This column was originally published on RealMoney on Feb. 6 at 11:00 a.m. EST. It's being republished as a bonus for TheStreet.com readers.
The decline in the bank stocks is disturbing for certain. If we didn't have so many other sectors that are working, including the brokerage sector, I truly would be concerned.
The banks are going down, of course, because it makes all sorts of sense for them to go down. They are housing plays. They don't have a lot of flexibility. They shouldn't even be lending in this environment.
And, let's make it even tougher for them. Compare them to
, which, according to
, just passed
( MWD) for the terrific title of fastest asset-gatherer. That's a truly nice, fee-based, non-
-linked, business, with tremendous, non-hedge-fund-like annuities. Plus, the 30-year soon will be open for business, and anyone who traded at Goldman in the last two decades knows that these auctions are a license to print money.
goes down everyday. Yes, it is a challenging environment for
-- as Vernon Hill admitted just Friday in a one-on-one interview on my
radio show, done at one of his own new locations, even.
The bottom line, though, is one day the Fed will finish, although that day obviously has just been pushed further out, and these coiled springs will explode. In the interim, Goldman,
( BSC) and
( MER) make more sense.
still going down because of that decline in business with
( BKHM). I wonder whether it is going to be all that bad. ... I continue to hear that
sales are good, but there's a lot of bad money in the stock, meaning impatient money. ... Lots of people are saying that I am wrong to pick individual stocks based on my methods, where I look at a trend and back it up with research. Why don't these same critics take on the brokerages that make it sound like you should just buy on a kid buying jeans or a guy looking at running shoes? Have some equal opportunity knocking, please.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider Bookham to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
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At the time of publication, Cramer was long Wells Fargo and Commerce Bancorp.
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