Community Bancorp

Amazon.com, Inc. (AMZN) and Community Bancorp (CMTV) – Buy

    

Once again, I added more to my positions today in Community Bancorp (CMTV) at 15.75 and Amazon.com, Inc. (AMZN) at $1753.13.

Amazon is now my 3rd largest holding and Community Bancorp is my 4th largest holding. Rankings for top holdings are located here.

COMMUNITY BANCORP

I continue to believe Community Bancorp is a safe income investment. It’s pulled back a bit more since my previous purchases, the but the business continues to grow. Revenue, income, equity, book value all consistently growing. The dividend yield is currently 4.8% is great! 

While I’ll don’t see any huge gain in value of the shares, it’s a great place to put some money to produce income while minimizing risk to national or international risk factors being that it’s a very small local bank here in northern Vermont.

Valuation

  • PE of 9.6
  • PEG of 1.01
  • Price/Book of 1.3
  • Dividend yield is 4.8%

AMAZON

This follows up my purchase from last week to build up the position further.

Amazon was under more pressure earlier after their quarterly results and guidance disappointed some. The company is switching back to investment mode and should be seen as a long term positive. One Day shipping is proving to be expensive but will provide them more of an advantage over competitors. Growth in ad sales is going very well and they can use that to offset increased shipping costs.

It’s expected to be another record holiday sales year for e-commerce and Amazon will benefit.

Here is my previous analysis on both Amazon and Community Bancorp:

Community Bancorp (CMTV) – Buy

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.

See more comments on Community Bancorp here.

Community Bancorp (CMTV) – Buy

Once again, I added more to my position today in Community Bancorp (CMTV) at $16.55.

Still my largest holding and a great opportunity.

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.

See more comments on Community Bancorp here.

Community Bancorp (CMTV) – Buy

Once again, I added more to my position today in Community Bancorp (CMTV) at $16.80.

Now my largest holding. I still think at this level, it’s a great opportunity.

At this level it the stock now pays a 4.03% dividend yield. Rising interest rates, deregulation and more favorable corporate tax rates should help boost earnings power for banking companies such as Community Bancorp going forward.

See more comments on Community Bancorp here.