This morning, the financial firm Freidman Billings came out and upgraded the stock Sallie Mae (SLM), which I mentioned yesterday, and said that the company is extremely undervalued relative to their ongoing business and loan portfolio. They put a $21 price target on the stock and this is in line with what I suggested yesterday.
On another note, the financial stocks are performing well today as one of the best known financial analysts on Wall Street came out in an interview and talked about how despite the current headwinds facing our economy and Europe, the banking sector was extremely attractive based on their depressed stock prices.
The banking stocks that I find most attractive and like are Citigroup (C), SunTrust (STI), Etrade (ETFC), and Chimera Investment Corp (CIM). Today and over the next couple of days, I plan to add to positions in all of these stocks as I believe the financial issues facing European banks has already been priced into the already depressed U.S. bank stocks prices. If the market continues to come down in price (it's roughly flat so far today), then these banking stocks would become even more attractive.
