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

To: Paul Senior who wrote (38524)	7/15/2010 6:54:22 PM
From: Bart Hoenes	Read Replies (1) of 78717

PBCT PBCT is also buying LSBX - the spread is better here if you are going to do that. However, it's an all cash transaction for $21. Part of the reason for such a high PE with PBCT is that they have a rather large cash holding (almost 3B or 8/share). If you subtract the cash from the price and use 6.15/.32 for PE (18.75) its a little better. Also PBCT is paying a large(r) dividend because of it's large cash holding. Note that their dividend is > earnings. They seem to be a pretty safe place for money in this environment because of their large amount of cash. 2 concerns I have are lack of earnings growth, and their utilization of their cash to make purchases at an good value. There should be good values in this market where some banks got caught in the mortgage crises (PBCT did not). Disclosure: I own PBCT

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next