Financial Bulls' Hooves Rumble in Distance

By Stockpickr Guest Columnist Thomas Brown

Originally posted to BankStocks.com, the following is a response to last week's "Bank Stocks Headed to Zero" article on Stockpickr.com.

Have I mentioned I'm bullish on the financials? In case I haven't, here's the thumbnail version why:

• Valuations are idiotically compelling.
• Inflows of new problem loans, especially mortgages, appear to be declining.
• Delinquency roll rates are declining, as well.
• Lenders have begun to liquidate their foreclosed properties in an orderly fashion.
• The outlook for the companies, postcrash, is startlingly strong.

It's not complicated. Even so, beyond my formal bull case, I can't help but notice a few straws in the wind this week that have reinforced my optimism. By themselves, they're trivial -- but just the sort of small, telling events that tend to occur at market extremes.

To read more, please click here. Tom Brown's firm, Second Curve Capital, owns JPMorgan(JPM Quote), Ambac(ABK Quote), MBIA(MBI Quote), First Marblehead(FMD Quote), First American(FAF Quote) and other financials.