 |
|
|
We think this bank will join one of the |
|
|
some 90 banks that have closed. |
|
|
Released on Monday, December 12, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - Royal Bancshares of Pennsylvania Inc. (NASDAQ:RBPAA) is the parent company of Royal Bank America, a local bank in Pennsylvania. And well we think this bank will join one of the some 90 banks that have closed in the United States this year.
For starters, we calculated the company's Altman z-score to approximately -0.47. For reference, a z-score of about 1.80 or lower signals that a company is in dire risk of economic peril and fiscal embarrassment-- not surprising when one considers what RBPAA has to offer.
RBPAA has an operating margin reported at -50%, note the negative, with a profit margin even more terrifying at -158%. Now you don’t need to be an expert to know that any company which actually produces a loss more than its revenues has some serious problems. Not only are their expenses digging into the firm’s income, but over it: bleeding hard and soft assets alike!
The bank seems to be overall highly debt-leveraged, with a market capitalization of only 14.85 million, this firm only has a few shares outstanding at a current price of $1.12 per share ( 4:00 PM EDT, December 9th, 2011). But the enterprise value totals approximately $160 million, reflecting the great amount of the liabilities this firm has compared to its equity. And even more gruesome, their balance sheet reveals that their current and total assets have declined over the past year while their accumulated deficit continues to increase—now resting at a total of $99 million.
Not surprisingly the company lists an EPS of $-1.91 per share, and last year the it sold off Royal Asian Bank stock. The future of this company is muddy and bleak, and it might be in your best interest to bet against it, although its reasonable to mention that it moves opposite the market with a beta of -0.35 and that it has a low 3- month average of shares per day at around 6,700. Also RBPAA seems to have a support at $1.00 a share, so be smart when attempting to maneuver gains near that foothold.
Find more stocks on the SpeculatingStocks homepage.
Comments:
