For a bank stock paying a relative minute dividend, WIBC, PE ratio is much much to high considering its current and future earnings. There are many good solid banks paying dividends in the range of 3.5% to 4.3% and PE's of less than 13. Based on the aforementioned, WIBC should only be selling for about $12 per share.
Forget about the 3-4% dividend those banks should be selling at pe's of 12-13, those are all the big banks and there growth is why they are at those pe's and why there dividend is so high.
Take a gander at banks that grow and sell at 18-20 pe and look at their charts, OZRK, NREB,TMCV,CACB, to name a few plus WIBC and look at your high dividend payers and you'll see why both you and those banks are not making anyhting but a dividend.
BB Geld said, "Take a gander at banks that grow and sell at 18-20 pe and look at their charts, OZRK, NREB,TMCV,CACB, to name a few plus WIBC and look at your high dividend payers and you'll see why both you and those banks are not making anyhting but a dividend."
Reply: All of the banks you mentioned fall in the small asset category. Which means they cater mostly to the working class consumer and small proprietorships. Therefore, those banks can't offer a broad range of services and make large loans like the large national banks because the have a limited amount of operating capital to work with. Hence, they will eventually fade away or be forced to merge with larger regional banks. Take a look at the big banks and you will understand where I am coming from. WB, BAC, JPM, STI, C, and Well Fargo, to mention a few.
I disagree. This bank is not like other banks and that is why it has a higher PE ratio. Great companies have higher PE ratios. This is a great company with a PE around 20 and growth around 40% (PEG ratio 0.5). Many good companies have PEG ratios over 1. Based on the PEG ratio, this stock has a lot of room to grow. The reason this bank is different is that it focuses on the Korean minority. This group has a higher savings rate and they are more likely to start up their own business. This bank will do good if rates are rising and really well when rates are stable (when all banks do well). I'm betting the fed will stop raising rates soon and many others are too. Lots of banks have been hitting new highs.