market folly

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Steven Shapiro of Goldentree who pitched long Co-operative Bank in London (LON:CPBB)


Steven Shapiro's Sohn Canada Presentation

Pitched LONG Co-operative Bank, trades in London. It’s the 7th largest bank in the UK (on deposits), thinks it can double in 12-24 months. Currently trades at half book value and has completed two rights offerings in the few years (to raise much needed capital).

Some risks include balance sheet correlation with UK real estate market, potential large pension liability outstanding, and payment protection insurance issue. Has recently worked to reduce non-core assets, the bank’s portion of the pension deficit is small. Now comfortable with payment protection issue. Significant franchise value as it is a recognized brand in the UK. Currently trades at the rights offering price and it a well-capitalized bank (Basel 3 compliant). Co-op is currently operating at much lower levels than peers, particular with high liquidity ratio.

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.