There's no doubt that there's some serious blood in the water when it comes to the financial sector. Bank of America
Blood continues to spill, too. No doubt there are more big writedowns yet to come to light, and the scramble that banks will have to make to stay well-capitalized will put even more pressure on the stocks. Yesterday, a Goldman Sachs analyst suggested that Citigroup may have to slash its dividend by as much as 40% to cope with the writedowns on the horizon.
As the water continues to turn a deeper shade of crimson, though, there are signs that some investing sharks think it may be safe to start feeding. The biggest moves recently have come from Davis Selected Advisors -- a great white when it comes to value-investing sharks. Early this week, Merrill Lynch
Of course, if these stocks are good deals, then it's news to CAPS players. Both MBIA and Merrill Lynch carry lowly one-star ratings on CAPS. Furthermore, some investors, like CAPS All-Star lowellfield, thought the market got a bit too excited about the MBIA news. He noted that this was "just open market buying" that doesn't help MBIA at all and thought that the news didn't "[justify] a 10% move."
Do you think there's more to be bullish about? Or will these stocks continue to be dogs? Click over to CAPS and let the community know what you think.
More CAPS Foolishness:
Fool contributor Matt Koppenheffer owns shares of Bank of America, but does not own shares of any of the other companies mentioned. Bank of America and Washington Mutual are Income Investor recommendations. The Fool's disclosure policy has never once been caught with its pants down. Of course, it doesn't actually wear pants ...