Friday, July 27, 2007

Commercial National Financial Corp./PA

Commercial National Financial Corp./PA is a NASDAQ listed security that has been trading in a range between $17.90 and $21.21 over the past year. With 3,044,810 shares outstanding, a recent price of $18.60 gives a total market capitalization of $57,120,636. While there are certainly larger companies, Commercial National Financial Corp./PA has definitely earned its place in the pack. Last year, Commercial National Financial Corp./PA created $1.04 in earnings for every share outstanding.

Commercial National Financial Corp./PA is currently priced by the market at 17.90 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, Commercial National Financial Corp./PA 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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