Saturday, August 4, 2007

FNB Financial Services Corporation

FNB Financial Services Corporation is a NASDAQ listed security that has been trading in a range between $13.04 and $16.50 over the past year. With 7,065,120 shares outstanding, a recent price of $14.14 gives a total market capitalization of $100,395,355. While there are certainly larger companies, FNB Financial Services Corporation has definitely earned its place in the pack. Last year, FNB Financial Services Corporation created $1.03 in earnings for every share outstanding.

FNB Financial Services Corporation is currently priced by the market at 13.80 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 in excess of $1 a share, FNB Financial Services Corporation 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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