Stocks You Can Bank On: Raymond Stewart Sees Above-Average Gains in Financial Institutions
Lewis, Nicole, Black Enterprise
Raymond Stewart President & Chief Investment Officer RASARA Strategies Inc.
Raymond Stewart, president and chief investment officer of RASARA Strategies Inc., has an approach to investing not shared by traditional money managers. He likes hedging his bets in the banking sector.
"RASARA has taken advantage of knowing which bank stocks are a better investment over the longer term," Stewart says. "For the past 10 years, to the end of the September 2006 quarter, RASARA has generated a 268% cumulative return compared to 110% for the S&P 500. RASARA limits its exposure to underperforming bank stocks by holding equity positions in banks that offer different services in different locations." RASARA, an institutional investment management firm that invest on behalf of state, municipal, and corporate pension funds, is focused on investing in small- to mid-cap bank stocks that have a low price-to-earnings ratio. The company is based in Briarcliff Manor, New York.
Stewart's Stock Picks New York Community Mercantile Bank Bancorp Inc. Corp. (NYSE: NYB) (NASDAQ: MBWM) Price: Price: $16.40 $38.94 12- to 18-month 12- to 18-month target: target: $22.00 $50.00 P/E on projected P/E on projected 2006 earnings: 2006 earnings: 16.5 13 Est. 5-year annual Est. 5-year annual EPS growth rate: EPS growth rate: 10% 17% Why stock will Why stock will outperform: outperform: Through a restruc- The volume of loans turing program that and leases the bank resolved an interest offers has increased, rate mismatch, the and a corresponding bank has improved increase in revenues its balance sheet. …