Derek Pilecki on long/short financials investing, regional banks, non-banks and insurance | S08 E08 – The Acquirers Podcast

Announcer

Every soda's got something to say. Colas brag. Probiotics give TED Talks. Then there's mister Pibb. No pitch. No promises. Just bold cherry bringing the flavor.

Tobias

Bold kick of cherry.

Derek

And you missed the pin.

Tobias

And we're live. This is Value After Hours. I'm Tobias Carlisle, joined as always by my cohost, Jake Taylor. Our special guest today is Derek Pilecki from Gator Capital. He is a small cap small cap bank specialist. Welcome, Derek. How are you?

Jake

Are banks just synonymous with value these days?

Derek

Hey. Thanks for having me on.

Tobias

Are banks synonymous with value these days?

Derek

I think so. Yeah. I mean, I think, you know, you think about the normal valuation range for banks, it's, you know, 10 to 14 times GE, and they seem to be trading eight or nine times earnings. So it's, like, below the bottom end of the range. I think banks are cheap. I think it's we're still living through the post Silicon Valley 1st Republic environment, and so banks are just you they're they're trading cheap still. And, I think there's some reason, you know, peep people really haven't figured out that the the yield curve is has more juice in it so the banks can earn higher returns and m and a

Tobias

I actually thought you're gonna say you thought it was a hangover from the GFC, but you you you short circuited me there. But what what do you think about the I it's my impression that banks have still suffered a little bit from that GFC sort of undiscoverable risk in the balance sheets.

Derek Pilecki on long/short financials investing, regional banks, non-banks and insurance | S08 E08

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