The YouTuber suggests Western Alliance as a buying opportunity after a recent 21% drop due to concerns over problematic loans. They argue that the bank is highly profitable, has a very low non-performing loan ratio, and has sufficient capital to absorb potential losses from the mentioned $100 million issue, which is small compared to its $7 billion in equity. The bank's exposure to problematic commercial real estate is minimal, and its valuation has become attractive at seven times earnings, compared to its historical average of 12 times.
“Western Alliance es una compañía que obviamente la crisis financiera vemos que sufrió, que el valor en libros por acción, que es una métrica clave en los bancos, pues le descendió de 9 millones a cinco.”