i think this bank is seeing increased volume of quality conforming loan production there is a lot less lenders on the stage and we loaded with excess cash and can get a lot more cash through a second step if needed , while no one can predict the future , but , this bank may grow very fast in this climate of low rates and less competeion , again i like the risk reward , and if wrong , i hope that this extreamly low evtry point will provide lot of protection ....adjusted book is about 100% here , so when you buy TFSL you get the bank for free , it is traDING AS IF the franchise is worth nothing extra . i say in this new market real depsoits are worth more .................if TFSL is successful you make alot , if not i submit from an entry point of book , the losses will be minor or may even make a gain by being wrong but right on valuation....i guess i luv cheap stocks!!!! joco
I beg to differ. Only the FIRST fed cut is BAKED-IN. Today's employment number gives the Fed the GREEN LIGHT, and they will start to cut soon. Many more cuts coming. Financials will ALL go up. Also look at today's action. Dow Down over 200. Most financials down. TFSL UP nicely on STRONG volume. Excellent Sign.
And when they finaly do the second step to full conversion to a S&L we will be at over $30 a share. There is no downside in this stock at these levels as we are trading well below book value and the bank is extremely over capitalized . As you said after a year from the IPO date they will be doing major share buybacks to get ready for the second step. Any current shareholders still holding on will win big.