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Wall Street’s Best Digest Top Picks Daily Alert

This bank may be a sleeper, and the shares are beginning to take off.

This bank may be a sleeper, and the shares are beginning to take off.

BOK Financial Corporation (BOKF)
From Positive Patterns

BOK Financial Corporation (BOKF) is located in a heavy energy area, and is in fine shape to benefit from the shale business, as most of its branches are in OK/TX.

BOKF has a long-time mega-rich shareholder (George Kaiser/64% BOKF/stock-owner) that controls the stock, and he does a good job of watching over his big investment, while picking good management people. Mr. Kaiser keeps a very low profile.

BOKF has an excellent balance sheet, and the loan book is in fine shape. Indeed, BOKF was one of the few/banks that did not have to cut the dividend in the bank smash of 2008. BOKF came through the real stress-test (2008) with flying colors. Management is steady and there is low-turnover in the executive suite.

BOKF has had a very good year this year; in fact, earnings have jumped about 50% year-over-year with earnings of $3.53 in 2016, and this year should be somewhere around $5.35. But, next year’s estimates are modest, $5.45 for 2018. I think that is way off; BOKF should earn much more than that. I am obligated to tell you this is just my opinion, and I cannot guarantee anything. But I am confident that as the year goes by (and the USA economy really picks up steam in 2018), you will see BOKF (and many other banks) earn more than the analysts were expecting. The analysts will be marking up their earnings estimates all year in 2018.

Technically speaking, BOKF is breaking out to new-all time highs, and the chart looks splendid. I expect more of that ahead, and would buy this first class bank up to $95, but not much past that. I think BOKF will be a superior performer over the next 2-3 years and make for an excellent trade.

I believe there is still plenty of upside to be had here.

Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, December 28, 2017