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

To: 56Chevy who wrote (52549)	10/20/2013 8:24:52 PM
From: Spekulatius	1 Recommendation Recommended By Jurgis Bekepuris Read Replies (2) \| Respond to of 78742

In the case of CSBK - i would probably wait until they have done their private placement. We have done quite a bit if investing in bank stocks over the years, but typically in banks that are a bit higher quality than the ones you have brought up. I have a good sized position in FMBL and absolutely no worries about owning this bank stock. This bank is run ultraconservative is twice as well capitalized than many peers. It is also run well and efficiently. Another one that I bought a small position recently is OVLY, a small central valley bank. They have suffered during the great recession, as the central valley was extremely hard hit ( very high unemployment, RE down - 60% in many cities) yet they did not have to recapitalize, purchased back TARP on their own means and even cleared up other preferred on their balance sheet, all while growing deposits ~10% per year. Now, if they can get loan growth going again as the central valley economy recovers, this could become growth bank stock again. OVLY is currently trading for ~tangible book and 11x earnings. Of course those bank don't have the home run potential that your candidates have, but they have little downside too.