Meredith Whitney on CNBC Notes
-Tangible ratios could actually be better. Avoid putting up shorts here
-”Be careful pressing shorts here” into Q1 earnings reports
-We don’t get out of woods fundamentally till mid-2010, but that doesn’t mean you don’t get 90 degree trading opportunities
-This quarter is going to look stronger, perhaps private money comes in on additional capital raises
-”So if you got, you know, real steel type.. uhhh personality” [LOL]
-Headfake of all headfakes on home prices
-Directional turn where banks will by in large make a little bit of money due to mark-ups
-They may write-up valuations
-After stress test results come out, a lot of assets may be put up for sale. Be careful at end of the month when results come out, it will be a grim time for banks
-She likes State-Street relatively as they benefit from market-to-markup. Also Bank of New York
-Capital markets had a good January and February due to pent-up demand as companies had to roll over debt
-Goldman Sachs benefited as 70% of their competition has gone away
-55% of credit card lines will be cut out of the system
-Put out financial shorts out again after earnings reports
Net-net: She definitely seems short-term bullish into Q1 earnings reports and long-term bearish. Her key inflection point for banks stocks to turn down is when the bank stress test results come out at the end of this month. She explicitly says put out your shorts again after earnings. Source