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$$$MR. MARKET$$$ Loves WSB
by: mr_market63 (43/M)
Long-Term Sentiment: Strong Buy 06/30/03 10:24 am
Msg: 300 of 359
In summertime I drink much more beer than I do in the wintertime.
That means I have to go to the bank more often. Another person that
needs to go to the bank very often is Dan Snider, that owner of the
Washington Redskins who paid a bazillion dollars for Steve Spurrier,
and he still doesn't have a QB. So anyway, he needed to go to a bank
in Washington. So I bought stock today in WASHINGTON SVGS BANK F S B
(WSB) at an average price of 10.67. I will sell it in 4 to 6 weeks
at 12.36. Here's why I like WSB:
The Washington Savings Bank, F.S.B. ("WSB") is a federally-chartered,
federally-insured stock savings bank which was organized in 1982 as a
Maryland-chartered, privately-insured savings and loan association.
It received federal insurance in 1985 and a federal savings bank
charter in 1986. WSB is a member of the Federal Home Loan Bank system
and its deposits are insured by the Federal Deposit Insurance
Corporation ("FDIC") to the maximum amount provided by law. WSB is
subject to supervision and regulation by the Office of Thrift
Supervision ("OTS").
WSB is your typical bank that makes a ton of money in a low interest
rate environment. WSB has five branches in Maryland located in
Bowie, Waldorf, Crofton, Millersville and Odenton, all of which are
adjacent to the Baltimore-Washington corridor. WSB also has three
mortgage loan origination offices in Maryland - located adjacent to
the Bowie, Waldorf and Odenton branch offices. Additionally, each
Branch Manager is also a qualified loan officer. Corporate
headquarters for the bank is located at 4201 Mitchellville Road,
Bowie, MD 20716. This is really really good demographics and the next
quarter should see earnings way ahead of what they have been doing.
WSB is engaged principally in the business of attracting deposit
accounts from the general public using such funds, together with
other funds, to make first and second mortgages, land acquisition and
development loans, construction loans, consumer loans, and non-
residential mortgage loans, with emphasis on residential lending.
WSB has grown their earnings at a rate of 36% compared to the
industry average of 11%.
WSB's stock is up 113% over the last 12 months yet it only has a P/E
11.33. Previous day's closing price for WSB was significantly above
its 50-day moving average. That's mighty fine momentum at a real
good value. In fact, it's an incredible value.
WSB's price / book is only 1.26 compared to the S&P 500 2.92. It's
Price to Cash flow is 7.0 compared to the S&P 500 16.2.
WSB pays a dividend and management has increased the dividend by 50%,
indicating high confidence in the short term earnings environment.
WSB also split their stock in April. Customer demand and/or pricing
power are generating solid growth in WSB's operations.
WSB's Return on Equity is 18% compared to the S&P 500 8.2%.
Last year, WSB made $0.67/share. This year, they'll probably end up
around $1.00/share. $$$MR. MARKET$$$ thinks that in this interest
rate environment, WSB will start banging out $0.35/quarter so next
year they'll do $1.42. If they hold their P/E at 11.33, that means
the stock will go to $16.09 which is well past my target price.
The record net earnings for the three and nine month periods ended
April 30, 2003, represent an increase of $931,000, or 97%, and
$2,284,000, or 70%, respectively, over the same periods last year.
The operational increases are primarily attributable to a 49%
increase in net interest income for this quarter and a increase of
39%, or $2.7 million, for the first nine months of this fiscal year,
compared to the same period last year. WSB's return on average
assets increased 50% to a strong 2.27%, while return on average
equity increased by 48% to 21.27% over the same nine month period
last year. Total assets grew by 25% at April 30, 2003 over the same
period end last year.
WSB has a relative strength of 89 and an EPS rating of 97. It's been
a stellar market performer.
WSB has a net profit margin of 21.5%.
Of the 4.60 million of shares outstanding, 1.43 million are owned by
insiders so insider holdings account for 31.0% of the company stock.
Thus, management and shareholder interests are one.
WSB's most recent fiscal year end pre-tax profit margin of 26.80% is
higher than the five-year mean of 15.02%. It's also higher than the
five-year industry average of 16.66%. Increasing profit margins
indicate that a company is continuing to control costs and that's a
sign that a company is well-managed.
WSB's most recent fiscal year end return on equity of 14.20% is
higher than its five-year mean of 8.70%. It's also higher than the
five-year industry average of 12.50%. Stable or increasing ROEs
indicate a well-managed company.
I think that WSB is a pretty safe bet. If the stock market doesn't
react to its growing earnings, certainly a larger bank will gobble it
up and digest these earnings into its own.
Anyway...it's gettin hot in here. Time to take off all my clothes.
I am HUGE!!
$$$MR. MARKET$$$
by: mr_market63 (43/M)
Long-Term Sentiment: Strong Buy 06/30/03 10:24 am
Msg: 300 of 359
In summertime I drink much more beer than I do in the wintertime.
That means I have to go to the bank more often. Another person that
needs to go to the bank very often is Dan Snider, that owner of the
Washington Redskins who paid a bazillion dollars for Steve Spurrier,
and he still doesn't have a QB. So anyway, he needed to go to a bank
in Washington. So I bought stock today in WASHINGTON SVGS BANK F S B
(WSB) at an average price of 10.67. I will sell it in 4 to 6 weeks
at 12.36. Here's why I like WSB:
The Washington Savings Bank, F.S.B. ("WSB") is a federally-chartered,
federally-insured stock savings bank which was organized in 1982 as a
Maryland-chartered, privately-insured savings and loan association.
It received federal insurance in 1985 and a federal savings bank
charter in 1986. WSB is a member of the Federal Home Loan Bank system
and its deposits are insured by the Federal Deposit Insurance
Corporation ("FDIC") to the maximum amount provided by law. WSB is
subject to supervision and regulation by the Office of Thrift
Supervision ("OTS").
WSB is your typical bank that makes a ton of money in a low interest
rate environment. WSB has five branches in Maryland located in
Bowie, Waldorf, Crofton, Millersville and Odenton, all of which are
adjacent to the Baltimore-Washington corridor. WSB also has three
mortgage loan origination offices in Maryland - located adjacent to
the Bowie, Waldorf and Odenton branch offices. Additionally, each
Branch Manager is also a qualified loan officer. Corporate
headquarters for the bank is located at 4201 Mitchellville Road,
Bowie, MD 20716. This is really really good demographics and the next
quarter should see earnings way ahead of what they have been doing.
WSB is engaged principally in the business of attracting deposit
accounts from the general public using such funds, together with
other funds, to make first and second mortgages, land acquisition and
development loans, construction loans, consumer loans, and non-
residential mortgage loans, with emphasis on residential lending.
WSB has grown their earnings at a rate of 36% compared to the
industry average of 11%.
WSB's stock is up 113% over the last 12 months yet it only has a P/E
11.33. Previous day's closing price for WSB was significantly above
its 50-day moving average. That's mighty fine momentum at a real
good value. In fact, it's an incredible value.
WSB's price / book is only 1.26 compared to the S&P 500 2.92. It's
Price to Cash flow is 7.0 compared to the S&P 500 16.2.
WSB pays a dividend and management has increased the dividend by 50%,
indicating high confidence in the short term earnings environment.
WSB also split their stock in April. Customer demand and/or pricing
power are generating solid growth in WSB's operations.
WSB's Return on Equity is 18% compared to the S&P 500 8.2%.
Last year, WSB made $0.67/share. This year, they'll probably end up
around $1.00/share. $$$MR. MARKET$$$ thinks that in this interest
rate environment, WSB will start banging out $0.35/quarter so next
year they'll do $1.42. If they hold their P/E at 11.33, that means
the stock will go to $16.09 which is well past my target price.
The record net earnings for the three and nine month periods ended
April 30, 2003, represent an increase of $931,000, or 97%, and
$2,284,000, or 70%, respectively, over the same periods last year.
The operational increases are primarily attributable to a 49%
increase in net interest income for this quarter and a increase of
39%, or $2.7 million, for the first nine months of this fiscal year,
compared to the same period last year. WSB's return on average
assets increased 50% to a strong 2.27%, while return on average
equity increased by 48% to 21.27% over the same nine month period
last year. Total assets grew by 25% at April 30, 2003 over the same
period end last year.
WSB has a relative strength of 89 and an EPS rating of 97. It's been
a stellar market performer.
WSB has a net profit margin of 21.5%.
Of the 4.60 million of shares outstanding, 1.43 million are owned by
insiders so insider holdings account for 31.0% of the company stock.
Thus, management and shareholder interests are one.
WSB's most recent fiscal year end pre-tax profit margin of 26.80% is
higher than the five-year mean of 15.02%. It's also higher than the
five-year industry average of 16.66%. Increasing profit margins
indicate that a company is continuing to control costs and that's a
sign that a company is well-managed.
WSB's most recent fiscal year end return on equity of 14.20% is
higher than its five-year mean of 8.70%. It's also higher than the
five-year industry average of 12.50%. Stable or increasing ROEs
indicate a well-managed company.
I think that WSB is a pretty safe bet. If the stock market doesn't
react to its growing earnings, certainly a larger bank will gobble it
up and digest these earnings into its own.
Anyway...it's gettin hot in here. Time to take off all my clothes.
I am HUGE!!
$$$MR. MARKET$$$
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