In Marketwatch.com today tittle : "Subprime could create global crisis, economist says" mentioned that there is 20% chances of another major hedge fund to tumble causing a global finance system freeze up with similar effect to the Asia countries during the 97 Asia financial crisis.
To a value investors, this is what we have been waiting for, a crisis to happen and snap up the undervalued companies.
Due to the biggest fall last week in Wall Street since 2002, there are a lot of companies trading less than what Warren Buffett has purchased. It is party time.
Quote: " When others are greedy, it is time to be worried. When others are worried, it is time to get greedy"
Jul 26, 2007
US Bancorp - A Bargain?
Come across this stock 3 months back in Gurufocus when Warren Buffett purchased it @ $31 plus. It has increased to the 33-37 range since then (George Soros purchased at 37).
Now due to the Countrywide Financial Corporation (CFC) effect, it has dropped back down below 30. It's a buy.
A quick look:
Dividend Yield of 5% - versus 2-3% in the industry.
return on asset of 2.09%
return on equity of 23%
equity asset ratio 0f 9% (anything greater than 5% is favourable i.e. lower risk)
US Bancorp has sidestepped credit issues, because its total subprime exposure amounts to 2.8% of its portfolio.
Today's price = $29.99
Now due to the Countrywide Financial Corporation (CFC) effect, it has dropped back down below 30. It's a buy.
A quick look:
Dividend Yield of 5% - versus 2-3% in the industry.
return on asset of 2.09%
return on equity of 23%
equity asset ratio 0f 9% (anything greater than 5% is favourable i.e. lower risk)
US Bancorp has sidestepped credit issues, because its total subprime exposure amounts to 2.8% of its portfolio.
Today's price = $29.99
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