Wednesday, August 5, 2009
Cramer gets on board the "Rainbow" twenty!
Looks like the regionals are finally rocking!!!
Tonight Jim Cramer had this to say on his stock tout site:
Regions Financial (RF 4.73 ), Huntington Bancshares (HBAN 4.53) and Fifth Third Bank (FITB - 9.99) are three regional banks that I regard as great calls on the turn in the economy, and I would buy all three. Regions is the worst of the three, and that matters because right now people actually want the worst ones, because they could fly the most if things get better. Huntington didn't have a great quarter but has an energized management, and I think this one could be on track for a double. Fifth Third? What can I say, Goldman Sachs loves it, as it has built a gigantic book of reserves and is doing everything right. It reminds me of the old Fifth Third -- conservative, lean and mean.
On May 8th, I had this to say:
The short story, on the regional banks is over. Huntington Bancshares (HBAN 3.89), Fith Third (FITB 5.34) and KeyCorp (KEY 6.78), and SunTrust (STI 18.58) that was downgraded to sell by Goldman yesterday, were numbers in the bears playground, that the bulls will run with. The first three are the under twenty portfolio (the stocks add up to twenty combined) and STI is the under twenty number. It's a rainbow twenty!
I guess we differed on KEY, but that's a buy also. I had to suffer with these regionals as the ATM offerings dragged the prices of these numbers lower, but now I'm getting help, from Cramer, who is pimping the regionals also.
I'll take it, because they are just getting started!
And how about that Bank of America, Whitney Tilson's favorite bank short? Boy that worked out nicely didn't it? Wait--wouldn't it have been nice is someone would of warned you that Tilson's position on shorting BAC was just plain stupid, and that we shouldn't buy his bearish poppycock on housing?
Oh that's right--we were warned--here!!! In my Gilligan piece!!
And BAC now looks like it is heading to my year end target of 22 on my Dow 10,270 piece.
Once again, as advertised!!!
Posted by Palmoni at 8:40 PM