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Oct. 17 2003, 08:12 AM ET
Nearest price: 20.42 (10/17/03) |
by sbguy (profile)
(all of sbguy's ratings) |
rating:
Strong Sell |
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Oct. 15 2003, 12:29 PM ET
Nearest price: 21.57 (10/15/03) |
by snlguy999 (profile)
(all of snlguy999's ratings) |
rating:
Hold |
(Previous rating: Buy,
on Mar. 21 2003, 4:16 PM ET)
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There is nothing other than takeover rumors to advance the stock past its current levels. While its likely SIB will be sold, timing is everything.
While book value is rather archaic and has less relevance to many industries, with financial stocks it is a good starting point. SIB is currently trading around 2.1x. A reasonable takeout price would be 2.25x to 2.50x, which translates to $23.80 to $26.45. That gives a starting range. Now I usually look at price per earnings per share. The most recent quarter is $0.77, however, with rising rates, slowing mortgage demand, and compressed margins, earnings are unlikely to continue at that level. But SIB should still be able to throw off $1.50 to $2.00 per share earnings going forward. The market used to bear takeout prices of 18x to 20x, but more realistic prices in this environment are less. However, I do not feel that a takeout price of 15x would be particularly dilutive. 15x at $1.50 to $2.00 is $23 to $30. The acquirer would probably be able to derive savings via branch closings or redundant staff to shrink the 15x to something less.
So as a price range, I feel $25 to $27 is reasonable and fair.
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Apr. 18 2003, 6:57 PM ET
Nearest price: 16.13 (04/21/03) |
by ARTLO (profile)
(all of ARTLO's ratings) |
rating:
Strong Buy |
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