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$$$MR. MARKET$$$ Loves NARA
by: mr_market63 (43/M)
Long-Term Sentiment: Strong Buy 07/25/03 10:36 am
Msg: 286 of 374
Today I bought Nara Bancorp (NARA) at 18.91. I will sell it in 4 to
6 weeks at 21.94. Here's why I like NARA:
NARA's stock is up 143% in the last 12 months but its valuation is
still very reasonable with a PE of 16.6.
Time series regression analysis r^2 for 12 months is 0.81 and for 6
months is phenomenal 0.92.
Revenues have doubled in the last 3 years. Earnings have tripled
over the same time period. In fact earnings have grown sequentially
for six consecutive quarters.
First Call has predicted earnings at $1.18/share this year but $$$MR.
MARKET$$$ believes earnings will come in at $1.29 per share. For
2004, they should do $1.60 per share which would propel the stock
price to $26.56/share, at today's valuation, which is well past my
sell target.
Nara Bank is a full service community bank headquartered in Los
Angeles with twenty-one branches and offices nationwide. Nara Bank
operates full service branches in California and New York with loan
production offices in Washington, Illinois, Georgia, New Jersey and
Virginia and a representative office in Seoul, Korea. Nara Bank was
founded specifically to serve the needs of Korean-Americans, one of
the fastest growing segments of the Asian ethnic group over the past
decade.
NARA has zero long term debt. Zero..zip..nada…squat…donut. This
makes it a tasty morsel for any big bank looking to vacuum up some
growing earnings.
Return on Equity is 19% compared to the industry average 14%. Return
on Invested Capital is 17% vs. industry average 10%.
NARA pays a 1% dividend, beats putting it under your mattress.
Here's what the boss has to say:
Benjamin Hong, President and Chief Executive Officer, commented,
"We are very pleased with another strong financial performance during
the second quarter of 2003. Our continuing and consistent earnings and
assets growths reflect our management's success in executing our
strategic business plans. By opening key new branches and loan
production offices where there are high concentration of ethnic
Korean-Americans such as in Diamond Bar, California and Annandale,
Virginia, we continue to strengthen our infrastructure to increase the
value of our franchise and shareholder values."
This is classic target market segmentation strategy that I learned
when I was a graduate MBA student at Wharton
Now here comes his sandbag attempt:
"We are experiencing strong assets and deposits growth from
the branches that were opened during the past few years. Such
continued growth should contribute to our efficiency and our
competitiveness in the market place. Based on our strong core earnings
of the second quarter, we are increasing our earnings guidance for the
full year 2003 to a range of between $1.18 to $1.21 from a prior range
of between $1.16 to $1.20." Yea..right Hongster, we'll see you at
$1.29.
They keep increasing their average balance of interest earning
assets. In this environment of extremely low short term interest
rates, this asset growth is a money machine. We'll also see some
earnings efficiencies coming from the squeezing out of overhead from
their very recent acquisitions.
And the Hongamaniac is bullish on his demographics based on the new
branches they have developed: "These new branch locations will
contribute to the growth and strong earnings of Nara Bank," said
Benjamin Hong. "Nara Bank's business climate remains vibrant even
during these times of economic uncertainty, and continues to
outperform its peers. The addition of new branches will enable us to
grow deposits and provide opportunities for commercial lending as
well as increase in fee income through mortgage lending and insurance
services."
Bank on it. Down in Jungleland...
$$$MR. MARKET$$$
by: mr_market63 (43/M)
Long-Term Sentiment: Strong Buy 07/25/03 10:36 am
Msg: 286 of 374
Today I bought Nara Bancorp (NARA) at 18.91. I will sell it in 4 to
6 weeks at 21.94. Here's why I like NARA:
NARA's stock is up 143% in the last 12 months but its valuation is
still very reasonable with a PE of 16.6.
Time series regression analysis r^2 for 12 months is 0.81 and for 6
months is phenomenal 0.92.
Revenues have doubled in the last 3 years. Earnings have tripled
over the same time period. In fact earnings have grown sequentially
for six consecutive quarters.
First Call has predicted earnings at $1.18/share this year but $$$MR.
MARKET$$$ believes earnings will come in at $1.29 per share. For
2004, they should do $1.60 per share which would propel the stock
price to $26.56/share, at today's valuation, which is well past my
sell target.
Nara Bank is a full service community bank headquartered in Los
Angeles with twenty-one branches and offices nationwide. Nara Bank
operates full service branches in California and New York with loan
production offices in Washington, Illinois, Georgia, New Jersey and
Virginia and a representative office in Seoul, Korea. Nara Bank was
founded specifically to serve the needs of Korean-Americans, one of
the fastest growing segments of the Asian ethnic group over the past
decade.
NARA has zero long term debt. Zero..zip..nada…squat…donut. This
makes it a tasty morsel for any big bank looking to vacuum up some
growing earnings.
Return on Equity is 19% compared to the industry average 14%. Return
on Invested Capital is 17% vs. industry average 10%.
NARA pays a 1% dividend, beats putting it under your mattress.
Here's what the boss has to say:
Benjamin Hong, President and Chief Executive Officer, commented,
"We are very pleased with another strong financial performance during
the second quarter of 2003. Our continuing and consistent earnings and
assets growths reflect our management's success in executing our
strategic business plans. By opening key new branches and loan
production offices where there are high concentration of ethnic
Korean-Americans such as in Diamond Bar, California and Annandale,
Virginia, we continue to strengthen our infrastructure to increase the
value of our franchise and shareholder values."
This is classic target market segmentation strategy that I learned
when I was a graduate MBA student at Wharton
Now here comes his sandbag attempt:
"We are experiencing strong assets and deposits growth from
the branches that were opened during the past few years. Such
continued growth should contribute to our efficiency and our
competitiveness in the market place. Based on our strong core earnings
of the second quarter, we are increasing our earnings guidance for the
full year 2003 to a range of between $1.18 to $1.21 from a prior range
of between $1.16 to $1.20." Yea..right Hongster, we'll see you at
$1.29.
They keep increasing their average balance of interest earning
assets. In this environment of extremely low short term interest
rates, this asset growth is a money machine. We'll also see some
earnings efficiencies coming from the squeezing out of overhead from
their very recent acquisitions.
And the Hongamaniac is bullish on his demographics based on the new
branches they have developed: "These new branch locations will
contribute to the growth and strong earnings of Nara Bank," said
Benjamin Hong. "Nara Bank's business climate remains vibrant even
during these times of economic uncertainty, and continues to
outperform its peers. The addition of new branches will enable us to
grow deposits and provide opportunities for commercial lending as
well as increase in fee income through mortgage lending and insurance
services."
Bank on it. Down in Jungleland...
$$$MR. MARKET$$$
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