I am big fan of
Bank of the Ozarks (Nasdaq:
OZRK),
so it bothers me that I can't find much value in these shares.
Moreover, while I believe this company's aggressive growth strategy
could underpin its evolution into a significant regional bank, I do
worry that the bank is doing too much too soon. While it certainly makes
sense to grow aggressively while many larger competitors have a hand
tied behind their back, aggressive growth stories in banking have a
disturbing habit of going sour at some point.
Challenges Seem to Be Intensifying
While
there are certainly regional differences in business conditions in the
U.S., the fact remains that Bank of the Ozarks operates in the same
low-rate/narrow spread environment as
First Horizon (NYSE:
FHN),
Cullen/Frost (NYSE:
CFR), and
Regions Financial (NYSE:
RF). To wit, it's a lot harder to make a buck in regular old banking.
Continue reading here:
http://stocks.investopedia.com/stock-analysis/2012/Bank-Of-The-Ozarks-Hitting-Accelerator-In-A-Low-Growth-Environment-OZRK-RF-FHN-CFR0717.aspx
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