stocki711 (98.40)

IBCA - small cap bank who made profits during the crisis and has bv of $23

October 02, 2009 – Comments (2) | RELATED TICKERS: IBCA , BAC , WFC

Currently IBCA is selling for $3.05 a share for a market cap of $25.22M. They have a shareholder equity of $213.137M which means you can buy them for 11.8 cents on the dollar. Presently, the balance sheet of IBCA indicates they are prepared for 1.8% loan losses. If this rate of delinquency were to increase to 10%, IBCA would have a shareholder equity of $41M+. The current average non-nonperforming loan rate is 6.56% in Florida for commercials loans. If IBCA were to have a delinquency rate of 6.56% would result in a new shareholder equity of $100M. The article I got the information from also stated that 70% of Florida banks are unprofitable year-to-date and IBCA has been profitable each of the 4 quarters during the crisis. At a current market cap of $25M I see IBCA as a possible 4-8 bagger over the next 2-5 years. This baby has the margin of security your looking for. Hopefully the loans they wrote are worth holding, but at 11.8 cents on the dollar I'm buy IBCA's equity. They currently have a book value of $23 a share and two years ago were trading at a pos of $50+. This thing is a huge steal.

Recently purchased a half position in IBCA