Shares of Hudson City Bancorp (HCBK) finished the month up 7.53% which is better than most of its peers. However over the last year HCBK stock has stalled, as investors have feared the companies exposure to New York real estate market. Allan Edwards CEO of The Markets Are Open said that even if you take a 30% discount on their New York loans, their non performing loans are so low, that the bank is not only in a supreme financial situation, but they stock is not priced correctly.
Edwards noted that HCBK has a interesting business model, which is different than most banks, as it borrows more on average as a % of deposits and uses this money to invest in mortgage backed securities. Edwards said "while I wish this segment of the business was eliminated its loan business is very profitable."
To see Edwards full report Click Here
No comments:
Post a Comment