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Small Bank Newsletter
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September 1998
TWO MORE BANK TAKE_OVER TARGETS:
- COMMERCIAL BANKSHARES, INC.(CLBK 19-20) is
a bank holdin
g company whose subsidiary, Commercial Bank
Of Florida, operates 14 branches in Florida’s fastest growing counties;
Miami-Dade and Broward. The company has continued to enjoy excellent
asset quality, with only one non-performing asset of $84,000
or .02% of total loans in 1999. Even with the opening of two
new branches in 1998, these results are quite impressive. While
their efficiency ratio is a little high at 60%, it is sure to
come down once these expansion costs are behind. This also means
there’s plenty of room for earnings to explode here
in the coming years. Their book is 13+ and they pay a 4%
dividend. The bank has only 3.5 million shares outstanding,
and the float is 2.7 million. Accumulate under 21 and buy
all you can under 20. Look for 30+ within 2-3 years, with
little
no downside risk. Possible takeover target itself,
which could fetch at least $36 a share in our opinion. Located
Miami, Florida.
- OLD SECOND BANCORP, INC. (OSBC 30-31) is
a multi-bank holding company with 18 branches, 3 trust and five
mortgage banking offices located in Kane, Kendall, Dekalb, Lake,
LaSalle and Dupage counties. They opened a new branch in Oswego
in April of 1997 and they acquired Maple Park Bancshares in May
of 1997. Accumulate under 30 and buy all you can under 24. If
no takeover occurs, look for $35+ on fundamentals within 2-3
years. Located Aurora, IL.
As always, you may c
all me with any questions on any stock. This
is a free service to our subscribers.
To contact Douglas Hughes via email - dhughes33@charter.net
Personal Account Management: Bank Stock Portfolios.1.25%-1.75% FEE.
$1,000,000 Minimum. Douglas Hughes Hughes Investment Management. 1-888-814-7575.
The Small Bank Newsletter is published 12 times a year. (To
Subscribe: 1-888-814-7575).
- Douglas Hughes -- Small Bank Newsletter, Hughes Investment Management
, can and does take positions, in stocks it recommends.All material
Copyright© 1995-2003 by Douglas Hughes. Reproduction of this
publication in whole or in part is strictly forbidden.
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