Stocks you can bank on: Raymond Stewart sees above-average gains in financial institutions.Raymond Raymond, town, Canada Raymond, town (1991 pop. 3,130), S Alta., Canada, SE of Lethbridge, in a sugar beet area. Sugar is refined and honey is produced there. A provincial agricultural college is in the town. Stewart Stewart, river, Canada Stewart, river, 331 mi (533 km) long, rising in the Mackenzie Mts., central Yukon Territory, Canada, and flowing generally W to the Yukon River S of Dawson. President & Chief Investment Officer RASARA Strategies Inc. Raymond Stewart, president and chief investment officer of RASARA Strategies Inc., has an approach to investing not shared by traditional money managers. He likes hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. his bets in the banking sector. "RASARA has taken advantage of knowing which bank stocks are a better investment over the longer term," Stewart says. "For the past 10 years, to the end of the September September: see month. 2006 quarter, RASARA has generated a 268% cumulative return compared to 110% for the S&P 500. RASARA limits its exposure to underperforming bank stocks by holding equity positions in banks that offer different services in different locations." RASARA, an institutional investment management firm that invest on behalf of state, municipal, and corporate pension funds, is focused on investing in small- to mid-cap Mid-cap Short for "Middle Cap," mid cap refers to stocks with a market capitalization of between $2 billion to $10 billion. Notes: As the name implies, a mid-cap is in the middle of the pack. A mid-cap isn't too big, but at the same time has a relatively decent market cap. bank stocks that have a low price-to-earnings ratio Noun 1. price-to-earnings ratio - (stock market) the price of a stock divided by its earnings P/E ratio securities market, stock exchange, stock market - an exchange where security trading is conducted by professional stockbrokers . The company is based in Briarcliff Manor, New York Briarcliff Manor is a village in Westchester County in the state of New York. It is shared between the towns of Mount Pleasant and Ossining, and lies entirely within the ZIP code of 10510. .
Stewart's Stock Picks
New York Community Mercantile Bank
Bancorp Inc. Corp.
(NYSE: NYB) (NASDAQ: MBWM)
Price: Price:
$16.40 $38.94
12- to 18-month 12- to 18-month
target: target:
$22.00 $50.00
P/E on projected P/E on projected
2006 earnings: 2006 earnings:
16.5 13
Est. 5-year annual Est. 5-year annual
EPS growth rate: EPS growth rate:
10% 17%
Why stock will Why stock will
outperform: outperform:
Through a restruc- The volume of loans
turing program that and leases the bank
resolved an interest offers has increased,
rate mismatch, the and a corresponding
bank has improved increase in revenues
its balance sheet. expected.
Carver Bancorp Inc. UCBH HOLDINGS INC.
(AMEX: CNY) (NASDAQ: UCBH)
Price: Price:
$16.70 $17.09
12- to 18-month 12- to 18-month
target: target:
$20.00 $22.00
P/E on projected P/E on projected
2006 earnings: 2006 earnings:
13.4 14.2
Est. 5-year annual Est. 5-year annual
EPS growth rate: EPS growth rate:
N/A 15%
Why stock will Why stock will
outperform: outperform:
The bank's stock The bank's services
price is undervalued to the Chinese com-
and the stock will munity will grow as
rise as its clients new branches are
increasingly use opened in locations
Carver Bancorp's with growing Chi-
services. nese populations.
SOURCE: YAHOO FINANCE & RAYMOND STEWART
PRICE AS OF CLOSE ON OCT. 2, 2006
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