Each week, Motley Fool editors cull a top stock idea from the pitches made on CAPS, The Motley Fool's 180,000-member free investing community. Want your idea considered for this series? Make a compelling pitch on CAPS with a minimum length of 400 words. Want to follow our weekly picks? Subscribe to our RSS feed or follow us on Twitter.
|Company||Financial Bull 3x |
|Submitted by||All-Star starbucks4ever|
|Stock Price at Underperform Recommendation||$11.72|
|CAPS Star Rating (out of 5)||*|
|Fund Family||Direxion Funds|
|Comparable Peer||Financial Bear 3x |
Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.
This week's thumbs-down pitch:
This is not an ordinary pullback in banking stocks. When [Bank of America
Yes, at some point FAS will be a future ten-bagger. But during the last recession, FAS started a bull run only after we a) learned that banks had a problem with their balance sheets, and b) learned what measures were being taken to address the problem. Right now, we are in a stage prior to a), waiting for the shoe to drop. So whenever FAS starts going up, it will be AFTER we learn what was ailing the banking system during this bear market, and certainly not BEFORE that.
For now, there is nothing ahead for this segment except for the flocks of cockroaches lurking unseen in some crevice of the financial system. And FAS looks in a good position to lose 95% of its value before starting its next 1000% bull run.
The Motley Fool is investors writing for investors. Dan Dzombak did not have a position in any of the companies mentioned in this article. Pitches must be compelling and made in the past 30 days. The Motley Fool owns shares of Citigroup and Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.