Capitol Federal Financial (NASDAQ:CFFN)

CAPS Rating: 2 out of 5

A federally chartered mid-tier mutual holding company offering variety of financial services.

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Player Avatar jazzman2007 (< 20) Submitted: 3/22/2007 11:06:53 PM : Outperform Start Price: $10.52 CFFN Score: -19.09

Over the last 5 years the higher PE has been effectively countered by lower risk:
1. Strong insider control of 73% of shares
2. Exceptional support for high dividend
3. It has stood through the Fed increases
4. It will reap rewards as Fed reverses
5. Management is tried and true - time has tested and rewarded their work

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Member Avatar sscroggi (52.89) Submitted: 12/21/2007 1:49:33 PM
Recs: 2

CFFN is extremely overpriced. It has a ridiculous PE, coupled an awful return on assets and return on equity. Pays out (last I looked) 140% of what it makes--which is sustainable only because the non-public shares waive payment. It is not a pile of sub-prime radioactivity and is unlikely to crash, but it will under-perform FOREVER, because no one is in a position to force better management. You'd be better served by an (insured) CD from this bank than by its shares.

Member Avatar UltraContrarian (31.30) Submitted: 9/14/2008 9:01:14 PM
Recs: 0

I agree but would go further, at this price you may be better off shorting CFFN than owning a CD from the bank. Insiders propping up the shares can't do it forever - eventually the hedge funds and others who have correctly shorted the most distressed banks for the last year will discover overpriced, mediocre banks like CFFN, CNBC, and KRNY.

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