Advanta Corp A (ADVNA) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Advanta Corp A (ADVNA)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Money Maker (MM) who wrote (37)	6/8/2000 11:48:00 AM
From: Alex Brubaker	Read Replies (1) of 41

Here's how I see it. There are about 27 million shares outstanding, roughly split 60/40 between ADVNA and ADVNB. At a current price of about $12 for ADVNA and $8 for ADVNB, that's an average price of about $10.5 per share. Book value is about $22, so it's trading at less than 50% of book value. Last year's earning were $2.37, so ADVNA is trading at 5.1x earnings and ADVNB is trading at 3.4x earnings. And it's not like earnings have been slipping--they have been increasing steadily. For the past five quarters they were $0.40, $0.49, $0.55, $0.60, and $0.63. Estimate for this coming quarter is $0.66 and for this coming year is $2.78. So ADVNA is trading at 4.3x expected earnings and ADVNB is trading at 2.9x expected earnings. Earnings growth was expected to be 30% before the regulators were concerned about the company's rate of growth. Even if it's even with last year's performance, this company is a no-brainer.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next