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Hilary Kramer, editor of GameChangerStocks.com, on why she believes now is the time for investors to look into financial stocks.
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The street is earning season big rivals Morgan Stanley Goldman Sachs JPMorgan also out did expectations.
But is that enough of -- reason to dive into financials as an investment choice -- my next guest certainly thinks it is joining us now as Hillary -- editor of gain changer -- -- picks CEO.
So fit to -- case of the financials right now.
This are the most undervalued sector they've been beaten down except of course for for recovery since January 1.
Book values are back.
Some of them are 50% below where they should be takes -- like Morgan Stanley at eighteen dollars still book value is thirty dollars and 27 dollars for tangible book and this is where the money is these -- the opportunities and the competitors remember out of business there's no more Lehman and no more Bear Stearns get a chart of the spdr financial index actually is pretty.
Pretty drawing pretty interesting.
In your own writing -- -- -- the barricades out there and it's I mean you can look at the data that came out just today.
Existing home sales are pretty socks and no improvement in housing market consumer credit is not budging fixed income trading is still -- we heard from James Gorman who admitted that.
The bank itself deemed dead -- it's some of its own -- Charlie Africa by the will be along more to talk about his -- rise apartment but -- -- -- those concerns people and a half OK on the fixed income side it was still much better than it had been for example Morgan Stanley 2.5 billion dollars of revenue of all of the eight point 91 billion at Morgan Stanley.
Plus the numbers were actually much better than the appears very complicated accounting Morgan's -- at its quirky write down so in actuality they would've been -- JPMorgan -- revenues by 6%.
You have a lot of mergers and acquisitions that are in the pipeline and are ready to burst out.
You only have some of the small boutiques like evercore which is one of my favorite stocks evercore is that this and EVR.
Excellent dividend yield just -- of the AOL patent sale and is in some of the largest deals -- are out there like -- Morgan in El Paso.
Pfizer's transactions.
But -- -- that they -- case on financials is that there's a lot of momentum in the market but we have to remember that they asked and really Smart money -- Done with Priceline they're done with -- they're done with chippewa lake and they're done with that at all Hollywood after coming out today -- -- a lot of people are very bulletin pared down and I want to break out of money price I'll take good advice watch you break it break these down Morgan -- Africa this is first when you mentioned that I targeted 35 dollars yes.
Downgrade still liability there also how to balance sheet in your view considering the Europe.
Threat they're still -- also -- -- regulatory issues out I think they're regulatory issues.
That's really behind the banks and that they've already been ahead of the curve on that one but 900 million approximately still -- assets -- per -- at Morgan Stanley she's the chief financial officer prodding the best chief financial officer on the street.
The big concern there -- of course is that downgrade and with Pratt has said.
That's not a concern and plus -- information came out in February that's where the markets can be inefficient.
The key is with Morgan Stanley that wealth management strong and housing isn't a problem and that's why -- to look at the chart today of how Morgan Stanley is -- And BankAmerica is languishing because the stock market will tell you what they -- and Morgan Stanley's just a matter also on the technical side.
Of getting happen over that twenty dollars a share it got there in March.
We could see that again remember for every 2010 it was close with thirty dollar stock anyway and Morgan Stanley has the FaceBook IPO coming do you think Mark Zuckerberg would've chosen Morgan Stanley get any doubts about the stability stability.
Morgan Stanley but -- certainly stated your bullish case and that's and -- -- -- that this afternoon thanks for joining us thank you Hilary Kramer.
