There must be somebody out there that watches this stock besides me? Where are you? What do you think of WABC buying back their stock?
Right now WABC buying back stock is better than making dangerous loans in a time where increased competition is forcing some banks into making bad loans. CEO david Payne says he will not pay up for a deal that would not be immediately accretive. I like the stock for long term, but the slowdown in agricultural lending due to "EL NINO" is causing a slowdown in net interest income.Let me know what you think.
Hi, My last post was in July and I got tired of waiting for someone else to post something. I'd forgotten that I'd even posted something until late today. Anyway, try using the message board on Yahoo as there seems to be alittle more activity there, but not much. I'm long on WABC and I'm looking forward to something happening again soon as we've been pretty stale for quit some time now. Talk to you soon.
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.
Interesting thing is that according to friends I have in the banking industry, WABC is very aggressive in their pricing on long term commercial real estate loans. In the East Bay and up Napa way, they seem prepared to meet or beat any rate offered by competing commerical banks. That seems to go a little against Payne's advocation of not wanting to compete and concern about growing the portfolio. From the folks I've talked to, the bigger problem is the service after the deal is done. Very good at obtaining the business, but have some difficulty servicing after the fact. Tough business. Me thinks it's time for the bank to be sold. Anyone else?
Me thinks it's time for the bank to be sold. Anyone else? Tincup: Nice to see alittle more action on this Board as I was wondering if I was one of just a few that had stock in WABC. I've held my shares for a number of years and have been happy with the returns, however I'll be the first to admit that I'm getting somewhat frustrated with the lack of activity over the past year. The price has been basically flat with a few ups and downs, but mostly downs. I know that everyone is waiting for WABC to be purchased by someone, but it could be tomorrow or years before that happens. I will admit that I'm starting to sell off some of my shares to invest in other things, but will most likely hold on to quite a few shares "just in case".
Hello emuman!!!!I watched this stock for some time!!!the pe growth ratio looks good to me because the pe 16.80 relative to the growth rate 24.94% based on the hystorical 3 year eps growth rate for a company.And the sales and ratio i stay neutral (sorry for my english but i am dutch)And the EPS growth rate is great which is 24.9% based again on hystorical figures.And WABC is a financial company so debt to equityare not replied to determine the companies financial soundness.Then we go to the EQUITY/ASSETS RATIO and WABC ratio is 8% and thats healthy and above the 5% minimum methodology.And last but not least we have the RETURN ON ASSETS AND WABC ROA=2.10% is above the minmum 1% that is passing my critirium!!
+My wife purchased Napa Valley Bank Stock starting in 1971. This company was purchase by WABC sometime in the 90s. My wife has continued to hold this stock ever since then. She has had a good return on her investment. They have a good dividend. Her ROI for the last four years has been 14%, 23%, 20%, and so far this year 12%. I personally don't invest in financial stocks as they are to sensitive to interest rates and they depend on the whim of the Federal Reservre trying to guess what the future holds in store for the USA. I do not have a lot of faith in them. It is my belief that you will see banks become more invisible to the eyes. Real estate that they own will disappear as they become obsolete and more and more people bank online and checks are cleared at the point of purchase and the increase of debit cards. At this point they should become more profitable as the real estate disappears as well as personnel. We will continue to hold this stock as it is my wife's favorite stock. Its better than getting a divorce.
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