I personally am sick and tired of losing money in these under capitalized banks-Your call. I haven't made any money on these book value/ cash banks they are all govt traps as far as I am concerned. Do you believe the numbers the banks are putting out?
My guess would be that there is interest by other large institutions in buying out SWS. The southwest, especially Texas is an affluent market and this would provide a cheap entry. The $11 book value may be over stated given the R.E. exposure but lest say it's realistically $8/shr. SWS could go for two times that, say $16/shr. The insider buying we saw earlier could be a canary in the mine. This stock is a screaming buy in my opinion at this level. WW
SWS is selling at $150 million discount using it's current book value. Do you really believe that there are $150 million unrecoverable troubled assets on the books still? If that were the case the management will be going to the siammer since the have added, I believe, only about $40 million to the reserves recently. WW