Wednesday, August 8, 2007

Kentucky First Federal Bancorp

Kentucky First Federal Bancorp is a NASDAQ listed security that has been trading in a range between $9.60 and $10.70 over the past year. With 8,346,650 shares outstanding, a recent price of $9.90 gives a total market capitalization of $82,214,506. While there are certainly larger companies, Kentucky First Federal Bancorp has definitely earned its place in the pack. Last year, Kentucky First Federal Bancorp created $0.12 in earnings for every share outstanding.

Kentucky First Federal Bancorp is currently priced by the market at 82.30 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, Kentucky First Federal Bancorp 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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