"The purchase price for these air rights was $13,000,000, of which RCI Holdings contributed $5,200,000 in connection with the overall business transaction." YIKES!! $5.2M out of pocket right off the bat. Rick wants this NY location bad. But it's not worth it ... too much risk the zoning can be changed in the future.
Got to repay SBLF. Have a couple of more years before the interest rate increases, but it's risky to wait. Markets could deteriorate at the wrong time. IPO market is relatively hot ... so watch for it.
You wouldn't SEC deregister and then attempt a capital raise to repay SBLF. Without SEC filings, it's just going to really hard to raise capital. They can line up however they want and talk like they are going for it ... but you know the truth ... it won't happen ... they are going to sell out first.
Plus added more to CD's in other banks. Why bother going to the bank to buy your own CD when you can just buy more HBKS stock?
Virginia Supreme Court ... they will call it the way they see it. No politics involved ... that's probably shocking to people in Portsmouth.
MNRK stock price rocket shot since Jan. 2012 soon headed back to earth ...
“Lender Processing Services provided the media with a “first look” at the company’s mortgage performance statistics for the month of September….LPS counts a total of 3,266,000 mortgages nationwide that are 30 or more days past due but not yet in foreclosure. That tally represents 6.46 percent of all outstanding mortgages…..
Of the more than 3 million delinquent loans, LPS says 1,331,000 have missed at least three payments but haven’t started the foreclosure process. Another 1,328,000 mortgages are currently winding their way through foreclosure pipelines, according to LPS’ data….
All-in-all, there are 4,594,000 mortgages going unpaid in the United States.” (“Number of U.S. Mortgages Going Unpaid = 4,594,000″, DS News)
9% Convertible investors have to be buying the company line: "We're going to appeal and decertify the class." Sure ... not a problem.
So here's RICK on Shark Tank:
"I'm offering 1 share of my company for $11.31.
What, do I hear a question already, sure go ahead ... You're asking: "Why is it not overvalued?" and "Do I take a salary?"
Wait ... I haven't finished my presentation yet."
Four ways to value a small bank. P/E and DCF are only two.
Got two more to go ... uh oh .... doesn't look so cheap now.
1. Could discourage customers.
2. Could discourage employees.
3. Could make potential acquirors mad because bank is pumping up the stock price.
4. Risk to reputation if you don't get a good bid.
5. Puts you in a weaker negotiating position.
But none of that stops a bank from dropping little hints.
pros see a tell-tale problem in the financials. You know, a trained eye can spot these things quickly.
CEO is trying to tell you ... don't sell now. You don't have any risk of a capital raise, so safe to hold on for a sale of the bank. Also, earnings out of the way for another quarter; relax, you've got it made now.
What the professionals look at ... P/E is often misleading.