3/7/2011
Bladex(NYSE:BLX)
Banco Latinoamericano de Comercio Exterior (BLAdEx) is a commercial bank in Panama that offers financial services for banks and corporations in Latin America & the Caribbean.
First off, I expect you'll need to hold this company for 10 years to earn any result other than the nice dividend. This is the red headed step child of the market and it's stock price is not likely to move anytime soon, despite it's solid performance.
Price at start was 17.84
Valuation Ratios
Price/Earnings (TTM) . . . . . 15.42x
Price/Sales (TTM) . . . . . . . . 7.13x
Price/Book (MRQ) . . . . . . . . 0.93x
Price/Cash Flow (TTM) . . . . 15.33x
Benjamim . . . . . . . . . . . . 3/5
Davison . . . . . . . . . . . . . 4.2: Average volatility, great opportunity but looks a bearish. RSI 62
Marcel . . . . . . . . . . . . . . 2/5: not a short sale candidate
Saxon . . . . . . . . . . . . . . 4.4/5
There's quite a bit to like here, expanding revenue, significant net profit margin of 29.9%, and high dividend. Honestly it feels to me a lot like a Tobacco company without the stock price growth, and that shoe is just waiting to fall. ROI isn't great, but is ok for a bank at 1.2. The thing is compared to other banks it's actually doing pretty well. And it's trading at less than book value for christ's sake! If you lack solid performing companies, or financials, I think this is a no brainer long term hold. I think you can pick it up for 16.95 (16.60 to 17.50) and expect a decent result, currently it's dividend yield is $0.20 per quarter or about $0.80 a share and growing fast. In a 2 to 3 years I wouldn't be surprised if you earned at least $1 per share while the stock price continues to grow so you'll end up with 100+ extra bucks a year just to hold onto it plus about a 10% growth in the stock price year over year for the first few years. Since the dividend alone at that point will be about 8% APY (4.52% right now) relative to your purchase price it's much better than holding it in a bank account or buying a bond. It's a commercial bank, so it's not really in any danger of going under.
So if you have the money laying around, can get it for around 17.50, and can leave it alone for the next 10 years (or better forever) you'll do ok with it. It's not going to bust out a new cancer drug, or revolutionize the banking industry, but it's going to pay you and your heirs well past the collapse of the United States financial system, and that's certainly worth something.
Bladex(NYSE:BLX)
Banco Latinoamericano de Comercio Exterior (BLAdEx) is a commercial bank in Panama that offers financial services for banks and corporations in Latin America & the Caribbean.
First off, I expect you'll need to hold this company for 10 years to earn any result other than the nice dividend. This is the red headed step child of the market and it's stock price is not likely to move anytime soon, despite it's solid performance.
Price at start was 17.84
Valuation Ratios
Price/Earnings (TTM) . . . . . 15.42x
Price/Sales (TTM) . . . . . . . . 7.13x
Price/Book (MRQ) . . . . . . . . 0.93x
Price/Cash Flow (TTM) . . . . 15.33x
Benjamim . . . . . . . . . . . . 3/5
Davison . . . . . . . . . . . . . 4.2: Average volatility, great opportunity but looks a bearish. RSI 62
Marcel . . . . . . . . . . . . . . 2/5: not a short sale candidate
Saxon . . . . . . . . . . . . . . 4.4/5
There's quite a bit to like here, expanding revenue, significant net profit margin of 29.9%, and high dividend. Honestly it feels to me a lot like a Tobacco company without the stock price growth, and that shoe is just waiting to fall. ROI isn't great, but is ok for a bank at 1.2. The thing is compared to other banks it's actually doing pretty well. And it's trading at less than book value for christ's sake! If you lack solid performing companies, or financials, I think this is a no brainer long term hold. I think you can pick it up for 16.95 (16.60 to 17.50) and expect a decent result, currently it's dividend yield is $0.20 per quarter or about $0.80 a share and growing fast. In a 2 to 3 years I wouldn't be surprised if you earned at least $1 per share while the stock price continues to grow so you'll end up with 100+ extra bucks a year just to hold onto it plus about a 10% growth in the stock price year over year for the first few years. Since the dividend alone at that point will be about 8% APY (4.52% right now) relative to your purchase price it's much better than holding it in a bank account or buying a bond. It's a commercial bank, so it's not really in any danger of going under.
So if you have the money laying around, can get it for around 17.50, and can leave it alone for the next 10 years (or better forever) you'll do ok with it. It's not going to bust out a new cancer drug, or revolutionize the banking industry, but it's going to pay you and your heirs well past the collapse of the United States financial system, and that's certainly worth something.