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Jan. 24 2006, 06:37 AM ET
Nearest price: 11.83 (01/24/06) |
by sturmdrang (profile)
(all of sturmdrang's ratings) |
rating:
Buy |
(Previous rating: Buy,
on Mar. 8 2003, 09:52 AM ET)
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Pros:
1) Turned a generally solid profit for 2005 of $0.50 per share, after
posting a loss for 2004.
2) Previous CEO, who was held responsible for loss and expensive takeover
of another bank, was ousted in 2004.
3) Bank has $270 million in assets and stock sells for about 105% of TBV
at $11.50.
- Bank should be worth, say, 140% TBV in a sale.
4) Standard conversion took place 3 1/2 years ago and can be sold.
5) Sandler O'Neill analyst, Avi Barak, had it on his list for the SNL Dartboard
challenge for 2005. (It declined 11.5% and he came in number 10 of 15 contestants!)
Cons:
1) Monarch Community is located in rural southern Michigan. Market
location will influence takeout price, should it occur.
2) General asset quality is likely still sub-standard.
3) Illiquid.
I own this stock.
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MCBF is a Buy for the following reasons:
1) Management/ BOD purchased 4.7% of the shares at the IPO.
2) ESOP owns/ will own 8% of the shares according to the offering circular.
Points 1) and 2) suggest that management and employees will think as owners in addition to acting as employees.
3) From 1997 to 2000 some of the bank's key statistics were good to excellent (ROA, ROE, efficiency ratio).
- Exactly why the key performance indicators fell in 2001/ 2002 is unclear. My suspicion is that they were cleaning up the bank prior to going public and that we will see favorable key performance statistics again.
4) At $12 per share, the MV/BV is ca. 76%.
5) Equity to Assets Percentage is: 18.5% so there should be funds available for stock buybacks.
6) Jeff Halis own 1.0% of the shares - he has shown that he knows S&Ls!
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2
said yes (of 2 -- 100.00%)
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Mar. 8 2003, 1:13 PM ET
Nearest price: 11.92 (03/10/03) |
by diehard5 (profile)
(all of diehard5's ratings) |
rating:
Strong Buy |
(Previous rating: Strong Buy,
on Mar. 8 2003, 1:12 PM ET)
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Nov. 21 2002, 2:11 PM ET
Nearest price: 11.45 (11/21/02) |
by doss2 (profile)
(all of doss2's ratings) |
rating:
Strong Sell |
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