Once again, I added more to my position today in Community Bancorp (CMTV) at $16.10.
Still my largest holding and a great opportunity.
Why Community Bancorp?
The stock has fluctuated a lot most likely due to overall market pressures and due to trading over the counter. However, the company is very stable, growing and is located in a market that has good loan growth potential.
Like Merchant’s Bank, it’s a smaller local bank that doesn’t engage in risky financial business. Since Community Bancorp is local and it’s market is more local/small business, it should be less impacted by national issues such as the trade war with China.
Update on Valuation
Community Bancorp currently trades at a:
- PE of 10.7
- Price/Book of 1.4
- Earnings Growth rate of 10.84%
- PEG of .99
- PEG payback in years is 7.22
- Dividend yield is 4.72% (based on most recent dividend payouts of .19).
One of the better dividend yields for the low risk nature of this business. It’s got a low book value and PEG, not as low as Capital One (another recent holding), but with a less risk in my opinion and the dividend is a big good selling point.
However, if it should have a significant increase from this point I will probably sell some if other opportunities arise as I have a larger percentage of my portfolio in this single company than I’m usually comfortable with.
However, I’m fairly comfortable parking a significant portion of my capital here while waiting for other opportunities to diversify.