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Community Bank System Inc. Message Board

sambordulac 3 posts  |  Last Activity: Jul 9, 2016 11:27 PM Member since: May 25, 2000
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  • sambordulac by sambordulac Jul 9, 2016 11:27 PM Flag

    With all the heavyweights in this new Birmingham office, I an certain lots of efforts were made to grow loans.
    Loan may grow pretty well, I suspect loan yield remains under pressure. It beats investment in Treasury.
    ALC should resume growth. It may add $2 million or so on its loan portfolio. I'd like to see margin to hold up but that's too much to hope for.
    USBI may sell some of its investment to support loan growth. Given the low interest rate, it may report some gains on sale.
    On the whole USBI should earn a better return this quarter.

  • Reply to

    JGWE going for a song

    by sambordulac Jul 5, 2016 2:20 PM
    sambordulac sambordulac Jul 9, 2016 10:51 PM Flag

    The competitive landscape changed so much that anyone can bid on the same deal. Which means that JGW will be just another bidder. To be competitive takes an entire new mind set and focus on cutting cost in every aspect of the operation. I am not sure that this highly paid management is used to that kind of thinking. It'll have to, or EMG and others will eat its lunch. It's scaling back, but too slowly so far.

    That said, mortgage banking is on the rise and this acquisition should help the bottom line. The mortgage division can also benefit from JG Wentworth's name recognition. IMO, if this runs well, JGW can be saved.

    Weak financial, continued losses, and more regulations can all derail the revival effort. If JGW should survive on its own, the $0.29 per share is definitely cheap. If it needs to raise additional capital, then it depends.
    I don't think it'll go down in flames. There is so much tax asset--an unfortunate outcome--it's worth salvaging.

    The odds is good that it'll experience another hiccup or two. That would be the better scenario.

    IMO price can drift upwards if additional news were not so gloomy. Maybe just my wishful thinking.

  • sambordulac by sambordulac Jul 5, 2016 2:20 PM Flag

    JGWE has serious operational problem and likely to have regulatory problem down the road. But share price indicates that the entire business is worth $7 million. It spent ten times that on advertisement in the past five years!
    At least part of that went to building the name recognition one would guess. What I am driving at is this, the name alone is worth the price tag.

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