All,

I do not prefer those on the list. Other than Citigroup, they are NOT money center bank. I am buying

Wachovia Bank

http://finance.yahoo.com/q?s=WB

Wells Fargo -> Warren Buffet is the MAJOR shareholder

http://finance.yahoo.com/q?s=WFC

Bank of America
http://finance.yahoo.com/q?s=BAC

Those 3 are what I consider to be the best prospect. I bought WB and WFC.

Please note that those 3 give good dividend too. So, you can held while waiting for them to recover.

Dreamer

P.S.: Citigroup is Money center bank. But, I still do not like Citigroup. I prefer banks that are fully exposed to mortgage mess and only exposed to mortgage mess. There too many other stuff at Citigroup.

This post has been edited by dreamer101: Apr 27 2008, 07:10 PM

Vv.SoViEt.vV,

<<WB had subprime exposure but they are not coming close to WFC and BOA. >>

1) We are buying stock/share. So, their (WB) exposure is not as high but the stock price had been beaten down as though the exposure is high. So, it is a better deal. In a panic, everyone sells without thinking whether the problem affects all bank equally.

<<Would you mind to explain why you choose only mortgage lenders/banks who are only exposed to subprime?>>

2) I have no idea how to evaluate the exposure to all those derivatives. Nobody does. Subprime mess is easier to understand. After the banks write off the mortgage, they are in a good/better shape.

3) There are MORE PANIC coming. It is not over yet. I have set my low buy limit order. If it hits, I will buy.

Buy GOOD and WELL MANAGED companies at GOOD price. In a panic, still shop for the BEST companies. WFC and WB looks to have better management than BOA or CITI.

Disclaimer: I am buying with my "PLAY MONEY". So, this is not an investment for me. This is strictly my own personal opinion and not recommendation to buy any stock. Take my advice with a lot of cautions.

Dreamer

---

Added on April 28, 2008, 2:40 amwheimeng,

Bear Stern's shareholder lost their shirts. So, a bank may not fail but you may still lose most of your money in the process.

Dreamer

This post has been edited by dreamer101: Apr 28 2008, 02:40 AM

<<3) Worst has yet to come. Best to buy when US is in full-blown recession.>>

A) This statement is WRONG. Stock market in USA look AHEAD for 6 to 8 months. So, when the economy is in FULL RECESSION, the stock market will go up since people anticipating the recession will be over in 6 to 8 month.

B) I do not know and care whether the economy is in recession. The RIGHT question is what is the RIGHT PRICE to buy. You buy whenever it hits the RIGHT price.

<<4) How do you evaluate good and well-managed company at good or undervalued price? Do you check their p/l, b.sheet and cash flow?>>

C) At this stage, you check whether the bank had WRITE OFF the loan.

D) I have a short cut. I have a brother-in-law that work in this industry. He is good in evaluating whether a bank will survive. I am more a technology person.

Dreamer

Vv.SoViEt.vV,

A) Why is THIS relevant?? If you are not buying this with "PLAY MONEY", you should not speculate/gamble to begin with. BTW, I have 3 to 5 years worth of expenses in the bank to prepare for this recession.

B) You DO NOT KNOW. Ditto for me. Find out the RIGHT PRICE.

D) No, I am not an IT director and my job is not safe. I will probably lose my job in less than a year. But, it is okay.

AdamG1981,

Google "Tulip Mania". This is not new. There will always be bubble and panic. The FINANCIAL INNOVATION will run faster than the regulation.

<<Bear Sterns is one good example. GREED will kill you overnight>>

Who get killed in Bear Stern's case?? Only the share holders that are not smart enough to get out. The management collected huge bonuses all this while.

<<Well, i believe Citigroup is too big to fail, and DIC and TEMASEK will not let their investments go to waste.>>

Citigroup do not have to fail for the share holder to lose a lot of money.

<<PS: Don't forget the consumer credit timebomb. >>

This is a FINANCIAL forum. So, tell us how to profit from this??

Dreamer

This post has been edited by dreamer101: Apr 28 2008, 08:51 PM

http://www.bloomberg.com/apps/news?pid=206...CoY&refer=rates

<<Citigroup, Merrill Lead Record Week of Bond Offerings (Update5) >>

All,

They just had issued a HUGE bond offering. So, they have no liquidity crisis in the short term but they will pay a high price on earning later later. The yield on the bond is very high.

Dreamer

shrimphead,

Here we go again. A person spamming the lowyat forum to promote his/her blog. Unfortunately,

A) You had said ABSOLUTELY NOTHING in your post.

B) Given that you are TOO LAZY to even capitalize properly and put your post in a proper sentence, we know how useful your blog will be.

You are a reflection of what you posted.

Dreamer