Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: Breezie Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19  
Subject: Re: Where are all the WABC investors? Date: 12/29/1998 2:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
WABC is presently in a bit of a quandry. David Payne, CEO, does not want to make loans because the pricing doesn't fairly reflect the underlying credit concerns. So he is sitting on a stockpile of cash that he can put to work in two ways: buybacks and acquisitions.
On the buyback front he would be paying 3.9x book and 19.5x 99 consensus EPS. On the acquisition front, the prices are more expensive than David Payne wants to pay.
So in my estimation, the stock is fairly valued here until we see a pickup in his lending strategy, or a decrease in prices paid for other CA banks.
Keep in mind the stock is trading 1 point below its 52 wk hi.
Maybe you should look at HUBC, a $7B asset NJ based bank.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next


Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.