Replies to post #121561 on Savvy Trades and Investments

[SSKILLZ1]

SBH

I was a buyer of SBH today at around $9.04. here is what I like.

SBH in my opinion had a solid .43 quarter this past quarter, and based on guidance I expect at least $1.80 this year which will be up from last year. I'm not saying they should get a very high pe, but normally a 8 pe is about right for this stock. Hence FV is about $14, hence why I find $9.04 attractive at 52 week lows. SBH continues to reduce debt, and buyback shares consistently as well, and I expect them to continue to do both. I like the fact that the comps should be positive on the eps front this year overall, and with a buyback of stock and paying back debt, I think the story is attractive t a possible sub 5 pe. Time will tell, but I like it here. All is just my opinion, and I could always be wrong though.

[SSKILLZ1]

MCB

Well today I brought my favorite bank in MCB Today at $59.60.

1) MCB has good loan growth, which I find a plus. They also have a great record on growing loans over the long run by the picture the chart below shows.

 
  Growth of Loans Chart (In Millions) 
 FY 17 1,421 
 FY 18 1,867 
 FY 19 2,678 
 FY 20 3,137 
 FY 21 3,732 
 FY 22 4,841 
 FY 23 5,625 
 FY 24 6,034 
 

2) Trades at a discount to tangible book, which is really rare to see in the space. The growth long-term of it's tangible book is super impressive.

 
  Growth Of Tangible Book Value Chart 
 FY 17 $27.04 
 FY 18 $30.34 
 FY 19 $34.15 
 FY 20 $39.25 
 FY 21 $50.11 
 FY 22 $51.70 
 FY 23 $58.69 
 FY 24 $64.31 
 

3) NIMS should improve in fy 25 which will be a plus, and I expect about $7 in fy 25 hence about 8.5 times where I brought. Good regional banks could trade at 12x at least, An I fully expect them to earn north of $8 the follwing year, hence I see FV around $100 in the next 12 months.

4) Asset quality is really solid so nothing to see there as well.

Conclusion: MCB is one of my favorite banks because is has a consistent track record of growth, is very cheap for it's sector, has good asset quaity, trades at a discount to tangible book, at a very attractive valuation for it's sector in my opinion. All is just my opinion, and I could always be wrong though.

[SSKILLZ1]

SSKMP Trades

Sell 1,500 Shares of HLF
Sell 900 Shares of NOMD


Note that this is a fictional portfolio and is not a recommendation to buy or sell securities