Stephen Rosenman
Long/short equity, deep value, special situations

Home Federal Bancorp: Low-Risk Investment With Potential 30% To 48% Annualized Return

Cascade Bancorp (NASDAQ:CACB) is purchasing Home Federal Bancorp (NASDAQ:HOME-OLD), a transaction likely to be completed within 2 to 3 months. Once the S4 is accepted, Cascade expects the acquisition to be finalized quickly. To date, no impediments to the merger have been identified. Despite being a near-done deal, Home is priced at an unusually large 8% discount. Although neither Cascade or Home are my favorite banks, the risk/reward is too compelling to pass up. At its current 8% spread, HOME offers an attractive low-risk investment for investors seeking solid returns in a short-term time horizon.

An Intriguing Discussion In The Cascade Conference Call

Before going further, I'm not the only one who has noticed the disparity...

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