Bove Bullish on (C) (BAC), But Not on Financial Sector as a Whole

Rochdale Securities analyst Richard Bove remains bullish on shares of Citigroup (NYSE:C) and Bank of America (NYSE:BAC), although on the financial sector overall he is turning more bearish.

Bove may have something right with Citigroup, but the immense exposure of Bank of America to mortgage problems from their acquisition of Countrywide makes them very doubtful as to performing in any meaningful way in the near future.

"The companies that are going to see big increases in earnings and no increase in stock price are the regional banks. Ninety five percent of their assets are financial in nature and they're going to go down in value as inflation and interest rates go up and people will care not at all about their earnings the way they did in the 1970's. I think we're back to that environment," Bove says.

Most exposed in that particular environment in Bove's vie are regional banks like Regions Financial (NYSE:RF), BB&T (NYSE:BBT) and Comerica (NYSE:CMA).

Citigroup was trading at $4.4850, down $0.03, or 0.66 percent, as of 11:01 AM EDT. Bank of America was trading at $12.31, falling $0.18, or 1.44 percent.