Thursday, August 2, 2007

Harleysville Savings Financial Corp.

Harleysville Savings Financial Corp. is a NASDAQ listed security that has been trading in a range between $14.81 and $19.93 over the past year. With 3,921,180 shares outstanding, a recent price of $15.18 gives a total market capitalization of $56,931,613. While there are certainly larger companies, Harleysville Savings Financial Corp. has definitely earned its place in the pack. Last year, Harleysville Savings Financial Corp. created $0.93 in earnings for every share outstanding.

Harleysville Savings Financial Corp. is currently priced by the market at 16.30 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, Harleysville Savings Financial Corp. 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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