Graphic Evidence: Anchor Bancorp Drops
Chart: Zignals.com
by Paul Springer
Anchor BanCorp Wisconsin (ABCW) took a thumping in the market on Thursday, the day after it released financials.
Given its 19% drop on the day, it might not appear to be one of those recovering small banks that could give investors sizeable returns.
But the bank has been working its way toward better performance for several months, and some of the recent numbers don’t look bad according to a press release.
The company’s stock price has improved over the last year but lagged the S&P 500. However, some of these banks are jumping 20% or 30% a day when they hit a milestone that markets can easily assimilate.
This stock has a beta of 2.71, by the way.
Right now, the issue may just have too many numbers zooming around. The recent quarter showed an increased loss to 66 cents for the quarter ending in December – that’s three pennies worse than the same quarter in 2009.
But on a nine-month basis, the end of last year marked a $1.45 loss per share, compared to a $7.56 loss for the comparable period in 2009.
Total assets declined, while net interest margins increased.
The total risk-based capital ratio has gradually been improving, most recently to 8.37%. When it looks like it’s going to hit the 12% level, that might be the catalyst for gain in this issue.
In the meantime, it needs to keep working on its balance sheet and credit issues – and get back on track in paying dividends to the Treasury. The Federal Deposit Insurance Corp. has prohibited the bank from issuing dividends unless it meets certain financial criteria and obtains regulatory approval.
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