Stocks & Investing
Fri, August 19, 2011WCBO, CATY, BOFI, GBCI, CTBK, PFBC, Banks - West Stocks Undervalued
Published in Stocks and Investing on Friday, August 19th 2011 at 7:42 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. WEST COAST BANCORP/OREGON (NASDAQ:WCBO), CATHAY GENERAL BANCORP (NASDAQ:CATY), BOFI HOLDING INC (NASDAQ:BOFI), GLACIER BANCORP INC (NASDAQ:GBCI), CITY BANK LYNNWOOD WA (OTC:CTBK), PREFERRED BANK/LOS ANGELES (NASDAQ:PFBC) 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
WCBO WEST COAST BANCORP/OREGON 13.47 53.88 75.00% Undervalued Banks - West
CATY CATHAY GENERAL BANCORP 11.61 21.06 44.90% Undervalued Banks - West
BOFI BOFI HOLDING INC 13.18 16.82 21.60% Undervalued Banks - West
GBCI GLACIER BANCORP INC 10.69 17.16 37.70% Undervalued Banks - West
CTBK CITY BANK LYNNWOOD WA 0.27 2.16 87.50% Undervalued Banks - West
PFBC PREFERRED BANK/LOS ANGELES 7.35 29.4 75.00% Undervalued Banks - West
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.
WEST COAST BANCORP/OREGON (NASDAQ:WCBO) - West Coast Bancorp operates as the holding company for West Coast Bank that provides various banking and financial products and services in western Oregon and southwestern Washington. It primarily offers demand deposits, checking and savings accounts, NOW and money market accounts, check cards, and short-term and long-term borrowings. The companys lending products include general commercial purpose loans (short and intermediate term), revolving lines of credit, real estate loans and lines to support construction, owner-occupied and investor financing, SBA loans, and business credit cards and equipment leasing for business banking customers; and personal lines of credit, credit cards, various first and second lien residential mortgage products, and other consumer loans for consumer banking customers. West Coast Bancorp also provides agency, fiduciary, and other related trust services; and life insurance products to individuals, and for-profit and not for-profit businesses and institutions. As of December 31, 2009, the company operated 61 full-service and 4 limited-service branches, as well as a small business administration lending office in Vancouver, Washington. The company was founded in 1925 and is headquartered in Lake Oswego, Oregon.
CATHAY GENERAL BANCORP (NASDAQ:CATY) - Cathay General Bancorp operates as the holding company for Cathay Bank, which offers various commercial banking products and services for individuals, professionals, and small to medium-sized businesses primarily in California. Its deposit products include passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, college certificates of deposit, and public funds deposits. The companys loan portfolio comprises commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit. It also offers installment loans to individuals for automobile, household, and other consumer expenditures. In addition, the company provides letters of credit, wire transfers, forward currency spot and forward contracts, travelers checks, safe deposit, night deposit, social security payment deposit, collection, bank-by-mail, drive-up and walk-up windows, automatic teller machines, Internet banking, and other customary bank services. As of December 31, 2009, Cathay General Bancorp had 20 branches in southern California, 11 branches in Northern California, 8 branches in New York State, 1 branch in Massachusetts, 2 branches in Texas, 3 branches in Washington State, 3 branches in Illinois, 1 branch in New Jersey, and 1 branch in Hong Kong, as well as 2 representative offices in China and Taiwan. The company was founded in 1961 and is based in Los Angeles, California.
BOFI HOLDING INC (NASDAQ:BOFI) - BofI Holding, Inc. operates as the holding company for Bank of Internet USA that provides various consumer and wholesale banking services primarily through Internet in the United States. The company accepts various deposit products, including demand deposits, savings accounts, and time deposits. It also offers various loan products comprising single family loans, home equity loans, multifamily loans, commercial real estate loans, consumerrecreational vehicle loans, and overdraft lines of credit. In addition, the company provides online bill payment, online check imaging, ATM card or VISA check card, overdraft protection, and electronic statement services. It serves approximately 32,000 retail deposit and loan customers across 50 states. The company was incorporated in 1999 and is headquartered in San Diego, California.
GLACIER BANCORP INC (NASDAQ:GBCI) - Glacier Bancorp, Inc., a multi-bank holding company, provides commercial banking products and services in Montana, Idaho, Wyoming, Colorado, Utah, and Washington. It generates various deposit products, including regular statement savings, interest-bearing checking, money market deposit, fixed rate certificates of deposit, negotiated-rate jumbo certificates, non-interest demand, and individual retirement accounts, as well as wholesale deposits comprising the certificate of deposit account registry system. The companys lending activities consist of the origination of both construction and permanent loans on residential real estate loans, as well as the provision of residential mortgage loans and interim construction financing for single-family dwellings; land acquisition and development loans on properties intended for residential and commercial use; pre-sold and spec-home construction and lot acquisition loans; commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, and other assets; and second mortgage and home equity loans. It also offers mortgage origination services and retail brokerage services. Glacier Bancorp serves individuals, small to medium-sized businesses, community organizations, and public entities. As of December 31, 2009, it operated 106 banking offices. Glacier Bancorp, Inc. was founded in 1955 and is headquartered in Kalispell, Montana.
CITY BANK LYNNWOOD WA (OTC:CTBK) - City Bank provides commercial and retail banking products and services in Washington State, the United States. The company provides loan and deposit services to its customers. Its loan services comprise lending to small and medium-sized businesses; construction lending for single family residences; and home mortgage lending. The company offers regular and interest bearing checking accounts, savings accounts, certificates of deposit, individual retirement accounts, and safe deposit boxes. It also provides online banking, automated teller machines, and consumer and business related services. As of April 23, 2009, the company operated eight banking offices in Snohomish and King counties, as well as three mortgage loan offices in Snohomish, Pierce, and Clark counties. City Bank was founded in 1973 and is headquartered in Lynnwood, Washington.
PREFERRED BANK/LOS ANGELES (NASDAQ:PFBC) - Preferred Bank operates as a commercial bank in California. Its deposit products include checking, savings, negotiable order of withdrawal, and money market deposit accounts; fixed-rate and fixed maturity retail certificates of deposit; and individual retirement accounts and non-retail certificates of deposit. The company provides construction loans and mini-permanent loans for residential, commercial, industrial, and other income producing properties. It also offers working capital loans, equipment financing, and commercial real estate loans, as well as provides a range of deposit products and related services, such as safe deposit boxes, account reconciliation, courier service, and cash management services to the manufacturing, service, and distribution companies. In addition, the company offers commercial and standby letters of credit, acceptance financing, documentary collections, foreign draft collections, international wires, and foreign exchange services to international trade finance customers. Further, it provides various private and personal banking services, as well as merchant processing services. The company operates 10 branches in Los Angeles, Orange, Ventura, Riverside, and San Bernardino counties. Preferred Bank was founded in 1991 and is headquartered in Los Angeles, California.
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