UCBH Holdings, Inc. (UCBH)

ValueNAV (33.77) Submitted: 8/4/2008 3:37:18 PM : Start Price: $4.64 UCBH Score: -72.98

Non-performing loans may increase above the current level, and place downward pressure on the stock price in the near term; particularly given the recent run-up. However, It is well capitalized and has very low PB and PE. The construction segment is a concern, however the other segments are holding up. It seems to be very under-priced. Furthermore, many peers with worse business operational performance have risen much higher from their lows. More pain is likely to come, but long term it will likely outperform. It is a deep value play, and now is a reasonable time to enter (although $3/shr would have been ideal...too bad I didn't come across it until now). In the near term it will likely only gain 30%. However long term, it could double again.