Wednesday, August 1, 2007

American Bancorp of New Jersey Inc.

American Bancorp of New Jersey Inc. is a NASDAQ listed security that has been trading in a range between $10.20 and $12.39 over the past year. With 12,753,150 shares outstanding, a recent price of $10.45 gives a total market capitalization of $133,397,949. While there are certainly larger companies, American Bancorp of New Jersey Inc. has definitely earned its place in the pack. Last year, American Bancorp of New Jersey Inc. created $0.10 in earnings for every share outstanding.

American Bancorp of New Jersey Inc. is currently priced by the market at 103.60 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 below $1 a share, American Bancorp of New Jersey 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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