Bearish Outlook on BAC, C, KEY, PNC, STT

Outlook for BAC, C, KEY, STT, PNC

The selection of the five banking firms below is based on the following supportive data as well as both their short and longer-term price and earnings performance. I expect these companies to have improved earnings, but I do not have the confidence, price-wise to take new bullish positions.

For guidance, I normally compare most all securities with Apple (AAPL). When the securities get close (in my three disciplines) I buy them confidently. Those disciplines are my weighted fundamental, technical and consensus analysis. I also have just two categories of investments. These are a mix of “Bellwether” and “High Profile" companies and are rated and compared below with brief comments.

The market is doing what it loves to do

Lately, that means it is both fundamentally and technically very fickle. What many investors often forget is that what appears to be a fact is, in reality, very creative fiction. The fictional stories being told by Wall Street and the media are so compelling that the average investor takes the hook, line and sinker most every time. That’s a fact and, for me, it is a very sad commentary.

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PNC (NYSE:PNC) Acquiring Southern Bank Unlikely Says Bove

Rochdale Securities analyst Dick Bove commented on rumors and speculation surrounding the possibility PNC Financial (NYSE:PNC) may be looking for a southern bank to acquire, especially in the state of Florida.

Bove said he doesn't believe that would make any sense for them, citing BankAtlantic (NYSE:BBX) and Regions Financial (NYSE:RF) as two of the acquisition targets named.

Not suggesting they are being courted by PNC, BankAtlantic did say they were always "open to opportunities."

Bove has a "Buy" rating on PNC, which closed Thursday at $58.42, down $0.14, or 0.24 percent. He has a "Neutral" rating on Regions, which closed at $6.13, down $0.18, or 2.85 percent. BankAtlantic closed at $1.28, up $0.32, or 33.33 percent.

JPMorgan (NYSE:JPM), BofA (NYSE:BAC), Wells Fargo (NYSE:WFC), AmEx (NYSE:AXP) Top Banking Picks of Morgan Stanley in 2011

Morgan Stanley (NYSE:MS) released its list of top banking picks in the U.S., Europe and Canada for 2011. In the U.S., the top four picks are JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and American Express (NYSE:AXP). Following them in fifth and sixth place in the u.S. were PNC Bank (NYSE:PNC) and Zions Bancorp. (Nasdaq:ZION).

Top banking picks in Europe by Morgan Stanley are Societe Generale SA, UBS (NYSE:UBS), Julius Baer Gruppe AG, Danske Bank A/S, DnB NOR ASA, Barclays (NYSE:BCS) and Mediobanca Group.

In Canada, Morgan's top picks were Toronto-Dominion Bank (NYSE:TD)
and Bank of Nova Scotia (NYSE:BNS).

Bank of America closed Friday at $11.86, up by $0.18, or 1.54 percent. JP Morgan Chase closed at $39.61, up by $0.30, or 0.76 percent. Wells Fargo was at $29.05, gaining $0.27, or 0.94 percent. American Express closed at $44.88, dropping 0.10, or 0.22 percent. PNC ended the week at $57.26, up by $0.69 on Friday, or 1.22 percent. Zions Bancorp ended at $21.29, up by $0.20, or 0.95 percent.