Consensus is $0.05 in earnings, but I think (with what Nara has reported) it'll earn $0.15 to 0.20 per share. Sooo...even though not quite at the price I like, I bought in at $7.4. Now, pray for me...:-)
I've been playing the recovery since six months ago. It has been enormously gratifying, but I am afraid--and recent market actions seems to confirm--that the easy money has been made. Further holding of these names may test my resolve. But WIBC, for one, has shown solid progress quarter after quarter and I have no doubt it'll continue to deliver. Now, pray for me, would'ya?
Thank you for the note. It's no fun talking to myself all day, but I am glad to have a pace to jut down whatever comes to mind and use that as future reference. It's been a satisfying exercise.
You gotta love the story, Ms Joanna Kim started as a teller. I can't think of a more dedicated CEO. In the 2006/2007 stretch, Wilshire earned the highest Return-on-Asset among the Korean-American banks, yet did not waver on its lending standard. The loss history proved that.
An excellent quarter, operation wise. The provision for losses made be a catch up due to comprehensive review of loans in 3Q. The loss trend seems to diminishing. The interest rate spread increased dramatically partly because the bank "increased" its exposure to CRE, apparently at higher interest rates. Cost of funding also improved on the back of exceedingly successful deposit gathering. Now the bank became "asset sensitive" and will be able to benefit from (what I expected) higher interest rate environment. Wilshire shown a $1.7 million loss on what I think was the peak of reserve for losses of $20+ million. The improvement on interest income for this quarter alone was $8.7 million. I am very happy indeed.
3Q consensus estimate was $0.05 until last week when it dropped to breaking even. The analysts must have been tipped off. Mirae side of bad loans would take time to work out, but Wilshire will not be much affected. The only possibility that I can think of is that some Wilshire side of loans went sour only recently.
LOS ANGELES--(BUSINESS WIRE)--Wilshire Bancorp, Inc. (Nasdaq:WIBC - News), will hold its quarterly conference call to discuss third quarter results on Tuesday, October 27, 2009, at 11:00 A.M. PDT (2:00 P.M. EDT).
I guess the quarterly would be out that morning or the evening before.
As to the consensus, they can't predict one time items, therefor quite often way off. But this time I feel they maybe a bit too pessimistic. Just my guess, and I am often wrong too.