How low can it go ?

An example of a company with unrecognized asset value is Webster Financial (WBS), the second-largest independent bank in Connecticut. The recent addition to Teton's holdings is well capitalized, and received $400 million via the government's Troubled Asset Relief Program. The stock has gone from a 12-month high of 35 down to 13.86. The bank has a great footprint in four Northeastern states, says Galluccio, and is capable of earning $2.50 a share in the next two years, versus the trailing 12-month $2.22 profit.

Neutral - Price 36.42 on Oct. 24
by FTN Midwest Securities
Lowering target by $2 [to 43], 13 times our 2008E EPS....we're concerned that estimates for '08 remain too high if asset-quality trends weaken further. [Yet] WBS continues to execute on the strategic plan to improve the overall...profitability of the franchise. [While] management is taking the right long-term steps...we think the stock price will decline over the next 12 months.

Webster Financial (WBS) was upgraded by Lehman Brothers from Underweight to Equal-weight.

Webster Financial (WBS) was upgraded to Peer Perform, Bear Stearns said. 2008 estimates also boosted, after a recent meeting with management. Company has improved its balance sheet in recent months.

Opportunistic buyer

Upgraded by RBC Capital Mkts from Underperform to Sector Perform

Downgraded by Lehman Brothers from Equal-weight to Underweight

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