Recommendation: Long Great Florida Bank (OTCQB:GFLB) at $3.12
Target Price: $3.24
Great Florida Bank's merger with Florida Community Bank is closing very soon with the only obstacle being regulatory approvals. As an over-the-counter stock, Great Florida Bank receives little publicity, which leads to a relatively large spread to deal value. While the deal is by no means risk-free and shares have significant downsides should the deal falls through, the chances are that we see the deal close by the end of year. A long position offers 25% annualized return to shareholders.
Background of the Merger
Since Great Florida Bank entered into a Consent Order with the FDIC and the Florida Office of Finance Regulations in April...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|