Citigroup Inc. (C)

These bank stocks are cheap on a price to book valuation. This bank has had horrible, horrible assets sitting in a bad bank situation, but as the economy improves, these assets start to move more in value and they are unloading them. The problem is, it is not paying a dividend and is not allowed to buy back stocks. He prefers J.P. Morgan (JPM-N).

Fresh management teams since the downturn and there has been time for healing their balance sheets. Not perfect, but they are 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.

Profitability scenario looks good to him. Cheap compared to Canadian banks. Almost all retail banking now. Almost 65% outside of US now. Very high tier one capital. With repeated good quarters the multiple should go up.

Feels pretty comfortable with all of the US financials. Very much in the sweet spot right now because they will fare better if rates go up, which they eventually will. Still trading at pretty good valuations. Prefers Goldman Sachs (GS-N) because we still haven’t seen a lot of M&A activity. That is a shoe that is yet to fall and will benefit this bank more than the others.

Doesn’t own any US banks as he likes the dividend tax credit in the Canadian banks. This one is the cheapest of the US banks. If you believe, as he does, that the US economy is going to move up gradually, he thinks there is room for growth in the US banks.

Currently trading at 90% of BV. More geared to the faster growing international markets. As well as the US is doing on a relative basis, the international markets are growing faster. Have a lot of efficiency improvements and a lot of exposure to US housing. Very high capital ratio at 10.4. Looking for high returns through buybacks and dividends. He has a target of $65 in one year, and ultimately, maybe even $100.

Probably one of the most beaten up banks. Trading at roughly 10.5-11 times earnings, versus a long-term multiple of 15. Roughly 65% retail. Most of its bank branches and earnings are coming from other countries, so this is a play on a global pick up. Ultimately, you are looking at a story that is re-rated and this tends to move very early in the cycle. Thinks we are in the early days of a big expansion in the stock market and the business cycle overall, so he is bullish on banks.

Likes all the US financials at this point. Doing very well but is more attracted in the near-term to some of the others. An absolute bargain.

Likes the money centered banks. Basically trading at 9X earnings, around 80% of BV, earnings are growing again. Everyone was worried about the slowdown in refinancing in the mortgage market in the US and he thinks the housing market is recovering. This one has better international diversification assets than any of the other money centered banks. Yield of 0.08%.

Has been a great stock to own. Going forward she looks at price to book value and it is trading below tangible book. There are some positives going on. A lot of the book value is tied to the housing market that seems to be improving.

Still above its 200 day moving average which still puts it in an uptrend. They are fixing all the things that have happened over the years. Likes this and feels it is very cheap. (See Top Picks.)

Multiple is pretty low, 9x. The whole industry has been re-rated. A recovering US story. 65% of earnings are from abroad. Over 10% tier one capital. Tax shield of 54 billion. Enormous reserves. This is a double. Exit when it hits the target price or US slips.

[Caller asked about huge problem on balance sheet] He doesn’t see any problem. They are getting better generally. Global exposure through a bank that is US regulated.

(A Top Pick April 18/13. Up 17.24%.) She is valuing this on its tangible book value which has been growing since 2010 and is somewhere about 40% above where it bottomed. Still trading at $0.95 on the dollar. On a pull back, she would be adding more.

Very compelling valuation. Trading at 83% of BV. Earnings are continuing to recover. Q2 was a very strong beat on strong capital markets. Low credit costs. Inexpensive. Profitability is going to continue. Well-positioned to the US housing recovery and to emerging markets. You should buy it while it is still trading below BV.