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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (3800)	7/20/2008 4:29:58 PM
From: The Reaper	Read Replies (5) \| Respond to of 6370

Mid, Short the crap out of PACW and PCBC if you can. They are optionable but the spreads are awful. PACW just reported 2nd quarter and even though their non-performing assets doubled to $74 million from last quarter, their total provision FELL to $67.4 million after generously allowing for $3.5 million for this latest 3 months on their income statement. Their total provision stands at 91% of their non-performing assets, down from 242% at the end of the year. These guys are not currently taking the hit to their income statements that they should be to provide for the loan losses that are building up on their balance sheets. PCBC is even worse but I won't bore you with the numbers. They are both following the playbook that VNBC was using last year right up to the point that they released a "revised income statement" at the end of April. VNBC has fallen from 17 in Oct. 2007 to 2 and change now. I actually played VNBC on the long side and made money in Feb. as I was believing all their BS about their contained losses. Thankfully I was long gone before the sh*t hit the fan. Both these banks are ticking time bombs. PCBC is due to release their 2nd. quarter earnings this week. Can't wait to see what it says. Their provision stands at 36% to non-performing loans. Somewhere they have to take a huge earnings hit to cover these loan losses that are building. Things aren't getting any better here in So. Cal.