4. Oriental Financial Group
Shares of Oriental Financial Group (OFG) of San Juan, Puerto Rico, closed at $11.54 Wednesday, down 5% year-to-date, following a 1% decline last year.
The shares trade for 0.8 times their Dec. 30 tangible book value of $15.12.Oriental had $6.7 billion in total assets as of Dec. 30, and saw a major expansion with its purchase of the failed Eurobank of San Juan from the Federal Deposit Insurance Corp. in April 2010. The company reported a fourth-quarter net loss to common shareholders of $13.1 million, or 31 cents a share, compared to earnings of $3.9 million, or eight cents a share, in the fourth quarter of 2010. The fourth-quarter loss mainly resulted from a $15 million impairment charge on securities. The company repurchased 2.8 million common shares during the fourth quarter, and is authorized under its current buyback plan to repurchase another $40 million worth of shares. The shares trade for 10 times the 2012 consensus EPS estimate of $1.21. The 2013 EPS estimate is $1.66. KBW analyst Derek Hewett rates Oriental Financial Group "Outperform," with a $15 price target, saying on Feb. 1 that the company's "credit still looks relatively good given the difficult operating environment in Puerto Rico," and that its disappointing fourth quarter reflected a 27 basis point decline in the net interest margin to a low 1.74%, "as increased prepayment speeds resulted in higher premium amortization." Oriental Financial Group projects a 2.50% net interest margin for 2012. Hewett estimates that Oriental will earn $1.25 a share in 2012, followed by EPS of $1.65 in 2013. Interested in more on Oriental Financial Group? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV