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

Unity Bancorp: A Bank Ripe For The Taking

While the rest of the market is focusing on the food fight for Hillshire Brands (NYSE:HSH), I suggest you look at the small community banks (assets below $1 billion). Because these are microcap stocks, the market has ignored this rapidly consolidating group. Literally, community bank takeovers get announced two to three times a week.

Consider LSB Financial (NASDAQ:LSBI) and TF Financial Corporation (NASDAQ:THRD). Their investors won the acquisition lottery last week: Both LSBI and THRD soared over 40% on takeover announcements. While the acquirers paid sizable premiums even though neither bank generates strong returns. In fact, both companies' earnings were subpar. Simply, the buyers figured the assets were more valuable under a bigger tent....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details