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

To: Paul Senior who wrote (38524)	7/15/2010 6:30:35 PM
From: voodooist	Respond to of 78741

thanks Paul, i'll still be underwater somewhat, and need to make a decision re cash vs shares, which may or may not be mine to make, based on the news report. elated that no FDIC involvement. penny stock people may have known something, LOL. still a lot of outstanding shorts per 7/1 report, at least. not sure how that will play out.

To: Paul Senior who wrote (38524)	7/15/2010 6:54:22 PM
From: Bart Hoenes	Read Replies (1) \| Respond to of 78741

PBCT PBCT is also buying LSBX - the spread is better here if you are going to do that. However, it's an all cash transaction for $21. Part of the reason for such a high PE with PBCT is that they have a rather large cash holding (almost 3B or 8/share). If you subtract the cash from the price and use 6.15/.32 for PE (18.75) its a little better. Also PBCT is paying a large(r) dividend because of it's large cash holding. Note that their dividend is > earnings. They seem to be a pretty safe place for money in this environment because of their large amount of cash. 2 concerns I have are lack of earnings growth, and their utilization of their cash to make purchases at an good value. There should be good values in this market where some banks got caught in the mortgage crises (PBCT did not). Disclosure: I own PBCT