Re: Local Bank IPO

From: Avrum Lapin <avrum113@earthlink.net>
Subject: Re: Local Bank IPO
Date: Thu, 3 Dec 1998 22:09:23 -0800

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>Date: Sun, 29 Nov 1998 11:35:07 -0500
>From: "Peter & Karen Diamond" <diamond@vsi.net>
>Subject: Local Bank IPO
>
>The bank that holds our mortgage is going public and we have the option of
>buying into the IPO before it is listed.  I understand that many other bank
>stock conversions have been very good investments.
>This is a small local bank, concentrating on single family residential
>mortgages (>70% of loans).  They are doing more commercial and construction
>loans, but they are only about 15% of the business.  The mortgage default
>rate is under 1%.
>They have been very highly rated in terms of assets and security for many
>years and are financially sound.
>The proxy they sent looks good and many insiders are buying in.
>Is there anything in particular to look our for when evaluating this
>investment?

There was an article by Peter Lynch in WORTH (www.worth.com and search in
the archives) which showed how most of these S&L IPOs have the potential to
appreciate about 60% within a year.  Our S&L went public and eventually
doubled within a year (it dropped back to about 30% last summer).

Avrum Lapin
Upland., CA



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