This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Community Banks Remain Reluctant To Lend

The stock market is still trading under a ValuEngine valuation warning with 70.2% of all stocks overvalued. The finance sector is 15.5% overvalued.

My benchmark for community banks is the America's Community Bankers Index (^ABAQ) (193.91) has a neutral weekly chart profile with the five-week modified moving average at 190.44 and the May 28 high at 197.27. My monthly value level is 190.61 with weekly risky level at 194.18. My quarterly value level is 174.20 with a semiannual risky level at 198.58.

Chart Courtesy of Thomson/Reuters

Most strategists say that the housing marker is robust. The chart below questions that notion:

In the first quarter of 2013 total real estate loans were down $36.7 billion sequentially. Comprising this reduced lending, residential mortgages on the books of the banks declined $18.3 billion with C&D loans down $268,000 million and home equity loans down $16.0 billion. This sounds like reduced lending to me.

We recently learned that mortgage applications plunged 11.5% as mortgage rates rise. This was the worst drop since June 2009. Without increased lending how can the housing market be described as robust, and statistics say banks are not increasing lending to the real estate market.

On May 9 I wrote, 7 Buy Rated Community Banks, and today I profile how they performed since then. In addition I have added six more buy rated community banks as four of the seven profiled a month ago have been downgraded to hold from buy.
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BANR $43.72 0.00%
CCBG $15.11 0.00%
BPOP $29.95 0.00%
CFNL $22.01 0.00%
CPF $20.26 0.00%

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs