Opinion on  Intervest Bancshares Corp. (IBCA)     Sector: Financial  >  Industry: Regional Banks
Bullish on IBCA ...

you got any reasons you can produce for this interesting call? I'm interested in the company, but not sure of merits.

I took a look at stocks which have been beaten down in the past 52 weeks, then took a look at their Fair value using the Discounted cash flow model. (see my latest picks on august 21st). I was somewhat generous in choosing the growth potential of this, at 10% over 10 years (thats per year), but i am aware that the market has likely seen a bottom.

For a rough calculation i used this calculator: http://www.gurufocus.com/fair_value_dcf.php

If i were investing cash in this company i would look for a bit more research than the DCF, however it is a good place to start.

I do not have actual money invested in this stock. I am currently long FNM.

I am aware that financials are also likely to be most at risk in the current climate, however i think this stock was worth a look.

If their loans continue to sour, they really won't generate cash at all, no?
FNM seems like a trading vehicle, I mean, it's essentially bankrupt several times over, the gov't just didn't ax the shareholders (but will next time, since Obama ain't like Bush).