UCBH, a holding co., conducts business through its subsidiary, United Commercial Bank, a federally chartered commercial bank. For the FY ended 12/31/00, total interest income rose 18% to $186.7M. Net int. income after loan loss prov. rose 13% to $73.2M. Net income rose 27% to $24.1M. Net interest income reflects increased average loans outstanding, partially offset by a higher loss prov. Net income reflects higher commercial banking fees.

March 15, 2001

California bank holding company UCBH Holdings (UCBH) specializes in serving the Asian community in its primary markets, which include San Francisco, Sacramento and the Los Angeles. This niche has paid off tremendously for the bank, which has reported 10 consecutive quarters of double-digit earnings growth. Wall Street certainly has been impressed with the company’s track record, as all seven firms covering UCBH place its stock in the “Buy” column. More compelling, the company announced a 2:1 stock split today, which will be payable on April 10th to shareholders of record on March 31st. We’re anticipating this announcement to attract more buyers by month's end. Looking at the chart, UCBH shares signaled a near-term bottom. Yesterday, the stock produced a sharp bounce off the half-century mark ($50), which was followed by a gain of 1.57% in today’s trading. The short-term technical readings also point to a turn around, with the stochastic planted firmly in oversold territory and the OBV trending higher. As for possible entry points, a move above the converging 10 and 20-dma’s of $54.58 and $54.56 may provide a profitable entry opportunity. We’ll set stops at $49 to limit our downside risk.

Picked on March 15th @ $52.63
Change since picked 0.00
Stop Loss @ $49.00