GREER, SC --Greer Bancshares Incorporated, the parent company of Greer State Bank, today reported first quarter net income of $1,153,000 or $0.46 per diluted common share, an 80% increase over the prior year first quarter net income of $641,000 or $0.26 per diluted common share.
I've had some thought about this as well - as I have only 1000 shares of PDEX in one of my accounts and the brokerage wants a $30 fee for exercising. As I get 440 shares, this comes to a fee of about 7 cents/share + $1.90 and I'm not getting much benefit compared to the current market price, so I actually decided not to exercise for those. In another account I have a larger position and though that brokerage also charges a $30 fee, it is negligible compared to the number of shares.
The other point to consider, even though there is a fee to exercise, you should consider that if you were to purchase additional share directly in the market, because of the poor liquidity, it may be difficult to purchase the number of shares you're getting through the rights. If for example, you're getting 5000 shares, the likelihood of being able to purchase that much at a price below $2 is probably pretty slim (at this time at least).
Anyhow, based on the $1.90 price, fees you may need to pay, and the weakness in the overall market, there is something to consider. There's still a little time until the 24th, there's still time to decide.
Zacks SCR/Brian Marckx put out an update of his quarterly BMRA report and the press release is quite favorable with good forward-looking expectations.
Remainder of 2014 (takes us into fiscal 2015) looks to be very good.
Breakeven quarter posted, total sales up 5% from same quarter last year, China sales increasing as CEO has previously indicated.
US sales year over year for the quarter up 100%
Europe basically flat.
Asia sales $383,000 vs. $80,000 last quarter
This is just the beginning - hold on tight!
Absolutely - but most folks would like to see profits year round and not a company that can only perform 50% of the year. Why own the shares today if you know that the company is going to post two weak quarters? I'm not betting on the buyout scenario, so I doubt anything is going to happen in the next 4 to 6 months, and I'm not waiting around that long for the next press release. I'll be looking to buy shares beginning around mid-July unless for some reason the shares get back to $1.50s before then.
I thought I might have made a huge blunder unloading all my shares above $4, but now I am smiling!
I began buying today, and will buy more if the fools who overbought want to sell and get out of their (losing) positions.
Next buy is at $3.55 - shall we go there?
Can't believe we're getting another chance to buy below $19. I'm nibbling with hopes of being able to get more at an even lower price.
The markets deserve to be down, however, not every stock deserves to be down.
This could be a wild ride, so, accumulate additional shares slowly. We know shares will be going higher, but an irrational market can send the shares irrationally lower first. With the poor liquidity in daily trading, shares can fluctuate very rapidly up or down. Best bet - set pre-planned buy points and watch the trading for when the shares get close. I've personally found that using limit orders for buy or sell does not work very well here, as it is displayed for all to see and as the shares get close, the trading can move the shares against you. Better to watch and place the order when you're ready to buy or sell. Further, this prevents you from getting a bad or unexpected fill if the shares spike up or down for some reason.
Anyhow, I picked up shares today, and hope for more below $18.
I'm right here willing to let you book your losses.
Nobody denying that. However, having made that much money last year, and the amount made in the prior year, we have a book value today above $6/share and company will be profitable going forward.
"merger revenue gain is a smoke & mirrors transaction."
Agreed - which is why, when figuring the Q4 numbers I backed out the adjustment that they took for it - because it was a negative $2+ million for the quarter and if you include that, the quarter shows a loss of 17 cents/share.
"I want to see some real organic growth or more merger activity. I don't want to sit at 425 million for any length of time, they need to hit a billion threshfold for traction or we simply become one of many small banks waiting to be acquired for a small premium over book."
Agreed again. And, coincidentally, I know the way they can move along and take a jump in that direction...merge/acquire my other (undervalued) bank with a similar focus in the same region - BVA. They'd pick up $235 million quickly and get a management team that thinks the same as the team here does.
You should probably take the investment class bankjerk. Everything in my post was correct. I was buying ONB below $13.40 and tons the day it dipped under $13. I have made a huge sum of money in only 6 weeks and have locked in my gains as the shares rose back above $15. That is how you invest. Sorry you were unable to follow my lead as I handed it to you. But, if you think you're right, you're right - I'll take my money and you can think whatever you like.
hey thanks for that - I hadn't even thought about it until you just mentioned it. I'm not "local", but could certainly take a one or two day trip to drive down.
"Eliminating the adjustment to the bargain purchase gain, Q4 bottom line was a profit of 9.8 cents/share"
And adding back in merger-related expenses in the quarter brings it to 10.25 cents/share. So, going forward, my estimate is probably on the conservative side.
dbn - thankfully the implications of waiting to the last moment were not applicable here.
I've taken some time and gone through the 10K correlating the income statements from Q3 with that of full year to get Q4 performance. Eliminating the adjustment to the bargain purchase gain, Q4 bottom line was a profit of 9.8 cents/share.
Full year they posted 39 cents/share. Going forward, if we get a nominal 10 cent/share EPS per quarter, that's looking at 40 cents/share/year which puts current PE at about 12.
This performance confirms the bank and management are on the right course, and 2014 should bring further movement in the right direction.
Shares are undervalued at this time.