Sat, May 18, 2013, 6:04 AM EDT - U.S. Markets closed
sooner rather than later.1. Dodd-Frank - not good for small banks.2. Basel III - not good for small banks.3. CEO's employment agreement extended until 2018. A lot of the HBKS value is in the current CEO's employment. 4. Going private deal not an option: It could happen, but insiders don't have quite enough ownership. 5. First banks to sell in coming consolidation wave will probably get a better deal ... waiting could be risky.6. HBKS one of the few banks not weighed down with real estate loans.7. HBKS started in 1976. Original investors want to see some value and liquidity before they die.
More from the cemetery ... mausoleums have wi-fi:"Dying wasn't a good day, but when I found out my HBKS stock basis was stepped-down, it really killed me."
I went out to the cemetery and talked to the dead. They're looking for an HBKS sale soon. One comment sums it up:"Who needed a stepped-up basis on death when the stock is still worth less than what we paid for it?
10. Capital raise in the cemetery probably won't raise much from all the deceased shareholders. But they will probably be interested in the "tombstone" anyway.
"Small Cap Banks are Takeover Targets. ."
Yes, that's a reason!
Maybe I'm wrong ... watch for the Heritage branch with the drive-in window at Forest Lawn cemetery!
watch for the Heritage branch with the drive-in window at Forest Lawn cemetery!It's already there ... who knew? I checked it out: There's more activity than at the Ocean View branch ... look for the mausoleum in the back!