Irrational behavior due to concerns over the stability of the U.S. banking system has made Charles Schwab 's stock a cheap investment opportunity, according to value investor Daniel O'Keefe.
O'Keefe said this "cash sorting" was mistaken for a bank run.
"On the negative side, cash sorting moved back up in August post the July Fed hike, and Ameritrade client attrition around conversion activity also rose considerably."
"We believe fears of a reacceleration in cash sorting behavior are overblown," the JPM analysts said in a note to clients on Sept. 20.
He initiated a position in Schwab for the value fund, calling it "a phenomenal business" trading at a discount.
Persons:
Charles Schwab, Daniel O'Keefe, Schwab, O'Keefe, " O'Keefe, It's, Brian Bedell, Devin Ryan
Organizations:
Artisan Partners, Artisan, Fund, CNBC, Schwab, Deutsche Bank, JMP Securities
Locations:
U.S, Schwab