Unconventional Capital Wisdom
Value, long-term horizon, worldly wisdom, growth at reasonable price

Commercial Bancshares: Mighty Little Bank Meaningfully Undervalued

Searching through the micro-cap space we continue to uncover highly profitable commercial banks that continue to go unnoticed, leaving them extremely undervalued but for no real good reason. Market caps are so small that many institutional investors are unable to own these banks while retail investor's recency bias towards disliking anything financial has left plenty of opportunities. Commercial Bancshares (OTCQX:CMOH) is another great example of a commercial bank that has continued to generate quality earnings from a wide NIM spread and high profitability while many other commercial banks have had trouble generating returns on assets and equity near their potential. CMOH has solid asset quality, growing book value and consistent returns on assets near 1% and returns on...

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