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Small Bank Newsl
etter
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December 2003
STATEN ISLAND BANCORP INC (SIB $20.10) serves as the unitary
holding company for SI Bank & Trust providing retail and commercial
banki
ng services with over 660 employee’s and over $7 billion
in assets. Their mortgage subsidiary serves over 42 states. This
month we will
be right to the point. We think they are in play, as they stated
on 11/13/2003 themselves, that they are looking to maximize shareholder
value.
We would buy a full position now under $20.20 and trade this one
in and out over $20.89 and hold ½ of your position as a core
position
. Look for a deal sooner than later around $23 –23.50
a share.
They have 58.76 million shares outstanding and a book value of $10.75
a share. The stock has been all over the place as the Bank has had
many missteps the past few years. That’s why they have given
up, we feel, and are selling now in this high priced deal market.
They pay a nice 2.80% cash dividend as well. If no deal comes by
the end of the month, sell and ge
t out, period.
This stock is liquid and trades plenty. This does have 15% downside
risk if no deal comes.
They have been around since 1864 and its time
for them to go. We think Washington Mutual (WM) is the best suitor
out there. Since
their stock has risen nicely lately, we think they could pay the
most and should get this Bank as they would be a good fit and could
help fix SIB’s mortgage departments mess.
Located Staten Island, NY.
FOLLOW UPS:
1. LEGACY BANK (LBOH) great earnings, hold.
2. OAK FINANCIAL (OKFC) good earnings and asset quality
is cleaned up. Buy more up to $40 a share.
3. NORTH CENTRAL BANCSHARES (FFFD) earnings still very strong
at $0.90 a share in the latest quarter, and they are building one
new
location. Hold.
4. TEXAS UNITED BANCSHARES ( TXUI) great earnings and they
split the stock three for two. Very strong growth. Hold.
5. CNB BANCORP (CNBI) earnings down a little in the latest
quarter. They raised their cash dividend by 5.6%. Hold.
6. MIDLAND CAPITAL HOLDINGS (MCPH) great earnings of $1.47
a share in the latest quarter. Buy more under $31 if you can find
i
t. No
growth, so maybe a sale will come here also. Worth at least $50
a share.
The bubble is near the top. BE CAREFULL !!!
