How to Find Lucrative Financial Institution Stocks

Companies who avoided danger are an attractive option

The major reason for the depressed share prices in the financial sector, of course, has been weakness in real estate, which led to increasing defaults on mortgage loans. Even so, Schutz sees opportunities in the mortgage business for one company whose shares he’s been scooping up lately: Chimera Investment Corp. (NYSE: CIM), a real estate investment trust that buys mortgages. “The company has been acquiring loans at a discount to their net asset value,” says Schutz. His overall reasoning: If it becomes apparent that the loans acquired by Chimera are relatively sound, values could move up sharply, thereby driving up the company’s stock price.

What about insurance companies? “Our top holdings include MetLife (NYSE: MET) and Travelers (NYSE: TRV), both of which have excellent financial strength,” Schutz says. Both insurers’ stocks are off sharply from last year’s highs so they could bounce back when investors are convinced the financial sector includes winners as well as losers.

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  • tamiko scian

    fyi

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  • WALTER WEBB

    THE GLOBAL FINANCIAL MARKET HAS REALLY PROGRESSED AND THE COMPETITION
    IS HEATING UP. THE UNITED STATES HAS BEEN A LEADER OF THE FINANCIAL FREE
    WORLD AND HAVE PARTNERED WITH A PLETHORA OF COUNTRIES. WELLS FARGO ADVISOR
    (WFC) HAS GENERATED LOCAL AND GLOBAL PROSPERITY THROUGH ITS ADVISORY NETWORKINGS. BANK OF AMERICA (BAC) HAS ESTABLISHED ITSELF AS AMERICA’S 2010-2011 ACQUISITION FINANCIAL INSTUTION IN THE UNITED STATES. DOMESTICS
    AGENDA WAS PRIORITY ONE AS IT ACQUIRED COUNTRYWIDE AND MERGED GLOBALLY WITH LASALLE IN EUROPE. MECHANICS AND FARMERS BANK (MFBP) HAS BEEN RECOGNIZED AS A LEADING FINANCIAL HUB FOR AFRICAN AMERICANS. IT WAS A SPONSOR TO EARLY BLACK WALL STREET AND THE FINANCIAL FREEDOM OF BLACKS IN
    OWNERSHIP ROLES OF AMERICAN ECONOMY. CITIGROUP (C) WITH ITS RECENT NEW AFRICAN AMERICAN CEO HAS PUT AMERICAN EDUCATION FINANCING TO THE FOREFRONT
    OF EDUCATION MAKING THE UNITED A INTERNATIONAL PLAYER IN HIGHER EDUCATION.
    AND WHILE STILL SUSTAINING ITS TIES WITH GLOBAL FINANCIAL VENTURES IN HUGE
    AMOUNTS OF COUNTRIES. ICCI BANK (IBN) HAS PARLAYED ITS FINANCIAL MOVES INTO PARTNERING WITH INDIA’S BIG WIGS WHOM ARE GENEROUS SPONSORS OF AMERICA. THE NATIONAL BANK OF GREECE (NBG) IS LISTED ON THE NEW YORK STOCK
    EXCHANGE (NYX) AND WORKS WITH AMERICAN BANKS. KOREA’S KOOMIN (KB) ALSO.