Purchasing W Holding Co. Inc.

dots Posted on October 6, 2005 , filed under Stocks | Print This Post

Today I purchased 1000 shares of WHI, W Holding Co. Inc. at $8.98. W Holding Company, Inc. operates as the holding company for Westernbank Puerto Rico (bank). The bank offers a range of business and consumer financial services, including banking, trust, and brokerage services.

I set a buy target some time ago to purchase WHI at under 9. It seems to me that the stocks of a large number of Puerto Rican banks have dropped in price as a result of alleged improper accounting by three of the countries top financial institutions. In reaction to the accounting scandals, unrelated stocks such as WHI have dropped as the shockwave of negative publicity reached the investment and banking community.

In a recent Forbes article, W Holding Co. Inc. is mentioned as part of a group of under $10 stocks that are comprised of profitable companies that have posted five-year sales growth of more than 5% a year.

Westernbank also shares some similarity to Commerce Bank another stock I purchased earlier today. Westernbank branches stay open till 7pm and keeps convenient hours on weekends.

This Motley Fool article mirrors my thoughts on W Holding Co. Inc.

I definitely look at the price drop of WHI as a speculative short term buy opportunity. This looks like another example of greed and speculation influencing a solid company.

Symbol: W Holding Co. Inc.

Intelligent Investor Strength: 7
Chart Strength: 7
Speculation and Greed Strength: 9

RawGreed Strength Rating: 8

Target Buy Price: under $9
Target Sell price: $11 within 1-3 months, $13-14 within 6 months-1 year.

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6 Comments »

Pingback by RawGreed.com - Stock Updates, RawGreed Awards, Business Gossip » Blog Archive » Purchasing W Holding Co. Inc.
2005-10-27 02:16:20

[...] I purchased an additional 1000 shares of WHI, W Holding Co. Inc. at $7.90 today. I purchased 1000 shares of WHI at $8.98 on October 6th, 2005. My average purchase price for WHI is $8.44. I wrote this earlier analysis of WHI. My price targets remain the same. I intend to purchase a total of 3000 shares of WHI. If the stock trades below $7 I will purchase an additional 1000 shares. [...]

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Comment by Tony The Tiger
2005-10-28 14:41:45

W Holding is at a three year low share price, currently and has dropped over 15% in one week, may be due to 3Q earning report, also I speculate there are internal issues that may have caused a lapse in exceptional perfomance of directing W Holding over the past 10 years to deveate and become less focused on the business. I purchased 10K @ $9.05 three months ago and missed the $11.50 high to sell, there is a 2% Plus dividend, I hope for an end of year stock split. I still see this as a solid buy stock, affected by ignorance of PR. status as full US Bank.

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Pingback by RawGreed.com - Stock Updates, Raw Greed Awards, Business Gossip » Blog Archive » Purchasing W Holding Company, Inc.
2006-02-06 12:16:43

[...] I’m back in WHI, W Holding Company, Inc. Today I purchased 1000 shares of the stock at $8.15. I expect to sell WHI in 1-3 months for $9-$9.50. The company delayed its 4th quarter, 2005, earnings report until an audit committee reviews a few different accounting matters. It is expected that the review could amount to a cumulative non-cash accounting charge of up to $12.7 million, net of taxes. I sold my original position in WHI in order to free up cash to purchase BGO, Bema Gold Corporation and potentially short airline carrier stocks. Investors who follow Raw Greed and originally purchased WHI will have made a good return on their investment. WHI split 3:2 on January 11th, 2005. In retrospect, I should have held onto my 2000 share position of WHI. My cost basis would have dropped from $8.44 to $5.62. At today’s current prices my gain would have been between 40-50%. My original post about WHI is located here. [...]

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Comment by Andrew Mackintosh
2006-03-02 08:06:58

I suppose its more of an investment over 9 months. The stock price of WHI is $8.1 6 months on. I’m sure its a good buy but may take longer.

http://www.starferry.com

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