How The Top 4 Have Done (NYSE: BAC) ,(NYSE: WFC), (NYSE: C), (NYSE: JPM)

NEW YORK - The top 10 major U.S. financial institutions have all reported in the last two weeks and little correlation can be seen between its stock movement from on the day it reported to how its shares have move since.

Bank of America the largest bank in the U.S. by assets was at $14.54 the day before it reported. It dropped 2% on the day and is now down 7% since it reported on January 21. This makes it the worst performing bank of the top 11 financial institutions since its release date. Investors have focused on its declining net interest income and profitability.

JP Morgan the second largest bank in the U.S. was at $44.45 on the day it reported and it rose 1% that day. Since then the bank is up an overall 1.7%. Investors were pleased with the record quarterly and yearly profit that J.P Morgan recorded.

Citigroup the third largest bank in the U.S. which was at $5.13 on the day before it reported saw its stock drop 6.5% when it released its Q4 results. Citigroup reported disappointing revenue of $18 billion which was $4 billion less than BAC. It also reported profit of $1.3 billion.

Wells Fargo the fourth largest bank in the U.S., was at $32.49 the day before it. When it reported, its shares fell 2.1% but has now risen close to even. Wells reported record profits of $3.4 billion in the quarter as it saw provisions for loans losses fall.

The Weak and the Meek Separate, PNC, BAC, RF, JPM, C

NEW YORK - Strong U.S. Financial are beginning to separate from the weaker financial institutions which have rallied with the stock market since it hit its lows in March 2009.

The strongest institutions, PNC Financial, U.S. Bancorp and Wells Fargo stocks continue to move higher as other banks decline. The banks which are severely weakening are Marshall & Ilsley and Regions Financial which are down nearly 30% in the last month. Investors have rapidly switched into the banks with the strongest amounts of capital such as U.S. Bancorp, PNC, BAC, JP Morgan & Chase and Wells Fargo and switched out of the more speculative names. Stocks such as Bank of America and Citigroup which are profitable and well capitalized have not seen as much of rise in their stock price due to extra bailout packages they took from the government which can limit their ability to increase their dividends.

Stocks such as PNC Financial which has the second highest tier 1 common ratio in the businesses only behind Comerica Bank and is eagerly awaiting to redistribute capital to its shareholders.

But there is more... The stocks of the companies which have to pay back TARP are caught in perpetual loop. As their share prices go down the potential for dilution to pay back tarp increases which intuitively would cause its share price to go down further. For instance RF owes the government $3.4 billion at $7 a share the stock would only be diluted by 25% to pay back $3.4 billion but at $5 a share it would be diluted by nearly 40%. If the stock drops to $1 it would be diluted by 75%. This may not prove to be a problem if the shares increase in the future and RF pays the government back with more expensive shares. However, the government may not be forgiving to the bank and may force them to raise the capital at a inopportune time. This is what makes the stock unattractive regardless of the underlying fundamentals which are not very good either.

We continue to recommend, PNC Financial to see the full report click here.

Bank of America, Or American Banks (NYSE: WFC) (NYSE: JPM) (NYSE: BAC)

NEW YORK - The major United States bank have remained mostly flat since they reported their earnings. J.P Morgan is down 6.9% or $12 billion of market capitalization since it reported, despite reporting a profit of $4.4 billion. Investors worried about the foreclosure scandal that had just began to unfold. But despite recent clarification the stock has remained lower.

Bank of America has lost 7.3% since or approximately $10 billion of market capitalization since it reported just over a week ago. The bank reported $3.1 billion of adjusted profit but lost $7.3 billion with the goodwill charge. To read our BAC report click here.

Wells Fargo has been the best performing bank since it reported, the stock is up 6.5% or about $8 billion of market capitalization. The bank reported record profits of $3.34 billion. To see the full Wells Fargo report click here.

Citigroup is up 5% or about 6 billion of market capitalization since it reported $2.1 billion of profit. Surprisingly the bank is valued higher than Bank of America despite lower profits the stock has vaulted higher then its peer.

PNC Financial the 6th largest bank in the U.S., surprisingly is only 2.1% higher despite near record results when it reported just over a week ago. The bank announced $1.1 billion of profits. To see the full PNC report click here.

Does One Chase BAC or Go Far?(NYSE: WFC) (NYSE: BAC) (NYSE: JPM) (NYSE:C) (NYSE: PNC)

NEW YORK - The major United States bank have remained mostly flat since they reported their earnings. J.P Morgan is down 6.9% or $12 billion of market capitalization since it reported, despite reporting a profit of $4.4 billion. Investors worried about the foreclosure scandal that had just began to unfold. But despite recent clarification the stock has remained lower.

Bank of America has lost 7.3% since or approximately $10 billion of market capitalization since it reported just over a week ago. The bank reported $3.1 billion of adjusted profit but lost $7.3 billion with the goodwill charge. To read our BAC report click here.

Wells Fargo has been the best performing bank since it reported, the stock is up 6.5% or about $8 billion of market capitalization. The bank reported record profits of $3.34 billion. To see the full Wells Fargo report click here.

Citigroup is up 5% or about 6 billion of market capitalization since it reported $2.1 billion of profit. Surprisingly the bank is valued higher than Bank of America despite lower profits the stock has vaulted higher then its peer.

PNC Financial the 6th largest bank in the U.S., surprisingly is only 2.1% higher despite near record results when it reported just over a week ago. The bank announced $1.1 billion of profits. To see the full PNC report click here.