iShares S&P US Mid-Cap Index ETF T.XMC

Alternate Symbol(s): T.XMC.U

Financial Services Specialty Finance

The investment objective of the Fund is to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P MidCap 400 Index (the Index), net of expenses. To achieve its investment objective the Fund uses an indexing strategy. Under this strategy, the Fund seeks to replicate the performance of the Index, net of expenses, by employing, directly or indirectly, through investment in one or more iShares ETFs and/or through the use of derivatives, a replicating strategy or sampling strategy. A replicating strategy is an investment strategy intended to replicate the performance of the Index by investing, directly or indirectly, primarily in a portfolio of index securities in substantially the same proportions as they are represented in the Index.

TSX:XMC - Post by User

iShares S&P US Mid-Cap Index ETF > Q2 results out June 11

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Comment by TheRock07on Jun 11, 2009 6:22am

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Post# 16061007

RE: RE: RE: RE: Q2 results out June 11

Banks normally trade at just above 2 times book.

That valuation multiple dropped to about 1 late in 2008 , during the stock market freefall.

Since then, bank valuation multiples have been moving back up to their norm and now average about 1.5 times book value ( T.CWB is a good peer comparision for the small banks ).
Undoubtedly, as the economy recovers, trading multiples will continue their rise toward the normal 2 times book.

XMC's book value is about $3/share which suggests that once the conversion to a Sched Bank is complete ( Q3 ) , it should trade at $4.50 or higher.

As you point out, it is the book value that we should be looking at , much more than net earnings which are now slowed by unique liquidity issues that wont be the case, once the conversion is completed..

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Advancing an underexplored area of the Yukon with the same geology as B.C’.s Golden Triangle