Citigroup Inc. (C)

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.

Just reported block buster earnings that were up about 45% from the same quarter last year. Improving credit, good capital market and most of its revenues come from outside of the US. Has over 10% tier 1 equity over Basil3. All the bad assets that were associated with the bad bank in the housing crisis and were stuck in holdings, have been slowly depleted from $540 billion-$130 billion today.

Broke out above EBV -3 so it is part of his "coming out of the blue" strategy. The market is telling us they are starting to believe the balance sheet. US banks look pretty cheap here.

This bank took very large reversals for bad loans a few years back. US house prices are up 12% year over year. If you are a mortgage lender and have a lot of real estate that you have mortgages on, with some of it worth less than the mortgage, and if that real estate goes up 12% in value, some of those underwater mortgages are going to be above water now. Feels that the inventory of foreclosed homes is reducing quarter by quarter and the resale of homes, on normal commercial terms, is increasing.

Coming out of the blue strategy. Had a nice pullback after a breakout. Model suggests 19% upside. He is waiting for the stress test and then they can buy back stock or initiate a dividend like the others.