Commercial Bank Stock Picks (Pt. 2)
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 .
Disclosure information was not available for Bove, Bouroudjian or their companies.