Tweet
I just got back from 4 nights in Vegas – drinkin, smokin, gambling, relaxin, freein my mind…never mind the fact that I had 33 out of 51 of my college football bets correct and 5 out of 5 of my pro football bets correct…kaching…kaching kaching!!! Can’t lose can’t lose…oh the oil…oh the oil..
It gets better..when I get back home I sees that TCBI has reached my sell target! Today I sold TCBI at 50.90. That’s a 16% gain over my purchase price of 43.88 back on August 9. That’s a 16% gain in only 8 weeks. That’s an annualized gain of 104%! I am unbelievable! I did it again!!
Over the same period, the S&P 500 was up only 4.2%. That means $$$MR. MARKET$$$ is 4 times better than the market. That means when the S&P 500 is hitting singles, $$$MR. MARKET$$$ is hitting them over the Green Monster (well somebody might as well hit them over the Green Monster).
I am HUGE!!! Bring me your finest meats and cheeses!! That makes 6 consecutive profitable trades of 15% or better. Can’t Lose!!! Can’t Lose!!!!
Did you make monies on this pick? You? YOU? YOU??!!! Did you tell your friend about $$$MR. MARKET$$$? You? YOU?? YOU??? Why are you being selfish and not telling anyone?
If you want to see more picks, all you have to do is tell me how much you like $$$MR. MARKET$$$. If I get 20 replies, then you’ll see another pick. If I get 19 replies, then there won’t be another pick. So what’s it gonna be?
$$$MR. MARKET$$$
================================================== ===================================
08-09-2012, 11:13 PM
mrmarket
Administrator
Join Date: Sep 2003
Posts: 4,215
TCBI ==> The Olympic Winner
A cowboy rode into town and stopped at a saloon for a drink. Unfortunately, the locals always had a habit of picking on strangers, which he was. When he finished his drink, he found his horse had been stolen. He went back into the bar, handily flipped his gun into the air, caught it above his head without even looking and fired a shot into the ceiling. "Which one of you sidewinders stole my horse?!?!?" he yelled with surprising forcefulness. No one answered. "Alright, I'm gonna have another beer, and if my horse ain't back outside by the time I finish, I'm gonna do what I dun in Texas! And I don't like to have to do what I dun in Texas!"
Some of the locals shifted restlessly. The man, true to his word, had another beer, walked outside, and his horse has been returned to the post. He saddled up and started to ride out of town.
The bartender wandered out of the bar and asked, "Say partner, before you go... what happened in Texas?"
The cowboy turned back and said, "I had to walk home."
That joke wasn’t funny. The reason for that is that there is nothing funny about Texas. Texas is big business and big business needs banks.
Today I bought Texas Capital Bancshares (TCBI) at 43.88. I will sell it in 4 to 6 weeks at 50.90. Here’s why I like TCBI:
Good God almighty look at this freakin chart!! All this stock wants to do is go UP! Can’t lose…Can’t lose. This bank is a money machine. Spreads between what this bank pays on deposits and what it receives from its lenders are redonculous! The stock is up 83% in the last 12 months and its PE is a very respectably priced 16! Lots of growth opportunity before this stock gets too expensive..and this bank is going to keep growing! The company is a good candidate to be taken over. The stock premium for a takeover would be at least 25%.
Texas Capital Bancshares, Inc. operates as the holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial businesses, and professionals and entrepreneurs in Texas. The company’s deposit products include commercial and consumer checking accounts, lockbox accounts, cash concentration accounts, other treasury management products, savings accounts, money market accounts, and certificates of deposit. Its loan portfolio comprises commercial loans and leases; real estate loans; construction loans; loans held for sale; and letters of credit. The company also provides trust and wealth management services, including investment management, personal trust and estate services, custodial services, retirement accounts, and related services, as well as offers retirement products comprising individual retirement accounts and administrative services for retirement vehicles, such as pension and profit sharing plans. It has its primary banking offices in Dallas, Houston, Fort Worth, Austin, and San Antonio. As of December 31, 2011, the company conducted business at 13 full service banking locations and 1 operations center. Texas Capital Bancshares, Inc. was founded in 1996 and is headquartered in Dallas, Texas.
Utilizing the business and community ties of their management and their banking experience, their strategy is building an independent bank that focuses primarily on middle market business customers and successful professionals and entrepreneurs in each of the five major metropolitan markets of Texas. To achieve this, they seek to implement the following strategies:
• target middle market businesses and successful professionals and entrepreneurs;
• grow loan and deposit base in existing markets by hiring additional experienced Texas bankers;
• continue the emphasis on credit policy to provide for credit quality consistent with long-term objectives;
• improve financial performance through the efficient management of infrastructure and capital base, which includes:
• leveraging existing infrastructure to support a larger volume of business;
• maintaining stringent internal approval processes for capital and operating expenses;
• extensive use of outsourcing to provide cost-effective operational support with service levels consistent with large-bank operations; and
• extend reach within target markets of Austin, Dallas, Fort Worth, Houston and San Antonio through service innovation and service excellence.
This multibillion dollar asset bank is generating top line growth like a nimble start up! Net interest margins are fat. It’s doing it the old fashioned way, by growing assets. TCBI also benefited from the retreat of other lenders from the Dallas market. Those wimps! So Texas Capital has really positioned itself for the recovery. Don’t worry…it’s coming. TCBI is doing what banks are supposed to do – banking! They are actively lending and stealing customers away from wimpy banks who are holding onto their assets dearly. Don’t get me wrong, they still have strict credit policies but they actively courting credit worthy customers. The growth came from stepping up its mortgage underwriting business which were basically handed to them when all of those unstable originators went belly up and essentially chased good customers away. Now they are able to ride the tide of crazy low federal funds rates – 0% to 0.25% - which essentially guarantees a generous loan spread.
Texas Capital has taken huge advantage of the refinancing gold rush while stealing customers from their competitors all the while maintaining their underwriting standards. They won’t get fooled again, as Roger Daltrey used to say. The black cloud hanging over the financial services sector for much of the past two years is beginning to evaporate. But good banks like TCBI are not going to make the same mistakes that killed many of their competitors. Texas Capital is a conservative bank that does most of its business in Texas, a state whose economy was dented but not at all overwhelmed by the recession. Both its oil market and real estate market is in pretty good shape. As a result, TCBI’s balance sheet wasn’t really infected with the toxic assets that spawned the financial crisis.
There are 25 million Texans looking to be banking customers. It’s a national sized economy and TCBI really has little incentive to reach beyond the friendly home of the Alamo state. Texas Capital provides financial services to businesses and private clients. On the commercial side, it specializes in middle-market loans in the $10 million to $250 million range. Texas is a good place to do business. There’s no state income tax.
All this has helped this company crank out the earnings. TCBI has established double-digit sales and earnings gains in nine of the past 10 quarters. During the first quarter the company's average loans held for investment totaled $5.7 billion. That was up 23% from the prior year and 4% from the prior quarter. Total loans rose 46% year-over-year and 5% sequentially. Meanwhile, Texas Capital's provision for credit losses fell 60% from a year earlier to $3 million. The balance sheet stays clean!
Texas Capital Bancshares Inc. (TCBI) reported second-quarter 2012 operating earnings of 76 cents per share, surpassing the ANAL-ysts estimate of 70 cents. The results were significantly ahead of the prior-year quarter’s earnings of 44 cents per share.
Texas Capital’s net interest income was $90.6 million, up 27% from the year-ago quarter. Total loans increased 37% while deposits were 23% more than the prior-year period. Net interest margin decreased 37 basis points (bps) year over year to 4.49%.
Credit metrics improved during the quarter at Texas Capital. Net charge-offs decreased to $0.5 million from $0.8 million in the prior quarter and $10.5 million in the year-ago quarter.
Net charge-offs as a percentage of average loans on a trailing 12-month basis were 0.20%, down 20 bps sequentially and 86 bps year over year. Provisions for credit losses were $1.0 million in the reported quarter, down from $3.0 million in the prior quarter and $8.0 million in the year-ago quarter.
Non-performing assets equaled 1.35% of the loan portfolio plus other real estate owned assets, reflecting a sequential drop of 7 bps and a year-over-year decline of 68 bps.
Return on average equity was 18.08 percent and return on average assets was 1.40 percent for the second quarter of 2012, compared to 12.13 percent and 1.08 percent, respectively, for the second quarter of 2011.
Average total deposits for the second quarter of 2012 increased $999.7 million from the second quarter of 2011 and increased $417.2 million from the first quarter of 2012. For the same periods, the average balance of demand deposits increased $409.1 million, or 28 percent, to $1.9 billion from $1.5 billion during the second quarter of 2011 and increased $164.1 million, or 10 percent, from the first quarter of 2012.
Currently, for Texas Capital, ANAL-ysts Estimate is $2.98 per share for 2012 and $3.17 for 2013. $$$MR. MARKET$$$ knows that 2012 earnings are actually going to be $3.32 per share and 2013 will be an awesome $4.38/share. They are squeezing much more EPS per dollar of revenue coming in, and the new growth will fuel these earnings. The income growth alone will make the stock price go up, but another interesting fact is the historical valuation. While its PE sits now at around 16, the P/E 5 year high was actually as high as 35.1 while the P/E low was 10.8. My point is that its valuation is a lot closer to its low than its high, so any market help at all will inflate its valuation along with its income EPS propulsion. So if you give it a PE of 18 and an EPS of $3.32 / share, then you end up with a stock price of $3.32 x 18 = $59.76, which is way past my stock target. A winner for sure!
You can always ask CEO Georgey Jones what he thinks:
“This has been another outstanding quarter for Texas Capital,” said George Jones, CEO. “Along with achieving dramatic improvements in ROE and ROA, we experienced good growth in total loans, deposits and earnings and have a strong pipeline in place to continue that trend.”
“It's a relationship business. We are not the Walmart, and we are not the Neiman Marcus. We are a company that grows with relationships. We have been able to maintain a number of floors on our floating rate portfolio, just slightly below the 5% level, which has helped us keep the margin up and that earning asset yield up, we deliver a high value. We have got great bankers and low turnover in those bankers.”
“We are pleased to report yet another year of industry-leading growth and record profitability for Texas Capital Bancshares. We are extremely proud of our improvements and operating leverage, credit quality and the market share gains we've made in key lines of business. We believe this performance is exceptional, in light of what remains a challenging environment for the banking industry.”
Won’t be long before the profits I make in this stock will get me a new fishing rod and reel. So, here’s my last Texas joke:
Bubba was stopped by a game warden in Texas recently with two ice chests of fish. He was leaving a cove well known for its fishing. The game warden asked Bubba, "Do you have a license to catch those fish?" "Naw, sir, I ain't got none of them there licenses, nope. You gotta understand these here are my pet fish." "Pet fish?" said the game warden. "Ya. Every night I take these here fish down to da lake and let them swim 'round for a while. Then I whistle and they jump rat back into this here ice chest and I take them home." "That's a bunch of hooey! Fish can't do that!" said the warden. The redneck looked at the game warden for a moment and then said, "It's the truth Mr. Government man, I'll show you. It really works." "Okay," said the game warden, " I've GOT to see this!" Bubba poured the fish into the lake and stood and waited. After several minutes, the game warden turned to him and said, "Well?" "Well, what?" said the Bubba. The warden said, "When are you going to call them back?" Bubba said, "Call who back?" "The FISH!" replied the warden. "What fish?" asked Bubba.
I am HUGE!
$$$MR. MARKET$$$
It gets better..when I get back home I sees that TCBI has reached my sell target! Today I sold TCBI at 50.90. That’s a 16% gain over my purchase price of 43.88 back on August 9. That’s a 16% gain in only 8 weeks. That’s an annualized gain of 104%! I am unbelievable! I did it again!!
Over the same period, the S&P 500 was up only 4.2%. That means $$$MR. MARKET$$$ is 4 times better than the market. That means when the S&P 500 is hitting singles, $$$MR. MARKET$$$ is hitting them over the Green Monster (well somebody might as well hit them over the Green Monster).
I am HUGE!!! Bring me your finest meats and cheeses!! That makes 6 consecutive profitable trades of 15% or better. Can’t Lose!!! Can’t Lose!!!!
Did you make monies on this pick? You? YOU? YOU??!!! Did you tell your friend about $$$MR. MARKET$$$? You? YOU?? YOU??? Why are you being selfish and not telling anyone?
If you want to see more picks, all you have to do is tell me how much you like $$$MR. MARKET$$$. If I get 20 replies, then you’ll see another pick. If I get 19 replies, then there won’t be another pick. So what’s it gonna be?
$$$MR. MARKET$$$
================================================== ===================================
08-09-2012, 11:13 PM
mrmarket
Administrator
Join Date: Sep 2003
Posts: 4,215
TCBI ==> The Olympic Winner
A cowboy rode into town and stopped at a saloon for a drink. Unfortunately, the locals always had a habit of picking on strangers, which he was. When he finished his drink, he found his horse had been stolen. He went back into the bar, handily flipped his gun into the air, caught it above his head without even looking and fired a shot into the ceiling. "Which one of you sidewinders stole my horse?!?!?" he yelled with surprising forcefulness. No one answered. "Alright, I'm gonna have another beer, and if my horse ain't back outside by the time I finish, I'm gonna do what I dun in Texas! And I don't like to have to do what I dun in Texas!"
Some of the locals shifted restlessly. The man, true to his word, had another beer, walked outside, and his horse has been returned to the post. He saddled up and started to ride out of town.
The bartender wandered out of the bar and asked, "Say partner, before you go... what happened in Texas?"
The cowboy turned back and said, "I had to walk home."
That joke wasn’t funny. The reason for that is that there is nothing funny about Texas. Texas is big business and big business needs banks.
Today I bought Texas Capital Bancshares (TCBI) at 43.88. I will sell it in 4 to 6 weeks at 50.90. Here’s why I like TCBI:
Good God almighty look at this freakin chart!! All this stock wants to do is go UP! Can’t lose…Can’t lose. This bank is a money machine. Spreads between what this bank pays on deposits and what it receives from its lenders are redonculous! The stock is up 83% in the last 12 months and its PE is a very respectably priced 16! Lots of growth opportunity before this stock gets too expensive..and this bank is going to keep growing! The company is a good candidate to be taken over. The stock premium for a takeover would be at least 25%.
Texas Capital Bancshares, Inc. operates as the holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial businesses, and professionals and entrepreneurs in Texas. The company’s deposit products include commercial and consumer checking accounts, lockbox accounts, cash concentration accounts, other treasury management products, savings accounts, money market accounts, and certificates of deposit. Its loan portfolio comprises commercial loans and leases; real estate loans; construction loans; loans held for sale; and letters of credit. The company also provides trust and wealth management services, including investment management, personal trust and estate services, custodial services, retirement accounts, and related services, as well as offers retirement products comprising individual retirement accounts and administrative services for retirement vehicles, such as pension and profit sharing plans. It has its primary banking offices in Dallas, Houston, Fort Worth, Austin, and San Antonio. As of December 31, 2011, the company conducted business at 13 full service banking locations and 1 operations center. Texas Capital Bancshares, Inc. was founded in 1996 and is headquartered in Dallas, Texas.
Utilizing the business and community ties of their management and their banking experience, their strategy is building an independent bank that focuses primarily on middle market business customers and successful professionals and entrepreneurs in each of the five major metropolitan markets of Texas. To achieve this, they seek to implement the following strategies:
• target middle market businesses and successful professionals and entrepreneurs;
• grow loan and deposit base in existing markets by hiring additional experienced Texas bankers;
• continue the emphasis on credit policy to provide for credit quality consistent with long-term objectives;
• improve financial performance through the efficient management of infrastructure and capital base, which includes:
• leveraging existing infrastructure to support a larger volume of business;
• maintaining stringent internal approval processes for capital and operating expenses;
• extensive use of outsourcing to provide cost-effective operational support with service levels consistent with large-bank operations; and
• extend reach within target markets of Austin, Dallas, Fort Worth, Houston and San Antonio through service innovation and service excellence.
This multibillion dollar asset bank is generating top line growth like a nimble start up! Net interest margins are fat. It’s doing it the old fashioned way, by growing assets. TCBI also benefited from the retreat of other lenders from the Dallas market. Those wimps! So Texas Capital has really positioned itself for the recovery. Don’t worry…it’s coming. TCBI is doing what banks are supposed to do – banking! They are actively lending and stealing customers away from wimpy banks who are holding onto their assets dearly. Don’t get me wrong, they still have strict credit policies but they actively courting credit worthy customers. The growth came from stepping up its mortgage underwriting business which were basically handed to them when all of those unstable originators went belly up and essentially chased good customers away. Now they are able to ride the tide of crazy low federal funds rates – 0% to 0.25% - which essentially guarantees a generous loan spread.
Texas Capital has taken huge advantage of the refinancing gold rush while stealing customers from their competitors all the while maintaining their underwriting standards. They won’t get fooled again, as Roger Daltrey used to say. The black cloud hanging over the financial services sector for much of the past two years is beginning to evaporate. But good banks like TCBI are not going to make the same mistakes that killed many of their competitors. Texas Capital is a conservative bank that does most of its business in Texas, a state whose economy was dented but not at all overwhelmed by the recession. Both its oil market and real estate market is in pretty good shape. As a result, TCBI’s balance sheet wasn’t really infected with the toxic assets that spawned the financial crisis.
There are 25 million Texans looking to be banking customers. It’s a national sized economy and TCBI really has little incentive to reach beyond the friendly home of the Alamo state. Texas Capital provides financial services to businesses and private clients. On the commercial side, it specializes in middle-market loans in the $10 million to $250 million range. Texas is a good place to do business. There’s no state income tax.
All this has helped this company crank out the earnings. TCBI has established double-digit sales and earnings gains in nine of the past 10 quarters. During the first quarter the company's average loans held for investment totaled $5.7 billion. That was up 23% from the prior year and 4% from the prior quarter. Total loans rose 46% year-over-year and 5% sequentially. Meanwhile, Texas Capital's provision for credit losses fell 60% from a year earlier to $3 million. The balance sheet stays clean!
Texas Capital Bancshares Inc. (TCBI) reported second-quarter 2012 operating earnings of 76 cents per share, surpassing the ANAL-ysts estimate of 70 cents. The results were significantly ahead of the prior-year quarter’s earnings of 44 cents per share.
Texas Capital’s net interest income was $90.6 million, up 27% from the year-ago quarter. Total loans increased 37% while deposits were 23% more than the prior-year period. Net interest margin decreased 37 basis points (bps) year over year to 4.49%.
Credit metrics improved during the quarter at Texas Capital. Net charge-offs decreased to $0.5 million from $0.8 million in the prior quarter and $10.5 million in the year-ago quarter.
Net charge-offs as a percentage of average loans on a trailing 12-month basis were 0.20%, down 20 bps sequentially and 86 bps year over year. Provisions for credit losses were $1.0 million in the reported quarter, down from $3.0 million in the prior quarter and $8.0 million in the year-ago quarter.
Non-performing assets equaled 1.35% of the loan portfolio plus other real estate owned assets, reflecting a sequential drop of 7 bps and a year-over-year decline of 68 bps.
Return on average equity was 18.08 percent and return on average assets was 1.40 percent for the second quarter of 2012, compared to 12.13 percent and 1.08 percent, respectively, for the second quarter of 2011.
Average total deposits for the second quarter of 2012 increased $999.7 million from the second quarter of 2011 and increased $417.2 million from the first quarter of 2012. For the same periods, the average balance of demand deposits increased $409.1 million, or 28 percent, to $1.9 billion from $1.5 billion during the second quarter of 2011 and increased $164.1 million, or 10 percent, from the first quarter of 2012.
Currently, for Texas Capital, ANAL-ysts Estimate is $2.98 per share for 2012 and $3.17 for 2013. $$$MR. MARKET$$$ knows that 2012 earnings are actually going to be $3.32 per share and 2013 will be an awesome $4.38/share. They are squeezing much more EPS per dollar of revenue coming in, and the new growth will fuel these earnings. The income growth alone will make the stock price go up, but another interesting fact is the historical valuation. While its PE sits now at around 16, the P/E 5 year high was actually as high as 35.1 while the P/E low was 10.8. My point is that its valuation is a lot closer to its low than its high, so any market help at all will inflate its valuation along with its income EPS propulsion. So if you give it a PE of 18 and an EPS of $3.32 / share, then you end up with a stock price of $3.32 x 18 = $59.76, which is way past my stock target. A winner for sure!
You can always ask CEO Georgey Jones what he thinks:
“This has been another outstanding quarter for Texas Capital,” said George Jones, CEO. “Along with achieving dramatic improvements in ROE and ROA, we experienced good growth in total loans, deposits and earnings and have a strong pipeline in place to continue that trend.”
“It's a relationship business. We are not the Walmart, and we are not the Neiman Marcus. We are a company that grows with relationships. We have been able to maintain a number of floors on our floating rate portfolio, just slightly below the 5% level, which has helped us keep the margin up and that earning asset yield up, we deliver a high value. We have got great bankers and low turnover in those bankers.”
“We are pleased to report yet another year of industry-leading growth and record profitability for Texas Capital Bancshares. We are extremely proud of our improvements and operating leverage, credit quality and the market share gains we've made in key lines of business. We believe this performance is exceptional, in light of what remains a challenging environment for the banking industry.”
Won’t be long before the profits I make in this stock will get me a new fishing rod and reel. So, here’s my last Texas joke:
Bubba was stopped by a game warden in Texas recently with two ice chests of fish. He was leaving a cove well known for its fishing. The game warden asked Bubba, "Do you have a license to catch those fish?" "Naw, sir, I ain't got none of them there licenses, nope. You gotta understand these here are my pet fish." "Pet fish?" said the game warden. "Ya. Every night I take these here fish down to da lake and let them swim 'round for a while. Then I whistle and they jump rat back into this here ice chest and I take them home." "That's a bunch of hooey! Fish can't do that!" said the warden. The redneck looked at the game warden for a moment and then said, "It's the truth Mr. Government man, I'll show you. It really works." "Okay," said the game warden, " I've GOT to see this!" Bubba poured the fish into the lake and stood and waited. After several minutes, the game warden turned to him and said, "Well?" "Well, what?" said the Bubba. The warden said, "When are you going to call them back?" Bubba said, "Call who back?" "The FISH!" replied the warden. "What fish?" asked Bubba.
I am HUGE!
$$$MR. MARKET$$$
Comment