LowIQinvestor Posted December 28, 2017 Share Posted December 28, 2017 It looks insanely mis-priced! Balance sheet is flush with cash, mgmt seems conservative (re: loan loss reserves), net interest margins are well above industry and I just read a report that they are in a position to buyback shares soon. Trades at 55% of TBV Just found this: http://www.gatorcapital.com/Media/Default/News/Gator_Reprint_v3.pdf Does anyone have more color on Gator Capital's LONG thesis on OFG? Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted December 28, 2017 Share Posted December 28, 2017 It looks insanely mis-priced! Balance sheet is flush with cash, mgmt seems conservative (re: loan loss reserves), net interest margins are well above industry and I just read a report that they are in a position to buyback shares soon. Trades at 55% of TBV Just found this: http://www.gatorcapital.com/Media/Default/News/Gator_Reprint_v3.pdf Does anyone have more color on Gator Capital's LONG thesis on OFG? OFG is based in San Juan and operates only in Puerto Rico. The interview with Gator Capital was done prior to the September hurricanes. Link to comment Share on other sites More sharing options...
LowIQinvestor Posted December 28, 2017 Author Share Posted December 28, 2017 It looks insanely mis-priced! Balance sheet is flush with cash, mgmt seems conservative (re: loan loss reserves), net interest margins are well above industry and I just read a report that they are in a position to buyback shares soon. Trades at 55% of TBV Just found this: http://www.gatorcapital.com/Media/Default/News/Gator_Reprint_v3.pdf Does anyone have more color on Gator Capital's LONG thesis on OFG? OFG is based in San Juan and operates only in Puerto Rico. The interview with Gator Capital was done prior to the September hurricanes. Yes, I understand. But the analysis may still be very valid and the price is better today. Apparently the worst fears about "runs" on bank deposits never happened. In the case of OFG, deposits are holding steady & commercial and auto lending are picking up! Link to comment Share on other sites More sharing options...
_JJ_ Posted December 28, 2017 Share Posted December 28, 2017 It looks insanely mis-priced! Balance sheet is flush with cash, mgmt seems conservative (re: loan loss reserves), net interest margins are well above industry and I just read a report that they are in a position to buyback shares soon. Trades at 55% of TBV Just found this: http://www.gatorcapital.com/Media/Default/News/Gator_Reprint_v3.pdf Does anyone have more color on Gator Capital's LONG thesis on OFG? OFG is based in San Juan and operates only in Puerto Rico. The interview with Gator Capital was done prior to the September hurricanes. Yes, I understand. But the analysis may still be very valid and the price is better today. Apparently the worst fears about "runs" on bank deposits never happened. In the case of OFG, deposits are holding steady & commercial and auto lending are picking up! Price is not better: $8.85 vs $9.05 today. Link to comment Share on other sites More sharing options...
LowIQinvestor Posted December 28, 2017 Author Share Posted December 28, 2017 It looks insanely mis-priced! Balance sheet is flush with cash, mgmt seems conservative (re: loan loss reserves), net interest margins are well above industry and I just read a report that they are in a position to buyback shares soon. Trades at 55% of TBV Just found this: http://www.gatorcapital.com/Media/Default/News/Gator_Reprint_v3.pdf Does anyone have more color on Gator Capital's LONG thesis on OFG? OFG is based in San Juan and operates only in Puerto Rico. The interview with Gator Capital was done prior to the September hurricanes. Yes, I understand. But the analysis may still be very valid and the price is better today. Apparently the worst fears about "runs" on bank deposits never happened. In the case of OFG, deposits are holding steady & commercial and auto lending are picking up! Price is not better: $8.85 vs $9.05 today. Oh ok. Saw that it was around $9.60 beginning of Sept. Anyway, I think a fair value for OFG is probably around 80% of TBV given the situation in Puerto Rico. OFG currently at $9.00 with a fair value of $13.00. Ballpark 40% upside. Link to comment Share on other sites More sharing options...
LowIQinvestor Posted January 26, 2018 Author Share Posted January 26, 2018 If you want to understand the situation in Puerto Rico, Popular Inc had some recent commentary from earnings report: https://seekingalpha.com/article/4139496-populars-bpop-ceo-ignacio-alvarez-q4-2017-results-earnings-call-transcript?part=single "Power generation is currently at approximately 85% of normal production, up from 30% at the end of October, now reaching approximately 67% of all customers. According to the Army Corp engineers latest estimate, substantially all of Puerto Rico should have electricity restores by the end of February. While the restoration of power generation has been slow, our operations and several measures of economic activity have returned close to pre-storm levels. " Link to comment Share on other sites More sharing options...
LowIQinvestor Posted January 30, 2018 Author Share Posted January 30, 2018 Earnings out! Still cheap http://www.ofgbancorp.com/Cache/1500107049.PDF?O=PDF&T=&Y=&D=&FID=1500107049&iid=1032005 Link to comment Share on other sites More sharing options...
LowIQinvestor Posted February 2, 2018 Author Share Posted February 2, 2018 UP 30% since original post Another 30% more to go to get to a fair value Now trades at just .65 of TBV Insurance money will start flowing into PR this year Link to comment Share on other sites More sharing options...
LowIQinvestor Posted April 5, 2018 Author Share Posted April 5, 2018 Annual Report for OFG ! http://annualreport.orientalbank.com/ Book Value close to $16 with stock price at $11. Link to comment Share on other sites More sharing options...
LowIQinvestor Posted April 20, 2018 Author Share Posted April 20, 2018 OFG still doing well & well under BV https://www.businesswire.com/news/home/20180420005287/en/OFG-Bancorp-Reports-1Q18-Results Link to comment Share on other sites More sharing options...
LowIQinvestor Posted July 19, 2018 Author Share Posted July 19, 2018 Despite being up over 50% this year it still trades at a discount to TBV 8) Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted July 20, 2018 Share Posted July 20, 2018 Despite being up over 50% this year it still trades at a discount to TBV 8) Solid results. Congrats Link to comment Share on other sites More sharing options...
LowIQinvestor Posted July 20, 2018 Author Share Posted July 20, 2018 Thank you! May have been one of the least viewed/commented on ideas! Full disclosure I just liquidated our entire position as it is now fairly valued Link to comment Share on other sites More sharing options...
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