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


To: Lazarus who wrote (60289)1/10/2018 2:32:35 PM
From: Paul Senior  Read Replies (1) | Respond to of 78744
 
UABK. Nice pop today! Congrats!



To: Lazarus who wrote (60289)1/12/2018 5:15:01 PM
From: Graham Osborn  Respond to of 78744
 
Hi Laz, this is a general question on the topic of banks. Why would you ever use authorized rather than outstanding shares to calculate EPS? All I can find online is this article:

investopedia.com

For investors, understanding the difference between authorized and outstanding shares allows for more accurate calculations of financial ratios. For instance, using outstanding shares to determine earnings per share (EPS) could result in inflated gains, while using authorized shares may drastically offset a realized loss. Investors should have a strong understanding of these underlying terms in order to make correct calculations on a company’s financial stability and performance.



To: Lazarus who wrote (60289)1/15/2018 2:26:01 PM
From: Graham Osborn  Read Replies (1) | Respond to of 78744
 
The reason I'm asking is that on HRBK, I note the P/B would be ~0.1 using OS and ~0.8 using AS. I would assume that banks that are losing money are more likely to raise additional capital. How do you usually factor in these 2 counts in valuing a bank?

If anyone else knows the answer feel free. I feel like a dunce on this one.