This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Community Banks Remain Reluctant To Lend

Stocks in this article: ^ABAQ BANR BPOP CCBG CFNL CPF FBC FBP FFKT FMFC OZRK PROV STSA UCBI

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 (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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs