Monday, July 30, 2007

Beach First National Bancshares Inc

Beach First National Bancshares Inc is a NASDAQ listed security that has been trading in a range between $15.85 and $24.72 over the past year. With 4,819,740 shares outstanding, a recent price of $19.50 gives a total market capitalization of $91,141,283. While there are certainly larger companies, Beach First National Bancshares Inc has definitely earned its place in the pack. Last year, Beach First National Bancshares Inc created $1.35 in earnings for every share outstanding.

Beach First National Bancshares Inc is currently priced by the market at 16.60 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share in excess of $1 a share, Beach First National Bancshares Inc could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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