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Jefferson Bancshares, Inc. Message Board

sambordulac 3 posts  |  Last Activity: Jul 9, 2014 10:40 AM Member since: May 25, 2000
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  • Reply to

    Is this a Good Value?

    by workallday997 Jun 2, 2014 9:04 PM
    sambordulac sambordulac Jul 9, 2014 10:40 AM Flag

    Hi, Functor,

    Maybe my exit price for FOFN was $1.8. I remember it was like 10% less than yours.

    Near Birmingham, SZBI perked up.

    SZBI got the blessing from regulators to book some tax asset (2013 annual report) and to buy back some TARP but it missed the dead line with the Treasury to bid on its TARP directly. Either way, portion of the TARP will be bought back in the near future along with the TARP dividends that was not paid due to regulators' earlier concern about its capital.

    While this speaks well for its achievement, its mortgage banking and lending both softened. As long as it earns a positive return, additional tax asset may be put back on the book. There was $0.8M left as of 4Q13.

    Inland Alabama is not growing. To grow is to take business from others, not an easy task, nor fruitful at times.
    SZBI may not make much money this year but it has a solid CEO in Randall Fields.

    I doubled my holdings between $2.6 to $3.0 per share. Tangible book value including tax asset is around $8.5 per share.

    Unlike FOFN, no dilutions for SZBI. Diluted share count was 0.72 million.


  • Reply to

    Is this a Good Value?

    by workallday997 Jun 2, 2014 9:04 PM
    sambordulac sambordulac Jun 29, 2014 11:13 AM Flag

    Hello, Truong,

    I am not around as I used to. Sorry to be so late to rite back.

    I sold FOFN a couple of months ago at $2. The recap at $1 took the book value below $1.5.

    Yes, it's nice that shareholders could participate in the recap but the upside is now limited to $1.5.
    (Still good for share holders who had the money, but most would flip it as they did last week.)

    The CEO who got it in trouble is still there. Sad.


  • Reply to

    Is this a Good Value?

    by workallday997 Jun 2, 2014 9:04 PM
    sambordulac sambordulac Jun 8, 2014 5:35 PM Flag

    Greetings, Mr. Work,

    USBI has the capital. T-1 was 10.99%. It also has a good CEO in James House.
    Loan yield had been off the chart before the recession. Once it sorts out the various problems, I think it can return to high return mode and likely paying very good dividends.
    So, yes, it's still very cheap on the basis of tangible book. It will still be a good value even when trading at the $11+ book value.

    Several hurdles remain.
    Credit is stubbornly high, but seems well reserved.
    It experienced soft loan demand in 1Q14 and loan yield dropped sharply. But I think this may be temporary.

    I don't know when it will turn around, but I am convinced it will. USBI is one of my top five position.



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