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

To: voodooist who wrote (38522)	7/15/2010 6:05:50 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78735

Congrats on SMTB. I'll look closer. I may have a couple of choices: Play the spread: SMTB at $3.79 vs. deal value at $4.00 (stock+cash). This all before tomorrow's open for SMTB (which may move up) and PBCT, which may (likely?) drop. Also I'll look at PBCT to see if buying SMTB is a decent way to enter a position in PBCT. If I recall correctly, PBCT is supposed to be a pretty good bank (if there are/were such things). P/e now doesn't look so good, stock is down near lows (where I like to buy), stock is below stated bv (per Yahoo), and PBCT had recently increased its dividend a bit - which seems to be a lot better than so many other banks. I note that PBCT announced two bank buyouts. One for cash and at a heck of a premium to current price. And for SMTB only at a little premium to current price (and for stock and cash, not just cash). Seems to indicate that maybe SMTB had become near fully valued - even for a buyer (PBCT) who seems to want it in a strategic move, not because it's undervalued. Still, nice pick by you from your first mention.