Financials on the cheap

We will not have another Bear, Stears that is. .Lehman Brothers' shares surged 10.5 percent on Friday, snapping back after five days of declines, as investors looking for cheap stocks bought shares and some short-sellers closed out their positions, which is what any good advisor would suggest. There will be huge margin calls early next week as well.

The investment bank's shares fell by nearly a third between last Friday and Thursday's close, after it said on Monday that it expected to post a roughly $2.8 billion quarterly loss and about $3.7 billion of writedowns.

On Thursday, the company demoted its chief financial officer and chief operating officer amid a crisis of confidence in the bank's management.

At Thursday's close, Lehman's shares traded at less than 70 percent of their book value, or the company's net accounting value. That valuation often brings value investors into the market, analysts said."People do not expect Lehman to go the way of Bear Stearns," said Helena Ocampo, an analyst at Sentinel Investments in Montpelier, Vermont, which does not own Lehman shares.

Now is the time to buy Lehman, its $15 less than Morgan Stanley and Merril Lynch, and it does still show signs of life. However if you are looking for a good solid long term financial choice look at
PNC. It sforward P/E is above 10 and it has a diverse mix of incomes. I think the 52 week target is around 64.85. Plus PNC will not do what Key did and cut it dividend.