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First Republic Bank T.FRC


Primary Symbol: FRCB Alternate Symbol(s):  FRCJL | FRCKL | FRCLL | FRCCL | FRCHL | FRCIL

First Republic Bank (the Bank) is a commercial bank and trust company. The Bank specializes in providing services, including private banking, private business banking, real estate lending and wealth management services, including trust and custody services, to clients in selected metropolitan areas in the United States. It operates through two segments: Commercial Banking and Wealth Management. The principal business activities of the Commercial Banking segment are gathering deposits, originating and servicing loans and investing in investment securities. The principal business activities of the Wealth Management segment include the investment management activities of First Republic Investment Management, Inc. (FRIM), which manages investments for individuals and institutions; money market mutual fund activities through third-party providers and the brokerage activities of First Republic Securities Company, LLC (FRSC) and its foreign exchange activities conducted on behalf of clients.


GREY:FRCB - Post by User

Bullboard Posts
Comment by g_man1234on Mar 08, 2013 3:17pm
180 Views
Post# 21102069

RE: RE: Time to abandon this ship

RE: RE: Time to abandon this ship

Is this considered a slaughter?

 

It never fails to surprise me when people expect an individual stock to buck the trend of their sector. Canyon's main public competitors are TCW and CFW. FRC has consistently performed well wrt cost control, utilization, dividend return, and EBITDA margins. A little unrealistic to expect them to deliver 45% margins in this part of the Canadian cycle; E&P's are not doing as much fracing, and no matter what FRC does, the E&P's won't spend more money until they are ready to. So companies like FRC, TCW and CFW live with lower margins and control their costs without gutting the company, so they are well positioned to take advantage of the next upswing in activity. When evaluating a service stock like FRC, attention should be paid to how they are doing relative to their peers in this market. Of course revenue is down! Of course margins are being squeezed! Look at the industry activity levels! Who is going to be best positioned to deliver stellar results when things pick up again? (and activity always picks up again. Always).

 

Unrealistic expectations on margins and dividend returns results in a story like T.PSN. That would be my definition of "a slaughter"

Bullboard Posts