Silicon Investor (SI) -- The First Internet Community

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.

Non-Tech : Silicon Valley Bancshares (SIVB) -- Ignore unavailable to you. Want to Upgrade?

To: Howard Hoffman who wrote (30)	10/28/1999 2:14:00 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 56

In retrospect, the huge decline in the stock price was absurd. 1998 results were hurt but they still showed growth from 1997. This year's earnings should be above $1.75 and next year's above $2.00 with a chance for much higher. The reason I think this is rooted in the way SIVB has handled its non-performing loans recently. They have aggressively charged off bad loans and also built their loss reserves to a point where they won't likely have to add to them in the near future. The $15 million dollar loan that makes up 40% of their bad debts is fully secured and if it were to be collected in full then SIVB could report earnings that blow away estimates. Given the new banking laws adding takeover appeal, and showing earnings growth with exposure to the fastest growing areas of the economy, I think SIVB could get a multiple in the mid 20's.