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Posted

kab60,

 

I suppose Mike has gone to bed now, so I take the freedom to link to Mike's four-liner post about the bank here. Pretty amazing what this bank is pulling off right now, actually.

 

- - - o 0 o - - -

 

John - the Motley Fool Board on BRK has some outstanding commentary and valuation analysis as well. FYI.

Thank you, Mike.

Posted

Added to Metro Bank (MTRO.L) - UK exchange

Hi. I've been looking a bit into that. Seems very interesting. Have you seen a decent writeup anywhere or mind to share a couple of points?

 

If you PM me - I will send you a writeup. I spent 2 days onsite in London in June at the bank.

Posted

Added to Metro Bank (MTRO.L) - UK exchange

Hi. I've been looking a bit into that. Seems very interesting. Have you seen a decent writeup anywhere or mind to share a couple of points?

 

What's obvious is the deposit growth, which is incredible. The culture is based on the Commerce Bank model, that Vernon Hill "invented" in America.

The culture is real - I can tell you that. Both customers and employees love this company. You have 56 "stores" going to 100-130, roughly in 5-6 years.

The "store model" is totally repeatable - and UK will eventually support, perhaps, 200 stores.

 

There are structural reasons for the growth - by that I mean - the UK banking sector is being forced to shrink (I mean the legacy banks) as the

UK regulators and the public's interests have not been served. (RBS is still 65% owned by gov).  So some assets are being dispersed, the market is opening up, and

legacy branches have closed at a fast rate due to cost cutting and poor locations. So there are significant industry tailwinds for the

growth of "challenger" banks. Metro is the best of them all. It's the fastest growing bank I have ever seen in my life.

 

 

Posted

kab60,

 

I suppose Mike has gone to bed now, so I take the freedom to link to Mike's four-liner post about the bank here. Pretty amazing what this bank is pulling off right now, actually.

 

- - - o 0 o - - -

 

John - the Motley Fool Board on BRK has some outstanding commentary and valuation analysis as well. FYI.

 

 

Thank you, Mike.

 

My pleasure John - thank you!

Posted

My recents adds were BLX, CUERVO.MX, TI A and FB.

 

I own all four of these... do we know each other? ;) BLX in particular very interesting here.

 

BLX intrigues me. I don't see a thread on the company. What's your 30-second elevator pitch? :) Or can you point me to a decent writeup somewhere?

 

I don’t do elevator pitches :-). There is a good write up in VIC from 2014. The stock is significantly cheaper now in termsmof P/B. The ROA improvements  that the author eluded to never worked out. I have owned this several times in the the past and bought it below tangible book sndmit always worked out.

https://www.valueinvestorsclub.com/idea/BANCO_LATINOAMERICANO_DE_COM/117860

 

 

Posted

My recents adds were BLX, CUERVO.MX, TI A and FB.

 

I own all four of these... do we know each other? ;) BLX in particular very interesting here.

 

BLX intrigues me. I don't see a thread on the company. What's your 30-second elevator pitch? :) Or can you point me to a decent writeup somewhere?

 

I don’t do elevator pitches :-). There is a good write up in VIC from 2014. The stock is significantly cheaper now in termsmof P/B. The ROA improvements  that the author eluded to never worked out. I have owned this several times in the the past and bought it below tangible book sndmit always worked out.

https://www.valueinvestorsclub.com/idea/BANCO_LATINOAMERICANO_DE_COM/117860

 

Much appreciated. I will check out that VIC writeup!

Posted

TFSL- the thrift. They did raise the dividend as valuedontile thought they would. it’s yielding  6.4% now

A large thrift that has yet to make its second step conversion is TFS Financial Corp (TFSL). It has been in-between that 1st step and 2nd step for over 10 years and looks unlikely they'll make the 2nd step conversion anytime soon as they have no need for the additional capital.

 

They continue to pay dividends and buy back stock though shares have gone nowhere and it has underperformed over virtually every timeframe. It is cheap and has remained cheap. I have it trading at less than 0.45x BV and ~8.5x earnings.

 

It is nearly impossible to predict when these things will make the leap to the 2nd step conversion. These are sleepy little things... Sort of like watching paint dry...

 

I think there was a KBW report (many years ago) that looked at mutual conversions in-depth, timing, performance, valuation, etc...

 

 

 

 

 

 

 

 

 

 

dividend

Posted

Versabank - A small Canadian (branchless) bank trading at less than 5.5x next years pre tax earnings, 75% of book, & a return on retained earnings going forward north of 30% (earnings growth north of 30%), running on debt to equity at around 8.5x or ~40% of the leverage other Canadian banks employ & with stronger insider buying than I've ever seen in any other opportunity I've looked at.  (My estimates)

 

I think it's misunderstood as being (over)exposed to Canadian real estate when it's really a secured lender (mostly small receivables with significant holdbacks) that is unlikely to incur meaningful losses even in a Canadian downturn. 

Posted

PZA.TO: Pizza Pizza Royalty Corporation - currently yields over 9%; historically pays out 95-100% of income to shareholders (royalty corp after all). Stock is under pressure due to weakness of pizza delivery due to US entrants and Uber Eats and other direct delivery companies, but the drop feels like it's overdone now. Even if dividend needs to be cut (Q2 weak results could be a harbinger of declining revenues), the yield should still be over 7% at these prices.

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