Guzzo the Contrarian

Looks like the financials market has been taking a beating the last couple of months. According to BarChart.com, the southeast and mid-atlantic regional banks are faring the worst, both down over 30% so far this year.

But, the way I look at it, this could present good buying opportunities. As the old contrarian saying goes, “You make money when you buy, not when you sell”.

I’ve been following these two regional banking sectors for more than a few years now and have become familiar with many of the individual companies within those sectors.

Here are a few stocks that I’m adding to my watch list. These are all banks with good fundamentals, have potential for future growth or M&A activity, and are trading at or near yearly lows.

• BBT: BB&T Corporation
• CARE: Carter Bank and Trust
• GRAN: Bank of Granite
• MFBP: M&F Bancorp, Inc.
• UWHR: Uwharrie Capital Corporation

Although I’ve placed these five stocks on my watch list, I won’t be buying any of them soon. I’ve recently closed my brokerage account at Vanguard and I’m not in any rush to open another elsewhere. IMO, the market still has more correction left in it, so these stocks should remain at these prices or fall even further.