In addition, all three advisors see their banking bets as value-oriented positions with solid, long-term fundamentals. All three are also buyback and/or takeover plays.

Bill Martin, editor of FindProfit newsletter recommends Valley National Bancorp (NYSE: VLY), which he notes is based in the prime New York City metropolitan banking market.

He states, "VLY has seen its bottom line pressured, primarily due to the flat yield curve. However, there have been no credit issues at very conservatively run VLY, and we don't expect any to develop."

Looking forward, he says, we continue to believe that margins are 'as bad as they will get' for many banks, at least,he notes, for conservative banks without credit challenges such as Valley.

According to Martin, "This means that VLY's bottom-line results should bottom this year and start to improve in 2008."

Meanwhile, he speculatives, "We believe that VLY continues to be a takeout target, as the bank's footprint and under-leveraged balance sheet remains extremely attractive." Further, he states, "With outright ownership of more than 90 buildings in the NYC area, we believe its book value is materially understated."

Continue reading Three experts bank on regional banks

Three experts bank on regional banks originally appeared on BloggingStocks on Mon, 23 Jul 2007 09:14:00 EST. Please see our terms for use of feeds.

In recent posts, I have reviewed the newsletter advisors' Top Picks from 2007, first highlighting stocks that were in the healthcare, tech, and telecom sectors and then highlighting favorites in the out-of-favor metals and energy areas.

To conclude this review, I'm turning now to the most popular sector in this year's annual Top Picks report -- financial stocks. Of particular note this year is the type of financial stocks that rose to the top of the advisors' buy lists.

In past years, it was routine to see brokerage firms and large cap consumer banks among the Top Picks. This year, only one such company was chosen; Citigroup Inc. (NYSE:C) was selected as the favorite stock of both Mark Skousen and Kelley Wright.

Outside of Citi, the advisory community looked to an area that has rarely been cited in previous Top Picks reports --specialty finance companies. For example, Gordon Pape selected Brookfield Asset Management, which provides financing to real estate ventures.

Neil George chose a pair of companies spun off from Australia's Macquarie Bank. Both the Macquarie Infrastructure Trust (NYSE:MIC) and the Macquarie Infrastructure Group (OTC:MCORF) provide financing to global road, bridge, and airport development projects.

Continue reading Top Picks 2007: And the winner is ... financials

Top Picks 2007: And the winner is ... financials originally appeared on BloggingStocks on Fri, 12 Jan 2007 14:04:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Stocks Report.

Park National Corp. (ASE: PRK) is the favorite conservative investment for 2007 from small bank stock specialist Doug Hughes.

The editor of Banknewsletter.com notes, "Park National is a bank holding company, engaged in the commercial banking and trust business in Ohio with over 1,800 employees and 133 offices. Total assets over $5.4 billion, loans over $3.2 billion, and deposits over $3.7 billon as of 3/31/06.

"The stock has been selling off and is currently at the low for the year, something we like, no news, just a big sell off in the shares, while they may have been over-valued at $140, at $93 it is a buy. Book value is almost $40 a share and with net interest margins at 4.37% and a return on average assets at 1.78%, very strong, they are simply worth three times book+ in a deal.

"Insiders own a ton, they will earn $7 in 2007, so a P/E of 13 is very fair for the quality of the franchise. The bank has been around for 100 years, their asset quality is among the best ,and reserves at over 2.10% very strong. The big cash dividend is also nice.

Continue reading Top Picks 2007: Doug Hughes banks on Park National

Top Picks 2007: Doug Hughes banks on Park National originally appeared on BloggingStocks on Sun, 31 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Stocks Report.

Union Bancal (NYSE: UB), the holding company for Union Bank California, is the favorite speculative play for 2007 from Doug Hughes, editor of the Banknewsletter.com. He notes, "Union was founded in 1864 and operates as a subsidiary of Bank of Tokyo-Mitsubishi UFJ, Ltd., which owns about 65% of the bank shares. This is among the largest banks we have ever covered, with over 315 branches and over $50 billion in assets. But with the stock trading at multi-year lows, we had to take a look.

"The bank continues to buy back stock; hopefully they will get very aggressive at this over the rest of the year. They certainly have the capital to do it. Look for them to buy 5 to 10% of the stock back this year and next. They have paid much higher prices for their stock in the past, so they will continue.

"Almost every analyst has downgraded this stock. We say buy now. They are in some of the best markets, loans are growing at 12%+, and nonperforming assets are very low at 0.09%. Most importantly, they are being very careful in California real estate not to get in trouble like in the past.

"This is a liquid name that trades plenty, and you get any size position you want now. Buy at $57.25 or less; at under $55.25, this is a steal. While it may take several years to pan out, this is simply an undervalued franchise at today's prices. They have a $30+ book value and 140 million shares outstanding; look for $75 a share 2 to 3 years out, with a cash dividend of 3.3% while we wait. This premier franchise cannot be replaced at today's prices. Downside should be limited to around $55 in a big sell off."

To see Doug's favorite conservative banking stock for 2007, click here.

Top Picks 2007: Banking on California with Doug Hughes originally appeared on BloggingStocks on Mon, 25 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.