He said he's most worried about Downey Financial (DSL), Corus Bankshares(CORS), FirstFed Financial (FED) and BankUnited (BKUNA).

P/E- 5.51
P/B- 0.8
P/S- 1.9
PEG- 0.5
5yr EPS Growth- 24.369%

Shipping of packages for holiday season

FirstFed Financial (FED) was downgraded from Market Perform to Underperform, Friedman, Billings Ramsey said. $35 price target. Credit trends are eroding much faster in the weakening housing market.

You can, of course, play Downey Savings (DSL) and First Fed (FED) but everyone is afraid that they have huge exposure to bad loans and don't know their borrowers well enough.

FirstFed Financial (FED) was downgraded from Outperform to Market Perform, Friedman, Billings, Ramsey said. $50 price target. Credit costs will likely continue to rise. Share buybacks have yet to support the stock.

You need to think about a stock like a Downey (DSL). Or a First Federal Bank (FED). These are heavily shorted stocks where the short case is going to go away.

buy

Conservative California savings and loan that began shrinking their balance sheet last year as early signs of trouble in the mortgage market became evident. Thay are overcapitalized and well reserved and their conservatism kept them away from issuing excessive amounts of high risks mortgages. Stock is heavily shorted (over 60%) and they have a massive buyback in place.

cant beat this: also in my bull portfolio
undervalued by 22% on 4.20. 1.86 eps

There are several banks -- two of them on the West Coast, FirstFed Financial (FED) and Downey Financial (DSL), and one of them in Florida, BankUnited (BKUNA) -- that have a lot of these so-called option adjustable-rate mortgages, for which you don't have to pay the interest for a long time, and so they won't show defaults for several quarters still -- but when they do, the defaults will jump very sharply.

s. california s+l . this has no business being priced this high.