Community Bank CPBK, I looked at this one a couple years back and passed.
I'll look again. It's the same thing for me as the others that I bought: I like the relatively high roa to the relatively low p/bk. As you suggest though, logically it would seem the efficiency ratio is a better measure, especially for a bank with a franchise that might be attractive to an acquirer.
Without having specific and detailed knowledge of these banks, I'm one - like you apparently - who would be trying to purchase a package of these things. That should increase the chance that one or more might actually get a takeover offer. And perhaps the other banks at least hold their stock value plus maybe increase their intrinsic value (one hopes).
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In past, a big plus for community bank followers might be to see that Geffrey Gendell was a major institutional holder. He is the largest in CPBK, according to Yahoo.
In a 12/17/01 Barron's article he discussed three community bank stocks (CHCO, FMAR, LION). This guy went around the country scooping up positions in community banks, waiting, and then profiting from takeovers or improved business conditions (betting somewhat on lowered interest rates.) Seems to me he has made his money already (2001-2005), and I'm not so sure he'd be a buyer now... maybe he's looking to sell, I don't know. That he's still in though, I take as a plus.
The stocks have all stalled out in the past couple of years.
Here's the chart, although it's hard to see the quick ascendency and subsequent lack of movement:
finance.yahoo.com
He also liked coal stocks a lot back then. Sorry I didn't understand or follow him. :>( |
