As of June 15, 2022, 1600ET, our investment advisor representatives have long positions in CRBP (We are underwater for so long we are scuba diving) and AMS common (a little down). These are longer-term holdings with attractive price/book valuations.
We are short the common and long puts on LKFN Lakeland Financial Corporation. New position, based on their currently high (2.5 to 3.0) price/book valuation and the risk of their long-duration balance sheet. They have significant investments in MBS and longer-maturity fixed income. If those fall in Q2 / 2022 (even as AOCI), their shareholder equity falls quickly, and this could drive up their valuation multiples further.
Community (or regional) banks should trade for ~1x book value. This stock trades between a 2.5 and 3.0 multiple.
LKFN is a thinly traded community bank with insider ownership. It will not give up a significant profit on a short without a fight. The puts we bought are likely to be hard to sell, due to the extremely thin market and crazy 'list price' pricing. We may be forced to hold these options to expiration unless the one seller wants their options back. The thin market makes these puts less valuable than in other, more widely traded stocks.
We have some July 2022 out of the money puts on BOH, Bank of Hawaii. Not many and we did not pay very much.
This does not include passive holdings in short-term bond funds, cash, real estate, US Treasury bonds, mutual funds, hedge funds, & variable annuities.
We are short the common and long puts on LKFN Lakeland Financial Corporation. New position, based on their currently high (2.5 to 3.0) price/book valuation and the risk of their long-duration balance sheet. They have significant investments in MBS and longer-maturity fixed income. If those fall in Q2 / 2022 (even as AOCI), their shareholder equity falls quickly, and this could drive up their valuation multiples further.
Community (or regional) banks should trade for ~1x book value. This stock trades between a 2.5 and 3.0 multiple.
LKFN is a thinly traded community bank with insider ownership. It will not give up a significant profit on a short without a fight. The puts we bought are likely to be hard to sell, due to the extremely thin market and crazy 'list price' pricing. We may be forced to hold these options to expiration unless the one seller wants their options back. The thin market makes these puts less valuable than in other, more widely traded stocks.
We have some July 2022 out of the money puts on BOH, Bank of Hawaii. Not many and we did not pay very much.
This does not include passive holdings in short-term bond funds, cash, real estate, US Treasury bonds, mutual funds, hedge funds, & variable annuities.