Investment analysis of the common stocks of selected California banks. - Page 154 |
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p r o b a b l y w i l l n o t grow any f a s t e r t h a n t h e y d i d i n t h e
p a s t . S in c e e a r n i n g s and d i v i d e n d p a y - o u t may be
e x p e c t e d t o grow i n t h e same r a t i o a s t h e y d id i n t h e
p a s t , t h e s t a b i l i t y o f e a r n i n g s w i l l p r o b a b l y re m a in
a p p r o x i m a t e l y a s t h e y have i n t h e p a s t . From t h e a n a l y s i s
o f t h e s e f a c t o r s t h e m a r k e t ’ s i n t e r p r e t a t i o n o f a low
m u l t i p l i e r o f 10 seem s r e a s o n a b l e .
I n t h e r e c o r d i n g o f e a r n i n g s p e r s h a r e f o r 1955
by t h e s t a t i s t i c a l s e r v i c e s , C i t i z e n s N a t i o n a l showed
a d e c l i n e i n e a r n i n g s p e r s h a r e — i t s f i r s t d e c l i n e i n
t h i r t e e n y e a r s . ^ H owever, f o u r h u n d re d f i f t y th o u s a n d
a d d i t i o n a l s h a r e s more w ere o u t s t a n d i n g i n 1955 t h a n i n
t h e p r e v i o u s y e a r s . ^ I f t h e p e r s h a r e f i g u r e s f o r a l l
y e a r s w ere b a s e d on t h e t o t a l s h a r e s o u t s t a n d i n g i n 1 9 5 6 ,
t h e p e r s h a r e e a r n i n g s i n 1955 w ould a l s o show an i n c r e a s e .
T h is b a s i c t r e n d o f i n c r e a s i n g p e r s h a r e e a r n i n g s r e f l e c t s
t h e h i g h p r o p o r t i o n o f r e t a i n e d e a r n i n g s . A lth o u g h t h e
p a y - o u t r a t i o was h i g h e r t h a n a v e ra g e i n 1 9 5 5 , i t c a n be
e x p e c t e d t o f a l l t o t h e same p a y - o u t r a t i o o f 1954 i n
i % l y t h and Company, I n c o r p o r a te d , " C itiz e n s
] N a tio n a l T ru st and S avings Bank o f Los A n g e le s ,” R e p o rt,
1 March, 1954*
I
^Moody’s Bank and Finance Manual (New Yorks
■ Moody’ s I n v e s to r s S e r v i c e , 1 9 5 6 ) , p . 3 3 3 -
Object Description
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| Title | Investment analysis of the common stocks of selected California banks. - Page 154 |
| Repository email | cisadmin@lib.usc.edu |
| Full text | p r o b a b l y w i l l n o t grow any f a s t e r t h a n t h e y d i d i n t h e p a s t . S in c e e a r n i n g s and d i v i d e n d p a y - o u t may be e x p e c t e d t o grow i n t h e same r a t i o a s t h e y d id i n t h e p a s t , t h e s t a b i l i t y o f e a r n i n g s w i l l p r o b a b l y re m a in a p p r o x i m a t e l y a s t h e y have i n t h e p a s t . From t h e a n a l y s i s o f t h e s e f a c t o r s t h e m a r k e t ’ s i n t e r p r e t a t i o n o f a low m u l t i p l i e r o f 10 seem s r e a s o n a b l e . I n t h e r e c o r d i n g o f e a r n i n g s p e r s h a r e f o r 1955 by t h e s t a t i s t i c a l s e r v i c e s , C i t i z e n s N a t i o n a l showed a d e c l i n e i n e a r n i n g s p e r s h a r e — i t s f i r s t d e c l i n e i n t h i r t e e n y e a r s . ^ H owever, f o u r h u n d re d f i f t y th o u s a n d a d d i t i o n a l s h a r e s more w ere o u t s t a n d i n g i n 1955 t h a n i n t h e p r e v i o u s y e a r s . ^ I f t h e p e r s h a r e f i g u r e s f o r a l l y e a r s w ere b a s e d on t h e t o t a l s h a r e s o u t s t a n d i n g i n 1 9 5 6 , t h e p e r s h a r e e a r n i n g s i n 1955 w ould a l s o show an i n c r e a s e . T h is b a s i c t r e n d o f i n c r e a s i n g p e r s h a r e e a r n i n g s r e f l e c t s t h e h i g h p r o p o r t i o n o f r e t a i n e d e a r n i n g s . A lth o u g h t h e p a y - o u t r a t i o was h i g h e r t h a n a v e ra g e i n 1 9 5 5 , i t c a n be e x p e c t e d t o f a l l t o t h e same p a y - o u t r a t i o o f 1954 i n i % l y t h and Company, I n c o r p o r a te d , " C itiz e n s ] N a tio n a l T ru st and S avings Bank o f Los A n g e le s ,” R e p o rt, 1 March, 1954* I ^Moody’s Bank and Finance Manual (New Yorks ■ Moody’ s I n v e s to r s S e r v i c e , 1 9 5 6 ) , p . 3 3 3 - |
