WMPN to be acquired

Investment Analysis Clubs Jim Royal
1

Meh premium, etc.

Jim

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Yeah - kind of bummed with the “premium”. Looks to be about equal to book value, I think?

I have a ~2% position. I’ll close it out in December when I hit the one-year mark.

Thanks for everything you do, Jim!

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Thanks! Maybe worth waiting until the new year for tax purposes? (Usual caveats, etc)

Anyway, I was buying 6-8 weeks when it dipped into the 11s so I put up a decent IRR on this.

We’ll have some better returns in the thrift space in the future.

Jim

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I second that! Thankfully, mine are in a qualified account so I don’t have to wait to unload shares - even though an 8% return for 6-9 months holding period isn’t bad… Then again - this is a stock deal not cash so all bets are off - including mine.

Vince

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I just looked at the acquirer - MPB - it’s trading under book value as well. Would that influence your thinking, Jim?

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Focus on tangible book. MPB has goodwill and some other intangibles that need to be subtracted from stated BV. It looks like they’re trading at a modest premium to tangible book (121% with my quick math). They’ve recently done HSD RoE – nothing special.

Jim

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