Charter Financial a buy at discount to tangible book value

Mutual bank conversion fans may want to have a look at unfollowed Charter Financial (CHFN +1.2%), writes David Englander in Barron's. The stock became 100% public in early April at $10 per share and trades at $10.83 as of this writing - a 13.2% discount to last reported tangible book value.

As with all mutual bank conversions, Charter cannot buy back stock for a year after the offering, but a tangible common equity ratio of 25% suggests ample room to scoop up shares. In the meantime, the stock yields 1.9%.

What about maybe blowing capital on acquisitions? Noting his stock's discount to book, the CEO promises to "be very selective."

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