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  • ddbikessamsara ddbikessamsara Mar 10, 2010 5:10 PM Flag


    The parent has well over a billion in trapped equity. When that frees up and goes into the bank that is sufficient capital for another 8-10 billion in loans. At even a conservative spread of 4% that's another $400 million in earnings from the bank on top of the $200 million running rate today. That's roughly $2 per share. A PE of 12 and what will by then be a very decent dividend easily puts the stock back over $20. Hang on for another 2 or 3 years and never worry about working again.

    I think those of us who went long a year ago in the depths of the craziness deserve a big congratulation. We were there long before the "experts" began their upgrades - of course after missing the first 500% gain. Gotta love the stock market.

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    • In reality if there were this $2b in "trapped equity" it could be sold in the equity markets today. But it can't because mr market doesn;t value the valuations marks like cse mngmnt does.

      Note that big banks like JPM,, BAC, and WFC, most likely use similar accounting for their valuation marks, so on a relative basis CSE is much cheaper compared to the big banks. Big banks get the higher market valuation though because of their TBTF govt backing status. Whether that TBTF govt money well has dried up due to political pressure remains to be seen. If a Resolution Authority bill is passed by congress a good pairs trade is long cse versus short WFC or BAC.

    • Thank you!! lol...

    • I achieved the aforementioned 500% gain on the shares I was clever enough to buy at $1.20. Unfortunately, the shares I bought at 15-16 are really hurting my average cost, which is about 6.

      • 1 Reply to descottzz
      • Me too!! lol...look at the positive have a massed a fortune in a good proven company now. You have been there for the worst of time and now it you will reap the benefits in next 2 to 5 years!....I for one am ready for another double down if we get a slight market correction. IMO, we are not going to get one because hiring has reached the inflection point where we are going to make as much job as we lose (50-50). Going forward we will increase jobs as we cross the 50 marker point.