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Strategies & Market Trends : Value Investing

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To: Brendan W who wrote (4036)	5/11/1998 7:18:00 PM
From: mod	Read Replies (2) of 78822

Brendan, Check out Greenpoint Financial (GPT). GAAP EPS is estimated at $2.36 for 1999, while cash EPS is estimated at $3.56. The large difference is because they acquired bank branches a few years ago for cash, and are in the process of buying BankAmerica's manufactured housing lending operation, also for cash. This latest acquisition will add roughly $600 million of goodwill to their balance sheet. It will be immediately accretive to cash earnings, however. Most bank investors are not used to looking at cash EPS, so GPT is undervalued compared to other banks, IMHO. Currently trading at 11.8x 1999 cash earnings, with good growth and a solid balance sheet. I've owned GPT since their IPO 4 years ago, and it is up 455% in those 4 years. Not bad for a "stodgy" bank stock. There is an SI thread at: #Subject-18617 Dennis

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