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BARI
Strong Buy 
 100.00%
2 members
Buy 
 0.00%
0 members
Hold 
 0.00%
0 members
Sell 
 0.00%
0 members
Strong Sell 
 0.00%
0 members
 
Average rating: 1.00 (Strong Buy) 1.00 - 5.00 (Strong Sell) Total: 2 members

Annual growth of BARI:

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May. 25 2007, 11:42 AM ET
Nearest price: 37.15 (05/25/07)
by martinroad (profile)
(all of martinroad's ratings)
rating:
Strong Buy
At the current price of $36.50/share, BARI is trading at 170% of tangible book, 21.1x 2007 estimated earnings of $1.73, and about an 8.5% premium to core deposits.

Bancorp Rhode Island (BARI) has declined in value by 15.8% in the last month (it closed at $36.16 on 5/24/07 vs. $43.34 on 4/27/07). Most of the sell-off is related to BARI management prevailing in its recent proxy contest. As a result, some of the fast money that jumped in prior to the vote, expecting PL Capital would be elected to the board with 2 seats, is probably rushing to sell shares.

PL made the point they needed to make, even though they didn't win the proxy battle. In fact, I actually think BARI might be more likely to sell within the next year as a result. BARI had a staggered board consisting of 15 members. Each year, 5 members come up for re-election. Had PL won 2 of the 15 seats, the board room would have been an uncomfortable/hostile place with 2 board members wanting to sell the organization and 13 very opposed to it, led by the Chairman Malcolm Chase and the CEO Merrill Sherman -- both of them would have been hard to force into selling...they would have gone down fighting -- as I don't see either of them as people would want to appear as if they lost a battle in front of the Providence business community.

The scenario going into next year -- if management and the board decides to sell, it will be on his/her own terms. If they don't sell, they could face another proxy contest. Further, in early 2008, it is Merrill Sherman and Malcolm Chase who are up for re-election. Knowing that either or both could be voted off the board, I think BARI will consider selling sometime around the end of 2007 or early 2008.

What is the organization worth if they sell? There would be a bidding war as there are a number of banks that want into Rhode Island. BARI has scarcity value -- the only other bank of size is Washington Trust (WASH). I estimate there are probably 5+ bidders that have highly valued currencies which could pay $52+/share for BARI. Further, if a mutual from MA or a large credit union in MA were to convert and buy BARI in a merger conversion, if BARI holders were to get pre-IPO stock, the ultimate value could be higher.

Hopefully all of the large holders buy more stock. Further, maybe a few new investors will show up by next year. MFP Investors LLC (Michael Price) indicated the purchase of 50,000 shares in the first quarter of 2007 -- I'd be surprised if he stopped with that small of a position, given the amount of money he manages.

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Currently: 
 1 said yes (of 1 -- 100.00%)

 
Sep. 22 2006, 12:47 PM ET
Nearest price: 45.35 (09/22/06)
by persistent (profile)
(all of persistent's ratings)
rating:
Strong Buy
(Previous rating: Strong Buy,
on Sep. 18 2006, 1:36 PM ET)
Bancorp of Rhode Island, Inc --

BARI Bancorp of Rhode Island continues to perform well. As mentioned before, the activist firm SL Capital has purchased 8% of the shares and is seeking 4 board seats. They have been successful in about 8 out of 10 previous attempts to force a sale. BARI's meeting is in May of 2007; however, BARI may decide to forego the vote and sell. I own four thousand shares. It is already up 10% since the annoucnement by SL Capital.

One of the reasons that BARI has traded up of late is that People's has announced and would likley look at BARI. Then again so to would New Alliance and Bank North.

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