Low rates suggest a poor environment for banks, as ultimately, they are borrowing short and lending long no matter how complicated their operations appear or how well they camouflage their real exposures. One could also just observe that low rates portend a lack of interest in the products banks have on offer. Among the smaller banks we note a number of institutions trading below tangible equity. Among this list we suspect are names worthy of consideration. You could say they are worthy candidates for your money.
Source: The Value Master, SpGlobal.com
Those not wishing to do the hard, and perhaps error fraught exercise of deconstructing balance sheets might come to a similar conclusion, namely that there is some value to be found, using simpler measures. Taking a look at Goldman Sachs, we are struck at how little the price has changed in five years.
Less attractive than Zoom as well. With a new CEO, a price less than book and close to tangible book, and business lines not completely dependent on the shape of the yield, franchise stocks such as this might be worth closer examination.