OFG ==> The Titans Are Coming to AC Winner!!

[mrmarket]

Would you give this company a PE multiple of 9??

PERIOD ENDING 30-Jun-05 30-Jun-04 30-Jun-03
Total Revenue 227,023 210,419 195,006
Cost of Revenue 29,744 30,012 33,657

Gross Profit 197,279 180,407 161,349

Operating Expenses
Research Development - - -
SGA 63,020 59,432 53,656
Non Recurring - - -
Others 6,141 4,587 8,470

Total Operating Expenses - - -


Operating Income 128,118 116,388 99,223

[Websman]

Could it be time for OFG to make a comeback???

[stenzrob]

Could it be time for OFG to make a comeback???

Took a quick look at this. After being picked, their earnings fell off the cliff, missing estimates repeatedly. Current estimates showing negative growth for the next few quarters and maybe starting to grow slowly again after that (relative to those several bad quarters in a row). I didn't research far enough to find out what went wrong, but something clearly broke.

On the other hand, all the valuations like PE, P/S, P/Book are near ten-year lows, so at least maybe the downside risk is limited. The thing is, this stock does not currently meet any of $$$M_M$$$'s criteria. I know it doesn't meet any of mine. IBD ratings are low, Zack's doesn't like it, all covering analysts rate it a hold.

[mrmarket]

Thanks a lot Bermanke!!

Oriental Financial Group 1Q Profit Drops
Friday July 21, 9:27 am ET
Oriental Financial Group 1st-Quarter Profit Plummets, Hurt by Rising Interest Rates


NEW YORK (AP) -- Oriental Financial Group Inc., Puerto Rican owner of Oriental Bank and Trust, said Friday fiscal first-quarter profit dropped sharply, hurt by rising short-term interest rates.
Income for the quarter ended March 31 available to common shareholders totaled $6.9 million, or 28 cents per share, compared with a profit of $15.2 million, or 58 cents per share, during the same period last year.

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The year-ago quarter's results included a $3.3 million reduction in non-cash compensation expense due to restating previous financials, and a $2.7 million tax benefit, which boosted earnings by 23 cents. Excluding items, the year-ago profit was 35 cents per share.

Analysts, on average, predicted more modest earnings of 23 cents per share, according to a Thomson Financial poll.

Net interest income, or earnings from interest on deposits and loans, dropped 26 percent to $15.2 million, from $20.4 million last year.

Noninterest income, or earnings from charges and other banking services such as insurance, jumped 47 percent to $8.9 million from $6.1 million last year.

"The results for the period continued to reflect the adverse impact of rising short term interest rates," President and Chief Executive Jose Rafael Fernandez said in a statement.

The Federal Reserve has increased short-term interest rates 17 consecutive times to 5.25 percent, the highest level since April 2001, while long-term rates have remained fairly stagnant. This narrow gap between short- and long-term interest rates, also known as a flat yield curve, is putting the squeeze on lenders even as new loan development continues to surge.

[jiesen]

OFG making a run for it...

go OFG!

http://finance.yahoo.com/q/bc?s=OFG&t=5d&l=on&z=m&q=l&c=

could be time for this one to make the big turnaround, eh?

[jiesen]

OFG posts a 500% increase in net profit for Q307 vs Q306

http://biz.yahoo.com/bw/071029/20071029005512.html?.v=1

Oriental Financial Group Reports Results for the Quarter Ended September 30, 2007

Monday October 29, 8:00 am ET
Continued Strong Profit Growth Reflects Further Expansion of Net Interest Margin

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Oriental Financial Group Inc. (NYSE: OFG - News) today announced results for the third quarter and nine months ended September 30, 2007.

For the third quarter, the Group reported income available to common shareholders of $7.3 million, or $0.30 per common share (basic and diluted), sharply above income of $1.2 million, or $0.05 per share (basic and diluted), reported in the corresponding year ago quarter. The results of operations for the third quarter improved 38.2% compared to the preceding quarter, when the Group reported income available to common shareholders of $5.3 million, or $0.21 per share (basic and diluted).

Income available to common shareholders for the third quarter represented a return on assets (ROA) of 0.59% and a return on common equity (ROE) of 11.17%. Both ratios were well above the 0.20% and 1.69% in the corresponding year ago period, respectively, and 0.49% and 7.87% in the preceding quarter, respectively.

Third quarter net interest margin increased to 1.46%, up 69 basis points from the corresponding year ago period and up 6 basis points from the second quarter of 2007. This is the third consecutive quarter in which net interest margin has improved. Book value per common share increased 13.6%, to $11.35 as of September 30, 2007, from $9.99 as of June 30, 2007.

For the nine months, Oriental reported income available to common shareholders of $22.3 million, or $0.91 per common share (basic and diluted), compared to $9.3 million, or $0.38 per share (basic and diluted), in the corresponding year ago period. ROA and ROE for the first nine months were 0.66% and 11.20%, respectively, compared with 0.37% and 4.53%, for the corresponding year ago period, respectively.

Commentary and Outlook

José Rafael Fernández, President and Chief Executive Officer, commented, “The favorable results achieved in the second and third quarters are a reflection of the strategies we have been pursuing. Three years ago, our management team began to recognize weakening economic conditions in Puerto Rico. On that basis, we made a strategic decision to be a conservative lender, particularly in light of the fact that interest rates and other terms being offered by some of our competitors for commercial and mortgage loans lacked, in our view, a sound business rationale. We restructured our investment portfolio and related funding to improve margins, in line with what we correctly anticipated would be a more positively sloped yield curve. We continue to be attentive to market opportunities that could further improve the net interest margin. We also strengthened our management team, while moving successfully to contain non-interest expenses.

“As a result, we saw continued significant improvement in net interest income and operating efficiencies in the third quarter, while we maintained our conservative stance with regard to lending. We also continued to build our franchise, aimed at integrating the delivery of banking and financial services to mid and high net worth clients.

“Oriental is well positioned, and we expect to continue to benefit from our strategies in the foreseeable future. Due to our strong capital structure, we believe we will be able to take strategic advantage of growth opportunities.”

Analysis of Third Quarter 2007 Results of Operations

Interest income of $74.9 million for the third quarter increased 23.1% year over year and 5.8% quarter over quarter, primarily as a result of a higher overall yield and higher average balances of interest-earning assets. At the same time, interest expense of $55.3 million increased at a slower pace than interest income, mostly influenced by a lower average rate on borrowings of 4.43% versus 5.04% in the year ago quarter and 4.51% in the preceding quarter. As a result, net interest income of $19.7 million increased 119.5% year over year and 11.1% quarter over quarter.

Total banking and financial service revenues of $6.7 million for the third quarter were up 3.7% from the preceding quarter, mainly due to a significant increase in mortgage banking activities. By strengthening Oriental’s mortgage banking operations during 2007, the Group has begun to securitize and sell conforming mortgage loans in the secondary market on a more consistent basis.

Non-interest expenses totaled $16.5 million for the third quarter, 5.5% lower than the preceding quarter, principally due to effective cost control measures, as net interest income and non-interest income continue to grow.

September 30, 2007 Balance Sheet Analysis

Total assets increased from $5.3 billion as of June 30, 2007 to $5.9 billion as of September 30, 2007. The increase was primarily in the Group’s investment portfolio, reflecting management’s strategy of supplementing the generally lower level of loan originations with the purchase of high-quality investments with a favorable spread. Funding for the acquisition of these investments was mainly provided through repurchase agreements and advances from the Federal Home Loan Bank of New York, enabling the Group to also reduce its balance of higher cost brokered certificates of deposit from $176.1 million as of June 30, 2007 to $120.5 million as of September 30, 2007.

Credit Quality

Net credit losses in the third quarter remained relatively low at less than $1.0 million, or 0.32% of average loans outstanding, similar to the preceding quarter, when net credit losses averaged 0.31% of average loans outstanding. At September 30, 2007, non-performing loans were $61.5 million (5.10% of total loans), compared to $50.1 million (3.91% of total loans) at June 30, 2007 and $34.2 million (2.89% of total loans) at September 30, 2006. The current level reflects an increase of $12.0 million from June 30, 2007 in non-performing residential mortgage loans, attributable to the current slowdown of the Puerto Rico economy. As a result, the Group increased its provision for loan losses to $1.6 million in the third quarter (162.9% of net credit losses) compared to $1.4 million in the preceding quarter (139.0% of net credit losses) and $0.9 million in the third quarter of 2006 (119.8% of net credit losses).

“Since July 2007 Oriental owns the servicing rights for all its outstanding mortgage loans and has contracted out the sub-servicing to a single third party, enabling us to better monitor our portfolio performance and to implement aggressive loss mitigation measures,” said Mr. Fernández. “We anticipate these actions will help reduce our level of non-performing residential mortgage loans in the near future. Ultimately, we do not expect the increase in non-performing loans to translate into significantly higher losses as these loans are generally well collateralized with adequate loan-to-value ratios.”

Capital

Stockholders’ equity amounted to $341.8 million at September 30, 2007, an increase of 9.0% compared to $313.5 million at June 30, 2007. The Group comfortably exceeds regulatory capital requirements. At September 30, 2007, the Leverage Capital Ratio was 6.79% (1.70 times the minimum of 4.00%), Tier I Risk-Based Capital Ratio was 17.77% (4.44 times the minimum of 4.00%), and Total Risk-Based Capital Ratio was 18.19% (2.27 times the minimum of 8.00%). During the third quarter, the Group repurchased 413,826 shares of common stock at an average price of $9.01 per share and a total cost of $3.7 million, leaving approximately $11.3 million available under the Group’s current stock repurchase program.

[New-born baby]

INverted Head and Shoulders

OFG is now showing an inverted head and shoulders! NOW IS THE TIME TO BUY IT. Really.

[jiesen]

Go OFG!

OFG is now showing an inverted head and shoulders! NOW IS THE TIME TO BUY IT. Really.

Nice Call, NBB! OFG making it's move today, breaking out and hitting the 52-week high... Maybe the much-anticipated Fed rate cut will give these guys the earnings boost they need to get their mojo back.

http://finance.yahoo.com/q/bc?s=OFG&t=1y&l=on&z=m&q=l&c=

[New-born baby]

Nice Call, NBB! OFG making it's move today, breaking out and hitting the 52-week high... Maybe the much-anticipated Fed rate cut will give these guys the earnings boost they need to get their mojo back.

http://finance.yahoo.com/q/bc?s=OFG&t=1y&l=on&z=m&q=l&c=

Congrats to you, Jiesen! I know you are an investor. I hope you make the big $$$$ on this one.

[jiesen]

Thanks, NBB! Yeah, I will make a decent chunk of change off this one, if it ever gets to that 15% target up in the mid-30's or so. But while I wait, the dividend isn't too shabby at 4%.

[mrmarket]

Up 100% in the last 6 months...look at that little monkey go! Credit crisis?... apparantly not in Puerto Rico! Maybe Citibank should take some lessons!

[New-born baby]

Up 100% in the last 6 months...look at that little monkey go! Credit crisis?... apparantly not in Puerto Rico! Maybe Citibank should take some lessons!

On the weekly, OFG has made a three year cup. Now the trouble: will it make a handle and breakout, or will it recede and simply become a double top? For your sakes I hope it breaks out. Having said that the RSI is overheated.

[mrmarket]

OFG is one the year's top 10 stocks, according to the Motley Fool:

http://www.fool.com/investing/small-cap/2008/02/21/the-years-top-stock.aspx

[IIC]

OFG is one the year's top 10 stocks, according to the Motley Fool:

http://www.fool.com/investing/small-...top-stock.aspx

I always wondered why Oriental Financial Group is the name when they are in Puerto Rico...Until today:


In Spanish, Oriental Means 'Eastern'...In Puerto Rico, Oriental Means 'Innovation in Financial Services'

That's their slogan

[jiesen]

OFG is one the year's top 10 stocks, according to the Motley Fool:

http://www.fool.com/investing/small-...top-stock.aspx

And if LJPC continues its current trend, OFG will soon be my single biggest stock position at ~5%.