Don-n-ABQ

Tier 1 Capital Ratios and NPAs of Unofficial Problem Banks in the U.S.

I decided to check another one on the list for insider action:

Columbia Bancorp. (CBBO)

For this one we see insider buying by multiple insiders in Feb., May, and August. These insiders are buying at prices from $0.97 to 2.21.

There was also a nice gap up in September. On Sep. 17 the stock closed at $1.19, then the next day (Sep 18), it opened up $1.95, spiked to 2.904 @ 11:00 AM, and closed at $2.59 on massive volume (over 2 million shares versus average daily volume of 30 thousand.)

There was no news for the massive gap up and volume serge, and the bank was "officially" stumped:

www.thedalleschronicle...

Staci L. Coburn, the CFO, has been selling and not buying, in three small transactions this year. And so has director Terry Cochran and Director of Risk Management Robert Card.

But, directors Frank Toda, Charles Beardsley, Richard Betz, and Jean McKinney, have bought larger amounts this year.

So, on a net comparison basis, some of the directors of CBBO are at least buying some shares. Something the directors at FSNM are not doing.

David's list might have more value if it was additionally screened with insider transactions?

Tier 1 Capital Ratios and NPAs of Unofficial Problem Banks in the U.S.

FSNM put out an interesting press release today about "rumors":

www.snl.com/irweblinkx...

You would think that at the prices some of these banks are trading you would see some insider buying?

I just looked at FSNM and there has been only one insider purchase in 2009 (Dee H. Patrick, 5000 shares @$2.18 on 2009-05-01; which brought him to a total of 180,015 shares; so big deal in his overall holdings).

Prior to that you have to go back to three insiders (Avila Kathleen, Michael R. Stanford and Chris Spencer) in July 2008. So, only one insider buy since July 2008.

Also, in looking at the "tale-of-the-tape," it shows that the stock has rolled over with large block sales (9/18 & 9/23) at around the $1.30-1.33 area. Prior to that it was positive at the beginning of August when it traded in the $1.00-1.03.

There is additional positive volume action that occurs the two days prior to the August 5 announcement of :

"First State Bancorporation (“First State”) (NASDAQ: FSNM) announced today the retention of Keefe, Bruyette & Woods (“KBW”) as a financial advisor to the Corporation for the review of strategic alternatives to enhance shareholder value, including the possibility of entering into a business combination with a strategic partner."

Note to the SEC: There is also a curious volume uptick in the twenty (fifteen to thirty) minutes prior to the release of the August 5 announcement.

Bottom line, if the insiders are not willing to step up and buy at these prices, why should anybody else?

Money talks and .....you know the rest.