(December 8 – 17:55 ET) – ABC Funds are beating the value investment drum for Laurentian Bank stock.

ABC views the stock as a hidden gem in the financial sector. It is citing its recent results — earnings of $2.86 per share from operations, compared to $2.10 in fiscal 1999.

These record results were driven by revenue growth of 10.7% and cost controls that improved the efficiency ratio from 77.6% to 71.9%, says ABC.

In addition to the strong earnings, ABC likes the firm’s growth prospects. It points out that the firm has announced that the management, technology and infrastructure are now essentially in place for B2B Trust, its online initiative. Over the next six months, Laurentian is planning to nail down agreements with other firms to develop the product mix and build the supplier base.

“Over the past few months, several high-profile companies in the technology sector have released disappointing financial results. Reassuringly, many old economy names, such as Laurentian Bank, continue to report earnings that meet or exceed expectations,” says ABC.

“In short, this value favourite is a defensive, old-economy stock with additional upside potential related to its online initiative.”
-IE Staff