Friday Edition looks at 2021 bank M&A

For today's Friday Addition Edition, I am going to stay with the banks. I got a copy of the full KBW Bank M&A report, and I want to share the information and ideas with you. KBW is one of the best banks and financial stock research forms in existence, in my opinion, so it's worth paying attention when they write on banks and the potential for M&A in the industry.

First, however, we have to take a quick victory lap. One of our first Friday Addition Edition stole some ideas from Bulldog investors, including a SPAC trading slightly below liquidation value. That SPAC has flow higher by about 80% since then as rumors about potential deals flew around the markets.

Keep in mind that this type of volatility can flow both ways. If you own Churchill IV, you might want to consider using a trailing stop going forward to protect your gains from a drop if no deal gets announced.

Of course, you could just sell and take the gains as well. 80% in a couple of months is not normal.

On to bank M&A. The KBW analysts acknowledge that bank M&A has been depressed by the pandemic over the last year. We have seen some Mergers of equals, but not much buying to grow activity has occurred in the last year. That should change in 2021, with boom times returning. Activity is expected to be hottest in the Southeast and Southwestern regions of the United States.

KBW notes that low rates mean low Net Interest Margin, which will pressure the bottom line at smaller banks. While we have seen some steepening and some observers think we may see more, it's not enough to drive massive gains in bottom line profits.

Cost savings is going to be an important way ...

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Friday Addition M&A Edition

For today's Friday Addition Edition, I am going to stay with the banks. I got a copy of the full KBW Bank M&A report, and I want to share the information and ideas with you. KBW is one of the ...

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Comments

Friday Edition

We skipped the Friday addition for the Christmas and New Years Holiday, but we are back with some ideas for you to consider outside just your bank stock portfolio.

I have been focusing a lot on income-generating investments in these ...

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Friday Addition Edition

We skipped the Friday addition for the Christmas and New Years Holiday, but we are back with some ideas for you to consider outside just your bank stock portfolio.

I have been focusing a lot on income-generating investments in these ...

Read More
Comments

Friday Addition Edition

If you have been following me for any length of time, you know I spend a lot of time researching and modeling various investment ideas and strategies. It interesting, often entertaining, and it keeps me off the streets.

I probably ...

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Friday Addition Edition

It has been a hell of a week for IPO's. We saw Door Dash (DASH) flu and Airbnb followed the next day with its own very impressive first-day move.

If you got IPO shares, count your blessings, and take your ...

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Friday Edition Addition

Is it just me, or is it really difficult to get into the spirit of a COVID Christmas?

The tree is up, the outside decorations are out, and the calendar says December. Still, with all the boat parades, tree lighting, ...

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Friday Addition Edition-SPACs, Rates and Day Traders

Sorry for the delay with this today. I had most of it written before lunch, but the power went out, leaving me with no internet and the original document perched on a powerless desktop.

Now the dedicated folks at Florida ...

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Friday Addition Edition #4, Vaccines, REITs, Books and Banks

Speaking at an event in the European Union yesterday, Fed Chair Jerome Powell once again took Congress to task for not providing a fiscal stimulus package. Speaking at a virtual panel at the European Central Bank's Forum on Central Banking, ...

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Friday Additions: Private Equity, Real Estate and High Yields

I kind of suspected yesterday's rally would have a hard time gaining traction. Many of the headlines surrounding the coronavirus look good, and we are edging closer to election day, which I think has the potential to go horribly wrong. ...

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Takeover #1 for 2020-our 33rd in last 3 years

a 51% gianer form initial buy recommendation! The stock was on the buy list all the way up untillast Friday.

Southern Missouri Bancorp, Inc. (NASDAQ: SMBC, “Southern Missouri”), the parent corporation of Southern Bank, and Central Federal Bancshares, Inc. (“Central”), ...

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Make that a 3 takeover day! Deal Number 11

Evans Bancorp, Inc. ("Evans") (NYSE American: EVBN) and FSB Bancorp, Inc. ("FSB") (Nasdaq: FSBC), jointly announced the execution of a definitive merger agreement whereby Evans will acquire FSB for $17.80 per share for total consideration of approximately $34.7 million. The ...

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