Enterprising Investor Forum

Mike Mayo is Back! Monday, April 6, 2009

Mike Mayo is back and he is still exposing the weaknesses of the banks and the troubles they are facing.

He  initiated coverage of 11 large banks and gave all of them “underperform” or “sell” ratings – here are some of his calls:

• Bank of America – underperform
• Citigroup Inc – underperform
• JPMorgan Chase – underperform
• Comerica Inc – underperform
• Wells Fargo & Co-  underperform
• BB&T Corp – sell
• Fifth Third Bancorp – sell
• KeyCorp – sell
• SunTrust Banks Inc – sell

As you can imagine, he is not very optimistic and focuses on his belief that loan losses will eventually be bigger than those we had at the time of the Great Depression.

With earning season coming up and what are definitely not going to be pretty numbers, investors should prepare themselves for some sideways trading ranges that could be pushed decisively lower on further bad news.