Search Results for: merchant's bancshares
Merchants Bancshares Inc (MBVT) – Buy
Merchant’s Bank (MBVT) is a Vermont based bank that I currently do the majority of my banking with. Not a very exciting business, but they have been very stable with moderate growth and a large reliable dividend. Makes for a great investment during these uncertain times.
This bank does not have the exposure that other banks have to the sub prime mortgages. They keep and service the loans they make and because of this they have maintained high standards for loans.
Merchant’s Bank will survive and continue to the thrive and reward investors who stick with them.
I initiated a new position today and will continue to add more if the price continues to drop.
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.