Opinion on  Hudson City Bancorp Inc. (HCBK)     Sector: Financial  >  Industry: S&Ls/Savings Banks
Dear Prudence

Hudson City Bancorp is a very conservatively run bank holding company that focuses on bread and butter lending in the metropolitan New York area. How conservatively run is this bank? They actually keep on their books the loans they originate. This means that they have to extra picky about loan quality. In fact, they have increased their cash position and earnings and even increased their dividend last quarter. That's nothing short of amazing in this environment. The financials will rally once this deal is approved and I'm putting money behind one of the best managed.

Ron Hermance is now a celebrity.  First, it was Daniel Gross that lionized him.  Next, it was JIm Cramer.  Now MSN Money's StockScouter is hip to the stock. 

I originally made this call back in October.  The stocks has dropped by about a third since then.  However, looking at the company, I love it even more.  A much smarter man than me would've had you buying even more shares back in March when it dipped into the $7 to $8 range.  Let me highlight just a few of things I like about this bank.

• Yield: 4.8%
• P/E: 12.53
• They have taken no TARP $
• EPS has grown in the last two quarters.
• Net interest spreads have widened.

Watch this video .  By the way, even though this stock has nearly doubled from its 52-week low, it's still yielding over 4.5%.