S&P DOWNGRADES OPINION ON
SHARES OF EAST WEST BANCORP
TO SELL FROM HOLD
Recent Price : $7.57
Recommendation:
After widening our loss assumption for EWBC’s commercial loan portfolio, we are lowering our ’08 EPS estimate by $0.45 to $0.47 and ’09’s by $0.68 to $0.98, and we are cutting our 12-month target price by $9 to $6, which is about 6X our ’09 EPS estimate – below California peers.We believe EWBC’s commercial real estate and construction loans, which make up over 65% of the company’s loan portfolio and have above-average exposure to California’s Inland Empire, will see losses accelerate in coming quarters as housing market problems spread to other areas of the local economy.
I say, let them burn.
At the present, I am short [[EWBC]].
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thats been a berry good one
another short setup alert – WRLD
BDK also looks like crap
I hereby demand a “windfall tax” on the profits of “The Fly”, to be distributed to all HRB longs via direct deposit.