Replies to post #29 on BNCCORP, Inc. (BNCC)

[investorone]

The only thing that really concerns me is this statement from the press release:

We continue to defer interest and dividend payments on our $23 million of subordinated debt and $21 million of preferred stock issued under the TARP program. Additionally, we are concerned about the appropriateness of maintaining this amount of leverage in the current environment and will continue to evaluate prudent alternatives.

What do you think the first sentence means? And then in the second sentence are they telegraphing that they are they going to do another offering?

[vpagano]

Let's see where we end up with at various ROA%'s and a 10X earnings multiple, using $742 million in assets and 3.33 MM S/O:

.5% = $3.71 MM earnings X 10 / 3.33 = $11.14
.6% = $4.45 MM earnings X 10 / 3.33 = $13.37
.7% = $5.19 MM earnings X 10 / 3.33 = $15.60
.8% = $5.94 MM earnings X 10 / 3.33 = $17.83

Taking book value into account, I'm comfortable assigning a $12 floor as the valuation.

I had a small buy a little above $7 where 10 Bagger added and then another chunk at $7.85. I'm comfortable in a slow rise to my / our price targets and beyond, or a buyout as the Bakken attracts investors in many forms.

-Pagz

[Enterprising Investor]

BNCC remains both unrecognized and cheap.

Normalized EPS is now about $4.00 per year or $1.00 per quarter. The effective tax rate in the first quarter was 35.4 percent.