Bank of America (BAC)

Emerged from the financial crisis as a much stronger company. He prefers in the US banking sector companies more leveraged to economic growth. One of those big safe companies. If you are looking at 10 years you can put on your portfolio and just hold on to it.

A core holding. It trades at a big of a discount. It has earnings and dividend growth. It had this massive run that priced in higher interest rates, healthy US consumer and economy and the market is digesting the new reality of all of this being priced in. Own a basket of banks.

It is one of the US premier banking enterprises and the new leader is doing a great job cutting costs. The financial sector is still not at record high valuations, so there is still room to run. Higher interest rates are good for them. However, if short term rates become inverted then margins could get squeezed, since their funding is short term.

Own it for a long time. Very cheap. Have great growth prospects. Great tier one ratio of 13%. Trades at 1.2 times book. Regulation is coming down. Yield of 1.3%. They have great franchises. (Analysts’ price target is $34.80)

A recent pull back makes this previous pick even better. He has a model price of $32.60. He was disappointed the dividend was not increased. Rising interest rates will aid this stock. Yield 1.6%. (Analysts’ price target is $34.80 )

It's done well since fall 2016 when he bought it. It'll continue to do well. There's a misconception--the U.S. and Canadian banks don't need a positive yield curve to make money, though it helps. All they need are interest rates Iin general to go up. So, he sees a lot of runway for the banks, which won't rely on the yield curve to steepen.

He would prefer KRE-N but would have no issue with BAC-N as long as the US economy is in decent shape.

He has liked it for quite a long time. A good, nice recovery type of company. It is running into a problem with the inverted yield curve. It is safe, though, and a good company

Likes it. Banks enjoy U.S. tax reform; also, U.S. more companies will need loans as the economy improves. De-regulation is another tailwind. BAC will return equity to shareholders.

Bank of America (BAC-N) vs Wells Fargo (WFC-N). He is staying away from Wells Fargo due to the cease and desist order. Higher rates helps both of them. He leans slightly towards BAC-N.

De-regulation and rising interest rates will benefit all U.S. banks. Likes this sector though are better ones elsewhere. BAC is well-capitalized and positioned.

Reports on April 16. Trading revenues are expected across the whole sector to rise. He's held on during BAC's recent 10% correction and still likes it. Generally, in the U.S. banking space, he expects some M&A.

(A Top Pick May 5/17, Up 28%) Rising rates will push this higher. US banks were held back, to some degree, by overregulation. Buy a new position of this now or add to an existing position.

U.S. banks will be a great place to be. They're well-capitalized. The sins of 2008 still fresh in their mind, so they're afraid to err like that again. Payout ratios will be close to 100%. Yield curve is now flat, which is hurting BAC a little,
but should resolve itself. Good dividend and earnings growth. Good safety.

(A Top Pick Apr 21/17, Up 32.89%) They were big beneficiaries of anticipated Trump tax cuts. He models 23% earnings per share growth. It is one of his favorites amongst the US banks.