Commerce Can Shake Off Criticisms
This column was originally published on RealMoney on July 11 at 11:00 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
Commerce Bancorp(CBH Quote) shares dropped 7% last Wednesday, representing a loss of about $400 million in market value. This was in response to a Jesse Eisinger column in The Wall Street Journal that heaped negativity on the company.
The drop in Commerce's stock, which currently trades around $32 a share, is good news for bargain hunters. My calculations indicate that Commerce will be worth more than double the current quote, or $67 a share, by 2008, and worth triple the current quote, or $100 a share, in four years.
Investors interested in the upside opportunity in Commerce stock have to be able to see through the negativity in Eisinger's column. At a minimum, the bulk of the argument is misleading. I'll review where his conclusions go awry.
Growth
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