Back to the Old School
I am intrigued by yesterday's screen, which showed that adding Piotroski F scores to my bank research is a worthwhile idea. I will be playing around with incorporating that measure into my regular research efforts, but deep in my heart I am still old school. I have had a great deal of success over the years buying banks on the basis of a few basic criteria.
When I look at banks, I look for a price below tangible book value, excess capital and a strong balance sheet. I also pay close attention to make sure the bank has set aside adequate reserves for loan losses. I have a preference for those that are fully reserved or even over-reserved. Buying these has turned out to be profitable most of the time....444 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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