Thursday, August 2, 2007

Hingham Institution for Savings

Hingham Institution for Savings is a NASDAQ listed security that has been trading in a range between $32.25 and $39.95 over the past year. With 2,118,550 shares outstanding, a recent price of $31.98 gives a total market capitalization of $67,772,414. While there are certainly larger companies, Hingham Institution for Savings has definitely earned its place in the pack. Last year, Hingham Institution for Savings created $2.01 in earnings for every share outstanding.

Hingham Institution for Savings is currently priced by the market at 15.90 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, Hingham Institution for Savings 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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