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Non-Tech : USAB - USABancShares.com -- Ignore unavailable to you. Want to Upgrade?

To: AJ Berger who wrote (1687)	8/2/1999 1:16:00 PM
From: Tom Borst	Respond to of 2419

AJ, I never stated we were in an Internet Frenzied Market, nor did I state investors should take anything into consideration. Trade as you see fit. I'm stating the facts for what percent of current assets, each bank is trading at. If my facts are incorrect, please let me know! But, you as all investors should make your investment decisions based on the facts. I just confirmed the $350 million asset base with my attorney and broker! The recent $88 million loan portfolio awarded to USAB increases their Asset base to approximately $350 million. Liabilities – Net Worth = Assets, all one in the same! Currently USAB has a market cap of $61.6 million . . . 15 3/8 x 4,010,000 shares = $61.6 million. The question is “Is it currently over-valued or under-valued?” Market Cap / Current Assets = ???% of Assets Large Regional Brick & Mortar Banks: Citigroup MC - $150B / $691B Assets = 21.7% of Assets Bank America MC - $116B / $614B Assets = 18.9% of Assets Chase Manhattan MC - $66B / $361B Assets = 18.3% of Assets Internet Banks: USABanc.com MC - $61.6M / $350M Assets = 17.6% of Assets Telebanc Financial MC - $982M / $2,620B Assets = 37.5% of Assets . . . Telebanc went as high as 96% of current assets! NetB@nk MC - $633M / 527M Assets = 120.1% of Assets . . . NetB@nk went as high as 478% of current assets! If USAB is currently trading at 17.6% of its current assets, where do you think we're going? Dispute me if I'm wrong, but I think we're going higher! Long and strong 40,200 since early April and I haven't sold one of them.

To: AJ Berger who wrote (1687)	8/2/1999 2:19:00 PM
From: DrStocks14	Read Replies (1) \| Respond to of 2419

Its standard to compare companies to try to formulate a fair value, therefore I think a current comparison of USAB and NTBK is valid. It is also industry standard to look at the ratio of price/book value. PE BV/Shr Pr/Bk ROA ROE USAB 43 $3.24 4.5x 0.95% 11.21% NTBK 179 5.57 4.2x 0.78% 4.36% C 25 12.38 3.7x 0.93% 15.10% CMB 15 26.32 3.1x 1.25% 20.26% Obviously, it is more appropriate to compare USAB with NTBK becouse of the similar business model, than it is to compare it with Chase and Citi. One could say that looking at the chart USAB is fully valued, however, if the company issues new equity at the current price levels the book value would be greatly enhanced which could drive the share price up further to maintain the same price/book ratio. Also increased spending on advertising to build a brand name will hurt future earning cause the PE ratio to resemble that of NTBK. I bought my shares several months ago after meeting Ken Tepper, he is an impressive individual, and I have all the confindence that he will make this a success. IMHO Good Luck to all. Doc