Chris DeMuth Jr.'s  Instablog

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SafisKusai Comments (198)
 
nice, sarah eisen is awesome. great interview
30 Jan, 03:21 AM Reply Like

Chris DeMuth Jr. Comments (1799)
 
She's great.
30 Jan, 09:51 AM Reply Like

SafisKusai Comments (198)
 
This is only sort of related to this video and since this is a more recent posting i'm going to ask the question here instead of on an old post.

For Ocean Shore you have talked about the 3 year regulatory window being up this past december, which would allow it to sell itself. You said that they turned into a stock ownership bank in 2009 from a mutually owned bank. So my question, if they didnt convert until 2009, why can i get stock data on them back to about 3Q of 2005? It's not that I doubt you at all, it's just something curious. This whole microcap bank consolidation over the past few months has been an interesting thing that i've seen you bring up and i'm really diggin the whole arbitrage theme in your articles lately.
31 Jan, 01:46 AM Reply Like

Chris DeMuth Jr. Comments (1799)
 
Excellent question. Yes, the 3-year regulatory window was up this past December, which allows it to sell itself. Yes, it turned into 100% stock ownership back in 2009, when we acquired most of our position. I bought as many shares as was allowed in the conversion. Before that, a majority was owned by a mutual.

So if they didn't fully convert until 2009, why can you get stock data on them back to about 3Q of 2005? That is because they first float a minority interest, which trades publicly. This is a first step conversion. The offering of the majority is the second step.

If you're interested in bank consolidation, I would recommend also looking at OBAF. If the SSE deal runs into any trouble and that spread widens at all, that would be a good one too. But today, despite the fact that I'm still a significant holder, it is probably a bit too tight a spread to be worth adding to.
31 Jan, 07:50 AM Reply Like

SafisKusai Comments (198)
 
Awesome, thanks for the reply! That makes much more sense that the conversion doesnt necessarily have to be an ipo. I looked at SSE when you first mentioned it, mainly because it piqued my interest due to being in CT where I live, unfortunately i didnt jump because at the time the small market cap scared me off.
31 Jan, 10:48 AM Reply Like

Chris DeMuth Jr. Comments (1799)
 
You're welcome.

Incidentally, if you are interested in conversions and live in Connecticut, you may consider opening an account at SSE's buyer, Liberty. They will convert someday and their depositors will get valuable access to the equity offering.
31 Jan, 10:54 AM Reply Like

Clint Edgington Comments (97)
 
Well said- very succinct explanation of Grammercy.
30 Jan, 09:48 AM Reply Like

Chris DeMuth Jr. Comments (1799)
 
Thank you.
30 Jan, 09:51 AM Reply Like