Re: MBNC
Not sure the Yahoo numbers reflect their recent capital raise May 24, 2014 in the amount of $2.2Mln.
MBank Holding Company Announces 2.2 Million Dollar Capital Raise
It looks like the capital raise was a new preferred series.
Here is their Year-End 2013 financials.
Here is the Q1 2014 report that also includes their financials. Yahoo Finance shows 4.38 Mln shares outstanding. When you look at their financials the common share count states Common stock (9,510,645 shares at 3/31/14) that they have valued at $10,969,056. which is equivalent to $ 1.15/share.
When I looked at the common share price as of 3/31/2014, Yahoo Finance shows $0.85/share
What is a net positive is the company is making money and posted a net profit for the Q1 2014 quarter of $453,000 (or $0.04/share that translates to 11,325,000 shares outstanding). I still get a discrepancy in their share count but definitely those YAHOO Finance numbers are incorrect.
The problem w/ having the assets tied up as "bank reserves", they are basically frozen so even if the common stock is selling below BV, you can never really realize the true value even if everything is liquidated.
The thing to focus on, is they are slowly booking positive earnings and if they continue for several quarters at $0.85/share that's a 4.25 PE. Stock could be eventually valued at 10 PE or $2.00/share.
It looks like they are booking a "retained deficit" of about $1.98/share. I guess this is for their non-performing loans and/or sour real estate. If this figure is under stated it will take longer for them to dig out of their hole. However, they have been paying this amount down almost 10% annually.
I think there may be better banks to invest in only because ones this size are not very liquid.
The smaller banks will come back faster especially if they were conservative when allowing for losses and actually over stated these. Non performing loans collateralized w/ solid real estate are worth more now than 5 years ago.
EKS |
