Anchor BanCorp Wisconsin, Inc. (NASDAQ:ABCW)
A savings and loan holding company, which is engaged in the savings and loan business through its wholly-owned banking subsidiary, AnchorBank, fsb.
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This is a classic example of a Savings and Loan that was acting like a bank and got burned in the process. The bank has removed S&L personnel, replaced them with bankers and is now a bank operating under a S&L charter. Unnecessary branches have been shed, portions of the loan portfolio have been sold and/or charged off and the institution is now in capital compliance. Oncer the TARP is repaid, this operation should be good to go.
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Another savings and loan quietly going about its business profitably - good value.
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Anchor problems are with Commerical Loan writedowns.
Buyers of development property will see many of these problem projects as great buys. Once Anchor gets control of these projects they will be able to unload them with a mimium of loan write-off. This will take a year or maybe two years. Anchor stock is a great buy for investors at it's current price.
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Currently undervalued with a good yield. Good cash flow. Seems like it's just been overly beaten down with the industry/market.
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Just going against the flow
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Savings and loan business model is not a stellar performer. Especially with real estate markets doing what they are, there is little room here for breakout profits. Not making a judgement on how well ABCW does business or how well they serve their customers. Hopefully it excels at both, however, I don't expect them to outperform the market at large.
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