Showing posts with label Hispanic market. Show all posts
Showing posts with label Hispanic market. Show all posts

Thursday, February 25, 2021

Over the Past Six Months, a Portfolio of Stock in Minority Banks Beat the S&P 500.

Over the past six months, a portfolio of stock in minority banks beat the S&P 500. The S&P 500 Index (green) returned 74% The Minority Bank portfolio (blue) returned 112%.


Much of this performance has been due to the increased attention being paid to the minority banking sector. The portfolio consists of equal weights in the following banks:

Symbol Name Ethnic Group

BOH Bank of Hawaii Corporation Hispanic

BPOP Popular, Inc. Hispanic

BYFC Broadway Financial Corporation Black

CARV Carver Bancorp, Inc. Black

CATY Cathay General Bancorp Asian

CZBS CITIZENS BANCSHARES CORP GA Black

EWBC East West Bancorp, Inc. Asian

HAFC Hanmi Financial Corporation Asian

HRBK HARBOR BANKSHARES CORP Black

IBOC International Bancshares Corp Hispanic

IBWC IBW FINANCIAL CORP Black

MFBP M & F BANCORP INC Black

PFBC Preferred Bank Hispanic

Now, there are a few things to keep in mind:

It's hard to actually buy this portfolio, mainly because stock in Black-owned banks is hard to come by. It is thinly traded and very illiquid. We are aware of a few with selected availability, but this is the exception, not the rule. Reach out to info@minoritybank.com for more information.

We do not expect this situation to last. Most of the overperformance is due to investments made by large non-minority banks, like JP Morgan, Morgan Stanley, Citibank and Wells Fargo. You can't expect that these institutions will continue to pump up minority bank stocks.

Also see: https://www.linkedin.com/pulse/over-past-six-months-portfolio-minority-bank-stock-sp/ 

    Friday, March 13, 2009

    Socially Responsible WalMart II

    In an article originally posted on the Street Insight section of thestreet.com on 5/2/2006 at 12:15 AM EST, we made the case that Wal-Mart was becoming socially responsible. We said, "The firm's poor reputation no longer matches the new corporate reality."

    Recent events confirm this perception:

    According to the Chicago Sun Times, "As the Obama administration begins investing billions in health information technology, Wal-Mart plans to use its unrivaled size to bring high-tech medical records to U.S. physicians.

    In recent years Wal-Mart, the world's largest retailer, has used its buying power to move into health care markets, negotiating steep discounts for prescription drugs and eye care products."

    Having completed an in depth analysis of the massive $787 billion dollar Stimulus Bill, we believe this is a stunning and strategic move that bodes well for the company's stock. Our analysis reveals that, of all the publicly traded companies in the US, Wal-Mart stands to benefit most from the Stimulus Bill. We would be a buyer of the firm's stock.

    And, if you need confirmation of the company's new direction, consider this:

    "Wal-Mart Opening Two Supermarkets Targeted To Hispanics."

    Smart. And socially responsible.