We reommend the purchase of Doral Financial Corp (DOR @$32.60). DOR is a diversified financial services company engaged in mortgage banking, banking, institutional broker-dealer and investment banking activities and insurance agency activities. For the fiscal year ended 12/31/03, total interest income rose 9% to $452.6 million. Net interest income after loan loss prov. rose 15% to $167.4 million. Net income applicable to Common rose 45% to $299.9 million. We estimate DRL earned $3.50 per share on revenue of $721 million last year and will earn $4.20 per share this year. Projecting an average earnings growth rate of 20% over the next 5 years, we estimate DRL's current PEG ratio to be .48x, substantially below those of its peers'.
pcyhuang
huangcapital.com
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