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Happy Halloween. Trick or Treat. Picking winning stocks is like taking candy from a baby. Today I sold SFBS at 54.02. That’s a 15% gain over my purchase price of 46.92 when I loaded up the truck and bought this stock last November. Over the same period, the S&P 500 went up only 2%. Oh yeah…on top of that I got another $0.30 of dividends. I love dividends.
What is better? 15% or 2%? You see how superior I am? I am HUGE! Bring me your finest meats and cheeses for I am the greatest stock picker in the world. How HUGE is $$$MR. MARKET$$$??
· He has never lost a sock.
· His photograph once won the Oscar for movie of the year
· He answered the riddle of the Sphinx incorrectly, so the Sphinx changed the answer.
That makes 68 consecutive profitable trades of 15% or better. Did you do that? You? YOU? YOU???!!
We’re back on the choo choo train of winning stock picks. Another pick is coming your way. Do you want to see it? Let me know.
I am HUGE!
$$$MR. MARKET$$$
================================================== ===================================
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11-18-2015, 10:22 PM #1 mrmarket's Avatar mrmarket mrmarket is online now
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Default SFBS ==> The Picture Lake Winner
Big wheels keep on turning
Carry me home to see my kin
Singing songs about the Southland
I miss Alabamy once again
And I think its a sin, yes
Well I heard mister Young sing about her
Well, I heard ole Neil put her down
Well, I hope Neil Young will remember
A Southern man don't need him around anyhow
Sweet home Alabama
Where the skies are so blue
Sweet Home Alabama
Lord, I'm coming home to you
Lynyrd Skynrd had quite a lot to say about Alabama. They probably would have sung about some other states too but unfortunately a tragic plane crash ended their careers too early. The guy who lived down the hall from me in college was really bummed out. He didn’t come out of his room for like a week after it happened and he played “Free Bird” non stop the whole time. WTF. Meanwhile, the University of Alabama’s football team – the Crimson Tide – are rolling towards yet another NCAA championship. You heard it here first.
Not only is Alabama great at music and college football, they also do banking very well also. So based on these facts alone, I decided to buy me some Alabama bank. Today I bought ServisFirst Bancshares, Inc (SFBS) at 46.92. I will sell it in 4 to 6 weeks at 54.02. Here’s why I love SFBS:
First of all, I just love this chart.
This stock is up 49% in the last 12 months and it looks like it is headed for stock market glory. All of this is going on and its PE is still only 21. The stock also pays a dividend of 0.5%. That dividend may not seem like much, but it’s a lot better than what you get in your savings account.
ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides banking services to individual and corporate customers. It offers various deposit products, such as demand, time, savings, and other deposits; checking, money market, and IRA accounts; and various certificates of deposits. The company also provides commercial lending products, such as seasonal loans, bridge loans, and term loans for working capital, expansion of the business, or acquisition of property, plant, and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It operates 13 full-service banking offices located in Jefferson, Shelby, Madison, Montgomery, Houston, and Mobile Counties of Alabama; and in Escambia County, Florida. The company was founded in 2005 and is headquartered in Birmingham, Alabama.
Everyone is crowing that the Federal Reserve will raise interest rates at its Dec. 16 meeting. This is making some bank stocks very interesting. Why? Rising rates will increase the spread between interest paid on deposits and interest received on loans, increasing bank profits. That’s how banks become money machines. They take your money and give it to somebody else. They pay you a little bit and charge the somebody else a lot. So why don’t you just lend the money directly to the other guy and save the vig? Hmmmm.
Money changing was very common in the Roman Near East, where there was a proliferation of currency systems and standards. In Palestine, as in Egypt, each district had its basilikai trapezai ("royal bank") retained from Hellenistic times, and probably each village had its own money changer. In the period of the Second Temple vast numbers of Jews streamed to Palestine and Jerusalem "out or every nation under heaven", taking with them considerable sums of money in foreign currencies. This is referred to in the famous instance of Jesus' driving the money changers out of the Temple. We don’t have any Youtube video to document all of this but I think that’s why we have banks now.
Anyway, the Labor Department reported that 217,000 new jobs were created in October, well above estimates. That got the bank stocks excited because it seemed to virtually guarantee the rate hike. The regional banks really benefited from this news. When it comes to regional banks, nothing beats the Southeast Region. You smell-lell-lell-lell what $$$MR. MARKET$$$ is cooking? Some of the Fed's quantitative easing programs have ended, but interest rates have remained near zero. That is about to change. Regional banks aren’t like the major money center banks. Regional banks make money by taking deposits and lending out money. They don’t try to diversify into Heinz 57 different business like Citibank and the other big guys. Regional banks don’t get involved in lending money to countries whose major natural resources are bananas and coconuts. So when interest rates finally go up, regional banks will benefit from increased margins on their loans. Big banks will also benefit, but only a portion of their business will benefit. The rest of their business will be wondering if the banana country is going to pay back their billion dollar loan.
Millennials are increasingly shunning big banks and going local with their money. Bigger banks tend to charge more for retail services. There’s been an increase in fees for account maintenance, overdrafts, ATM withdrawals and other services at major financial institutions.
So what’s so special about SBFS? It is a high performing Metropolitan Commercial Bank with total assets of $4.8 billion with gross loans growing at a rate of 23%. It makes its money off of loans and deposits, no risky stuff. In fact there is no emphasis on non-traditional business lines. It has big bank products and bankers with the style of service and delivery of a community bank. They select their staff carefully, knowing that great bankers are the foundation of a great bank. Achieved total asset milestones of $1 billion in 2008, $2 billion in 2011, $3 billion in 2013, and $4 billion in 2014, all through organic growth. This company has the rare combination of balance sheet growth and earnings power. Their net interest margin is consistently around 3.8% so as they grow their core, their total earnings should grow. The Return on Equity of 15% means that the stock price should move nicely with these earnings gains.
Their target market are successful customers and business: privately held businesses $2 to $250 million in annual sales,professionals, and affluent consumers. It’s a recession proof business model! They manage their business with regional CEO’s who are empowered and held accountable for the bottom line. Senior management frequently interfaces with customers, making them feel special. Think of Mr. Drysdale and Miss Jane on the Beverly Hillbillies. Recently SFBS acquired Metro Bancshares, an Atlanta based bank. They now have the addition of experienced Atlanta area bankers to the ServisFirst Bank team.
What we really need to know is what does all of this wonderful banking stuff do to their earnings. Their 3rd quarter earnings for 2015 were really awesome.
· Third Quarter 2015 Highlights:
· Net income increased 16% year over year
· Diluted earnings per share of $0.61 for the quarter, a 13% increase year over year
· Third quarter annualized loan and deposit growth of 19% and 34%, respectively, on a linked quarter basis
· Added five new producers in the third quarter for a total of 117 at the end of the quarter, a 29% increase from the end of 2014
From an income statement standpoint, as clearly indicated in the share price performance, SFBS continues to deliver. The balance sheet looks just as good. Their credit metrics are rock solid. Loan yield is steady. Efficiency ratio on a total company basis were a little over 40% for the third quarter. If the Fed increases rates 25 basis points that will go directly to EPS improvement. The bank feels good about asset quality of their portfolio and the financial trends of their specific client base.
The boss can provide some more color, straight from the horse’s mouth:
Tom Broughton, President and CEO, said, "We are pleased to report strong growth in loans, deposits and net income for the third quarter of 2015 with continued strong credit quality." Bud Foshee, CFO, stated,
"We are pleased with the consistent growth in net interest income and consistent loan yields despite the flat interest rate environment." We had a pretty good quarter. We had nice loan growth and deposit growth for the quarter and I'll cover a little bit more. To tell you, someone would have thought it was going to be one of those quarters where the loan growth was nothing spectacular, but right at the end of the quarter we had some pretty substantial growth in the quarter.
Broughton continued, “Had nice solid deposit growth by market and our market is not concentrated in any one market. So we've been pleased with our loan and deposit growth year-to-date. So we’ve had really nice growth year-to-date and we've put the statistic in their 29% growth in our production team. We've very good teams looking to grow in the Southeast, looking to possibly join service for us. So we’ve had good interest shown from the new -- lot of new people.”
“Our pipeline is at the same strong levels we’ve had for the last three quarters, is comparable to where it has been. In spite of the strong loan growth we keep thinking that the loan pipeline will draw but it is not. The pipeline is strong and is strong companywide in all of our markets. There is no weak area. So it is a really good sign of where we are as a company.”
That’s a sign to $$$MR. MARKET$$$ that this is a good safe investment with very little risk of getting caught in a downdraft. I love little boring companies like this one that just make money quarter after quarter after quarter.
Meet me down at the bank when I deposit my winnings on this awesome stock pick!
I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Last edited by mrmarket; 12-12-2015 at 01:37 PM.
=============================
I am HUGE! Bring me your finest meats and cheeses.
What is better? 15% or 2%? You see how superior I am? I am HUGE! Bring me your finest meats and cheeses for I am the greatest stock picker in the world. How HUGE is $$$MR. MARKET$$$??
· He has never lost a sock.
· His photograph once won the Oscar for movie of the year
· He answered the riddle of the Sphinx incorrectly, so the Sphinx changed the answer.
That makes 68 consecutive profitable trades of 15% or better. Did you do that? You? YOU? YOU???!!
We’re back on the choo choo train of winning stock picks. Another pick is coming your way. Do you want to see it? Let me know.
I am HUGE!
$$$MR. MARKET$$$
================================================== ===================================
Inline Mod
11-18-2015, 10:22 PM #1 mrmarket's Avatar mrmarket mrmarket is online now
Administrator
Send a message via AIM to mrmarket Send a message via Yahoo to mrmarket
Join Date
Sep 2003
Posts
5,335
Default SFBS ==> The Picture Lake Winner
Big wheels keep on turning
Carry me home to see my kin
Singing songs about the Southland
I miss Alabamy once again
And I think its a sin, yes
Well I heard mister Young sing about her
Well, I heard ole Neil put her down
Well, I hope Neil Young will remember
A Southern man don't need him around anyhow
Sweet home Alabama
Where the skies are so blue
Sweet Home Alabama
Lord, I'm coming home to you
Lynyrd Skynrd had quite a lot to say about Alabama. They probably would have sung about some other states too but unfortunately a tragic plane crash ended their careers too early. The guy who lived down the hall from me in college was really bummed out. He didn’t come out of his room for like a week after it happened and he played “Free Bird” non stop the whole time. WTF. Meanwhile, the University of Alabama’s football team – the Crimson Tide – are rolling towards yet another NCAA championship. You heard it here first.
Not only is Alabama great at music and college football, they also do banking very well also. So based on these facts alone, I decided to buy me some Alabama bank. Today I bought ServisFirst Bancshares, Inc (SFBS) at 46.92. I will sell it in 4 to 6 weeks at 54.02. Here’s why I love SFBS:
First of all, I just love this chart.
This stock is up 49% in the last 12 months and it looks like it is headed for stock market glory. All of this is going on and its PE is still only 21. The stock also pays a dividend of 0.5%. That dividend may not seem like much, but it’s a lot better than what you get in your savings account.
ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides banking services to individual and corporate customers. It offers various deposit products, such as demand, time, savings, and other deposits; checking, money market, and IRA accounts; and various certificates of deposits. The company also provides commercial lending products, such as seasonal loans, bridge loans, and term loans for working capital, expansion of the business, or acquisition of property, plant, and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It operates 13 full-service banking offices located in Jefferson, Shelby, Madison, Montgomery, Houston, and Mobile Counties of Alabama; and in Escambia County, Florida. The company was founded in 2005 and is headquartered in Birmingham, Alabama.
Everyone is crowing that the Federal Reserve will raise interest rates at its Dec. 16 meeting. This is making some bank stocks very interesting. Why? Rising rates will increase the spread between interest paid on deposits and interest received on loans, increasing bank profits. That’s how banks become money machines. They take your money and give it to somebody else. They pay you a little bit and charge the somebody else a lot. So why don’t you just lend the money directly to the other guy and save the vig? Hmmmm.
Money changing was very common in the Roman Near East, where there was a proliferation of currency systems and standards. In Palestine, as in Egypt, each district had its basilikai trapezai ("royal bank") retained from Hellenistic times, and probably each village had its own money changer. In the period of the Second Temple vast numbers of Jews streamed to Palestine and Jerusalem "out or every nation under heaven", taking with them considerable sums of money in foreign currencies. This is referred to in the famous instance of Jesus' driving the money changers out of the Temple. We don’t have any Youtube video to document all of this but I think that’s why we have banks now.
Anyway, the Labor Department reported that 217,000 new jobs were created in October, well above estimates. That got the bank stocks excited because it seemed to virtually guarantee the rate hike. The regional banks really benefited from this news. When it comes to regional banks, nothing beats the Southeast Region. You smell-lell-lell-lell what $$$MR. MARKET$$$ is cooking? Some of the Fed's quantitative easing programs have ended, but interest rates have remained near zero. That is about to change. Regional banks aren’t like the major money center banks. Regional banks make money by taking deposits and lending out money. They don’t try to diversify into Heinz 57 different business like Citibank and the other big guys. Regional banks don’t get involved in lending money to countries whose major natural resources are bananas and coconuts. So when interest rates finally go up, regional banks will benefit from increased margins on their loans. Big banks will also benefit, but only a portion of their business will benefit. The rest of their business will be wondering if the banana country is going to pay back their billion dollar loan.
Millennials are increasingly shunning big banks and going local with their money. Bigger banks tend to charge more for retail services. There’s been an increase in fees for account maintenance, overdrafts, ATM withdrawals and other services at major financial institutions.
So what’s so special about SBFS? It is a high performing Metropolitan Commercial Bank with total assets of $4.8 billion with gross loans growing at a rate of 23%. It makes its money off of loans and deposits, no risky stuff. In fact there is no emphasis on non-traditional business lines. It has big bank products and bankers with the style of service and delivery of a community bank. They select their staff carefully, knowing that great bankers are the foundation of a great bank. Achieved total asset milestones of $1 billion in 2008, $2 billion in 2011, $3 billion in 2013, and $4 billion in 2014, all through organic growth. This company has the rare combination of balance sheet growth and earnings power. Their net interest margin is consistently around 3.8% so as they grow their core, their total earnings should grow. The Return on Equity of 15% means that the stock price should move nicely with these earnings gains.
Their target market are successful customers and business: privately held businesses $2 to $250 million in annual sales,professionals, and affluent consumers. It’s a recession proof business model! They manage their business with regional CEO’s who are empowered and held accountable for the bottom line. Senior management frequently interfaces with customers, making them feel special. Think of Mr. Drysdale and Miss Jane on the Beverly Hillbillies. Recently SFBS acquired Metro Bancshares, an Atlanta based bank. They now have the addition of experienced Atlanta area bankers to the ServisFirst Bank team.
What we really need to know is what does all of this wonderful banking stuff do to their earnings. Their 3rd quarter earnings for 2015 were really awesome.
· Third Quarter 2015 Highlights:
· Net income increased 16% year over year
· Diluted earnings per share of $0.61 for the quarter, a 13% increase year over year
· Third quarter annualized loan and deposit growth of 19% and 34%, respectively, on a linked quarter basis
· Added five new producers in the third quarter for a total of 117 at the end of the quarter, a 29% increase from the end of 2014
From an income statement standpoint, as clearly indicated in the share price performance, SFBS continues to deliver. The balance sheet looks just as good. Their credit metrics are rock solid. Loan yield is steady. Efficiency ratio on a total company basis were a little over 40% for the third quarter. If the Fed increases rates 25 basis points that will go directly to EPS improvement. The bank feels good about asset quality of their portfolio and the financial trends of their specific client base.
The boss can provide some more color, straight from the horse’s mouth:
Tom Broughton, President and CEO, said, "We are pleased to report strong growth in loans, deposits and net income for the third quarter of 2015 with continued strong credit quality." Bud Foshee, CFO, stated,
"We are pleased with the consistent growth in net interest income and consistent loan yields despite the flat interest rate environment." We had a pretty good quarter. We had nice loan growth and deposit growth for the quarter and I'll cover a little bit more. To tell you, someone would have thought it was going to be one of those quarters where the loan growth was nothing spectacular, but right at the end of the quarter we had some pretty substantial growth in the quarter.
Broughton continued, “Had nice solid deposit growth by market and our market is not concentrated in any one market. So we've been pleased with our loan and deposit growth year-to-date. So we’ve had really nice growth year-to-date and we've put the statistic in their 29% growth in our production team. We've very good teams looking to grow in the Southeast, looking to possibly join service for us. So we’ve had good interest shown from the new -- lot of new people.”
“Our pipeline is at the same strong levels we’ve had for the last three quarters, is comparable to where it has been. In spite of the strong loan growth we keep thinking that the loan pipeline will draw but it is not. The pipeline is strong and is strong companywide in all of our markets. There is no weak area. So it is a really good sign of where we are as a company.”
That’s a sign to $$$MR. MARKET$$$ that this is a good safe investment with very little risk of getting caught in a downdraft. I love little boring companies like this one that just make money quarter after quarter after quarter.
Meet me down at the bank when I deposit my winnings on this awesome stock pick!
I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Last edited by mrmarket; 12-12-2015 at 01:37 PM.
=============================
I am HUGE! Bring me your finest meats and cheeses.
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