For the past several weeks, my review of companies has been those on my Watch List. I am now finished with that review and will begin to look at companies that are new (or not previously favorably reviewed). I will review the Watch List again in a series of posts in the future.

It is important to review your investment choices on a regular basis. If you invest in mutual funds, you should review them each February. I suggest Friday because you will receive your end-of-year statements in February so that you can pay taxes. You should look at these long-term investments and decide if it still fits your strategy and that your mix of investments is correct.

For stocks, the review needs to be a bit more frequent. You need to get out of stocks that no longer perform to your satisfaction. If you are not sure how to evaluate the growth rate and performance of your stocks, please consider reading my soon-to-be released book, “The Confident Investor” as it will help you analyze companies to find the Good ones.

 

Company name Washington Banking Co
Stock ticker WBCO
Live stock price [stckqut]WBCO[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $16.49
Target stock price (averages with growth) $18.7
Target stock price (averages with no growth) $14.91
Target stock price (manual assumptions) $13.99

The following company description is from Google Finance: http://www.google.com/finance?q=wbco

Washington Banking Company is a bank holding company. The Company’s primary business is conducted by its wholly owned subsidiary, Whidbey Island Bank (the Bank). The business of the Bank, which is focused in the northern area of Western Washington, consists primarily of attracting deposits from the general public and originating loans. Whidbey Island Bank conducts a full-service, community, commercial banking business. The Bank also offers nondeposit managed investment products and services, which are not Federal Deposit Insurance Corporation (FDIC) insured. These programs are provided through the investment advisory companies Elliott Cove Capital Management LLC and DFC Services & DFC Insurance Services. Another nondeposit product offered through the Bank, which is not FDIC insured, is a sweep investment option available through a brokerage account.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.