Latest Expert Opinions

Signal
Opinion
Expert
BUY
BUY
October 11, 2018

Bank of America vs. Citigroup Prefers BAC. Citigroup is cheaper though. But BAC has better opportunities with a strong banking franchise in the U.S; their Merill Lynch franchise is also good. Trading at 1.1x book that should grow. Citirgroup is reducing costs and technology will drive growth here. Can do only small acquisitions now, not large, though regulations are easing. Citi trades at a lower multiple, but BAC holds more opportunity.

Bank of America (BAC-N)
October 11, 2018

Bank of America vs. Citigroup Prefers BAC. Citigroup is cheaper though. But BAC has better opportunities with a strong banking franchise in the U.S; their Merill Lynch franchise is also good. Trading at 1.1x book that should grow. Citirgroup is reducing costs and technology will drive growth here. Can do only small acquisitions now, not large, though regulations are easing. Citi trades at a lower multiple, but BAC holds more opportunity.

Paul Harris, CFA
Partner and Portfolio Manager, Harris Douglas Asset Management
Price
$28.360
Owned
Yes
DON'T BUY
DON'T BUY
October 11, 2018

Bank of America vs. Citigroup Prefers BAC. Citigroup is cheaper though. But BAC has better opportunities with a strong banking franchise in the U.S; their Merill Lynch franchise is also good. Trading at 1.1x book that should grow. Citirgroup is reducing costs and technology will drive growth here. Can do only small acquisitions now, not large, though regulations are easing. Citi trades at a lower multiple, but BAC holds more opportunity.

CitiGroup (C-N)
October 11, 2018

Bank of America vs. Citigroup Prefers BAC. Citigroup is cheaper though. But BAC has better opportunities with a strong banking franchise in the U.S; their Merill Lynch franchise is also good. Trading at 1.1x book that should grow. Citirgroup is reducing costs and technology will drive growth here. Can do only small acquisitions now, not large, though regulations are easing. Citi trades at a lower multiple, but BAC holds more opportunity.

Paul Harris, CFA
Partner and Portfolio Manager, Harris Douglas Asset Management
Price
$68.380
Owned
No
COMMENT
COMMENT
October 11, 2018

Likes it. They bought Lehman, which had investment banking but was really a bond house, so Dodd-Frank caused a lot of capital issues and restrictions. New management is doing a good job by sticking with investment banking and have a great retail franchise in the UK, and they exited businesses around the world that didn't work out. They're going all the right things, though Brexit creates uncertainty. Great credit card business. It will do well, but have to get past Brexit early next year.

Barclays Bank PLC (BCS-N)
October 11, 2018

Likes it. They bought Lehman, which had investment banking but was really a bond house, so Dodd-Frank caused a lot of capital issues and restrictions. New management is doing a good job by sticking with investment banking and have a great retail franchise in the UK, and they exited businesses around the world that didn't work out. They're going all the right things, though Brexit creates uncertainty. Great credit card business. It will do well, but have to get past Brexit early next year.

Paul Harris, CFA
Partner and Portfolio Manager, Harris Douglas Asset Management
Price
$8.740
Owned
Unknown
COMMENT
COMMENT
October 11, 2018

The big issue is how they deal with people use FB to subvert elections. Will this have an effect on their next numbers? Also, how do they monetize Instagram? Some management turmoil here. Also FB usage is down, though Instagram use is up. Google is easier to understand from an online ad perspective.

Facebook (FB-Q)
October 11, 2018

The big issue is how they deal with people use FB to subvert elections. Will this have an effect on their next numbers? Also, how do they monetize Instagram? Some management turmoil here. Also FB usage is down, though Instagram use is up. Google is easier to understand from an online ad perspective.

Paul Harris, CFA
Partner and Portfolio Manager, Harris Douglas Asset Management
Price
$153.350
Owned
Unknown
BUY
BUY
October 11, 2018

It's always been pricey, though it has come off due to competition. He'd look to buy it now. Market growth is substanial and NVO can benefit from it.

Novo-Nordisk (NVO-N)
October 11, 2018

It's always been pricey, though it has come off due to competition. He'd look to buy it now. Market growth is substanial and NVO can benefit from it.

Paul Harris, CFA
Partner and Portfolio Manager, Harris Douglas Asset Management
Price
$41.540
Owned
Unknown
BUY
BUY
October 11, 2018

He wished he had bought it. A global name and they're moving into countries where people use less cash. A great story. It's never been cheap. 30x forward earnings even during the current pullback. Buy it. The one risk is there are many players moving into fintech. Visa should still benefit from that and continue to do well.

Visa Inc. (V-N)
October 11, 2018

He wished he had bought it. A global name and they're moving into countries where people use less cash. A great story. It's never been cheap. 30x forward earnings even during the current pullback. Buy it. The one risk is there are many players moving into fintech. Visa should still benefit from that and continue to do well.

Paul Harris, CFA
Partner and Portfolio Manager, Harris Douglas Asset Management
Price
$133.730
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
October 11, 2018

(Past Top Pick Sept. 22, 2017, Up 15%) He still likes it. A pullback now is a good opportunity. They will grow their book value and increase their dividend. They will increase their payout ratio.

Bank of America (BAC-N)
October 11, 2018

(Past Top Pick Sept. 22, 2017, Up 15%) He still likes it. A pullback now is a good opportunity. They will grow their book value and increase their dividend. They will increase their payout ratio.

Paul Harris, CFA
Partner and Portfolio Manager, Harris Douglas Asset Management
Price
$28.360
Owned
Yes