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

To: rllee who wrote (52716)	11/5/2013 4:47:57 PM
From: 56Chevy	Respond to of 78733

Low volume relative to what? There are only 1.26MM shares outstanding. There are over 7,000 bank charters across the US...but other than the big 5 most investors have never heard of banks like PSBK...they suffer from an identity crisis so liquidity can be an issue sometimes...that just means you can't expect them to trade like the big 5 every day...but they're still real banks ...with real customers making real deposits... taking out real loans... and at the end of the day that all generates real earnings. One of the best things about these unknown, unloved and under-appreciated banks is they're all regulated by the same people who regulate C, BAC, WFC, JPM or MS. The same rules apply. Many are non-reporting OTC stocks...true... but you can still examine financials at FFEIC site every qtr.

To: rllee who wrote (52716)	11/5/2013 10:42:08 PM
From: Paul Senior	Respond to of 78733

Worried about low volume? If you can buy the stock for $6 and you get $6.85 by 2Q 2014 per the company's deal, and that is an acceptable return on your investment, low daily volume seems to me to be irrelevant. Unless you would be planning on buying a large amount of stock at one time. I'll guess between now and closure of the deal though, that people (small investors) will have time and opportunity to purchase plenty of shares, maybe in small amounts, at or below $6. Risk would seem to be that the deal doesn't go through or gets delayed a while...not that the deal involves a low volume stock. Jmo. If low volume means high volatility maybe that offers the investor who buys shares here at $6+, the opportunity to sell out at higher price even before $6.85 is reached next year. ... or the opportunity to buy more at under $6, for an eventual larger annualized roi at payoff at $6.85 next year.