junto.investing

I'm assuming several on the Board have taken this exam. Any recommendations on study guides / books?

Sanjeev, how much do you know about Stilwell? And how confident are you with the stated book value?

Tariq, thanks for the thorough response. I would agree with many of the issues that you've highlighted - which is why, when dealing with thrifts / MHCs, I've focused mainly on activist situations. I recently purchased shares of STND and am now taking a look at FFCO. Can you share some of Stilwell's points from Grant's?

I've been finding some interesting opportunities in recent mutual-to-stock conversions. (post-ipo) However, there seems to be a better opportunity pre-ipo. (for current depositors that is) Does anyone know of such thrifts that could potentially go public in the near future?

All info is now available on KCC LLC's website. Below is my interpretation of the 3 plans: Charlestown Plan - Charlestown will purchase 55% of the company. Shareholders can retain their shares or sell their shares for 35 cents. In the event that Charlestown is unable to acquire enough shares to meet the 55% mark, shareholders will have to sell a portion of their shares. In the event that more than 55% of shares are tendered, shareholders will have to keep a portion of their shares. All in all, this plan will contribute $38 million. (23 in equity; 15 in secured debt) Furthermore, existing management will be replaced. Legendary Plan - Existing shareholders will receive $20 million of "New MMPI", which should be the equivalent of $0.23 a share of "Current / Old MMPI." Existing shareholders will also be given the right to purchase an additional $10 million worth of stock at this price. No cash out option on this one. This plan will contribute $80 million. (15 in equity; 65 in debt-to-equity conversion) In the end, shareholders should end up with approximately 30% of the company - give or take, depending on each shareholders level of participation in the rights offering. Legendary's principals assume CEO role. Debtor Plan - "No dilution" for first 4 years, after which Watermark Properties can convert its $15 million worth of debt (this serves also serves as the cash infusion). Cash out option of 25 cents a share. Existing management stays in place. Creditors committee has pretty much recommended all 3 plans, while the equity committee (Chaired by Stephen Taylor, who is a beneficial owner of more than 10% of the co.) has recommended the Charlestown Plan. All 3 plans are similar in the sense that they will have to dispose of assets. MMPI seems to have some good assets, but unfortunately they do not generate much cash. Their vacancy rates are also relatively high for the Greater LA area. Certainly an interesting situation. They will still have a lot of work to do upon emergence. As stated above, this is simply my interpretation. For those of you who have followed this a bit more closely, let me know what I've missed or misinterpreted. Full Disclosure: Long MMPIQ

Josh, have you received any paperwork for MMPIQ yet?