TOWN has Internet/mobile banking, but all those fancy buildings are going to be like a lead weight. No bank is going to want to buy them.
"The 2006 report states, "Moreover, our accounting staff has almost entirely turned over, making it even more difficult to locate, review and prepare financial data, reports, and statements for prior periods. We can give you no assurance that we have discovered all material errors in our financial reporting. " Heritage did state in its report that it recognizes the task at hand. "We have much work ahead of us to bring our internal controls over financial reporting to a satisfactory level." The saga of the Heritage restatements dates back to November 2004 when former bank president Robert Keogh passed away. On Feb. 7, 2005, Ives was brought in to replace interim officials who had been filling in since Keogh's death. The following month, when annual reports are typically filed, Ives and his new management team discovered the accounting errors."
Wow ... Mr. Ives saved the bank!
Could have sold this bank in 2006-07 for top dollar, but couldn't make that window because the financials were found out of order - or if you read the new CFO's letter to the SEC, all of the financial records couldn't even be found. What a joke.
Market will suck you in like it's close, but the market is rigged like a carnival. They will short it on May 31 to make sure - naked shorts have three days to cover. So right now it's in the Street's interest to put it in the gray. Every .10 is a $1M in market cap, so not hard to get it where they want it - just out of reach.
So if you are running a business and someone makes an offer to buy it, you have to consider it - which is going to create more value in the long run? And if you are a public company, you have a fiduciary duty to seriously consider it: Which will create more value for shareholders?
If people don't have jobs, why would consumer loans be a good bet? The interest rate is higher, but that's it ... I don't like this deal. $39.6M is almost $40M, right? This isn't any little matter.
Float is over 21M shares ... so even a few hundred thousand traded is a drop in the bucket. The big money doesn't mess with dollar stocks ... this is strictly retail.
Zenpenny could be overconfident about there not being another capital raise. Written Agreement has not been lifted; Gov't. could say you need more capital. Bingo ... you get another capital raise and it's probably priced at $0.65 .. that wouldn't be good.
Translated: We're going to sell this bank as soon as we get a good price.
Old people getting older every year.
More millennials enter the work force every year.
Less need for big branches.
TOWN is like an old big Cadillac ... great for old people ... but for how long?
Want serious advice: Never count on reversion to the mean.
Lady from Newport News said several years ago, "They just had something like five meetings over here. Next one will be on the Peninsula."
So how did that work out?
Without Russell MNRK is overvalued. 1.31 book should be more like 1.10. That would put it back in the $9.30 range.