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Company name Old National Bancorp
Stock ticker ONB
Live stock price [stckqut]ONB[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Poor
Sales growth Fair
EPS growth Poor
P/E growth Good
EBIT growth Poor
ANALYSIS
Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $13.29
Target stock price (averages with growth) $13.36
Target stock price (averages with no growth) $9.9
Target stock price (manual assumptions) $11.09

“Old National Bancorp (Old National) is a financial holding company. Old
National, through its wholly owned banking subsidiary, Old National Bank,
provides a range of services, including commercial and consumer loan and
depository services, investment and brokerage services, lease financing and
other traditional banking services. Through its non-bank affiliates, it
provides services to supplement the banking business, including fiduciary
and wealth management services, insurance and other financial services. The
Company provides financial services primarily in Indiana, eastern and
southeastern Illinois, and central and western Kentucky. Old National
operates in two segments: community banking and treasury. ”

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

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This is a series of articles describing how to quickly understand the key aspects of the annual report from a company that you have invested in with your hard earned money. This series started with an overview post on November 30, 2010.

6. Shares outstanding and Stock repurchase

You will almost definitely need to search for these terms in order to read about this information. The discussion will likely be buried in the report and not obvious in the Table of Contents.

You need to understand why the shares outstanding changed. Did the company buy back a lot of shares via a stock repurchase plan? Did they issue more shares?

There is no right answer for this metric but you need to understand what happened and you need to be comfortable with the reason. Was this change in your long-term best interest even if it hurt you in the short term? You definitely want to make sure that the company is not changing this number to hide some other shortcoming.

While stock repurchasing is a way to increase the stock price of the company, it generally means that the company is using its own cash to buy its stock. This means that the company isn’t using its money to pay for long-term assets or revenue producing assets. Do you really like the idea that the company is putting $5,000,000 into its own stock rather than spend that money on better marketing or more product development?

Here are the links to all 9 posts of the series:

  1. The 7 critical items to read first in an annual report in 20 minutes (Part 1 of 9)
  2. The 7 critical items to read first in an annual report in 20 minutes (Part 2 of 9)
  3. The 7 critical items to read first in an annual report in 20 minutes (Part 3 of 9)
  4. The 7 critical items to read first in an annual report in 20 minutes (Part 4 of 9)
  5. The 7 critical items to read first in an annual report in 20 minutes (Part 5 of 9)
  6. The 7 critical items to read first in an annual report in 20 minutes (Part 6 of 9)
  7. The 7 critical items to read first in an annual report in 20 minutes (Part 7 of 9)
  8. The 7 critical items to read first in an annual report in 20 minutes (Part 8 of 9)
  9. The 7 critical items to read first in an annual report in 20 minutes (Part 9 of 9)