Keep It in the Community
It is no secret that I am a long-term raging bull on regional and community banks. They may face short-term headwinds and go lower before going higher, but patient investors should see outsized returns over the next decade. Many of them trade below tangible book value and also provide a high current dividend yield. Buying small positions in several of these stocks can add yield and provide long-term growth potential as well.
One of my favorite regional names right now is First Niagara Financial Group (FNFG). The stock trades below tangible book value and is near its 52-week lows. Insiders have been relatively small but consistent buyers since the beginning of the year. Management has taken advantage of weakness in the banking sector to make strategic acquisitions and expand its footprint. In 2011, the company bought New Alliance Bank, and in May it purchased 195 branches form the beleaguered HSBC Holdings (HBC)....412 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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