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I'm not responding to anyone in particular on this channel, but I'm here because I share your interest in S&L's, conversions, bank stocks, etc. Just wondering what might be in this here chatty room. Here in Indianapolis I'm with a group involved in participating new s&ls that went public. May you heard of Peter Lynch's article 3 or 4 years ago in Worth magazine where he touted the birthing of ipo bank stocks. Technically, they're available only to depositors and bank directors, etc. But Peter Lynch pointed out in Worth magazine last year only about 10% of depositors exercised their options to subscribe to the offerings. Generally the underlying new stock is worth the (usual) $10/share on offering plus the residual value of the company. This immediately puts a value of 12-15 bucks a share, and that's where most of them go in the first few days. The most exciting one I've been in was issued March 16, Monday. On Tuesday it was over 20 and today was selling at 25. Not bad?!! I had read about these babies in Lynch's original article. "So what", I thought, but I can't dump dollars into these s&ls all over the country, hoping one of mine will convert. Then I found this little godsend of a company that functions like an investment club, makes deposits in selected s&ls and acts as the intermediary for the "group." I'm long 7 of them now, with an average market price of about 16. We hold them for 18 months and sell out for a lovely profit--all completely legal, and a conservative investment that beautifies the bank account. There are still a few creative folks around outside the mainstream! It makes that little s&l on the corner look very interesting. Here's a few recent ones to check out--remember they were issued at 10! GOSB UCBC CATB CAVB UTBI INCB. Watch for BYS, a Boston area conversion (American Stock Exch) to come out soon. Interested in Peter Lynch? See his article in Worth, May '97. Happy hunting! |
