I have a customer that sells necessary products to a competitor of Poseidon. He said that Poseidon is overpriced on fracking solutions and has lost most of the new business they used to get. He said stay away.
Corporations and trusts in Canada have a 15% withholding tax for dividends sent to the US. This tax may be recouped filing a 1118 form with the IRS in filing your taxes. However, if the stock is held in a tax deferred account, the 15% is probably lost. Most of the oil and gas trusts switched to corporations due to tax changes and IRA accounts do NOT pay the 15% withholding if you broker does things correctly. Fidelity does a good job.
Real Estate Trusts are exempt from the new tax rules so most of them did not become corporations. Some are stapled shares or still trusts.
the float for current stockholders is 23 million shares now worth .40 or about $10 million
new money $177 million
total stock value $187 million with existing shareholders have about 6%
Good news for the economies of the markets serviced by BOTC, BOTC will now be back in the market as a participant. I think the bank will be around for quite awhile.
The immediate goal is to get the stock price over $5 so it qualifies for margin.
Both fund managers recommended Newcrest as one of the best low cost gold mining companies on the Wednesday October 27, 2010 broadcast of Nightly Business Report.
As long as a large number of investors do not know the intrinsic value of a stock or investment, this problem is not going to go away.
Warren Buffet almost always remarks the value of the stock has be higher that the trading price of the stock. Determining the value is unfortunately not easy sometimes to determine.
I do not think there will be ANY earnings, it just a question of how big the LOSS is.
This is a classic rumor/liquidity/float play. Look at the volume. The traders just picked up a few million playing the public.
It seems that the losses keep getting worse. Ms Moss says they are making progress but how much money can the bank lose before they pull the plug?
The Capital Ratios dropped about 20% last quarter and are BELOW the minumum required or 5,6,8.
If they are banking on a recovery in the real estate market, last months price drop in Bend was about 7%. Not much hope there.
Yes we actually have lavender, roses, and raspberries all doing well in our SE Bend Home. The Roses came from Heirloom Roses near St Paul Oregon.
We have so many Raspberries we have given starts to several neighbors and the Lavender has to be cut back every year or just takes over the bed.
So what newsletter was it and what did it exactly say. And of course, with any public offering there is a minimum and maximum offering amount and terms can change up to the day of the offering. Over subscriptions are common. The broker that does the public offering often makes a 10% commission as well.
there are two offerings. One private, $25 mil to Bolger and $40 mil to a hedge fund. then the public one which was around $85 mil that might have been increased to more.
The existing shareholders are taking a 1 for 10 haircut. The existing shares are 28 mil. The hedge fund is paying about 87 Cents for the new issued stock. Normal stock mutual funds and brokers trading on margin need the share price to be at least $5.00 or they can not purchase the shares.
The have already just announced the 1 for 10 reverse split. I predicted that a few weeks ago on the message board. They also have increased the number of total shares available as well.
Historically Bend has been a pretty strong market for retail, medical, and business in general. Many companies such as Safeway, BiMart, Costco have their most profitable locations of the northwest located in Bend. I really think that once things get stabilized that long term trend will continue. Of course, one can only put one's money where they want. The hedge fund has already figured out that the .87 per share is a GOOD gamble and the long term return will be worth the risk. I see them fixing the bank quickly, packaging and selling it to Key, or another large institution wanting a presence in this market.
I also predict that the hedge fund or associated will cherry pick the non performing assets and purchase them from the bank.
Bolger owned a small bank in Boise, He sold out to CACB, now he will have 51% of the existing stock for adding $25 mil. At one time the bank had an market equity of over $800 mil. Now it is $25 mil. New partners (lightyear) and public sale will add $125 mil fresh cash. Existing share holders get a 1 for 10 haircut. The bank should be making $40 mil per year proft. So, Bolger just got back in a much bigger bank from owning a small bank with the bigger banks money.
Long term, the market CACB services should do really well I think. The new owners Bolger and Lightyear will control the company. Too bad the existing management let this company get away.
First a reverse 1 for 10 split reducing the existing shares to 2.8 million.
Sale of 5 million new shares at $10 each and offering rights to existing shareholders to purchase with a over subscription option up to 7 million shares. The Bank will basically change hands to the new owners and the existing shareholders will put up or be a minority stakeholder.
Do not see anyone cutting salaries or losing their job over this fiasco. However, they certainly loaned a lot of money to borrowers that will NEVER pay anything back and the security is worth 10% of the original value.
Hey, if it gets purchased by a Chinese Bank at book value, the stock goes up a lot...
Know anyone from China
Outstanding are 28m shares.
Bolger buys 1/4 of the bank to make a total of 50% or 9 million shares for $25 million...3 bucks a share
Current price $2
Years ago most banks would only loan on commercial real estate and a value that was 80% of cash flow. Residential and homes based the repayment on income from other sources.
If the rent from a commercial project was $1,000 a month the maximum loan payment was $800. Bare land, development loans and speculation were handled by private parties and not regular banks. There used to be many contracts and other seller financing.
I guess things changed a lot. Not many investments are more risky than bare land with no income.
In the summer of 2007 in Bend and Redmond, developers were madly finishing subdivisions even though there were excess lots and no construction of new homes. Now we have lots that were selling for over $150k now selling for 35k and Bank of the Cascades is taking huge write offs on development loans.
The problem is when there is excess housing, what are empty homes worth? Of course, the 11% plus unemployment does not help either.
I hope they have good reserves and borrowers wtih deep pockets but it appears not to be the case.