Commercial Bank Stock Picks (Pt. 2)

Wednesday, 24 Sep 2008 | 1:03 PM ET

Don't judge all financial stocks by the Lehman-AIG-Merrill meltdown. Commercial banks look strong and will get stronger, according to Richard Bove, managing director at Ladenburg Thalmann, and Jack Bouroudjian, chairman of Capital Markets Technology. The expert strategists offered their outlooks -- and recommendations -- to CNBC.

"I was the one a few weeks ago who came out and said, 'buy the commercial banks'," Bouroudjian told CNBC. "Although I was a little early," he conceded.

He said his committment is even stronger now: "Transactional banking is where you want to be," he declared.

(See Part One for Bove's picks.)

Despite the seeming generalized plunge in financials, Bouroudjian said the XLF (Financial Select Sector SPDR) , an ETF tracker, only suffered a "very small drop" over the past week.

He said Bank of America "is a great example of a stock where, a few years down the line, [investors] will say they made all the right decisions."

Bouroudjian also praised exchanges' shares, specifically the CME Group .

The Future of the US Banking System
The future of the financial system will be built around the commercial bank model says Richard Bove, MD of Ladenburg Thalmann. Jack Bouroudjian, chairman of Capital Markets Technology and David Roche, global strategist at Independent Strategy Ltd, talk to CNBC's Martin Soong and Amanda Drury about the future of the U.S. banking system.


Disclosure information was not available for Bove, Bouroudjian or their companies.


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