Liberty Sirius…
Thoughts?
William Penn Bancorporation: nice quick writeup
March 2024 eligible for being acquired, according to the author(s).
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It really looks like WMPN is signaling to everyone that it’s ready to start discussing a deal to be acquired, come March 2024.
Do you subscribe to Hidden Gems Canada? If not, I can highly recommend it. Jim Gillies is doing great work there. A great source for ideas.
Jim
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The bank deposits are walking away and banks are not paying anywhere near the money market. What this means is, there is a serious bank profitability issue. Now add to that the banks are going to take hit on their loan books due to recession, Commercial real estate, etc. Citibank in spit of having excess capital and trading at < 50% of TBV is not buying back shares. So when I see these small banks want to do buyback, I have a feeling many of them just don’t get it… folks can move money over phone, the interest rates are not going to come down, the federal deficit are not coming down (this matters a lot, in a separate paragraph). The banks are not realizing they are structurally in a different place and they are not going back to pre-pandemic.
On Federal deficit, with Federal reserve (the Fed) doing QT meaning they will be reducing their treasury holdings, the banks themselves are reducing treasuries in response to regulatory change and foreign nations are reducing their treasury holdings, which cumulatively reduces the top 3 buyers of treasuries, meaning government has to pay higher rate to get people buy treasuries. Which is going to increase inflation and which is going to keep the rates higher, vicious cycle.
Many small banks can be wiped in no hurry. Just be aware of your risks.
PS: I understand this board specializes in these mutual conversions and you guys understand what you are doing… still.
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Hi Jim!
LInk to Hidden Gems Canada please for subscribing ?
Thanks in advance.
David
Best!
Jim
That’s a big drop, @kingran!
Thanks, Jim, for the link to Hidden Gems Canada!
David
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I have put INBK on my watch list - Price to book is miniscule. I saw a blurb on whatchmacallit (X) about their growing interest margins. Anyone familiar with it?
Vince