I'm not persuaded. The price that the bank paid is not a bargain at today's prices. It's underwater. Meanwhile the bank has over $900,000 in less operating capital and has saved only the small dividend payment. Which would you prefer in your pocket today; $950,000 in cash or stock worth approximately half or that amount?
As to a future sale at a premium, when if ever, will that happen? That function is more of a wager than banking, imo. While awaiting the premium stock sale day, if that day should ever occur, the bank has lost present cash carrying value and added to its future cost.
On the otherside, if the bank has so much money why not pay it in dividends where the equity owners get something tangible in their pockets now ?
By the way, it's about 78F as I write and shorts are quite comfortable. How is it in Eastern Oregon ? Good wishes to all.
I read your response last night and decided to think on it before I responded. After thinking about my thoughts and yours, I decied to look at the basics. The basics being, Just Why Do We Invest IN Stocks To Begin With. We invest in stocks to hopefully make money in the future. If I were to take the money and run as you were leading, I would be cheating myself of the investment monies that I could have made when this stock rebounds. CACB is one of the most stable stocks on the market. So, if you do not feel confident in this investment, you need to pack your bags and leave.