Value Investing 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.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: peter michaelson	6/19/2010 12:57:01 PM
	2 Recommendations Read Replies (2) of 78704

A cautionary tale on buying bank shares. BANR, Banner Bank of Washington state, has a book value per share of about $12. Yesterday they announced a $150 million capital raise via public common stock sale. They have a Tier 1 ratio over 8%. The share price fell from $3 to $2 on the announcement. With 24mm shares outstanding currently, legacy shareholders are likely to be diluted by 65%. On the surface, BANR looks like a screaming bargain, but obviously there is a problem. The point is that in many cases the balance sheet book value in banks is very different from the true value of the common stock. Be skeptical!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next