Biotech Values

[zipjet]

good buys in the bank areas

Keep in mind that banking is inherently a derivative of the economy. They do well when the economy is healthy.

Take a look at recent bank reports. In general, you will see that bank deposits are rising nicely. Consumer finance lending is in decline. At some banks commercial lending is up. Overall, lending is flat to down.

The banks are benefiting from historically low cost of funds. But the margins (lending rate - cof) are slowly dropping.

IF I felt that I had to buy a bank, I would go with one of the best. JPM, WFC, USB. In a somewhat different "best" is COF (not referring to cof). They do junk credit card but do it exceptionally well. Their cof is very low, their margins (junk) are huge and they are very well run.

I would view BAC as an option (high risk) on recovery in the RE market and a return to trendline growth of the US economy. If those happen, BAC will print money. (BAC was once a very well run bank with a deep bench of bankers that knew what they were doing. That has been trashed to survive.)

All that said, I would stay out of banking for now.

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