Andrea M Psoras'  Instablog

Andrea M Psoras
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  • Banks etc: community banks, thrifts' power liftings reward investors in Russ2, IWM, KLD 1 comment
    Jan 8, 2011 1:11 PM | about stocks: IWM, KLD, VB, VFH, IJR

    Since mid November I have been tracking a 'theoretical' portfolio of community financials' stocks . Recently while looking those positions and associated indexes I also  have been tracking, I noticed that the Russ 2 index has outperformed virtually everything out there.

    Actually it was something I saw while reading the Nov 17 "Hedge Fund Alert" the Russ 2 index ( 10.50% ytd) in which  names of community financials are among the components, outperformed virtually all other Bench marks for October and YTD.

    Other bench marks hedge funds used, and with reporting 'returns' at end of October and Oct ytd % are S&P500 7.84%, MSCI EAFE 4.72%, Barclays Aggregate Bond 8.33%.

    Russ 2 outperformed ALL Hedge fund types (remember, which is actively managed money) except "Event Driven Hedge" funds which returned Oct ytd 10.99%.

                        price   $pr      %chg            52wkhi-lo            %52         %52   
                       1/7/11   chg                                                       wk lo       wk hi
    Russell 2000
    787.83 Up 1.45 Up 0.18% N/A 580.49 - 801.13 Up 36.59% Down 1.03%

    Associated EFTs such as the IWM iShares Russell 2000 ETF and KLD iShares KLD Select Social Index Fund ETF also are up strongly over their 52 wk lows at year end of 34.9% and 30.21% respectively. I include the social ETF because community financial companies survive most SRI screens unless they're bullies in their communities and have CRA violations and bad reps.

    Since the 'crash' in later summer, early fall of 2008 I've been saying these names more than likely are in better financial condition than other financials and from those very deep lows one would more than hit a number of home runs it only a little bit of nail biting. Although have not been on the sell, but more on the buy side and not a public blogger until recently on buying stocks of financial names, it only took a little time before others decided to take me up on my observations.

    Now, when one saw demonstrated that community financial companies had balance sheets and financials in better health than their plundering, neo-feudal bigFinancial cousins, the smart money went to the aforementioned ETFs and/or also VB Vanguard Small-Cap ETF and VFH Vanguard Financials ETF or even  IJR iShares S&P SmallCap 600 Index ETF each up and respectively better 190.52%, 151.57% and 150.62% than their 52 wk los. 

    So one with 'risk-appetite' for financial names whose businesses are situated locally and which are power lifting in their local economies, as well as other mid and 'small' cap names such as mid and small sized manufacturers including government and/or national security related contractors, many of which are 'smaller' cap names, all would have had good financial and accordingly good stock price performance over the past year and going into this year.

    Try not to let yourselves get hijacked by maggotry spirits! and keep everything in perspective.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: IWM, KLD, VB, VFH, IJR
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  • Corban Bates
    , contributor
    Comments (54) | Send Message
    I have compiled an excel sheet with over 500 small regional and community banks that shows many ratios for every bank such as price to tangible book value, equity to assets ratio, % non-performing loans, loan loss reserve to non-performing loans ratio, conversion year, and many more. Check it out at my blog below.

    7 Nov 2012, 01:50 AM Reply Like
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