Here is a stock from New Hampshire that stands out as a beacon in the darkness of a recession threat, a $150 billion stimulus package from the President, and a series of interest rate reductions by the Federal Reserve. Investors must take heart from the fact that a bank has operated in the United States during 2007, with impressive business gains over 2006.
Three specific management actions stand out behind the nominal business progress that the operating bank owned by this holding stock has achieved during the last financial year. First, stocks have been restructured to reduce unproductive regulatory expenses. Secondly, the management has brought down the absolute level of fixed overhead, even after accounting for the legal and related expenses involved in the equity restructuring. Finally, human resources have been significantly upgraded, with the induction of experienced financial sector experts in key management positions.
Business growth during the last quarter of 2007 is particularly impressive considering the rather staid economic environment in which the bank has improved its local market share. Similarly, it is reassuring for professional stock investors to know that the quarterly dividend shows a modest percentage increase even after provisions for bad loans have been increased by about 75%. The latter reflects expansion in the bank’s core business of advances, rather than any sub-prime type of malfeasance. Overall, the stock is a symbol of a reliable business template for continued and profitable growth. The management has predicted that the full effects of the business improvement measures it has initiated during the last financial year, will find expression in 2008.
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