International Bancshares Corp (IBOC)

Texas based bank which will eventually be acquired by an out-of-state player wanting in the lucrative Texas market. Undervalued compared to it peer Texas based-competitors.

Going with Citron here.

small bank waiting to be bought out

IBOC is probably one of the best bank picks in the last 15 years. IBOC services Texas and Oklahoma which have not felt the effects of the economic downturn like California, Arizona, Florida and Nevada. Trading well below its book value. Well capitalized with no subprime exposure.

IBOC has been unfairly beaten down by Citron, Andrew Left and their cronies of short sellers. The SEC is considering restoring the uptick rule which puts the brakes on short-selling in falling markets. The uptick rule was initially created following the stock market crash of 1929 to prevent bearish investors from ganging up on shares like IBOC.

Accepting TARP, prevented the Board of Directors from buying back its own stock and stabalizing the stock price. That explains the rapid decline in stock price following its IBOC's acceptance of TARP funds.

Buy IBOC...don't short sell it.

Joining the Citron crowd. Especially like the links to the S&L scam.

Banking is getting hammered at this time due to fall out from sub prime lending. This is a solid growth small bank

Commerical real estate construction in Texas, like most of America is in severe decline and appears likely to stay down even after the recession economy improves. This was IBOC's cash cow. IBOC has greater exposure to this market than any of its competitors, yet they denied the harsh reality of pending defaults and severely-limited new business in their earnings forecast. The share price doesn't fully reflect this predicament because investors seem to believe all banks will continue to be bailed out beyond TARP money and reason.

Unfairly beaten down.

Citron

If the current immigration legislation passes, then this could only mean good for this company. HG's report says that the company focuses on transactions across the border 'tween US and Mexico. Now...legal residents -> more steady money -> more money back-and-forth between borders -> more money for IBOC -> more money for me.

I like gambling when Citron Research is on my side...
See: http://www.citronresearch.com/index.php/2009/03/23/citron-examines-international-bancshares-nasdaqiboc/

great stock

Did Citron let me down on this one? Say it ain't so!

I feel dirty for using Citron, but oh well.

http://www.citronresearch.com/index.php/2009/03/23/citron-examines-international-bancshares-nasdaqiboc/

Citron

Citron vs. Bernanke/Geithner Citron!

Another survivor I do believe.

IBOC is currently still undervalued, Citron was wrong on this one. This is one of the top performing banks in one of the best performing banking sectors: the southwest. They have no sub-prime exposure, and their real estate investments are centered around Texas, many in Austin, which has remained remarkably unaffected by the housing slump. As more and more of the high volume shorts are squeezed out, I expect IBOC will rise quite a bit.

Financial stocks carry a P/E ratio of 22.4, and the so-called "recovery" has been especially strong in bank stocks. Therefore, I’m concentrating my shorting interest in the banking sector.