FMSB might work out. Positives include increasing dividends and many quarters of increasing revenues.
I'll pass on it and add a little today to my small position in WM, another Washington state-based savings bank (in which Legg Mason has a position too -g-). It's a stock that's done well in the past as the company has grown through acquisitions. It's debatable whether the benefits of geographical diversity and the presumed cost savings of integrating acquisitions are more attractive to investors than the (imo) resulting complex accounting and possible treadmill effect (addiction to acquisitions to spur revenue and stock price). Concomitant with revenue growth, dividends have increased too.
Within the last couple of days I've also begun a starter position in FBP, a full service commercial bank in Puerto Rico. Here too, there's a history of revenue increases and dividend increases. While the stock is not cheap at current prices, I like, and am willing to step up for, the consistent high ROE. ROA, perhaps a better and key measure in evaluating banks, is okay. (-g- And since you mentioned Legg Mason,David, they're in it also... but just for .56%)
quicken.com
With both these purchases, I am expecting that I will be trying to hold them for 3-5 years.
All jmo,
and I've been wrong many, many times.
Paul Senior |
