ViewPoint Financial Group (NASDAQ:VPFG)

CAPS Rating: 3 out of 5

The Company is the holding company for ViewPoint Bank The Company provides financial services through 31 branches and two loan production offices in the Dallas/Fort Worth Metroplex and one loan production office in Houston.

Recs

1
Player Avatar retailsails (96.35) Submitted: 1/4/2008 10:45:31 AM : Underperform Start Price: $15.87 VPFG Score: -11.51

Viewpoint is a small regional bank with about 35 branch offices around Dallas, Texas - they offer deposit-based products such as checking/saving accounts, CD's, money market accounts, etc. as well as loan-based products to retail and commercial consumers (they fund the loans with the deposits), as well as retain servicing rights to several hundred million in loans. They are actually focusing on building up their residential and consumer mortgage portfolio (+12% in the 3rd quarter), but 90% of their exposure as well as their new origination is fixed-rate - their loan loss provision has stayed constant at around 39 basis points - can't see how that doesn't double over the next 6 months. Overall I would say this is a well-run bank, but somehow I just don't see why they deserve such lofty valuations - any way you slice the multiples and they are still trading at more than twice the level of their peers...

Member Avatar herbs814 (< 20) Submitted: 7/23/2009 6:35:45 PM
Recs: 0

VPFG has shown no ability to get above 16 for the past 8 months. When VPFG tested 16 (May-July), the resistance held firm for nearly 3 months and a large short interest (20 days' volume) built up to bet against it. The recent plunge to 13 may have enticed some shorts to cover, but there is still no evidence that P/E in excess of 40 is warranted for any financial whose technicals have been so weak for so long.

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