UBNK is underperforming in a tough thirft market. Anyone think transaction might be pulled? I always thought one wanted to do the first step in a bad market and the second step in a good one. These boys might do the opposite.
Are those of you who have the right of first refusal doing this deal? I have friends who can buy up to 200,000 shares at $10 - not sure how to advise them. Is this deal not going to work? Will the stock really not even trade to a premium on day 1 after the conversion?
Any thoughts are appreciated....
Am I reading wrong, here? Subscription generated $23.4 million and minimum is $93.2 million. Can there be aenough interest out there to close this piggy? Must be quite a syndicated offering. Love to listen in to the road show.
Please do your own homework on this, but one idea is to look at westfield bank WFD. Just pull up the 1 year chart. The big drop is just the conversion date, just like UBNK is doing, no loss in value just converting to new shares. After that the stock has been treading water to down. These guys are pretty much following the WFD blueprint. Good Luck to all.
Everyone's situation is different, but I can tell you that I'm sitting the second step out. Take a look at Northfield yesterday and today. I think UBNK may open in a similar fashion. Also, UBNK is going to have a huge amount of capital of deploy in a difficult market. It looks like they plan to put much of it into commercial real estate loans. This will increase their risk profile. That being said, I have a decent slug of this already, at least for me, and plan to hold thru the transaction. Good luck, and dive into the prospectus.
I have watched WFD since it went 100% public. The stock has done nothing, if not down a little. In my opinion UBNK will tread water to trade lower after conversion. Plenty of time to get back in after. Of course they could announce a buyout and go through the roof. But their PE compared to other local banks seems a little high. All these local banks are playing the same game now, hope for a suitor and get out quick with big management payout. The need for more capital is????? Build more branches. Already have eight new branches of various local banks opened in the last year in our small community. All they are doing IMHO is cannabalizing market share from each other and increasing overhead. It will be interesting to see how it all plays out. Good Luck and happy investing.
Ahh. I think that table is based on the assumption that the deal will go at the midpoint. And I agree with you, that doesn't seem real likely to me. I haven't sold yet, but am considering it, and can see why you did. This is a good franchise, and decent sized, but management has been a joke since the conversion, IMHO. Good luck.
UBNK should be selling withing the next month. I'm kinda perplexed why this dela hasn't been delayed or pulled. It's a large deal in a choppy choppy market. They still have a much capital from first step. Beyond management enrichment, what am I missing?