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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (24987)	10/12/2006 12:38:57 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78740

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). ================== 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. :>(

To: Spekulatius who wrote (24987)	10/12/2006 7:55:46 PM
From: Madharry	Read Replies (1) \| Respond to of 78740

anecdotally, im not sure that these takeover are worth a whole lot to the acquirers. the bank that i do business locally is a multi- regional bank. i have a checking account linked to savings account with them. they offer free bill paying and decent interest on savings. Whenever Ive approached them about other services they were always at a large premium to what i was paying elsewhere. Whenever I mentioned this to the manager expressing surprise that they could get any business at all, she would shrug and tell me that none of the decisions were made at the local level any more. It seems to me that a well run local bank has a huge advantage for most customers.

To: Spekulatius who wrote (24987)	10/14/2006 10:44:40 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78740

Community Bank. Maybe FIFG.(??) Sells below book value, which is unusual for a bank. Otoh, it has often in past years sold well below book value. Tiny bank in small Kentucky cities - it will be hard to get traction on this stock, imo. Otoh, maybe with Kentucky coal mining boom, this bank might do okay? (??) ---I've no clue. Not much rev. growth, according to Yahoo. I note back otoh, a positive might be(or might not be) that Jeffrey Gendell is the top institutional holder. I see bank has been profitable in 9 of past 10 years. Not that great an roa though. I've no position & likely will pass. Anybody here looking at FIFG and coming to a positive opinion, please so post. I'll then re-look. finance.yahoo.com

To: Spekulatius who wrote (24987)	10/16/2006 11:35:26 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78740

Added FCCY to my portfolio of community bank stocks. the website looks folksy but the track record for the last 5 years has been pretty good. This is a small, bank in NJ that has shown good and healthy <g> organic growth. FCCY does not pay a dividend yet. FNBN is another bank I have looked at but decided to buy into FCCY instead. FNBN is located in NC and has a decent but not great record. Might be worth a consideration but I consider myself fully loaded for now with community bank stocks.