PrivateBancorp, Inc. (NASDAQ:PVTB)
The Company provides private banking and wealth management services primarily to affluent individuals, professionals, entrepreneurs and their business interests.
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Long Term Outperform.
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Beaten down, oversold and cheap at this price. That's the bottom line.
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double or nothing
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expensive & weak bank. underperform
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Strong buy
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Look at that insider buying! This can only be good.
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I like that many many insiders are buying this last quarter of '09 and that there is currently 14.06% insider ownership. I also was compelled by ultralong's recommendation....
I bought some for myself today: 12/9/09
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ultralong
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You can ride it on its way up on this one.
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The earnings report and the $175 million dilutive stock offering gave this a "double-whammy" today, but the bank is poised to survive. This really "big" drop *might* still cost me points going downward but I don't see it revisiting March lows. This is a midwest survivor and a buy at this point.
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tenmiles
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With PVTB implementing their new strategic growth model and taking scores of business and top level executives from Chicago Powerhouse LaSalle Bank I see this stock going down in the present and increasingly dramatically in the next few years. I wouldnt be surprised if this stock is well over $60 in 3 years time as the executives that were brought on board from LaSalle grow this bank to become a major player in midwest commercial banking.
If you take a look at what these employees were able to do with LaSalle prior to the merger with BOA you will see that they have walked away with most of their high profile commercial clients and are on a path towards certain success in building a new LaSalle at the Private Bank.
Despite the fact that they have been posting losses in the present, a simple explanation is the cost of the 100+ executives that have been brought in from LaSalle, as well as the current state of our economy and the "Credit Crunch" that has been effecting almost every bank in the country.
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From my short ideas/valuation screen
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PVTB will be an outstanding "breakout" stock within the next 3 years. They have recruited 70+ employees from the middle market lending area of LaSalle Bank with the goal of being Chicago's #1 middle market lending bank. They will make it happen! Invest often and watch your dollars grow.
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This stock has nowhere to go but down. Hit double on a small niche market and the credit crunch.
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The bank has recently completed its offering of $100 million in contingent convertible senior notes which would be used to replace existing debt, provide working capital, repurchase stock along with maturing brokered CD’s. With a coupon of 3.625% it not only diversifies the funding base and acts as an attractive low cost source of funding. Diluted earnings per share increased 21% in 2006 supported by increases in interest earning assets and growth in fee income. Though non performing assets and charge off has have increased in 2007, asset quality still looks impressive considering the plight of the banking industry due to interest rate factor.
The second part of 2007 may see stronger volumes with the margins improving as the yield curve improves. Its liability sensitive balance sheet would benefit a lot from the interest rate cuts by the Fed. It has set an ambitious goal of garnering around 30% of its total revenue from wealth management unit trying to unlock the hidden potential of its client base. It has also set an eye on efficiency ratio with an aim of bringing it down to 50% by the year-end.
Acquisition of Piedmont Bancshares would help serve the Atlanta regions and remains open to de novo office openings. Endorsing the same it is in the process of receiving banking charters in the regions of Kansas City and Wisconsin. Moreover it has a highly portable model with plans of expansions in the Texas, Minneapolis, Florida and Arizona region in the next four to six years. The stock has had a bad run starting 2007 as predicted and is trading at attractive price, being a good time to accumulate and reap the profits that would rise in the coming years.
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