Squawkbox: On The Radar 02-01-08

Squawkbox market analysis with Danielle Morellino from Thomson FinancialTranscript:Welcome to the Thomson Squawk Box On the Radar Report. I'm Danielle Morellino.Chicago-based Private Bancorp is the only banking stock on our Thomson Squawk Box 200 index that we're seeking to trade to the upside, as we see a potential range breakout developing that belies the terrible news headlines that are hurting the financials.The stock appears poised to break out of a long consolidation band going back to July. During these last six months or so, it has traded between about $26 on the downside and $36 to the upside. If it can close above $35, the stock is in position to make a new weekly closing high going back to March or April of 2007. On a breakout, we see clear sailing to resistance at $38, and a likely move to the $42 to $45 range. This stock can potentially make a run at all-time highs just above $47, reached in August 2006.Trend Intensity, a proprietary Thomson indicator, already shows the stock in an uptrend, one of very few banking shares flashing a positive signal.Private Bancorp makes our Thomson Squawk Box 200 list because it's one of the most aggressively traded stocks on the market, with large intraday swings and a high float turnover percentage. That's all the more reason we like it as a potential breakout play. It can move big if the financial sector can even temporarily overcome subprime and monoline insurance worries that have plagued the group for months.This stock certainly has visible warts. It posted a quarterly loss this week for the first time in its public history, results that were three times worse than expectations. It's not immune to the housing crunch; the loan exposure of PVTB in construction and commercial real estate is tied to single family properties. Worries persist about net interest margins, and loan growth that's outpacing deposit growth.Ye the 2008 estimates are beatable, and there's a chance for big upside in 2009, driven by new managem...