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All right well all this week we have been bringing you the Wall Street Journal's number one rank stock pickers from.
All different sectors today the number one bank analyst -- Davis morningstar's senior equity analyst joins us and she is not.
Recommending the US back.
Not today anyway she's looking overseas for some opportunities -- and wonderful to see you congratulations.
On being named the number when stock picker.
I think -- David I'm happy to be here and and thank -- was excited to hear now why is it that you're not going for US banks right now.
Well the main reason is that I infants mostly -- European financials we do like some -- -- US banks -- Like for example.
Which is why what US banks do you like for example.
-- -- -- now that we're recommending is capped one -- people think of it as -- credit card company but it's actually a lot more diversified and that and it's trading at about.
83% of our fair value it's trading at 61 and we think it's -- seven before.
Okay but let's go to your pick overseas B Joerg at least a couple of them -- -- BP NP Paribas S for example you say.
It is a bet on the -- why would you go for this particular bank and and France at this point which is still in the midst of -- of a downturn.
But the FBP is my top pick right now I think it's the best value among high quality European -- and -- it isn't France.
But its credit quality is still very high it's retail banking operations they're very profit of -- It's a really concentrated making market in France and so that retail -- generally earn his pretax return that equity.
20/20 5% and I think that's very attractive and has also really good operations and -- -- my strong asset manager.
And I think there's a lot to like about it is now that the worst of the crisis in Europe has -- Well yeah and that's a question though whether or not it has -- I know France has this awful new tax scheme that most French don't like much is certainly.
Not helping the economy much is is so is it is France itself for risk I mean the bank may be well run.
But you can't ignore the country that is him.
You know -- Expecting a lot of strong growth out of France but even if it just manages to O'Donnell around that negative line -- 1% growth -- I think IB MP will be fine if in a more extreme scenario -- France decided to leave the eurozone or something I think it would be different situation but I think that that possibility right now looks -- -- amount OK you're second pick overseas is Barkley is why do you like Barkley is now.
I Barclays because that I think that its new management team is doing a very good and credible job.
Developing a more sustainable unless risky business model for the bank and moreover UK retail -- and isn't very good business back plays had a big retail.
A network ends up -- and that's -- And less big and risky that it's not as likely to to blow up always he has demo here parts of that business.
So either way we have a branch -- the main branch here in New York right around -- corner and of course it used to be Lehman Brothers how has that absorption of Lehman Brothers worked out.
I -- I'm pretty well for Barclays they were able to get.
The very best parts of Lehman without taking much of the bad assets and I think that that was -- really -- It -- it will -- patent.
Finally Italy a lot of people say boy for look at Ford down market you can't get more down right now -- -- -- may be Spain is worse but in terms of a big economy Italy is.
Is really down huge unemployment problem is there any debt that you would -- in Italy right now.
Now -- very cautious on the Italian banks right now I know that some people especially value investors are looking at them pretty closely.
But at -- think that there that.
Big possibility that they could need mark cap and on so where are advising investors to stay away.
Okay BNP Paribas and Barkley is that the two -- from this wonderful stock picker Eric Davis good to see again thanks for coming in appreciate it.
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