Morgan Stanley (MS)

Trading at a discount to book value. She owns C-N, which has many of the same drivers. You are seeing ROEs coming up across the board.

Not as strong financially and more exposed to fixed income market and a higher exposure to Europe.

Owns C-N and JP-N. MS has rich valuation, 2.05 peg ratio (PE over growth).

He bought 5 companies in the US financial sector over the past few years. This one was on his watch list. A perfect example of a company that has done well since the recession. Stock price has gone up so he has taken it off his list. He can see this one going far higher.

You are in the sweet spot of financials. This one has not passed by EBC -3, but as it does he would be a buyer. It tells him that the market is starting to believe the balance sheet of the company. Leave it alone for a year or two and you will be very, very happy.

Remains the cheapest of the Wall Street banks. They are now the largest advisory firm. They are already seeing a bump in earnings. The dividend will move to more normalized dividend levels next year. It is the penalty box for what happened in financial crisis.

Trading a little below book value. Strength in stock markets helps. Should continue to do well.

This was really beaten down and it has come back off an oversold position, not on fundamentals. He prefers GS-N, which he owns.

Has steered clear of wholesale market financed banks because they are highly volatile. This is the sort of bank that should be performing quite well in this rising market but performance has been somewhat uninspiring. (See Top Picks.)

Should benefit from this secular bull market and the demand for equities. Money has to go somewhere so there should be higher M&A. There is a recovery in the US housing market. The recovery in the auto market could also be of benefit to them. However, this is not his favourite play in the US financial sector. Prefers J.P. Morgan (jpm-n) or Goldman Sachs (GS-N).

Similar to a lot of US banks. They have broken out of a previous ceiling. The old support level from 2011 became a resistance level. You might get a few more percentage points but how much remains to be seen.

(A Top Pick Feb 8/12. Up 11.18%.) Financial company that transformed itself after getting crushed in the financial crisis. Reduced their risk profile and focused a lot more on wealth management. Earnings growth is being driven higher. Feels it is poised for a dividend increase in 2013.

Doesn’t own any US banks. Likes this one because of the exposure to research as much as anything.

Feels that Goldman Sachs (GS-N) is superior on a number of levels. This one is more subjected to the fixed income market which he thinks long-term, is going to be a negative. Also, have more European exposure. Also, recently had a debt downgrade.

He has reservations. He owns Goldman Sachs. Earlier this year MS-N was downgraded. They have more exposure to Europe and to fixed income, which are strikes against them.