Profit Fan

Franklin Financial: Is This Conversion Story Still A Buy?

On the surface, Franklin Financial's (NASDAQ:FRNK) story has a lot of support. The bank was converted from a thrift in 2011 and it still has a massive amount of excess capital that it has been using to continually repurchase a substantial amount of shares, most of which have helped add value as they were executed under book value. On top of this, and consistent with the conversion theme, there is the hidden upside that could come from a potential acquisition, and well-known bank investors are on board (Michael Price and Lawrence Seidman).

All-in-all, the bank appears to be right on the path to higher returns for patient investors and downside is limited. Unfortunately, shares have just...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
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