Stockpickr: Buy Banks the 'Mad Money' Way
In Jim Cramer's latest book,
And even in his book
So I did a screen for banks with market caps under $2 billion that are trading for less than 1.5 times book value. I also looked for things such as decreases in nonperforming loans (meaning there isn't much default risk) and increases in deposits and branches (meaning they are probably increasing their future book value).
Here is the resulting portfolio of regional banks with a price-to-book of ratio less than 1.5 times. I also searched among the results to find the banks that were growing assets and decreasing nonperforming loans (meaning they were increasing the quality of their loans). An interesting anecdote is that I added this bank portfolio to Stockpickr Jan. 7, and on Jan. 8, Jim mentioned one of the banks on his show.First, I found Rainer Pacific Financial Group (RPFG). It owns Rainier Pacific Savings Bank, which has branches primarily in one county: Tacoma-Pierce County in the state of Washington.
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