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Banks Offer ‘Once-in-a-Lifetime’ Opportunity: Pro

Thursday, 11 Oct 2012 | 5:30 PM ET

Financials are still attractively priced, especially in a few select high-quality names, Ariel Investments Vice Chair Charlie Bobrinskoy said Thursday on CNBC.

“I think capital markets activity is better than people think. I think the bond market has been extremely active. High-yield has been extremely active. Leveraged finance has been very good,” he said on “Fast Money.”

Bobrinskoy had praise for Wells Fargo.

“It’s the best-run bank. It’s probably the highest-quality bank, but it’s just not an attractive stock,” he said.

“It’s trading at about 1.4 times book when JPMorgan is at less than book and Citi is at 0.5 times book, so it’s the best but it’s not as much ahead of its competition as its stock price would suggest.”

Wells Fargo reports quarterly earnings before the market opens on Friday, along with JPMorgan.

“I think they’re going to have a good quarter. I think they’ve got their big loss in London under control,” he added.

But Bobrinskoy sounded positive on the broader financial sector.

“Because the market has run so hard, the one area that hasn’t run and is still attractively priced is financials. People are still afraid, people are looking for safe places to invest in the stock market, and, let’s face it, financials are never going to be safest place. And so right now they are the cheapest, names like Morgan Stanley, Goldman Sachs, although it’s had a big run, are very cheap; KKR and Blackstone.

“We think there’s been, really, almost a once-in-a-lifetime opportunity to buy some of these highest quality names at their lowest price relative to book.”

Trader disclosure: On Oct. 11, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL ; Karen Finerman is long BAC CALLS; Karen Finerman is long AAPL PUT SPREADS; Karen Finerman is long JPM; Karen Finerman is long JPM CALL SPREADS; Karen Finerman is longWMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long RLGY; Karen Finerman is long JCP; Karen Finerman is short JCP PUTS; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Keith McCullough is long GLD; Keith McCullough is long XLU; Dan Nathan is long AAPL; Dan Nathan is long WFC; Dan Nathan is long MS; Dan Nathan is long YHOO; Dan Nathan is long FB; Dan Nathan is long MSFT; Dan Nathan is long AMZN; Dan Nathan is long AAPL OCT 700 CALLS; Dan Nathan is long WFC JAN 38 CALLS; Dan Nathan is long MS JAN 10 PUTS; Dan Nathan is long YHOO JAN 17.5 CALLS; Dan Nathan is long FB NOV/JAN 22 CALL SPREAD; Dan Nathan is long MSFT OCT 30/28 PUT SPREAD; Dan Nathan is long PCS NOV 11/14 RISK REVERSAL.

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