By Alec Hogg
When we met in Cape Town on Friday (click here for the interview), UK-based value manager Sean Peche took some trouble to explain why European banks have been unfairly tarred with a dirty American brush. Peche says he’s buying the Europeans but keeps avoiding the US financials like the plague.
His one-time colleague Kokkie Kooyman weighed in with similar sentiments yesterday when dropping clients a note headed “How safe is Deutsche Bank”. But, like Sean of Ranmore, the Denker Capital guy is comfortable that Credit Suisse was an outlier and that the selloff in the shares of European banks makes them an even more attractive buying opportunity.
___STEADY_PAYWALL___Kooyman reckons the final client loss of confidence in Credit Suisse was predictable as it was always a weak link. But: “Yes, Deutsche hasn’t covered itself in glory over the past ten years, but its management team has done a lot to improve the business model and balance sheet and even the income statement dynamics.”
SA’s leading financial services investment analyst continued: “I’ll wager on Deutsche Bank (and Commerz and Socgen) coming through the crisis OK. I wouldn’t invest in them though – there are better and safer banks that will rebound more”. Kokkie’s European favourites are Swedbank, TBC Bank, Erste Bank and Bawag. Worth checking out his fact sheet….
PS The BizNews portfolio has a slice in a European Financials ETF. We will be discussing the holding at noon today in the monthly webinar. It’s for Premium subscribers only – click here to register.
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