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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (21221)	5/2/2005 8:51:30 PM
From: Carl Worth	Read Replies (2) \| Respond to of 78486

i can see owning CSBK on the basis of the eventual second step conversion, but what do you see as the "continued great results?" they did .05 last quarter, which was a nice % gain from .03 the year before, but gives them a current p/e of 50 if you annualize the .05 i own ACFC, which did .06 for the quarter vs .03 last year, but i'm thinking of dumping it for something more lucrative i also own OSHC, which at least posted .09, but don't own CSBK just curious as to what you see as compelling in the results, as perhaps i am missing something

To: blankmind who wrote (21221)	5/4/2005 1:21:20 PM
From: MCsweet	Read Replies (1) \| Respond to of 78486

Blankmind, When you look at your strategy of buying these banks, how much are you factoring in the shape and value of the yield curve for valuing these companies? Isn't it that lots of banks are becoming cheap because of concerns of higher short-term rates cutting into margins. Interest rate profit spreads could tighten, and carry trades become unattractive. If the return on book value decreases, maybe these stocks should trade at lower Price-to-book multiples. When you say you are holding because of continued great results, do you mean for your strategy or for CSBK? That being said, I'd be happy being financial assets trading below book value if they can earn a decent return. What kind of eps do you think they can generate in the next year or two? Thanks MC