Banks

You want to know which banks to buy? How about C, BAC, WFC, PNC, JPM and HBAN? How about USB?

You know what these stocks have in common? They are ridiculously low, kept down by rumor, innuendo, disbelieving analysts and lies.

Take Bank of America. On Monday I am reading some clown, and I use that term with great respect, talking about $150 billion in mortgage liabilities. Hey, why not say they have to make good on every mortgage ever? How short BAC is that guy? Hey, speaking of innuendo, when are we going to see the big WikiLeaks attack on Bank of America? What is that going to say? That Ken Lewis was pressured into completing the deal with Merrill? That Tim Geithner yelled at someone there? That Countrywide is a disaster? I mean, come one, what hasn't been said about this one?

In the meantime, what's really happening post-fin-reg? All of the unintended consequences we love to see so much if we are shareholders: higher debit fees, ATM fees, checking fees. What did we think would happen? That they would choose to make much less money? That they would become charities?

I figure any day now we catch some downgrades in these stocks, especially Bank of America, where people will say that it has moved up too much and that the housing and mortgage morasses are not solved and not priced in. Forgive me, but this stock used to be at $50. From $12 to $14? Yeah, what a move.

I think Citigroup could double by the end of this year. I can't even fathom how high JPMorgan goes when it reinstates that bountiful dividend.

The group has legs. It is way behind the market.

long BAC, C