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

To: walterenergy who wrote (38334)	6/19/2010 1:58:28 PM
From: Spekulatius	Respond to of 78742

re CTBI - it's an OK bank but what is cheap about a regional bank trading at 1.5x tangible book an 14x earnings? Those are a dime in a dozen. CTBI is 4* rated but I expect HFCB to be the same after the capital rise and HFCB should trade at <10x earnings and <0.8x tangible book, after the offering with capital for expansion to spare. CTBI is roughly 10x larger in size than HFCB and I found that you pay a large premium nowadays for liquidity and size with regional banks. I think this will provide a powerful incentive for takeover of smaller banks going forward. I wouldn't mind some takeouts at 50% premiums at all.