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

To: Spekulatius who wrote (35713)	3/23/2011 10:36:01 PM
From: Spekulatius	Respond to of 78768

MCHB.OB - it was on sale so i could not resist and bought one share of MCHB.OB (Mechanics Bank) for 12057$ knowing there are only 19,379 more. Earnings last year were about 600$/share and the bank continues to pay out 85$/quarter in dividend. NPA are fairly high (~3% of assets) but provisioning seems now adequate since they boosted the loan loss reserves enough in 2010. it appears that in the last quarter they turned the corner (they made (200$/share in Q4). Book value increased to more than 15,000$/share. The bank is a little stodgy but they have a decent website. Customer ratings seem to be above average based ratings in yelp and such. They have a small business focus and ahve grown their deposits. Decent size (~290M$ in tangible equity and a ~3B$ balance sheet. Shares trade per appointment only, please remember to put in order for 1 (or a few shares) rather than the customary 100 share lot <g>. The bank is located in Richmond, CA, so almost local to me (1h drive). I may actually visit the annual share holder meeting if they invite me. Should be an interesting bunch. mechbank.com