Investment analysis of the common stocks of selected California banks. - Page 81 |
Save page Remove page | Previous | 81 of 185 | Next |
|
small (250x250 max)
medium (500x500 max)
Large (1000x1000 max)
Extra Large
large ( > 500x500)
Full Resolution
All (PDF)
|
This page
All
|
SB
When t h e m a rk e t d e c l i n e d i n 1929 book v a l u e s a l s o
d e c l i n e d * H ow ever, t h e d e c l i n e a t t h a t tim e was due t o
t h e d e f a u l t i n g l o a n c u s to m e r s and t h e h o l d i n g s o f t h e
b a n k s f s e c u r i t y a f f i l i a t e s When t h e s e a s s e t s l o s t
v a l u e an d w ere w r i t t e n o f f t h e b o o k s , t h e s t o c k h o l d e r s T
e q u i t y s u f f e r e d a n d book v a l u e s tu m b le d * When t h e in d e x
o f bank s t o c k p r i c e s d e c l i n e d i n 1942 an d 1946 book
v a l u e s d id n o t d e c l i n e . I n f a c t t h e y i n c r e a s e d f o r many
b an k s* T h is phenomena r e v e a l s how i n v e s t o r s can o b t a i n
1 v a l u e s d u r i n g m a rk e t p e s s im is m .
j Book v a l u e s o f b an k s t o c k s a r e more i m p o r t a n t t o
| i n v e s t o r s t h a n book v a l u e s o f s t o c k s o f m o st o t h e r
i n d u s t r i e s • The book v a l u e s o f b an k s t o c k s a r e b a c k e d
i
ij
by a s s e t s w h ich p r i m a r i l y c o n s i s t o f c a s h o r m a r k e t a b l e
| i n s t r u m e n t s w hich p ro d u c e in c o m e . T h u s, i f a bank i s
i
!| l i q u i d a t e d i n an o r d e r l y f a s h i o n , book v a l u e i s w hat t h e
| s t o c k h o l d e r s a r e a p t t o r e c e i v e *
! Most i n v e s t o r s do n o t w ish t o p u r c h a s e s t o c k s o f
i
b a n k s w h ich a r e e x p e c t e d t o go o u t o f b u s i n e s s , b u t w ish
t o r e c e i v e a d e q u a te incom e w i t h t h e h o p e s o f a p p r e c i a t i o n .
A r t h u r B . W a l l a c e , "Bank and I n s u r a n c e S t o c k s , "
The C om m ercial and F i n a n c i a l C h r o n i c l e , 1 $ 3 :1 0 6 $ , March
T T 1 9 5 F : -----------------------------------------------------------------------
Object Description
Description
| Title | Investment analysis of the common stocks of selected California banks. - Page 81 |
| Repository email | cisadmin@lib.usc.edu |
| Full text | SB When t h e m a rk e t d e c l i n e d i n 1929 book v a l u e s a l s o d e c l i n e d * H ow ever, t h e d e c l i n e a t t h a t tim e was due t o t h e d e f a u l t i n g l o a n c u s to m e r s and t h e h o l d i n g s o f t h e b a n k s f s e c u r i t y a f f i l i a t e s When t h e s e a s s e t s l o s t v a l u e an d w ere w r i t t e n o f f t h e b o o k s , t h e s t o c k h o l d e r s T e q u i t y s u f f e r e d a n d book v a l u e s tu m b le d * When t h e in d e x o f bank s t o c k p r i c e s d e c l i n e d i n 1942 an d 1946 book v a l u e s d id n o t d e c l i n e . I n f a c t t h e y i n c r e a s e d f o r many b an k s* T h is phenomena r e v e a l s how i n v e s t o r s can o b t a i n 1 v a l u e s d u r i n g m a rk e t p e s s im is m . j Book v a l u e s o f b an k s t o c k s a r e more i m p o r t a n t t o | i n v e s t o r s t h a n book v a l u e s o f s t o c k s o f m o st o t h e r i n d u s t r i e s • The book v a l u e s o f b an k s t o c k s a r e b a c k e d i ij by a s s e t s w h ich p r i m a r i l y c o n s i s t o f c a s h o r m a r k e t a b l e | i n s t r u m e n t s w hich p ro d u c e in c o m e . T h u s, i f a bank i s i !| l i q u i d a t e d i n an o r d e r l y f a s h i o n , book v a l u e i s w hat t h e | s t o c k h o l d e r s a r e a p t t o r e c e i v e * ! Most i n v e s t o r s do n o t w ish t o p u r c h a s e s t o c k s o f i b a n k s w h ich a r e e x p e c t e d t o go o u t o f b u s i n e s s , b u t w ish t o r e c e i v e a d e q u a te incom e w i t h t h e h o p e s o f a p p r e c i a t i o n . A r t h u r B . W a l l a c e , "Bank and I n s u r a n c e S t o c k s , " The C om m ercial and F i n a n c i a l C h r o n i c l e , 1 $ 3 :1 0 6 $ , March T T 1 9 5 F : ----------------------------------------------------------------------- |
