krblokhin
What being a value investor means.
Value investing to me has 3 steps:
1. Get a sense of the long-term earnings power of a company. Owning a stock is all about having the right to a company’s long-term
Zions Bancorporation: Focus On The Valuation, Not The News
Summary
- Value investing involves estimating a company's long-term earnings power, calculating its present value, and comparing its current stock price to its estimated value.
- Zions' current stock price of $28 indicates an 80% upside, making it a buy for value investors.
- Despite the bad news surrounding Zions, such as negative mark-to-market and potential office building mortgage loan defaults, the company's long-term earnings power is expected to remain strong.
Gary Gordon’s career was on Wall Street, where he was a stock analyst covering the housing, mortgage and consumer finance industries. He also served as a U.S. investment strategist and as a portfolio manager. The bulk of his work career was at PaineWebber and UBS. He is now retired. Mr. Gordon is an adjunct professor at Mercy College in New York. He teaches economics on campus and math at prisons (Sing Sing and Taconic in New York). He also presents financial literacy seminars to adults and students. He is on the Board of Hudson Link (college education for incarcerated men and women) and the Baron de Hirsch Fund. Mr. Gordon is married with two young adult children. He has degrees from Colgate University (BA '74, philosophy) and The Wharton School (MBA '77, finance).
Analyst’s Disclosure:I/we have a beneficial long position in the shares of ZION either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.