Motley Fool on Commerce
Thursday, January 18th, 2007The Motley Fool published a good overview of Annapurna Portfolio holding Commerce Bancorp:
The inverted yield curve continues to make the business of banking difficult as it drives up the cost of short-term deposits, while the yields on longer-term investments remain low. But Commerce excels — and can partially compensate for a tough environment — in its ability to gather cheap deposits.
As long as an investigation is hovering over Commerce, its share price will likely be held down in this area. Investors with the time and inclination to go through the company’s loan and investment portfolio and accurately assess what’s priced into the share price may find that Commerce is a bargain, but acting on that analysis will be tough without being able to assign a worst-case scenario for the current investigation into the company’s transactions with its officers.