Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Graham Osborn who wrote (57324)	5/29/2016 4:02:54 PM
From: Spekulatius	1 Recommendation Recommended By Jurgis Bekepuris Read Replies (1) \| Respond to of 78740

What have LC and ONDK problems have to do with anything? They are marginal players. I feel like LC lost it when hey went for a facilitator to a guarantor and became a trash credit finance company. I don't even know ONDK and I Think they are totally irrelevant. I know you have a view of a credit contraction.We did have a mini freeze in the credit market to anything energy related a few month ago (I was a heavy buyer of junk credits and assorted MLP's back then ) , but the has eased significantly since then. I always cringe when I hear "secular" trends of anything,. I think it is a stupid way to forgo profits. Even we lose a lot of money.

To: Graham Osborn who wrote (57324)	8/13/2016 7:48:05 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78740

I took a good long look at TBNC the past few days. It seems to me a very conservatively run bank, probably about as good as it gets. I like that they have some geographic diversification in their dental loan portfolio. ROE, tangible book growth, assets/ equity, capital ratios look great. But at the end of the day I am just asking myself - do I really want to own a business where I am taking depositor capital and loaning it out at not spectacular rates for industrial and real estate development projects? Intuition says that I want to be in a business like that near the beginning of a cycle rather than the end. Maybe I am unnecessarily critical of banks, but I think Graham was too. I seem to recall him describing them as primarily speculative in nature and not suited for the defensive non-professional investor. For those interested in playing regional banks however, I'll note this one would be a prime target for consolidation with its strong balance sheet and cheapness. The trust business seems like it might be an attractive bolt-on for a competitor.