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Guaranty Federal Bancshares Inc. Message Board

  • sambordulac sambordulac Apr 18, 2013 2:24 PM Flag

    1Q13 earnings

    Pretax , pre-credit, was $1.35 million. Much is left to be desired.
    earnings, after 20% income ta and preferred dividends, was $0.25 per share
    However, book value went up by $0.15.
    I did not look at it close. Nothing strikes me as exciting.

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    • Not exciting enough to buy at $10 per-share for sure. I still don't see how some of the multi-million dollar fraud loans from last year got swept under the rug without seeing any major charge-offs since then.

      I have serious reservations about GFED because I have a hard time trusting anything they say. I would be far-far more likely to buy here if they canned Burke. On paper it looks fairly attractive, but you never know what disaster is lurking just around the corner with GFED.

      • 2 Replies to principletrade
      • I would be happy to buy all that you can sell me of GFED at $10.

      • In banking, as in insurance, you really never know about the next blow up. It's a percentage game that some play well, others don't. But you never know in any given time.

        You can fault Burke of not forthcoming on a few occasions and on a few blunders, but the theme for investment does not change.
        It has book value 50% above current quotations.
        Its credit problem is receding.

        The turn off for me is the lack of earning power. Pretax, pre-provision operating income was stuck at 1.1% on asset, way bellow peer average of 1.7%.
        The bank held on its interest spread by lowing interest cost. It held down expense too. What it need is to make profitable loans. Easy said than done.

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