New Capital
Contrarian, deep value, long/short equity, special situations

Profitable Bank Trading At 40% TBV - Is There An Upside?

Majority of the profitable financial institutions in US tend to trade at least at tangible book value nowadays. It was not the case right after financial crisis, when many banks could be purchased at significant discounts to book value. However, M&F Bancorp (OTCQB:MFBP)is among a few banks that have remained cheap even after the rest of the industry recovered and currently trades at 40% of tangible book value. This blog post by a well-followed microcap investor has caused stock run up of 33% over the last two days. In this article I will investigate whether this cheapness is warranted and whether there is a further upside for investors.

Company background

M&F Bancorp is a bank holding company that...

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