Thursday, May 6, 2010

Screen for Highly Leveraged Financials

I think we may be entering one of those times when highly leveraged financials do poorly. Did a screen for

  • Market Cap > 200 million
  • Sector = Financial
  • (Total Assets MRQ / Tangible Book Value MRQ) > 25
  • Price to Tangible Book > .85
Here are the results:

Deutsche Bank (DB)
Mitsubishi UFJ (MTU)
Barclays PLC (BCS)
Lloyds Banking Group PLC (LYG)
Banco Santander SA (STD)
Credit Suisse (CS)
Toronto Dominion (TD)
Prudential PLC (PUK)
Canadian Imperial (CM)
Swedbank (SWDBY)
Bank of NY Mellon (BK)
Nelnet (NNI)
First American Corp (FAF)
PHH Corp (PH)
Banco Macro SA (BMA)
Lazard (LAZ)
Och Ziff (OZM)
Artio Global (ART)

Many of them are fine, but I want to go through them for 0 potential.


PD said...

CDN banks although they carry leverage, they stick to the bread and butter banking. TD for example has little derivative exposure and fairly conservative lending (acquired banks may have different profiles).

CM on the other hand is always in trouble when something on the street goes bad.

CP said...

Would be interesting to figure out which of these is worst and buy some OOM puts.

misha said...

What screener did you use?

CP said...