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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...

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