Stocks were up anywhere from 2.2% – 4.75% today, depending on the index. Banks were on fire again today. There is serious value-bin buying going on in Bank of America and some other large banks and insurance companies.
I recently ran a search to see if any stocks were selling for a price less than the value of their cash on hand. That rarely happens to decent companies, but the market is pretty reasonably priced right now.
I was shocked to come up with almost 40 names. For the price of their cash or even less you get the rest of the company for free! I call that a deal worth checking out.
Now, if the company is going through their cash buying them may not be a good deal. But what if they are actually growing their cash level and are profitable, growing companies that have the misfortune to be in the most hated industry in America? JP Morgan is on that list, along with several small to midsized growing banks that are growing and have dividends between 2% and 4.2%. I also looked for stocks selling near or below book value.
Of course, it matters how good the company is. I have whittled down the list to what I think are the best companies.
I am amused as I write this because it sounds like the hyped newsletter sales pitches I used to get in the mail back in the 90s and routinely threw away unread. Remember, my newsletter is free. The latest version is always on the web site. Full disclosure: I just bought small long positions in two of the stocks for clients and myself.
This is not a solicitation to buy any individual stock. But you are welcome to call me and talk it over.