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EverydayInvestor (< 20)

August 2008



Vacation Time!

August 12, 2008 – Comments (4)

It is almost time for Mr. & Mrs. EverydayInvestor to head off for a weeklong vacation in the Portland area. We will be out there from this Saturday (8/16) to the next Saturday (8/23). If you live in the greater area and want to talk stocks, real estate, politics, or just want to say hi, just drop me a PM with your contact info and we can get together. If you are in the chemical industry, we'll even buy you dinner (we are considering moving to the area and Mrs. Everyday Investor is a chemist).  [more]



Silver State Bancorp Earnings (SSBX): This is the End

August 01, 2008 – Comments (4)

Earnings just out. One little tibdit the company didn't emphasize: loan reserves are 27.13% of non-performing loans. That is way too low considering most of the NPLs are construction or land development loans in California/Nevada/Arizona, where land is in some cases selling for 20% of its value a couple years ago. I believe that a more realistic loan-loss reserve would be 70% of NPLs. If SSBX had taken such an allowance, their book value would have been wiped out (this would have been a writedown of $176m of assets and equity).

Considering the continued deterioration of SSBX's loans (NPLs are 16.2% of total loans versus 4.8% just three months ago) and the continuing deterioration of the housing market, I believe there is nothing left for Silver State Bancorp other than receivership for its banking subsidiary and bankruptcy for the parent company.  [more]

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