Compelling Action in the Small-Bank Niche

While everyone is focusing on quarterly earnings reports, political comments and central-bank spokespersons from around the globe, I am doing my best to enjoy some relative serenity away from the fray. The mad rush of earnings reports and the resulting trading frenzy have always struck me as ridiculous, herd-like behavior, and I want no part of it. Instead, I have kept my focus on researching solid, undervalued opportunities in the hopes that the misguided short-term activities of others will create opportunities for long-term value types like me.

In the aftermath of the Annapolis National Bank (ANNB) deal announced earlier this week, my attention is really narrowing into small banks. I have talked often about what I call the "trade of the decade," and Annapolis National is typical of what I think will happen. FNB Corp. (FNB) made an all-stock offer for the bank of a little more than $12 a share. That's about 240% above where I recommended Annapolis National back in April, and about 160% of tangible book value. Smaller banks are going to be acquired at a pretty good pace over the next few years, and there is an enormous amount of money to be made....566 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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