Advanta Corp. (ADVNB)

below book, attractive P/E, doing fine

Advanta is in the banking business but concentrates on Master Card for businesses rather than for individuals. The company lends to two hundred business qroups on forty sectors. The company was originally formed in 1951 as Teachers Service Organization, Inc. but changed its name to TSO and finally in 1988, to Advanta. The company is headquartered in Spring House, PA.

As of Monday, June 23, 2008, the stock price was $7.55 / share. In 2007, the stock price was as high as $33.00 / share, more than four times what it is now, yet the company is doing quite well. The last reported Earnings per share was $1.00 and Advanta pays an annual dividend of $.70 / share for a dividend yield of 9%.

Although Advanta has had its stock price beaten down along with the others financials, they are actually in a slightly different business from most of them and not subject to exactly the same problems. Advanta's P/E is only 5.1! I expect the stock to rebound within the next year to about double todays price and climb from there.

solid company, some risk obviously, but feel that this company has been hammered by the credit crunch more than it deserved. This will be corrected substantially come recovery time.

dividend screener pick

Trades at a deep discount to peers yet has not experienced credit deterioration near predicted levels. Oh and that 9.0%+ dividend yield helps.

Low PEG ratio, risk cushioned by dividend.

Solid fundamentals. The only way this company goes down is if the US stops using credit cards. Not going to happen.

Good price, good dividend, reasonable debt. This company caters to small businesses. I hear small business is doing fine. It's big banks and housing that are in trouble. undervalued!

credit card service

looks solid

As of close of business on 12/18/2007, this was a 5-star Morningstar stock trading at less than half it's Morningstar fair value.

Will outperform and bounce back early next year

I wish dividends were calculated in score.

Advanta has enjoyed a 38% year-over-year growth in managed receivables and it looks like that trend will continue for quite some time. Advanta's focus is not diverted by other products which enables it to better understand it's customers and provide some of the best credit card rewards in the industry.

Only 7% of the $4 trillion of small-business purchases made each year are credit-card transactions, leaving a huge opportunity for Advanta to convert other transactions to credit cards.

Credit card will be ther next "mess"

CEO projects 40% EPS growth next FY. Yet stock is at 10 forward P/E.

great medical stock, will continue to rise throug the first of the year

Advanta has a constistant progression of exelence and will continue to growin the future.