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Why Bank Atlantic will be just fine

|Includes: BBX Capital Corp. (BBX)

1) Insiders and executives bought 19.3M shares from their own money. Insiders and other shareholders bought 38M shares recently . This is huge confidence in BBX future. (see link1)

2) Housing in south Florida is slowly improving. Recently there are 18 articles discussing slow recovery in Florida real estate.

3) Economic data & housing data are significantly improving in all US and slowly in South Florida. GDP of Q3 grew 3.5% and economy is out of recession.

4) BBX is fifth largest bank in Florida with 100 branches , yet its market capital is tiny $70M. Any significant improvement in Florida economy will push market cap above 500M

5) Adjusted to Right Offering, BBX worth at least $2.88 disregarding the improving economy in Q4. See my analysis in link 4.

6) BBX has Core Capital of 8.3% (vs. regulatory well-capitalized level of 5%) (see link3)

7) Tier 1 risk-based capital of 11.6% (vs. regulatory well-capitalized level of 6%) (see link3)

8) Total risk-based capital of 13.5% (vs. regulatory well-capitalized level of 10%) (see link3)

9) Core deposits have grown to record high balances, while BBX borrowings are at their lowest levels in nearly two decades ( see link 3)

10) Even after absorbing an increase in quarterly charge-offs, BBX allowance for loan losses is at the highest level in BankAtlantic’s history ( see link3)

11) Pre-tax core operating earnings , non-interest income, non-interest expense and net interest margin all improved compared to both the 2009 Q2 and the 2008 Q3 (see link3)

12) BBX reported continued growth in deposits for the Q3. Year-to-date , core deposits increased $319.9M (see link 2)

13) Too many investors are pessimistic on BBX and selling constantly. BBX crashed 50% in last 2 weeks and 80% in last 6 weeks
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14) BBX has 24% short ratio that needs to cover if economy continues to improve during Q4

15) BBX is trading at only 2% of its $103 peak price in 2007 . Beside BBX, there is no even one company which trading at 2% of its peak and does not have immediate BK risk.

16) Florida is hyper sensitive to all things economic. If unemployment is 10% nationwide, florida has 15%. The same is true in reverse, after the recession baby boomers and senior will continue to come down to florida in droves snatching up the hottest real estate.