Bove Likes BofA (BAC) (BK) (PNC) (COF) (STT) (STI) (NTRS) (SNV) (FBC) in Banking Sector

What's up with Rochdale Securities analyst Dick Bove?

Approximately a month after recommending investors sell the banking sector he had turned around and recommended a basket of banks to buy, including Bank of America (NYSE:BAC), Bank of New York Mellon (NYSE:BK), Flagstar Bancorp (NYSE:FBC), PNC Financial (NYSE:PNC), Capital One Financial (NYSE:COF), State Street(NYSE:STT), SunTrust(NYSE:STI), Northern Trust (NYSE:NTRS) and Synovus (NYSE:SNV).

Bove's thinking in his turnaround for some banks in the sector is a number of banks are selling below their franchise and liquidation values.

"At this moment liquidity and values are more compelling than the next disaster," Bove wrote in a note to clients. The banks listed above are those identified by Bove as such.

Bove's operating definition of cash liquidation value is cash holdings (cash plus net Federal Reserve funds and repurchase agreements) in excess of tangible common equity.

Still, Bove confirms the issues banks face are still in place, and in that regard nothing has changed. They've apparently fallen quicker than Bove had anticipated.

Either that, or someone got hold of Bove and told him not to be so negative on the sector.