We recently published 16 Stocks Jim Cramer Mentioned In An Episode Where He Said OpenAI Could Beat All Big Tech Giants. Comerica Incorporated (NYSE:CMA) is one of the stocks Jim Cramer recently discussed.
Comerica Incorporated (NYSE:CMA)’s shares hit an all-time high after the firm announced a merger with Fifth Third Bank that is expected to create the 9th largest bank in America with $288 billion in assets. The CNBC TV host couldn’t stop praising Fifth Third in his remarks:
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“This is very important. I don’t think that you would even think about doing this under the previous administration. These are very large banks combining in a way that will make it so that they will be dominant banks in certain areas. That had been something that the previous administration did not favor. I was critical of Comerica earlier, and the reason why I want people to understand. The way I look at things, I look at win/loss. Okay. And this bank was at 99 dollars seven years ago, it was at 99 dollars three years ago. It’s at 70 dollars now. It is a huge underperformer. The franchise has always been the one that people said, oh, they’re the ones that are supposed to be in trouble. But they got the branch network. And when you put them. . .when you put Fifth Third which is a sterling bank, in there, suddenly you’ve got arguably a national power. Or at least a super regional that is to be reckoned with. I think it’s a brilliant deal.
[on whether a discount to a 22 high across the board would make it a sustainable trend] For some, yeah. I mean I’m meeting with a bunch of regional banks. . .I was quite surprised a lot of them have moved greatly and some not when I was looking at the cohort. Comerica has been the lead in the game. . .they have not developed into a great bank. But they are everywhere, and it’s so great for Fifth Third. You want to be a buyer of Fifth Third into this week because I think it’s spectacular.
“You see that Comerica is just nowhere. And they’re often mentioned as the one that has the bad balance sheet. Look they’re not terrible. It’s just that, I want to, see Fifth Third is not down and I think that’s right. Cause Fifth Third suddenly becomes the bank. Even in the 80s, in the 90s, they were always pristine. They have a great reputation. So that’s, you take a great reputation bank, you merge it with a bank that has a lot of branches, and you got a super regional to rival PNC.
“[On whether there would be any policy push back] You know what, I think that you can make the case that we have four thousand banks in this country, four thousand companies and so therefore we shouldn’t challenge it. I don’t this administration would challenge it. I think that this creates a strong regional that therefore can help the reshoring, it’s that kind of thing. Interesting deal, I mean we gotta get used to these things.
“Look this is going to be one of those banks that you’re going to be looking at and saying wow their footprint is everywhere. In the middle part of the country. And the middle part of the country is very, very strong. I’ve been studying some banks in Texas, bank in Memphis, bank in North Carolina, away from area, the growth is extraordinary. Now how much of it is data center? It doesn’t matter! It doesn’t matter! Because what happens, you up a data center and then a dry cleaner opens up and then. . .the next thing you know you get a couple of men’s stores. And I’ve got to tell you that is happening. That is what I see happening. People should realize that there is a multiplier effect.”
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Disclosure: None. This article is originally published at Insider Monkey.
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