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Commercial Capital Bancor (CCBI) Message Board

  • gsjsp gsjsp Jun 9, 2003 6:01 PM Flag

    ccbi closed all time high when S&P down

    It is very impressive. Today's close is all time high! With around 30% EPS long term growth rate, CCBI is still undervalued with a forward PE ratio around 13. I have been watching other small bank stocks, such as SVBI and UPFC. For the past, UPFC's discount to the market has also narrowed quite a lot. Only SVBI still has a trailing PE ratio near 10 (no analyst coverage, therefore no forward PE ratio) with 20-25% EPS growth rate. Obviously CCBI's management team has done a very good job in terms of telling its wonderful story to institution investors.

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    • How would you find out enough about SVBI to have the courage to jump in? 600 shares traded today . I'd say that's well below the radar. I don't mean to imply that's necessarily bad,just that it would require great insight,research or courage. I will admit to jumping in to CCBI without benefit of at least my usual S&P report.

      • 2 Replies to rjfand4
      • Here is a quote from msg #20 (by Jeff_X_Liu):
        I have just got in today. I have a position on another small bank stock SVBI. Here is my comparison:

        (1) Valuation: PE ratio are approximately the same. Both stock's PE ratio are around 9. Let's divide their score on this point. +0.5 point for both stocks!

        (2) Future EPS growth rate: I think CCBI will grow faster than SVBI. My projection of CCBI's 5-year EPS growth rate will be 30% annually and my projection of SVBI 5-year EPS growth rate will be 20% annually. +1 point for CCBI!

        (3) ROA and ROE: SVBI (2.24%) has a higher ROA than CCBI (1.59%), but CCBI (29.7%) has a higher ROE than SVBI (23.5%). My prediction is CCBI's ROE will be probably the same as SVBI for year 2003. Let's say they are even here. +0.5 point for both stocks!

        (4) Capital: CCBI has a much higher leverage ratio than SVBI. That's the reason why CCBI's ROE is higher than SVBI even though its ROA is lower than SVBI's. Therefore, SVBI's management team is more conservative in terms of leverage for year 2002. SVBI is well-capitalized, and CCBI is just adequately-capitalized. +1 point for SVBI!

        (5) Loan portfolio: SVBI is much better diversified than CCBI. +1 point for SVBI!

        (6) Efficiency ratio: CCBI did a much better job here. I am very impressed. +1 point for CCBI!

        (7) Non-interest expenses: CCBI did a better job than SVBI. CCBI's non-interest expense to asset ratio is about 1.5%, and SVBI's is 2%. +1 point for CCBI!

        (8) Past track record: SVBI has 6 years of execellent track record. Therefore, SVBI wins over CCBI. +1 point for SVBI here!

        Total Result: they are even!
        Recommendation: buy both stocks!
        If you are conservative, you should buy more SVBI shares than CCBI; if you want to take more risk, buy more CCBI shares!

      • I have been reading its annual report and its prospectus at the SEC web site. Its EPS track record is excellent: its EPS has never went down for the past 5 years and is growing about 30% per year. The stock is not for trading purpose. But if you have a long term horizon for your investment, it is a good buy.