This bank’s shares have recently been upgraded by Wedbush, to ‘Outperform’ and by Piper Jaffray to ‘Overweight’.
BOK Financial Corporation (BOKF)
From Positive Patterns
We like that banks that passed the “REAL” stress test—you know, the one that occurred in 2008? 95% of the banks at that time failed and like, Bank of America (BAC), Citigroup (C) and many others, had to cut their dividends. I would submit to you that the thing to do (which is what we did) is go back to 2008 and look at who did NOT have to cut the dividend.
Those are the banks you want to own, and not surprisingly, since they came through the deluge in fine shape, that made them better prepared for the last 10 years. And that is just what we have with a quality outfit like BOK Financial Corporation (BOKF)
BOKF hits all the marks—splendid balance sheet, solid-steady management, a large shareholder (Kaiser) that controls the bank, quietly, effectively and he has a sterling track record of being good to shareholders. BOKF did not have to cut the dividend, did not have to shrink; in fact, it has opened more/branches.
BOKF just recently announced an acquisition of a bank in Colorado (Co Biz, a commercial bank based in Denver) for $1 Billion; that should be a very good acquisition for BOKF. The balance sheet can handle it, and Colorado is yet another energy state. BOKF is a proven winner at handling the ins and outs of the (tricky) energy business. The company has decades of experience and success in this area, already in TX/OK. It is very active, very cautious, and very good at what it does.
Bank stocks still have a lot left here—in my opinion—and I believe higher rates will help quality banks like BOKF. A strong real estate market is also helping. It hits all the marks, and especially below $100, it’s a good trade for the next 3-5 years.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, July 2, 2018