Maybe you don't have a google alert for "Enloe State Bank" set, but never fear, I do and I would like to present you with what is possibly the ending of this small bank's sad story: https://t.co/5TgprvbtaZ— Kiah Lau Haslett (@khaslett) February 24, 2021
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You saw our post last week about the Bank of Utica 2020 Annual Report. On Twitter, @MidwestHedgie
I know that none of us like the CEO, and his annual letters are like "Fuck you, everyone! Also, we plan to barely make any money!" from beginning to end, but in spite of that, we've added to our bagholder status in $BKUTK. Why?— Midwestern Hedgie (@MidwestHedgie) posted a good tweetstorm that we thought was worth sharing:
$BKUTK trades at 0.40x tangible equity. Unlike every other bank in America at this price, there is not a credit quality issue (the company barely makes any loans). They have a great municipal/commercial deposit franchise, which they invest primarily in short-to-intermediate debt.— Midwestern Hedgie (@MidwestHedgie) February 26, 2021
So, long $BKUTK you are getting:— Midwestern Hedgie (@MidwestHedgie) February 26, 2021
a pain in the ass CEO
a 3.95% (and growing) dividend while you wait for a re-rating
high margin of safety in price (0.4x tang book)
core earnings set to move significantly higher
potential windfall move higher if they ever buyback shares