Monday, July 30, 2007

Benjamin Franklin Bancorp Inc.

Benjamin Franklin Bancorp Inc. is a NASDAQ listed security that has been trading in a range between $13.22 and $16.94 over the past year. With 8,177,200 shares outstanding, a recent price of $13.49 gives a total market capitalization of $110,228,652. While there are certainly larger companies, Benjamin Franklin Bancorp Inc. has definitely earned its place in the pack. Last year, Benjamin Franklin Bancorp Inc. created $0.51 in earnings for every share outstanding.

Benjamin Franklin Bancorp Inc. is currently priced by the market at 26.80 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 below $1 a share, Benjamin Franklin Bancorp 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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