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A holding company whose primary subsidiary is a banking institution offers an array of banking products and services to consumers and businesses located primarily in South Florida.
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acontrarian (< 20) Submitted: 11/06/07 6:05 PM : Start Price: $7.68 BKUNA Score: -74.76
Florida savings and loan with high exposure to PRIME option ARM mortgages. NAV is $22 per share. They have averaged NAV growth of 10% for the past 10 years. Assuming they can keep the bank well capitalized and recover from some bad lending we can conservatively estimate NAV growth at 5% over the next 5 years and get a NAV of $27.5. In a normal environment this bank should trade somewhere between 1 and 1.5x earnings. We will assume 1.2x because they are historically an average performer. The business is worth around $33 per share strictly from a NAV standpoint. If they lose half their NAV over the next 5 years it is still a $15 per share business at that point.5 year sell target - $31
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acontrarian (< 20) Submitted: 2/01/08 11:02 PM
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correction: "1 and 1.5x earnings" should say "1 and 1.5x NAV"
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Troy2008 (99.13) Submitted: 7/01/08 2:32 PM
ummm, sure you know what you're talking about? The "NAV" doesn't seem to mean anything.