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: Investor2 who wrote (59875)	10/5/2017 4:43:50 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78749

I2, maybe best to search Google for "how to analyze small bank stocks" Some articles are: fool.com (mentions book value) csinvesting.org (analyzing communty bank stocks) fool.com ROA discussed. "WarrenBuffett says return on assets is the best way to evaluate a bank." I've no special insight, and no expertise in evaluating bank stocks. I really have to defer to others here or to the pundits and their articles. Good luck!

To: Investor2 who wrote (59875)	10/6/2017 1:08:26 PM
From: Lazarus	Respond to of 78749

I can tell you what I was told by another investor who screens hundreds of small regional banks (and invests in several) We were discussing the fact that a small regional bank that I purchased agreed to a buyout BELOW the trading price of the stock. I believe it sold at book value. I quote him: Market value and book value are two different animals. D & O of either the selling or the buying institution can at a minimum be heavily fined or at a maximum pay steep penalties and do jail time if the transaction varies too much from book value. Small banks today on average are acquired for between 1 X BV ~ 1.7 X BV. Anything outside of that higher or lower will land D & O in hot water. _____ Hope that helps some... it sure helped me.