Cash In on Banks' Shining Moment

This column was originally published on RealMoney on April 28 at 11:38 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.

The dawning process always shocks you. How long did it take to dawn on people that these banks can make a lot of money with this yield curve? How long did it take for people to realize that one day the rate rises would end and these stocks would pop?

I am watching stocks like JPMorgan Chase (JPM Quote) and Wells Fargo (WFC Quote) and Citigroup (C Quote) and Countrywide (CFC Quote)and Commerce Bancorp (CBH Quote) shoot up as if they have cures for cancer or have invented the handheld PC. They are just screaming here, and one thing we know, when stocks start screaming in this market, they just don't quit.

So often when we see the recognition that "this is the group worth owning," the process has to go first from extreme undervaluation, where we have been, to correct valuation, where we are going, and then to extreme overvaluation, which always takes longer than anyone realizes. In other words, it is still worth buying these stocks right here. ...