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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...

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