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.

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

To: Spekulatius who wrote (21287)	5/11/2005 7:38:32 PM
From: blankmind	Respond to of 79163

CBH looks like a good bank - good luck

To: Spekulatius who wrote (21287)	5/11/2005 8:09:55 PM
From: muwis123	Read Replies (1) \| Respond to of 79163

CBH is a stock I have been following recently also. It is cheap compared to where it used to trade, but it is still at a slight premium to the group and banks are close to an all-time high. I'm not so sure it is going to be as easy for them to grow deposits at 30%+ over the next few years. 1) with interest rates rising, they will be competing with alternative products that offer higher yields. The last two times the Fed tightened. 2) They have to open more banks just to maintain their growth rate. Any slowdown in openings like we have seen in Washington DC with zoning issues will hurt perception that this is a growth story. I also wonder if their model works in other parts of the country. 3) Competitors getting better at defending their market share against the regionals like CBH. They are opening branches longer and on weekends. I think we'll see a short squeeze with the stock if the yield curve steepens.