Hudson City Bancorp has been one of the worst performing banks over the last year. The stock has barely gone up from its March 2009 low and this is beginning to frustrate investors. Edwards laughed "well I recommended this stock in Early May as my top pick, the stock has performed modestly since then." Edwards said "I do not think HCBK is as great as I once did but the bank is still very undervalued." Edwards drew a comparison from NYB to HCBK. "With HCBK you get the mortgage backed security business and a large amount of borrowed funds which currently do not provide much to the company, but at the same time you get an excellent loan portfolio and one of the most well capitalized banks in the country. And with NYB you get a bank with not as much capital, and earnings which are lower but the stock trades at a 800 million dollar premium."
Edwards recommended buying HCBK before NYB but his top pick is PNC Financial.
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