Stocks & Investing
Fri, August 19, 2011CVBF, BOH, SSBI, FCAL, STT, MTB, Banks - West Stocks Undervalued
Published in Stocks and Investing on Friday, August 19th 2011 at 7:43 GMT by WOPRAI
August 19, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Banks - West sector and these stocks are the most undervalued as of today. CVB FINANCIAL CORP (NASDAQ:CVBF), BANK OF HAWAII CORP (NYSE:BOH), SUMMIT STATE BANK (NASDAQ:SSBI), FIRST CALIFORNIA FINANCIAL G (NASDAQ:FCAL), STATE STREET CORP (NYSE:STT), M & T BANK CORP (NYSE:MTB) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry
CVBF CVB FINANCIAL CORP 7.86 10.02 21.60% Undervalued Banks - West
BOH BANK OF HAWAII CORP 39.05 46.69 16.40% Undervalued Banks - West
SSBI SUMMIT STATE BANK 6 6.56 8.50% Undervalued Banks - West
FCAL FIRST CALIFORNIA FINANCIAL G 3.01 6.92 56.50% Undervalued Banks - West
STT STATE STREET CORP 32.67 63.1 48.20% Undervalued Banks - Major Regional
MTB M & T BANK CORP 71.56 101.76 29.70% Undervalued Banks - Major Regional
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
CVB FINANCIAL CORP (NASDAQ:CVBF) - CVB Financial Corp. operates as a bank holding company for Citizens Business Bank that provides various retail banking and financial services to small to mid-sized businesses, high net-worth individuals, and professionals in the United States. The company offers various deposit products, including checking, savings, money market, and time certificates of deposit for business and personal accounts, as well as acts as a federal tax depository for business customers. It also provides various lending products comprising commercial products, such as lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agribusiness products, including loans to finance the needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing for municipal governments; financing products, such as automobile leasing and financing, lines of credit, and home improvement and home equity lines of credit for consumers; and real estate loans consisting of mortgage and construction loans. In addition, the company offers various specialized services, including cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers by way of domestic and international wires and automated clearinghouse, and on-line account access. Further, it provides various financial services and trust services consisting of fiduciary services, mutual funds, annuities, 401K plans, and individual investment accounts. As of December 31, 2009, the company operated 46 business financial centers located in the Inland Empire, Los Angeles County, Orange County, and the Central Valley areas of California. The company was founded in 1974 and is headquartered in Ontario, California.
BANK OF HAWAII CORP (NYSE:BOH) - Bank of Hawaii Corporation operates as the holding company for Bank of Hawaii that provides a range of financial services and products in Hawaii and the Pacific Islands. The company operates in four segments: Retail Banking, Commercial Banking, Investment Services, and Treasury. The Retail Banking segment offers financial products and services to consumers and small businesses. It offers loan and lease products, which include residential mortgage loans, home equity lines of credit, automobile loans and leases, and installment loans; deposit products that consist of checking, savings, and time deposit accounts; and retail life insurance products and merchant services to small business customers. This segment also offers online and mobile banking services. The Commercial Banking segments product lines comprise corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit and cash management. It offers commercial lending, deposit, and cash management services to middle-market and large companies; and commercial real estate mortgages to investors, developers, and builders domiciled in Hawaii. In addition, this segment provides syndicated lending activities and international banking. The Investment Services segment provides private banking, trust services, asset management, and institutional investment advisory services. It serves individuals and families, high-net-worth individuals, corporations, government entities, and foundations. This segment also provides brokerage services for equities, mutual funds, life insurance, and annuity products. The Treasury segment offers corporate asset and liability management services, including interest rate risk management and foreign exchange services. As of December 31, 2009, the company operated 71 Hawaii branch locations, 12 branches in the Pacific Islands, and 485 ATMs in Hawaii and the Pacific Islands. The company was founded in 1897 and is headquartered in Honolulu, Hawaii.
SUMMIT STATE BANK (NASDAQ:SSBI) - Summit State Bank operates as a community bank in Sonoma, Napa, San Francisco, and Marin Counties in California. It offers deposit accounts, such as transaction accounts, money market accounts, savings accounts, time deposit accounts, business checking accounts, time certificates of deposit, sweep accounts, and specialized deposit accounts, including professional, small business packaged, and tiered accounts for larger deposits, and Keogh and IRA accounts. The company also provides commercial and industrial lines of credit and term loans, credit lines to individuals, equipment loans, real estate and construction loans, small business loans, and business lines of credit; consumer loans, including auto loans, mortgage loans, home improvement loans, and home equity lines of credit; and loans for accounts receivable and inventory financing, loans to agriculture-related businesses, and equipment and expansion financing programs. In addition, it offers banking by appointment, online and telephone banking services, direct payroll and social security deposits, letters of credit, access to national automated teller machine networks, courier services, safe deposit boxes, night depository facilities, notary services, travelers checks, lockbox, and banking by mail. Further, the company, through its subsidiary, Alto Service Corporation, provides deed of trust services. It serves small-to medium-sized businesses, professionals and professional associations, entrepreneurs, high net worth families, foundations, estates, and individual consumers. The company operated five offices in Santa Rosa, Petaluma, Rohnert Park, and Healdsburg. Summit State Bank was founded in 1982 and is headquartered in Santa Rosa, California.
FIRST CALIFORNIA FINANCIAL G (NASDAQ:FCAL) - First California Financial Group, Inc. operates as the holding company for First California Bank, which provides commercial banking services to individuals, professionals, and small- to mid-sized business in California. Its deposit products comprise non-interest bearing checking, interest checking, savings accounts, time deposits, and money market accounts. The companys loan portfolio includes revolving lines of credit, term loans, commercial real estate loans, construction loans, consumer and home equity loans, entertainment finance, and small business administration loans. As of March 18, 2010, it operated through 17 full-service branches in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties. The company was founded in 1981 and is headquartered in Westlake Village, California.
STATE STREET CORP (NYSE:STT) - State Street Corporation, through its subsidiaries, provides various products and services for the institutional investors worldwide. Its investment servicing business provides services, such as custody, product- and participant-level accounting, daily pricing, and administration; master trust and master custody; recordkeeping; shareholder services, including mutual fund and collective investment fund shareholder accounting; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and shareholder comprising mutual fund and collective investment fund shareholder accounting. State Street Corporations investment management business offers a range of services for managing financial assets, such as investment research services and investment management, including the passive and active U.S. and the non-U.S. equity and fixed-income strategies; and other related services, such as securities finance. The company serves mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. The company was founded in 1832 and is headquartered in Boston, Massachusetts.
M & T BANK CORP (NYSE:MTB) - M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, such as demand, savings, and time accounts; and financial services, including cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; one-to-four family residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and branch deposits. In addition, it offers foreign exchange, as well as asset management services. Further, the company provides consumer loans, and commercial loans and leases; credit life, and accident and health reinsurance; and securities brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 738 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia; a commercial banking office in Ontario, Canada; and an office in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.
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