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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (4731)

4/12/2017 11:22:43 AM

From: Investor Clouseau

1 Recommendation

Recommended By
Kirk ©

Read Replies (1) | Respond to of 26766

here is a new stock idea from yesterday.

From: lumpygravy	4/11/2017 6:23:00 AM
	5 Recommendations Read Replies (1) of 25483

BANC exploring a possible sale........................................................................... If true, might force an early call on the BANC preferreds. From Wells Fargo this morning... Summary. We are upgrading the shares of BANC to Outperform from Market Perform and increasing our valuation range to $24-26 following a day of investor meetings in Chicago. The unusual timing of the marketing trip was spurred by the finalization of the 2017 budget, which helped to frame what the company will look like following a 1H17 which, by all account, may be messy. Coming away from the meetings, we are incrementally more comfortable with: 1) the ongoing SEC investigation, 2) the quality of the forward earnings stream and strategic focus, 3) the recent mix shift in board representation, and 4) all options, including a sale (as confirmed by management), being in play. For management, the options at this point are binomial in nature, either execute on the more conservative operating plan, which emphasizes sustainable growth and core deposit generation, or partner with an institution which pairs a reliable core deposit base to BANC’s attractive footprint and asset generating capabilities. In either case, we view the current valuation of 153% of tangible book value (P/TBV) as inexpensive, with the low-end of our new valuation range representing 12.0x FY2018E EPS, a 2x discount to the group given execution risk, and the upper-end representing 2.0x 4Q16 TBV, a fair representation of franchise value, in our view.