Thanks for rubbing it in spammer! We know there's good banks out there, and we need one to buy HFWA. I'm invested in two of the worst performers in the sector-Union Planters and HFWA. Please stop me before I invest again!
If they are sitting on $7/share in cash, why not just pay out a distribution of $3-4/share. It would seem that that would take care of their excess capital problem and return the unneeded cash to the share holders. Is there any reason they couldn't do something like this?
Barron's had a good article on these thrift conversion stocks this weekend. The conclusions the writer reached were: 1)The CEO's of these banks are not dynamic, and have basically hung around long enough to get their jobs. I don't know enough about Don Rhodes to agree with regard to this company.
2)These shares are undervalued by any measure, but the big money has left the building. With low market caps, no equity research, and entrenched management, don't expect a rapid recovery.
3)One follower of the stocks liked them because "they don't have to take much business risk. All they have to do is buy back stock."
It was interesting to learn that we are not alone in our suffering, as the article listed many other companies trading under book. The market for thrifts in general was pegged at 130-140% of book. Unfortunately, articles like this will only serve to encourage HFWA to sit on its hands and will not pressure the (independant!) board to take any action.