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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details