Watch the volume in the stock over the next week. Another bank will buy this without a problem. The loan writeoffs were way over done this quarter.
That sucks being halted out like that. Why they halted it seems strange, the others like CNB went to the pink sheets. Don´t think you can blame the FDIC on that one, maybe the nasdaq was wrong for halting it like that.
FWIW, UCBH was not reporting numbers and those are very high risk plays for financials, I have learned to avoid those altogether. They seem to end up like the CEO making up numbers out of thin air, and there are added reasons for the FDIC to want it to close when they aren´t giving financial statements like that.
CPF surprised me, though, as it was on my watch list rather than my basketcase list, but I managed to stay away because I thought their market would turn against them, being so overbuilt.
Yet if their NPAs don´t increase and they raise capital it may survive. Still, its NPA ratios now are too high for my own limits which are conservative so I don´t think I will be investing in it.
Wish you luck.
Hey all after this beating at UCBH today would make sure not holding any CPF the bank UCBH was much bigger than CPF and the FED just determines you are broke as a shareholder why no shares in EWBC?
I had about $1000 dollars worth of UCBH and what a screw job this is outright theft by the FDIC! They let some bozo sell 30000 shares this am at .84 cents and than they halted it never to re-open or trade again and they are trying for a level playing field on Wall Street what a joke! Someone got some of their money back? Sign me up for the lawsuit!
Looks like dilution to me, the TCE is too low, and with NPAs that high it would be a very high risk buyout. At the very least there are negotiations with the FDIC so they would wait until that clears up, then they would have to look at the 8.09% NPAs to total asset ratios and really question in hard asking why it jumped from 4.79% from Q to Q, and maybe if they were very aggressive in frontending NPAs this quarter it looks not terrible, but if not who would pay such a large premium? Even if it was frontended, they would be buying into markets that were overbuilt.
Capital wise they look like they need to increase their TCE, their Texas ratio looks bad from the numbers I saw, though I did not calculate it exactly.
Since the financials started tanking seriously, like since mid 2008, I am unaware of any acquisition of a bank on the open market for a premium as high as you suggest except for WB. In fact, there have been very few buyouts, and Wachovia was a unique situation because the FDIC was in negotiations with C to acquire it and pushing it down for a serious underbid, and it was in the low $2s when they got outbid for around $7. Since then I have seen a lot better candidates than this be ignored, with almost no M and A activity in the sector, the stronger banks content of picking up FDIC closeouts for the time being.
When that ends who knows, but from what I have been seeing there are a fair number of ones like UCBH and smaller still to go.
Hey cruiselover will see what happens to a shareholder when the bank is seized have a small position in UCBH and it was seized on Friday, "given" to EWBC will let you know how it plays out? So far losing about 4 cents a share. I think CPF is next seems UCBH was larger than CPF?
CPF needs to find a hedge fund like ETFC did with Citadel. CPF cannot raise enough capital through a secondary share offering. If they can find a private equity investor to provide capital then the bank could be saved and the stock would continue to trade. The stock does not have enough value to investors to bring in sufficient capital for the bank through a secondary share offer.