Timothy Siegel

Rural Banks to Benefit From Agricultural Boom

JimWe,
I meant to create a colorful picture, and I'm sorry if I ended up making you feel insulted. I did not mean to imply that rural bankers dress in overalls, but that the investor contemplating investing in a financial institution should put himself in a rural state of mind.

Tim

Rural Banks to Benefit From Agricultural Boom

This increase in agricultural commodities prices is not an annual harvest cycle phenomenon. Everyone should know that, whether in NYC, or the heart of Kansas.

Rural Banks to Benefit From Agricultural Boom

DaveinHackensack,

Thank you for your comment. Sounds like on a higher conceptual level I'm in good company (Jim Rogers). One great thing about banks is that there are a lot more relatively local, publicly-listed banking companies that there are retailers, or others dependent on local economic strength. But, interestingly enough, in the retail sector there is another agricultural boom play, and that is Wal-Mart, the biggest of the big. There is may be no publicly traded retailer more closely associated with the rural economy than Wal-Mart. With the boost from the farm belt and international operations, Wal-Mart may be worth considering (don't own any myself, or in my mFolio). I would have a hard time investing in any U.S. based retailer, however, because they will be squeezed by rising import prices.

Rural Banks to Benefit From Agricultural Boom

TKTK53 - OK, where do I contradict myself?? I don't see any contradiction whatsoever. I do point out both weaknesses and strengths of the position of rural banks, and OZRK in particular. But there is no contradiction, just a recognition of both the negative and the positive.