| BUSINESSWEEK ONLINE : NOVEMBER 1, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR -- INSIDE WALL STREET
Banking on a Techies' Banker Hedge-fund manager Richard Bookbinder is all for market volatility. ''I like unclear markets where most investors are confused,'' says the head of Bookbinder Capital Management. ''It creates more inefficiencies--and opportunities,'' he adds. Take one of his current picks, Silicon Valley Bancshares (SIVB). Analysts' consensus rating on the stock is a hold, partly due to higher-interest-rate fears. But Bookbinder has been snapping up shares. He regards the company as more of a technology play: Its Silicon Valley Bank subsidiary serves emerging and middle-market companies that are involved mainly in technology and life sciences. With its regional banking offices in Northern and Southern California, Silicon's assets have grown from $2.6 billion in 1997 to an estimated $4.5 billion this year. A unique aspect of Silicon's low-cost banking services is its policy of accepting stock warrants as part of its fees from young tech and biotech companies. ''These warrants have latent value, particularly from companies that go public,'' says Bookbinder. Analyst David Winton of Keefe, Bruyette & Woods says warrant income is ''very strong so far this quarter.'' Bookbinder figures Silicon will earn $1.75 a share this year and $2.05 next year. The stock has been picking up steam, climbing from 16 a share in late April to 27 on Oct. 19. He thinks the stock is on the way to 50. By GENE G. MARCIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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