And so where are the nay sayer's who said it was a waste of time trying to save this bank? Busy buying BoB shares...wanna bet? their value will probably triple by years end as long as the current board and proper management remains in place. Bob is now Central Bank compliant.

Don’t break out the champagne yet. At the current profitability rate BOB is at best fairly priced, probably a bit overpriced. Net income for the first half of year was only 1.5 million. Extrapolated out for the year only looking at 3 million net income for 43 million shares outstanding. That is an EPS of just .07 cents. At a PE multiple of 12 ( more than generous with no dividend payout only looking at a fair value share price of .84 cents). The current price is only $1 but as you can see that is overvalued at current profitability. Without a drastic increase in net income for the second half of the year, forget about this stock appreciating at all much less triple-fold.

you forgot to factor in your equation how much the loss was was in the quarters prior to the earnings and also the growth potential of the bank both in the presence of new workers, 5000 at BAh MaR alone, and also due to the scaling back of operations by a major competitor who, apparently, has also saw increases in profits and resumed the payments of dividends.

No I didn’t. My figures quoted above are only for the last 2 quarters of positive net income ( a stocks price is its projected future earnings the past loses are meaningless in this regard), and extrapolated forward assumes positive net income. So even if there are no more negative quarters if it is no better than the last 2 positive quarters then the stock is currently overvalued. Hard to see net income improving much as interest income is decreasing and fixed expenses are high, even though provision for loses is now very low. As for growth, hard to see it, Fidelity and Commonwealth Bank are so much better run, specialize in the high interest consumer loans so they will get the lion share.

There are multiple ways to fair value the price of a stock and future earnings or more specifically future earnings growth is just but one of those ways. Credit quality, capital base, net interest income and commission fee income are all improving based on the above contrary to your shoe box analysis above. There is much to be said about this bail-out and without opining on the merits of your comments and valuation above please at least be accurate in your comments.

“Credit quality, capital base, net interest income and commission fee income are all improving based on the above contrary to your shoe box analysis above.”

This is all true however, interest income is declining with a declining loan book, fixed expenses are high, and most of all during these positive 2 quarters the provisioning for losses were low. If these do not improve then it is very hard to see net income improving. If there is any deterioration in the loan book, there meager profits will turn negative.
I too want BOB to improve and succeed, only time will tell, but there is little to suggest much improvement from here. I take solace that perhaps the drain to the Bahamian taxpayer is over for now. At least until the next government mismanages this bank again. That is another overwhelmingly negative factor for this bank going forward as it is 83% government owned.

100m bailout for Resolve plus 40 m for share rights plis 167m = 307m
Share price fell from 5 dollars to 1 dollar lost in share value 160m??

DIFFERENT BOARD OF DIRECTORS BY NEW GOVERNMENT!!!
Investigations needed!!

The bad debt was moved from the company.. to another company.

If we account for the costs to service that debt, which is still a tax payer responsibility, this profit would probably be wiped out.

This is just a publicity stunt.

Ma Comrade KP needs stop reading his own BS press clippings.... had the public purse only put
$165.7 and not $167.7 million into BOM - where in hell would the $2 million "profit" have come from? {Why even try make this kinds books cooking up when your government beats you to it}.

O SHiT LOOK...TAL RUSSEL CAN WRITES ENGLISH, BY GRAbs we knew it was a put on.

BTW Did BoB draw down all the funds loaned to it by the government or there are still some 20 million on reserve

300m investment for 2m is less roi on a Fixed Deposit $1,000 over 1 year!!! .......point 6%
300m investment for assets worth 75m? Cause some of those valuations of those mansions, business in resolve aint worth the price.
167.7 more by the govt for assets worth even less. Google Bank of thr Bahamas James Smith.
The former Central Bank Governor at least knows his numbers.
Investigations needed to see how these enormous loans and others were given that failed...moreso investigate those applications that were denied etcetc. Must not be using the peoples VAT MONEY AND TAXES to support these failures without investigations.....including NIB monies into This bank......ESPECIALLY WHEN PEOPLE ARE ON THE SOUP LONE IN FREEPORT...PLUS CHARITY GROUPS ARE COLLECTING TO FEED BAHAMIANS......

Well it took almost five years for BoB to meet its near demise. so of course it will not it will not be healed overnight. But the good news is the hemmoraging has stopped and hopefully there will be no further drain on the public purse. more importantly measures will be put in place to stop politicians and cronies from raping the bank in the future.

Royal bank has been paying 0 interest on fixed deposits for over two years and a fraction of 1 percent for several years before that. Most stocks on the Bahamas market pay between 2 and 4 percent under current market conditions. Well preference shares pay slightly more. So BoB is still a good buy at $1.00. Just dump the stock before the next elections!

BYW Canadians can now buy shares in marijuana stock. Even though legislation on legislation of marijuana has not been finalized and may not meet the deadline to allow legal sales of weed to begin July 1, stocks in marijuana production and sales have been on sale since last year. So if a Bahamian was to purchase stock in these companies can he or she be charged with cultivation or distribution of dangerous drugs under Bahamian law?

*legislation on the legalization of marijuana.

$168 million cash injection = $2 million in profit and people celebrate. The government should inject another $1 billion so that the profits can increase to $24 million.

Government economics!

As previous bloggers intimated: The price of the stock is against future earnings. And so the celebration was that the bank has come out of the red (not shirts like Tal would say) and shows strong potential for future money. After all people invest in crypto currency and what is it. Someone takes some Monopoly money and decides to pretend it’s real money. So others join in and give the crypto highly inflated ‘fiat ‘ value when they really should be charged with counterfeit money. Then the crypto collapses leaving many holding it who got seriously burned. Call it fraud. Now there are dozens of other cryptos hitting the market. The hype is pumped up and thousands more will get burnt.

*then the Bitcoin

BTW RBC plan to eliminate long lines seem to be working. Lunch time on a payday Friday and only 3 people in line. Service still slow as ever.

See Nassau Guardian 28.10.16 'Resolve loans were worth only $22.5 m by Quincy Parker
See Tribune 4.8.17 $166 bailout id BoB best shot by Natario Mckenzie
See Tribune 4.7.17 'New warning over bad bank debyts by Rashsd Rolle

I listened to the same global financial experts, akin to those posting here, talk about how sound their bank was.
Or, the financial experts talk about Enron, AIG,...............................................
The link provided here, https://www.fdic.gov/bank/individual/fa…, is a list of recent bank failures.
In my experience, talk of finances of so full of blowhard idiocy that it does not bear repeating, let alone reading.
The world's economy, including it's banking system, is controlled by a handful of greedy white men.
The rest of us are on the sidelines, thinking we're smart.