Disclosure for Bank of Hawaii Corporation
I, Joe Gladue, CFA, certify that this report reflects my personal beliefs about this company and that no portion of my compensation was, is or will be directly or indirectly related to the specific recommendations or views discussed in this report.
- B. Riley & Co., LLC does and seeks to do business with companies covered in its research reports
- A portion of this analyst’s compensation is based on the investment banking activities of B. Riley & Co., LLC.
 |
| Ratings Distribution as of September 5, 2010 |
|
% with Investment Banking Relationships |
|
| Rating |
Number of Companies |
Percent of Total |
|
Rating |
Number of Companies |
Percent of Total |
|
| Buy |
82 |
75.9% |
|
Buy |
3 |
100.0% |
| Neutral |
25 |
23.1% |
|
Neutral |
0 |
0.0% |
| Sell |
1 |
0.9% |
|
Sell |
0 |
0.0% |
|
Total |
108 |
100% |
|
Total |
3 |
100% |
Explanation of B. Riley & Co. LLC’s Rating System
- Buy: We generally expect "Buy" rated stocks to materially outperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly attractive.
- Neutral: We generally believe "Neutral" rated stocks will perform roughly in line with the S&P 500 and Russell 2000 over the intermediate and long term.
- Sell: We generally expect "Sell" rated stocks to materially underperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly unattractive.
Risks and Considerations
- Asset Quality - Areas in which the Company operates are suffering from the fallout of the subprime mortgage debacle with increasing delinquencies and foreclosures, higher unsold home inventories and declining sales prices. These problems are leading to troubles in residential construction loans and residential mortgages and they appear to be spreading to commercial real estate as well. While the Company is a conservative lender, the troubles are broadly based and likely to affect all lenders to some degree.
- Economy - Macro-economic issues such as increasing oil and gas prices and a possible drop in consumer spending could have a negative impact on the Company's business.
- Sector Rotation - Despite the decline in valuations for small- and mid-cap bank stocks relative to a year ago, pricing multiples for small-cap banks remain high compared to the S&P 500. Accordingly, the trading price of the Company's common stock may be vulnerable to any sector rotation that might occur.
- General Industry - The Company could miss our estimates and/or their financial guidance.
- See the Company's SEC filings, particularly its 10-K filing, for a discussion of further potential risks.
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