PacWest Bancorp (NASDAQ:PACW)

CAPS Rating: 4 out of 5

The Company serves as a holding company for Pacific Western Bank.


Player Avatar TheGarcipian (32.93) Submitted: 8/5/2008 2:36:35 AM : Underperform Start Price: $19.00 PACW Score: +13.06

Another small bank in trouble... Although not as bad as WCBO, PACW's debt load is about 32% more than its Market Cap. While they report a healthy operating margin of 43%, both RoA & RoE are negative at -15% & -88.5%, respectively. Revenue growth is negative at -22%. Book value says it's worth $13/share, but I think that's inflated. The short-term outlook for this stock is downward, looking solely at the Slow Stochastics curve which is currently peaking at 85. More than likely, this stock is headed downward in the near/immediate term. Thus, I have a short-term 3-week time frame set here to watch it closely.

Thanks to dwot for pointing this one out; I'm riding on her coat tails again...

Report this Post 7 Replies
Member Avatar dexion10 (27.90) Submitted: 8/19/2008 9:41:14 PM
Recs: 2

hey Garcipian... Dwot got this idea from my blog ... if you like this one you should take a look at PRSPSee my blog on PSRP here it's trading at 4.25x tangible book and the book is full of crap about 2x book is goodwill and construction loans. recommend the blog post if you like it or add me to your favorites - cheers!

Member Avatar TheGarcipian (32.93) Submitted: 8/22/2008 1:04:12 AM
Recs: 1

Hi Dex,Thanks for correcting me on the source. Nice pull by you. I think this one will drop at least 10%, and probably more like 20%-25%. Also, I read your blog post on PRSP; very compelling. I'd added it to my WatchList yesterday, and may have to move it over into my CAPS list for a few months.Thanks for doing the legwork here!

Member Avatar Tastylunch (29.42) Submitted: 9/2/2008 7:18:09 PM
Recs: 2

Uh oh got an equity infusion today

Member Avatar dexion10 (27.90) Submitted: 1/6/2009 7:52:05 PM
Recs: 0

regardless of the equity infusion these guys got San Diego is a horrible market and PACW is a goner if not for the extreme measures the federal reserve is engaged in.

Member Avatar ViolentCapital (97.68) Submitted: 1/14/2009 4:13:23 PM
Recs: 0

how do you all feel about 1) not only the TARP infusion but 2) the support of PACW in absorbing more failed bank assets?

Member Avatar TheGarcipian (32.93) Submitted: 7/31/2009 7:34:18 PM
Recs: 0

Hi ViolentCapital,
Sorry for the long delay. Didn't see your response til now. SHORT ANSWER: Not very good about either. I think the TARP (and now Geithner's plan) puts us into a deep, deep hole, passing money up the chain to the Wall Street doofii who got us into this trouble with little to no regard for the retribution they will all owe us. That "owing" will be done by the GP (general public) paying for their mistakes for years to come. If PACW hasn't learned from their past gluttony and continues to gobble down more failed bank assets, it's time to cut the apron cords and let this SS Minnow sink to a watery grave. Just an opinion. :-)

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