Dick Bove plays the zany scatter brained analyst on CNBC and makes an occasional guest appearance on Bloomberg. Dick is noted for passionate recommendations on financial stocks early in each episode and then changing his opinion just before the end of the show. The show’s ratings went parabolic since Bove developed his “BS (bank stock)” app for the iphone.
For those that have yet to download the app, it provides the user with an automatic “buy Bove’s bank rating” default. Once 100 shares of the bank stock Dick is analyzing are purchased, a timer automatically engages tracking the amount of time remaining in the trading session. The stock will automatically be held overnight unless the one opts to use their one time “sell at the close” option. If one sells the stock at the close they keep any gains less a 2% royalty to Bove. The app’s exciting feature is when the stock is held overnight.
If Bove does not change his opinion after the market closes and the stock continues its run, the owner of the stock receives 2 times the gain courtesy of the BCDS (Bove Credit Default Swap) underwritten by Goldman Sachs. If Dick does change his opinion of the stock after the market closes and the stock plunges the following day, Bove waives the royalty fee.
Recap of most recent episode (Friday, April 16th):
Episode: I'm just an analyst doing God's work
Broadcast at 8:43 am ET
Dick Bove assures CNBC viewers that Goldman Sachs (GS) is an aggressive a buy in spite of the SEC fraud lawsuit brought against the firm. He also stated that GS will pay a fine and this situation will pass. At this point in the episode, GS was trading around $171 per share, down $13 and change. Bove reiterated his buy recommendation even after fellow actor (Mark Haines) argued that fraud is a big deal.
GS closed at $160.70, down $23.57 on the day and down $11 and change from Bove’s reiteration of a buy rating.
After the close, Dick Bove made the following comments in his note to clients:
“Will Lloyd Blankfein, CEO, and David Viniar, CFO, maintain their positions in the company? I do not think so.” “Someone must ‘fall on their swords’ for the devastating decline in this company’s persona and they may be forced to do so for public relations reasons.”
Other popular episodes:
Wells Fargo proving itself to be a standout…downgrade to sell (Oct. 2009)
Financial crisis is over (March 2008)
Once in a generational opportunity to buy financials (March 2008)
The housing market has bottomed (Oct. 2009)
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