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Community Banks Breaching Fiduciary Responsibility To Shareholders
Your points are well taken. However (and at risk of being derided mercilessly), I will state publicly that I support BHWB management's performance throughout this crisis. While non-performing loans have been creeping up recently, they are manageable and appear to be peaking. And unlike HRTB.OB, I don't see a 3x buyout offer on the horizon for BHWB simply because its market price doesn't appear to be discounted as deeply as was HRTB.OB. Further, capital levels continue to grow organically and I think a buyout is better for the investors if it occurs near the peak of the next cycle instead of nearer the bottom (but on the upswing) as measured by price/book. Higher capital levels and better price to book ratios are forthcoming for those who are patient. Finally, there is a material future dividend in the stock that will begin to be released once the TARP is resolved.
As for the investment bank, I am not a fan of high priced consultants. But I would rather someone who knows what they are doing provide advice than continue along without such advice. They may replace TARP with another non-TARP trust preferred issuance or common. If common, then dilution will be partially offset by reduced interest payments on the TARP. If more trust preferred are used, interest payments may tick up but share price may benefit due to elimination of the negative perceptions that accompany TARP funding. Hopefully whatever advice they get (and take), will consider shareholders first. I am willing to see what they are planning to do before judging them.
I am also an investor in BYLK.OB and PSBQ.OB at their current price levels. I believe BYLK.OB is an organic double (no buyout required) by mid-2014. PSBQ has been terrific throughout the crisis and just purchased a competitor about 20% of their size. It lacks the big upside of BYLK and BHWB but should be a steady eddy performer with a respectable dividend yield. Both stocks have consistent insider buying. Lack of liquidity is a challenge for all three of these stocks.
I am long BHWB.OB, BYLK.OB and PSBQ.OB.
May 21, 2012. 05:18 PM
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Ebix: Not a Chinese Fraud, But a House of Cards Nonetheless, Part III
The company may be shady but this "research" appears shady as well. Seems to be attacking the CEO personally. Was the writer getting crushed on his short position and decided to write this article in desperation? Just the same, sold my positions while I still had a nice gain in place. The risk profile has certainly changed and I don't want to be holding Enron stock all the way to the bottom. If this guy is covering today after writing this piece, I agree he should go to jail.
Mar 24, 2011. 03:09 PM
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