Capitulation - Large U.S. banks' stocks in capitulation mode: Merrill

posted by   maggy001 (19)   2 months ago (making-update.blogspot.com)

U.S. large-cap regional banks' stocks now appear to be in "capitulation mode" and will likely trade below fair value in the near term as more dividend cuts and capital raises, high credit risk and an uncertain earnings outlook all weigh on their share prices, an analyst at Merrill Lynch said. Analyst Edward Najarian said he does not expect credit metrics to recover until 2010 and forecast more dividend cuts and capital raises at banks, including Bank of America Corp (BAC.N: Quote, Profile, Research) and Wachovia Corp (WB.N: Quote, Profile, Research), in the second half of this year.