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Hingham Institution For Savings Price Decline May provide opportunity to investors

Apr. 22, 2014 3:40 PM ETHIFS
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Following Q1 earnings, I wrote bullishly on Hingham Institution for Savings (HIFS). This Boston-area stock trades "by appointment". For unknown reasons, perhaps general weakness in housing and banks, the stock has sold off despite a great Q1. Small investors interested in it may find that the 'asked' price today in the $74-74.50 range could be as good as it gets, if the overall stock market holds up reasonably well. I had lightened up in the high $70's a few months ago and have bought back more or less what I sold, at $73 after the sell-off into the $60's and today at $74.50.

The stock is now trading a bit below 150% of book value. Given the company's high quality, very low efficiency rating (low being good), etc. I find this attractive. Granted it's not a bargain, but that's the way the markets are across the board these days. I consider this a core small cap buy and hold stock and hope to pass shares on to my descendants.

Disclosure: I am long HIFS.

Additional disclosure: Not investment advice. I am not an investment adviser.

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