Very nice rally the past few weeks. Starting to feel cautiously optimistic again. What's everyone's thoughts on ORRF's next steps specific to price, profitability, economy, eventual return to dividends, etc.?
This is from their news
- Net income for the three months ended December 31, 2012 totaled $1.03 million, marking a return to profitability in the fourth quarter.
- Nonaccrual loans of $17.9 million at December 31, 2012 were substantially reduced from the prior quarter's total of $57.8 million, resulting in a significantly lower provision for loan losses of $1.0 million for the quarter ended December 31, 2012, compared to $5.1 million for the quarter ended September 30, 2012.
- Nonaccrual loans of $17.9 million represent a 78.6% reduction from December 31, 2011's total of $83.7 million.
Local scuttlebutt is that David H. Martin Excavating came out of default on loans from ORRF which put them back in the black.
What is going on?? I haven't seen anything to justify the type of run-up in stock prices that we presently see. I find it hard to believe that it is fueled by the insider trading. Unless they know something that we dont't. Any thoughts. ?
I am not convinced that the balance sheet numbers support the current stock price, but it is a relief from the recent past. I would think that someting else is up. The recent hires, although needed, do not seem to be the caliber of people to take the bank anywhere but to market the bank. And since most seem to have Change of Control Agreements, it would appear that they signed on to help sell the bank and profit from the sale.