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SVB Financial Group Message Board

  • POWERBARR POWERBARR Jul 22, 2005 12:46 PM Flag

    earnings delay

    Anyone have any insight on the earnings delay. This is a very quiet board for a stock that has done so well this year.

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      A very quiet board for such a performer...consider how the clients of Smith Barney Citicorp must be reacting to the recommendation to sell on June 4th 2004 just as the Fed was beginning to increase rates. SIVB has increased about 45% since SBC's sell order.
      The earnings restatement,usually a disaster, is here almost a non event. The valuations of warrants is at best a slippery art form. Historically SIVB has used the lesser of cost or market. The FASB rules appear to call for some other approach. This will,apparently, result in a slightly higher income for the past few years. Normally restatements result in lower earnings and are occasionally connected to questionable/fraudulent practices by a management team attemptinf to cook the books. This does not seem to be the case here. Pending the results currently scheduled to be announced in the first half of August this could likely be a non event.
      I stand by my post # 1973 Jan 4th 2005 and still consider that SIVB has considerable growth in front of them for the rest of this year and well into 2006, coupled with the usual caveats.
      Do your own diligence and remember that I am genetically linked to a family plagued with Altzheimers...

      • 1 Reply to brotherbucks
      • b-b, inasmuch as it has been pointed out several times on this mb (over the years), that SIVB is a banking situation that, contrary to the vast majority of its banking brethren, actually benefits from a rising interest rate environment, you don't suppose that Smith Barney wanted to get its retail accounts to "sell" while it may have had its institutional accounts buying, do you?

        Brokerage firms don't engage in that sort of activity, do they?

    • P-B, beyond what "insights" this pr gave us yesterday @ the close (you'll note that it's time stamped 4:00 p.m. EDT)

      there are these things to consider:

      a) according to SIVB's Key Statistics page, here on the Y!-F quote site, 94.60% of the company's 35,486,738 shares outstanding are institutionally held, leaving approximately only 1,916,284 shares that are NOT held by institutions.

      b) institutions can afford to pay for and do have at their beckon call, much more in-depth & "insightful" almost instantaneous financial analysis than the vast majority of individual investors have access to.

      c) on the day after the release of the abovementioned pr, SIVB is not exhibiting any extraordinary "bar the door, Nellie" panic in today's session, from a trading volume standpoint.

      d) from a price standpoint, SIVB is currently fractionally HIGHER, while the broader market indexes are fractionally LOWER.

      Since yesterday's press release, there has been more than sufficient time for these institutions to have received word of any significant impact(s) that the restatement (for accounting treatment purposes) might have on the company's numbers.

      While delays in financial reporting by a company more often than not trigger a significant decline in its stock's price accompanied by above average trading volume, in the General's 'uninformed' opinion, the market appears to be treating this delay in reporting as a "non-event."

      Have you considered these aspects? If you have, what further "insights" do you require?

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