W Holding Company, Inc. (WHI)

0.35x book? It's money on the floor! The bank is no gem by any accounts but the price dip is way overdone.. it'll take some stretch in imagination to see an $18bn asset bank killed by an $80m charge (or even $160m for the chicken-littles), remote possibility in WHI losing the lawsuit either. So what if the bank takes the next one, two years to recoup all the direct & indirect losses? The stock HAS to recover to at least 1x book that all normal non-loss-making banks trade above after the dust has settled, a 300% gain over say 3 years can't be that bad. I've seen some other pitch mention excessive debt leverage.. what excessive leverage?? This is a bank we're talking about! At 10+% B1 ratios, WHI is as conservative as one can get! ROE sucks despite good 20+% CAGR credit growth (good in quantity at least), but to be fair Puerto Rico hasn't been the most conducive banking environment.

In short, the price will still face near-term pressure, but 0.35x book is just too insane to ignore.. For the relative-value nuts: loss-making banks in Thailand trade at 0.8x book (and Thailand is one of the cheaper markets in the world)