in this sector.
This sector still has A LOT of inventory to work off before things can turn around. Before I took any kind of a stab into the homebuilders (and that’s what it would be - a stab) they need to bounce around and form some type of base. The entire sector is still pretty much in a free fall.
There’s quite possibly a good deal more pain ahead.
As always, just one person’s opinion.
August 3rd, 2007 at 8:53 pm
Todd: Yeah, you may be right, I’m not that informed about the state of the housing market and it’s true that many homebuilders have formed monster (monthly) tops that have broken and could go *much* lower before the “measured move” is completed.
That said, I still think I’ll give it a go. ;-)
August 8th, 2007 at 7:58 am
[…] It’s worth noting that the ISE Sentiment Index moved to it’s lowest (i.e. most bullish) level today in the last 52 weeks. As you all know, I’ve been a buyer recently. […]
August 13th, 2007 at 11:12 am
can someone post the list ? :)
August 13th, 2007 at 11:46 am
max: That wouldn’t be very sporting if they did. ;-)
August 27th, 2007 at 10:20 am
[…] I’m not an insider, but anyone who can read a financial statement understands how deeply undervalued many financial stocks are now, especially these ten. Cat: […]
August 29th, 2007 at 5:27 am
Got some real values on the list of ten today. Thanks.
October 29th, 2007 at 4:46 pm
[…] I was early rather than late when I bought a ton of financials back in August, and I’m sitting on some pretty large losses now (especially in WM). I thought they were cheap then, and obviously think they’re a lot cheaper now. Bargains can become bigger bargains, alas. I’m not day trading these stocks, I plan to hold them for many years, and I’m not overly worried (though if dividends get slashed that would definitely disturb me). I’m sitting tight. Cat: […]
November 14th, 2007 at 10:05 am
[…] Here’s a longer term look at Washington Mutual’s dividend yield. I’ve been widely reviled for having recommended WM in the mid-$30s, where I thought it was a bargain and represented good value. Assuming they don’t cut the dividend, Washington Mutual yielding over 10% is, cue Crazy Eddie, an INSANE bargain. Click to enlarge (WM Dividend Yield) Cat: […]
August 4th, 2008 at 6:06 pm
CM, might be a bit late but I would alert you to the chance to launch an Australian version of your tipsheet.
Reporting season here and the banks are presenting similar large yields… That is until they report and fess up to whatever they are forced to reveal in losses on toxic paper.
Still… They are a mighty tempting target for the longer term investor.
August 4th, 2008 at 8:03 pm
Andrew: Tipsheet? More like Dipsheet. :) I obviously know nothing about US financials and even less about those Down Under.