There is a regulatory prohibition on a financial institution selling itself within three years of a mutual conversion. However, once that time is up, such institutions can become attractive takeover targets. Two institutions whose time is up are Ocean Shore (NASDAQ:OSHC) and OBA Financial (NASDAQ:OBAF). Both should sell this year. We are confident that their investors will energetically push for just such a sale by the end of this year. If they succeed, OSHC has about 40% upside and OBAF has about 20% upside from their current prices.
Additional disclosure: Chris DeMuth Jr is a portfolio manager at Rangeley Capital, a partnership that invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our partners, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.