ZIONS BANCORP: Journey To Jerusalem (+17%)
The Music Stops at Seventeen.
Executive Summary
Burning Bushes meet Zions Bancorp.
Murky and illiquid +17% episode.
1. Recap Situation
We discovered how Sinai Bushes burn while diving deep into Zions Bancorporation's (ZION) books. We were amazed at the sheer prudence of their banking operations in the face of their market value crash and found that most listed regional banks have no real issues in the long run.
We also belittled Moody's and noisy investment jesters trying to act alpha.
Check out the original BrainDozer article below.
Our expected value on equity for a somewhat murky episode was +28%; we converted it to an actual return on equity of +17% in six weeks.
2. Why Now
Since we do not believe that ZION will face any further troubles even if the Fed were to hike a couple more times, we believe the bottom is in. A potential bounce off the most recent Fibonacci retracement is not unlikely in the near future.
Our options contracts expire in 23 days; hence, we are closing the trade.
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