Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Macro Headwinds For First Bancorp Stiff, But Longer-Term Thesis Is Strong

Executive summary:

  • Macro headwinds continue to present a stiff challenge for First Bancorp shareholders.
  • These pressures mask a gradual improvement in the underlying franchise.
  • The company's recent earnings report suggest $0.50 in CY 2014 EPS is achievable.
  • Longer term the company and investors should do very well, but while negative economic headlines persist on Puerto Rico, the ride will be volatile.


I have taken some lumps on my investment in Puerto Rican bank First Bancorp (NYSE:FBP) since last October when I advocated the stock as an asymmetric opportunity around $5.40 a share. After advancing up to around $6 a share late in 2013, it has been a tougher few months since the start of the year. Today...

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