Community National Bank

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.