Meredith Whitney calls the bottom in bank stocks

Surprised? She's the "axe" on the stocks, and is still bearish. So why do I say she called the bottom in the bank stocks?

In 1982, Joseph Granville was the bear on the market, and he called the "bottom" while predicting great calamity that never happened. His calamity call marked the bottom in stocks.

The same with Meredith.

On the exact bottom of the bank stocks, Meredith Whitney predicted that they had another 50% to drop. Her calamity call marked the bottom. Still she remains bearsih. Those waiting for her to turn bullish, already got her call! The bottom was her call for another 50% drop!

Last week she said Citigroup was beyond repair:

May 13, 2008 -- Banking analyst Meredith Whitney blasted Citigroup's turnaround plan yesterday, saying the financial giant is so deep in a black hole that even renown physicist Stephen Hawking could not help the ailing company.

"We wish [Citi's] management team all the best in their ambitious endeavors, but we fear [it] is past the point of fixing," quipped the Oppenheimer analyst known for her forecast that the company would slash its dividend.

The biting remarks, in the form of a research note to clients, came on the heels of Citi's long-awaited turnaround plan, unveiled by the bank's executive team on Friday.
http://www.nypost.com/seven/05132008/business/citi_is_beyond_repair_110684.htm

She stayed too long at the bearish table. So here's her call of the bottom:

Meredith Whitney warns of 50% fall in US bank shares

Meredith Whitney, the Wall Street analyst who received death threats after writing a negative report about Citigroup, has predicted that financial stocks could plummet by as much as half in the wake of the Bear Stearns fire sale.

In a note released today, the Oppenheimer analyst says Merrill Lynch, UBS and Citigroup will be the worst hit. Lehman brothers shares are already down 30 per cent in pre-opening trading.

This is likely to be the start of a string of bad news banking stories this week as three leading investment banks are set to announce billions of dollars worth of write-offs owing to the credit crisis.

Analysts were scrambling to re-adjust their forecasts downwards for big investment banks.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3567812.ece