Saturday, August 4, 2007

First National Bancshares Inc./SC

First National Bancshares Inc./SC is a NASDAQ listed security that has been trading in a range between $14.40 and $20.20 over the past year. With 3,695,820 shares outstanding, a recent price of $14.50 gives a total market capitalization of $55,326,426. While there are certainly larger companies, First National Bancshares Inc./SC has definitely earned its place in the pack. Last year, First National Bancshares Inc./SC created $0.95 in earnings for every share outstanding.

First National Bancshares Inc./SC is currently priced by the market at 15.30 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, First National Bancshares Inc./SC 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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