David Katz, CIO of Matrix Asset Advisors, was on CNBC and he discussed his picks from financials. He said the likes low risk financials and JPMorgan Chase & Co. (NYSE:JPM) fits that better than Citigroup Inc (NYSE:C).
“We still prefer the JPMorgan more than the Citi. We would expect Citi to trend higher and actually nicely higher over the next 12 to 18 months,” Katz said.
He added that his company deals in a lot of financials and they basically look for companies that have strong capital ratios and strong earnings trends and that is the reason for him to prefer firms such as JPMorgan Chase & Co. (NYSE:JPM) over Citigroup Inc (NYSE:C) he thinks it is better managed compared to Citi. He also said that the book values of banks like JPMorgan Chase & Co. (NYSE:JPM) have increased over the past year while for Citigroup, it has reduced.
“Citi seems to have its act together, but it’s not as well run as some of these others,” Katz stated.
There are few regionals that Katz likes and BB&T Corporation (NYSE:BBT) is one of his favorites and he feels that the financial that have not done much in the first 6 months of the year are going to be on a good growth path in the next 6 months.
Recently Jim Sinegal also said that Citigroup Inc (NYSE:C)’s management needs a proper turnover and he discussed about the other issues the bank has to deal with.