East-West Bankcorp (EWBC) Message Board

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Non-Tech : East-West Bankcorp (EWBC)

EWBC 116.01

+0.6%

Dec 26 9:30 AM EST

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To: Paul Lee who started this subject	8/30/2000 3:49:03 PM
From: Paul Lee	of 36

TWST: Which did you select and why? Ms. Vorisek: One is East West Bancorp (EWBC). It's the fourth largest commercial bank headquartered in Southern California. This company is one of the largest lenders and deposit gatherers within the ethnic Chinese-American population. They have a niche within the Chinese- American market with about 50% of their total loans serving the marketplace generating approximately 90% of its deposits. The company has strong core loan growth of 13-14% while maintaining very strong credit quality relative to its peers. The stock is underfollowed and it has a discount valuation not only relative to other banks that service the Asian-American population, but also relative to California banks. The company trades at about $16 on $1.72 in earnings in 2001, so that's about a 9.3 price/earnings multiple, with a long-term earnings growth rate of about 13-15%. TWST: Do you set a target price when you buy? Ms. Vorisek: Absolutely. We have a target on East West of $23 a share, which is about a 13 multiple on 2001 earnings, which is actually still a little bit shy relative to other California banks in terms of the multiples they're trading at.

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