bnb valuation

31 Dec 2007
NET ASSETS $2.5 BILLION,
NET PROFIT $639 MILLION,
CASH $2.5 BILLION,
NET CASH FLOW $672 MILLION

See annual report. Pages 23, 115

This means that Total Owners Equity is $2.5 BILLION.

Current Market Cap: $465 Million (probably less now at $1).

So - BNB is undervalued by approx $2 Billion +. Share price at least 6x lower than it should be, and thats not factoring in the intangibles and earnings capacity (which BNB have proven to return on).

Sure the situation has changed a bit since the annual report, but this is the bargain of the century and will probably be one of the stocks that rebound the hardest.

3 Month Bill yields were up today in the US - this means risk is coming back in the market as these bills are sold off and the money pumped into the stock market. Today was different in that the market was finally being perceived as cheap and there was a lot of re-entry. Dow will be up strongly tomorrow. Confidence and recent measures taken will return the market in the next few weeks. BNB will not be back to $20 or $30, but it will be back up to a realistic and reasonable value of $5-$8 by the end of the year, if its not bought out by a bigger bank before then.