Particular stock: CBNJ Cape Bank (Cape May, NJ)

Crash

I like to sometimes just imagine, dig, and find stuff that doesn't carry the huge name recognition of the players you see every day in the news.
CBNJ.
It is merging with another small banking outfit (Colonial) in south Jersey and the deal is being finalized, but not yet. I looked at it. I like the share price. You could buy oodles of shares for not much money. And the dividends. But I'm no expert. I dunno about the fundamentals. I can read the Yield numbers and the P/E..... If any of the rest of you would like to take a look and offer thoughts, I'd be interested. Thank you. And the beta doesn't seem awful on it, either.
http://www.reuters.com/finance/stocks/overview?symbol=CBNJ.O
http://quotes.morningstar.com/stock/cbnj/s?pgid=hetopquote&t=CBNJ

catch22

Guess I would want to know why the stock price is down -12.26% in the last year.
I personally wouldn't buy a regional bank useless I had a complete understanding of the operation, the marketplace and their competition.
I would not care about yield........nor price. You can find lots of inexpensive stocks; but the price may already be reflected in the true value, too.

If I wanted regional banks, I would buy the eft and get the blend.

Crash

I see. Thanks for that, Catch. Could it be that the cost of the merger with Colonial is priced into the -12.26% fall in equity shares?
2/18/14 was a 1-year high. Then on 9-11-14 it fell 5%. Then on 1-30-15 it hit a 1-year low. Then on 2-6-15 there was "unusually high volume."

Jan. 30th, 2015 press release re: earnings and dividend, plus mention of the ongoing steps toward the merger. CBNJ will swallow Colonial and Colonial's banks will become CBNJ's bank offices around south Jersey. That date can't be a coincidence.

http://news.morningstar.com/all/ViewNews.aspx?article=/GNW/10117822_univ.xml

scott

Valuation seems reasonable, it's trading under book, although it has been for a few years now. It hasn't performed that well (in general + comparison to peer group) and I wouldn't be able to analyze why. It would really be an instance of you live nearby it and are familiar enough with it to have a strong feeling/be willing to do the DD on it. I wouldn't go on yield as that could change tomorrow.

In terms of banks, I'd rather suggest BNS, which you mentioned a while back. Canada has its share of problems - absolutely - but that's down substantially, operates in many different countries, has a better yield and has been around since 1832.

If you're local to this bank though and feel strongly about it, do more research.

Crash

I appreciate your entry here, Scott. I've not forgotten about BNS, either.
No, I'm not quite local to CBNJ. I can say that I went to school in Jersey back in the early '90s.... I have recently run into "The Cape Cod Bank" also, but can't find anything about how to invest there, or if it's worth even the very thought...

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Crash

Thank you a lot, Maurice.

catch22

@Crash

This is a short list for regional banks via an etf; that excludes inverse or leveraged etf's.

What attracts you to this bank and/or regional banks in general?

Just my opinion, of course; but I don't find anything appealing for this area at this time.

Crash

Zurich Axioms: You can trust a hunch if it can be explained. Which is why I ask around for more knowledgeable opinions and do some serious digging before committing to buy a new thing, like a regional bank/banks. It would be easy for me to let this one go and move on, just like so many others. I'm an "intuition-guy," remember. But if ya pull the trigger before you have a good sense of what the data is telling you, then yer just shooting yourself in the foot. I'm grateful for your sharing your thoughts and questions here, about my idea.