It's notable that this stock missed the consensus 1Q eps by .03 but has rallied 10% in 2 days since the number printed. Five reasons to really like this one:
- the company has many loans sensitive to prime; the extremely rapid fed rate cuts have cut their interest income faster than they can reprice deposits; this has artificially reduced eps. management has said interest margin is going to be stable to improving from here out.
- company has new branches that have been money losing d/t start-up; however, as of March they are now turning profitable.
- company is starting to see encouraging signs in depressed local real estate markets.
- company has done an awesome job managing credit quality
- company has branches in 5 very high growth counties.
The estimates are a bit too high for this co. in light of the Q1 results, but I think they'll make .96 in the next 12 months and $1.20-$1.30 in the next 12 after that. Book value is $14, and this company is essentially at trough earnings right now. So, I'm long APAB.
Edit Metric
History
Bookmark
