Profit Fan

Louisiana Bancorp: Illiquid Liquidity, Can Shares Keep Going Up?

The term 'Fortress Balance Sheet' is often used to describe the financial position of larger banks that are working to rebuild creditability by saying to investors that they aim to limit future downside. But, this statement stems from past mishaps and should be acknowledged as an affirmation and/or goal.

With new capital requirements and a growing number of ratios to calculate them, the concept of safety can get so confusing that the incentive to just take what is presented increases as calculations get more intricate. With that said, below I have presented a look at Louisiana Bancorp (NASDAQ:LABC), a bank with a very low asset-to-equity ratio and very high capital ratios that all imply more safety than is...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details