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Undervalued and Predictable Banks with Yield

August 06, 2013 | About:
Sally Jones

Sally Jones

49 followers
According to the GuruFocus Undervalued Predictable Companies screener, 90 U.S. stocks are currently listed as undervalued and predictable, as well as a number of stocks in other countries. Here’s an update on four banks around the world with high predictability ratings and yield. These banks also had recent trading action by billionaire investors or insiders.

Bank of Nova Scotia (BNS)

Up 5% over 12 months, Bank of Nova Scotia (BNS) has a market cap of $67.3 billion, a P/E of 10.80 and a P/S of 3.30.

The stock price for BNS is $55.57 per share. The discount cash flow valuation is $52 with a negative 7% discount. The discount earnings valuation is $63 with a discount of 12%. Yield is 4.20%. BNS is rated for predictably with 4 out of 5 stars.

Guru Action: In the second quarter of 2013, Guru shareholders Jim Simons, Steven Cohen and John Keeley held on to buys and adds made in first quarter. But insider trading shows BNS Director and Senior Officer Brian J. Porter bought 1,000 shares as of June 21, 2013 at $55.81 per share. Senior Officer Susan Graham Parker sold 23,032 shares at $55.99 per share, as of June 3, 2013.

Historical pricing:

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Bank of Marin Bancorp (BMRC)

Up 11% over 12 months, Bank of Marin Bancorp (BMRC) has a market cap of $231 million, a P/E of 13.10 and a P/S of 3.30.

The stock price for BMRC is $42.36 per share. The discount cash flow valuation is $54 with a 22% discount. The discount earnings valuation is $41 with a discount of negative 3%. Yield is 1.70%. BMRC is rated for predictably with 4 out of 5 stars.

Historical pricing:

Guru Action: In the second quarter, Guru shareholder Diamond Hill Capital made a new buy of 6,695 shares at an average price of $39.35 for a gain of 8.4%. For insider trading, BMRC’s Executive Vice President Coonan Kevin has made eight sells so far since February 2013.



Prosperity Bancshares Inc. (PB)

Up 47% over 12 months, Prosperity Bancshares Inc. (PB) has a market cap of $3.62 billion, a P/E of 17.90 and a P/S of 6.60.

The stock price for PB is $59.84 per share. The discount cash flow valuation is $42 with a negative 42% discount. The discount earnings valuation is $47 with a discount of negative 27%. Yield is 1.40%. PB is rated for predictably with 5 out of 5 stars.

Historical pricing:

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Guru Action: In the second quarter, Guru shareholder Ken Fisher bought 4,950 shares at an average price of $48.04 for a gain of 24.1%. He currently holds 589,968 shares after the trade.



For insider trading, PB Chief Lending Officer Randy Hester sold 34,272 shares at a price of $47.19 per share, as of May 10, 2013.

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Itau Unibanco Holding SA (ITUB)

Down 17% over 12 months, the Brazilian bank, Itau Unibanco Holding SA (ITUB), has a market cap of $62.83 billion, a P/E of 8.50 and a P/S of 0.90.

The stock price for ITUB is $12.58 per share. The discount cash flow valuation is $61 with a 79% discount. The discount earnings valuation is $39 with a discount of 68%. Yield is 0.60%. ITUB is also rated for predictably with 5 out of 5 stars.

Guru Action: The second quarter shows no Guru trading activity for ITUB, but the trading history for Jeremy Grantham who owns 9,201,580 shares, shows 15 quarters of losses. ITUB is also held Charles de Vaulx, Pioneer Investments, IVA International Fund, David Dreman, Louise Moore Bacon and Howard Marks. Charles Brandes sold out in the first quarter of 2013.



Historical pricing:

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Be sure to check out the GuruFocus Undervalued Predictable Companies screener.



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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.5/5 (4 votes)

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