Friday, August 3, 2007

Gateway Financial Holdings Inc.

Gateway Financial Holdings Inc. is a NASDAQ listed security that has been trading in a range between $13.41 and $15.10 over the past year. With 11,061,970 shares outstanding, a recent price of $13.74 gives a total market capitalization of $150,332,174. While there are certainly larger companies, Gateway Financial Holdings Inc. has definitely earned its place in the pack. Last year, Gateway Financial Holdings Inc. created $0.68 in earnings for every share outstanding.

Gateway Financial Holdings Inc. is currently priced by the market at 20.30 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, Gateway Financial Holdings 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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