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couple notes from WS today:

Citi upgrades to Buy, higher cash sorting than past cycles, no "material risk to deposits"

MS thinks $275B of securities portfolio eligible for discount window.

https://seekingalpha.com/news/3946832-charles-schwab-stock-sinks-even-after-upgrade-to-buy-at-citi

at the end of the day, trying to keep the focus on the 3-5 year outlook here. Against 2021 EPS - again, a trough in terms of NIM - we're at a 15x P/E. To me, barring a significant need to raise capital (and we may try and add some work here on that front) that's a steal, and even if you face some near-term dilution you're still getting this franchise at a pretty healthy valuation.

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Mar 12Liked by Vince Martin

Thank you for your excellent analysis. You have given teeth to my gut feeling: failure by Schwab is an asymptotic event. I just hope I can buy in the mid-$50s: if a bailout is announced before the market opens, Schwab will open up $10.

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Mar 13Liked by Vince Martin

Thank you for the heads up on a great opportunity. I aggressively sold puts at massive premiums in the first 30 minutes of mayhem today, and it's looking like I will be buying them back at much lower prices. And if I get exercised and have to buy SCHW in the low 40s, I'm fine with that, too.

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Mar 12Liked by Vince Martin

Investing in an arb deal on non-deal related market volatility is smartest trade going.

Any thoughts on LPLA and MS?

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Got in at $48 !

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Thank you for such a deep analysis,

I wonder if you could bring some light on how Charles' BS compares to othe banks to assess the depth of the problem.

Best

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Are you still holding on this ?

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