Flagstar Financial $FLG perfect bullish chart and many catalysts set for take off

Expecting a $25-30 acquisition bid in the coming months.

NYC commercial real estate market not nearly as bad as feared. Return to office across the board lead by JP Morgan and all the banks will drive a full recovery of the Flagstar loan book. Its foothold in NYC will be very attractive with the city fully back to the office and functioning normally. Plenty of regional banks with zero current presence there are eagerly looking to be in that market. Throw in one of the best turnaround management teams in the business with a strong proven track record.

Price to book right now is 0.8x. For other similar sized regional banks it’s 1.8-1.9x. A bank bidding just book value for Flagstar gets you $25-30, a 100%+ return from the current stock price.

$FLG will be earning a run rate of $1.5-2B annually by end of 2025 so this adds to earnings almost immediately before you even start streamlining costs. A book value priced acquisition of $10-12B pays for itself inside of 5 years. Like the CEO said, this is a pretty cut and dry highly attractive acquisition target. I bet it’s being shopped widely right now with lots of interested takers. He didn’t say that out of nowhere. IYKYK.

Acquisition isn’t the only catalyst. Rate sensitive stocks should also benefit if inflation continues to moderate, DOGE gets the deficit down, and 10-year Treasuries keep drifting lower.

$FLG is also a Trump trade stock with his former Treasury Secretary Steve Mnuchin providing a big round of financing last year and his team that successfully turnaround One West during the financial crisis taking over the management and leading the current turnaround.

Oh and look at the chart. An absolute beauty. This thing looks like it wants to fly. Just broken out of a year long base consolidation at $12 on massive volume. Gaps at $19 and $30 that it looks like it wants to fill in a hurry. The chart usually tells you the story before it happens. $FLG chart is screaming loudly where the stock is heading. Big volume stair step higher highs and higher lows on the up moves with low volume bull flags on every consolidation and pause.

Jump on board before it’s too late and the full rerating happens!