Gregory Vousvounis
Value, growth at reasonable price, long-term horizon, long only

ESSA Bank & Trust: One Dollar Of Value Available For 50 Cents

Investment Thesis

ESSA Bank & Trust (NASDAQ:ESSA) is an almost 100-year-old thrift that owns and operates a small bank and a small asset management and trust company. The market is pricing ESSA at 72% of its BV of $15.19 and at 76.98% of its tangible BV of $14.16. I believe that the market is currently mispricing the stock which is worth at least 1.5x its TBV or $21.24 which is almost 95% higher than its current valuation.

But before I articulate why ESSA is worth so much let me elaborate about the reasons this opportunity exists. After the housing crisis of 2009, thrifts and community banks have been under-followed and considered "toxic" due to their great exposure to...

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