Lake Shore Bancorp: Monitor This Attractively Priced Regional For Value & Second-Step Conversion Potential
- With zero analyst coverage, Lake Shore Bancorp is likely to engage in the "Second-Step" of a thrift conversion in the near to medium term due to prevailing industry dynamics.
- Having completed the "First-Step" of the demutualization process, the company will likely offer the remainder of its mutually held shares in a "Second-Step" offering to complete the thrift conversion.
- Often ignored by the mainstream investing community, thrift conversions offer upside and limited downside risk due to the simplicity and conservative balance sheets of regional banks.
- Patient investors at current prices are positioned to benefit significantly from many potential catalysts over the long term as Lake Shore Bancorp accesses capital from demutalizing.
- Even if a Second-Step offering does not manifest in the near to medium term, upside is likely due to the bank's improving operating fundamentals.