Bank of America (BAC)

His target price is $35 so it has a long ways to run. Thinks there will be a dividend increase, either this year or next year, which will move the stock. Still on his Buy list, but before his next letter, he will have to decide if it should be rated as a Hold. Still thinks this could have double left in it.

Haven’t got a dividend yield as they have to get approval from the federal reserve each year, so her preference has been to stay with Canadian banks. US economy is recovering, which will be good for all the US banks. Prefers Wells Fargo (WFC-N) which did some acquisitions prior to the recession, which nicely positions them for growth.

(Top Pick Jan 30/13, Up 45.42%) Decided to do buy back instead of dividend. You get a lot of growth. A lot of Country Wide’s mortgages are turning positive again.

There is a little bit of a base between $15-$16 and if it broke below that level, he would be concerned that there is some bigger trouble brewing. Chart shows a nice upward trend. Financial seasonality is just about to start.

US banks have a lot of potential. If he had his choice, he would probably go with CitiGroup (C-N) over this. Citi has really quietly reorganized. Have brought a lot of their international exposure back domestically.

(A Top Pick Dec 27/12. Up 36.98%.) He can see the same performance repeated in 2014. Trading at only 8.8X book. They are so over capitalized, that they are going to be buying back shares and increasing dividends for the next 2-3 years.

Probably won’t rocket higher until they announce purchase of stock. Prefers to have a dividend, but you can’t go wrong with any of the group. He is buying US financials.

(A Top Pick Jan 30/13. Up 20.1%.) This was to Buy the Jan 2015 $15 Calls at US$1.79. His strategy on this was that he thought this bank would be significantly higher than it was in July. There have been some positive gains, and he would just continue to Hold. Thinks this will be well above $20 next year.

Trend is up and was recently tested and so far looks so good.

(Top Pick Jan 30/13, Up 34.58%) Easy money. Only one cent dividend but buying back 4% of stock. Trading at a discount.

Fresh management teams since the downturn and there has been time for healing their balance sheets. Not perfect, but certainly better and really cheap. Trading at less than BV. The steep yield curve and the housing market are a great way to play a recovery in the US economy and in the housing market.

Doesn’t own any banks because he has found better opportunities elsewhere. He is neutral on banks. Looking at the yield curve and the spreads, it is a tough environment right now. Doesn’t see a lot of fundamentals for strong profit growth. There will be a pickup in lending, which is good for banks. Feels there are better places elsewhere.

Feels there is going to be a time for the banks, but doesn’t think it is yet. Wait for a better entry point, when they are actually growing in a natural way.

(Market Call Minute.) Prefers J.P. Morgan (JPM-N) but would be a Buy if you don’t own a US financial.

(Market call minute.) Thinks you can buy this one.