This is how I see it. The number of shares sold will determine the exchange ratio. The exchange ratio will determine which shares are a better buy. Let's say you buy 1000 shares at $27 and they sell all 264.5 million shares then the exchange ratio will be 3.0702. The 1000 shares will become 3,070 shares times $10 or $30,070 so you will have made $3,070. If they sell the minimum then the exchange will be 1.9733. The same 1000 shares would become 1,973 at $10 or $19,733 or you would lose $7,267. Or the exchange ratio could be anywhere in between. If you buy existing shares you may make or lose money but if you buy new shares you'll break even. Despite all of that what you are buying is a bank that raised $500M in initial 1st step and grew assets from $5.5B to $15.8 billion and income had grown significantly and they are paying a dividend. What you need to decide is what will they do with up to $2.65B. I don't think it's not so much about buying existing share or new shares but where this bank and stock will go once they put all that new capital into play. I'm betting that it only goes up from here. I bought in the original IPO and my initial investment has nearly triple. I hoping for even more this time around. MHO
Sentiment: Strong Buy
Both ISBC and KRNY went public in 2005 and I bought both. Investors has grown from $5 billion to what will be around $14 billion once the Roma acquisition is complete and their earnings have increased steadily as they put the capital into play. KRNY has done very little with the capital they were given where ISBC has almost tripled in value. So here's what I recommend....sell this and buy Investors Bancorp ISBC before they announce their 2nd step. Way more upside to ISBC than KRNY in my opinion. Sold my KRNY long ago but I have done very well with ISBC.
Here's a bank that been around since 1868, that's only 3 years after the end of the Civil War, one of the oldest in the U.S. They have sucessfully negotiated and survived WWI, the Great Depression, WWII, and everything in between and since. But just 13 years as a publicly traded company and only 7 of those as a fully converted company and they're gone! Does this show that the demands and expections of Wall Street cause these previoulsy conservative institutions to take risks that they never took in the prior 140 plus years? Makes me wonder if being a public company was the best thing for them. Any other thoughts on this?
The week of March 2, 2009 just after Obama took office this stock bottomed out at 8.15 in the midst of the worst economic disaster since the Great Depression. The stock has since steadily recovered to around 16.70 or over 100% since then. So what's the problem exactly?
I give up trying to figure it out. It just seems like earnings don't matter. I think everyone is just waiting for them to do their 2nd step. Any thoughts on when that may happen? Afterward they should start paying a dividend too and then this thing will finally start to take off....I hope!
ISBC released earnings yesterday at .14 per share. Analyst consensus was .12 per share. Stock barely moves today - up .06....I'll never understand the stock market!
They also say they have 9.7% capital. Did the new financial regulations raise the requirement from 6% to 8%? If so, does that mean the 2nd step will happen sooner?
ISBC is 1 of 12 banks/financials that this person likes.
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Maybe they're just burning through their excess capital so they can do their 2nd step sooner.
Anyone want to guess when they'll do their 2nd step? I bought the IPO and sold but I don't think I'll buy this one again in the 2nd step.
KRNY announced that they are acquiring CJBK for $7.50 per share when the stock of CJBK was trading at $3.08. Today CJBK is up $3.91 and KRNY is down 32 cents. CJBK adds 13 branches and $500 million in assets to KRNY. Why would KRNY pay so much for this bank? Any thoughts on this?
I respectfully disagree. They may be true for the last 3 or 4 years because of all the financial mess but I think better times are coming soon. If you held HCBK since it's IPO in 1999 you would have made something like 600 or 700% by now. Also, I want to be holding this stock when the second step happens so that I get the stock split plus second step pop. Lastly, once the second step happens I think you'll see this bank start to pay a dividend and that'll be on my increased number of shares. I think this one has a long way to go. I'm in this one for the long haul.
ISBC issued a press release today saying that they are acquiring the deposits of Millenium BCP bank for a premium of .11% plus some select loans. They are acquiring 17 branches, 3 of which are in NY and 5 in Mass. No shares required for this acquisition so I guess it's a good deal.
Any thoughts on this?
This stock appears to have temporarily shifted into idle. Most likely some profit taking going on at this level given the quick run up recently. Maybe it will pick up again after the next earnings report.
Not until after they complete their 2nd step. Go into their website and find the link to the last qtr conference call. You can call in and listen to a recording of the call. One of the analysts asked that very question.
You should go into the ISBC website and find the recording of their last earnings report conference call and listen to it. If you do you'll hear that they don't currently plan on paying a dividend until after they do their second step. Reason is that the FDIC, which governs them, won't waive the requirement for the dividend to also be paid up to the mutual holding company. This they say is not where they want to put their cash. They also said that if the equity requirements are raised from 6% to 8% then they'll consider doing their 2nd step sooner. Sit tight and enjoy the ride.