Wells Fargo (WFC)

J.P. Morgan (JPM-N) or Wells Fargo (WFC-N)? Two very good, but different companies. J.P. Morgan is much more leveraged to the capital market side of things whereas this one is primarily a super-regional bank, much more housing market and mortgage driven. His preference is this one because of his view on the US housing market where recovery is only about halfway through. Both could be a good choice. (See Top Picks)

A lot of people think this is the smartest bank in the US, and this is why the stock has done so well. It may have done too well as the stock has had a tremendous move this year. Feels it is fully priced.

Very well-run bank. Tend to focus on the consumer. There is a great deal of stability in the US.

Perpetual preferred bond, issued by a high quality bank, one of the best banks in the world. Perpetual means you have to look at duration risk. It never has to be called. If rates rose significantly, this one would suffer. If it is one of the few long duration things he own, then it is fine.

An attractive company. He is very positive on the US economy. Bank lending is improving and increasing. This one has one of the highest returns on Assets of any of the banks, probably of the world. Cream of the crop. Prefers J.P. Morgan (JPM-N).

(A Top Pick June 4/13. Up 31.47%.) Feels this is the best managed bank in the US. Getting a great return on capital compared to their peers. Dividend of 2.7%.

Probably at the high end of its range on a valuation basis. Incredibly well run bank. A great US franchise. Primarily a retail U.S. Bank with a large mortgage book, which continues to do well and grows. Increased their franchise quite substantially with the purchase of Wachovia. (See Top Picks.)

Loves this one. A great story. Well managed. Looking at it in 5 years hence, the price will be higher and presumably you will have further dividend increases to support the price growth.

Feels the Canadian dollar will go lower and it will help US investments.

Bought recently. Number 1 in retail deposits and mortgage markets. There is a long way to go from here.

Probably one of the largest mortgage originators out there. As the housing market heats up and household formations get back to historical norms, loans are made a little more easily. Of all the banks, he feels this is going to be the major beneficiary of that.

Pays 2.5% dividend vs. other banks not doing that. Will continue to increase dividend and buy back stock.

This is a super regional bank, which he likes. Has a pretty solid portfolio of mortgage origination, mortgage servicing as well as a nice asset management business. Well diversified, so when one part of the business is not doing particularly well, others are. This contributes to their earnings. Good management. To enter you could wait for the 200 day moving average.

This is really a play on the US economy. They are seeing lower mortgage volumes. The #1 mortgage originator in the US because of rising rates but she feels mortgage volume will eventually come back. Also, a big mid-market lender in the commercial space. Made a big acquisition in 2008 just before the crash, which doubled its presence in the US East Coast giving it a lot of opportunities to cross/sell products there. More than half of their revenues are from fee-based income business. Yield of 2.68%.

Wells Fargo is more of a traditional bank. He owns BAC-N. Either one is good. Wells is a solid play on the housing market.