6/7/2011: Hughes Market Letter:
OK, RMGC taken at $17.47 in cash. A 140% premium to Opus Bank, a private bank, we know nothing about. Sell and run.
More banks still failing each week, yet this bank had some issues and they got 1.32 times tangible book. Wow.
Haven’t seen a pop/premium, like this since 2002.
This puts a floor on KFFG, add heavy under $11.50.They should sell in 3 years ( not 2 years like we said last month.) but close to $30.00 now with the RMGC deal.
PROV is trading around $7.30, insiders bought a bunch at $2.50 or so. Looks like they were right, this bank has earnings power and will make it. Load up now, worth $17 sooner than later on this one, more risk than KFED but much sooner pop, maybe.
Insiders own a lot, and the P/E if all goes right could be 4-5 next year on this one or lower! Enough said P/E always just as important as book value in a deal for banks.
RCBC $52.00 Worth now easy $125+ a share. Buy all day under $55 and hold till they sell or gets to $115.00 or so in a few years.
OK, enough with California, over here on the east coast, AF, should be next. If nothing happens within 6 months sell.
STI worth a shot under $25 for stock or again 30 calls July / August safer if banks stay weak. If nothing happens by year end sell, all stock period.
MCPH and FCBN still great values, just thinly traded, but so was RMGC and look what they got.
We have covered all of BAC today “short” wow a great hedge/trade again.
Banks very weak. Good time to scope up some good ones this week and maybe all summer!!
FMER and UVSP are two that can be added to now.
SAVB a bank in South Carolina under $7.50, worth a look, great management team, and bad real estate market. Sale price $15 possible this year, don’t think they will go under. Buy heavy for aggressive accounts.
IBKC adding a bunch this week.
MUR all in again.
HughesInvestmentManagement.com
BankNewsletter.com
1-888-814-7575
Dhughes33@charter.net
