Comments for HOME - Stockpickr! Your Source for Stock Ideas

Comments for HOME

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barrons2	One area of recent interest to Keeley and his team is savings-and-loan and insurance conversions, since they allow the Small Cap Value Fund to buy a new stock without an underwriter. They bought Home Federal Bancorp (HOME), a Nampa, Idaho-based former mutual savings-and-loan that just completed a conversion in December 2007 at $10. "The proceeds of the conversion give Home an equity-to-assets ratio over 27%, among the highest in the country," according to Zahorik, who doesn't rule out that the company will be acquired at two times book value, or 23.50 per share, after three years. It recently was at 10.80. "While many community banks and thrifts are thinly capitalized, Home is heavily overcapitalized, yet still trades at just 87% of tangible book," Zahorik says. "In late December, Home will be permitted to deploy capital in the form of stock buybacks. Given the high level of excess capital, these buybacks could be substantial." Earnings estimates are 24 cents a share for this fiscal year, and 26 cents a share in 2009.	Love	August 09, 2008