A Vote of Confidence for the Small-Bank Trade
I spend a lot of time thinking about banks. I have been talking about the Trade of the Decade since 2008. Given the damage done to the banking sector over the past three years, this trade is inevitable. It has also been frustratingly long in developing. Eventually, the small regional and community banks are going to see substantial consolidation at much higher multiples of tangible book value than where they are currently trading.
In the short run, there are still a lot of obstacles in front of the group, and you must be patient enough to wait for the trends to assert themselves in the sector. Yesterday I decided to check my premises on the group. I spoke with Martin Friedman of FJ Capital, a Virginia-based hedge fund that specializes in small bank stocks....662 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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