Big Al45

Hampton Roads Bankshares: Strong Value in the Horrific World of Commercial Banks

Don't think HMPR's management can wait until the stock price reaches $6 per share. Losses will in their ADC portfolio will force them to do an equity raise within the next 6 months. Furthermore, the target price for their cancelled equity raise was $5 per share.

Suggest you take a close look at the 30 to 90 day overdue loans when they file their 3rd Qtr call report. It will give you some idea about how quickly their ADC portfolio is deteriorating. The basic problem with the BHC is that the Gateway component's underwriting was lousy (and the former Gateway CEO was a scumbag) and that's dragging down the Shore and Hampton Roads components.

IMHO You're looking at an equity raise of at least 40 Million shares. Although they may try to issue hybrid securities like their stronger competitor Towne Bank did. But in either case, you're looking at a massive equity dilution for the current shareholders.