Benficial Mutual makes mopney the old fashion way
This morning I added Beneficial Mutual Bancorp (BNCL) to theBarchart Van Meerten Speculative portfolio. This bank makes money the old fashion way -- they take in deposits and they make loans in the local community markets they are familiar with. Community banks with strong, local, long term ties should be able to make the most of the recovery in their home local markets.
The Company is a community-based, diversified financial services company providing consumer and commercial banking services. Its principal subsidiary, Beneficial Bank, has served individuals and businesses in the Delaware Valley area for more than 150 years. The Bank is the oldest and largest bank headquartered in Philadelphia, Pennsylvania with 72 offices in the greater Philadelphia and Southern New Jersey regions. Insurance services are offered through Beneficial Insurance Services, LLC and wealth management services are offered through Beneficial Advisors, LLC, both wholly owned subsidiaries of the Bank.
Although the bank is local it is well known nationally.
The stock hit 14 new highs and appreciated 13.99% in the last month earning it a 72% Barchart overall technical buy signal. The Relative Strength Index is 65.42% and it trades around 9.21 with a 50 day moving average of 8.32.
Wall Street brokerages have this on their buy list of regional banks with 5 buy and 2 hold recommendations published. They expect revenue to increase by 11.30% this year. The real story is in next years EPS which is estimated to increase by 387.50% and continue by another 10.00% annually for at least 5 years.
For a small regional bank it's gotten notice by the general investor over on Motley Fool with the CAPS members thinking the stock will beat the market by a vote of 24 to 10 and the All Stars are in agreement 6 to 3. Fool notes that there have been 3 positive Wall Street columnists articles recently.
If you want to get on board the economic recovery then consider this regional bank who has gained national notice not only by the Wall Street brokerages but the small retail investor as well.
Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs. He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.
Through Marketocracy Capital Management you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High portfolio.