Here are a couple of ideas...

SAVB, SOTK, EPEX, BDE, UBFO, and MIND... All have excellent balance sheets, screaming earnings and great profit margins... Returns on equity on each is above industry norms... While not cheap in stock price,, Market caps on all are in the micro cap range..... hank

CFNL....

This is a long read but as a few have asked me for a small bank to buy..The market cap is under 250 Mil. and recently raised additional capitol... I think all free riders have sold and CFNL should be a strong buy from here... I am relucent to pound the table because of the FED but this bank should be in every portfolio.. What follows is the most detailed release I have seen in years...hank

Cardinal Financial Corporation Reports Record Earnings of $2.3 Million, up 262% for the 2nd Quarter; Deposits Top $1 Billion, 20th Banking Office Opened and Added to Russell Indices
Cardinal Financial Corporation (NASDAQ:CFNL) (the "Company"), parent company of Cardinal Bank, today announced the results of its second quarter operations, which ended on June 30, 2005. The Company reported record net income of $2.3 million, up 262%, to $0.11 per diluted share in the second quarter of 2005 compared with $634 thousand or $0.03 per diluted share, in the second quarter of 2004. Significant accomplishments during the second quarter included deposits exceeding the $1 billion mark for the first time, completion of the acquisition of Wilson/Bennett Capital Management, Inc., inclusion in the Russell 3000(R), 2000(R), and Microcap(TM) indices, completion of a secondary stock offering that raised $39.8 million, and opening of the Company's 20th banking office.

Results of Operations

Net income for the quarter ended June 30, 2005 was $2.3 million, or $0.11 per diluted share, an increase of 262% compared to second quarter 2004 net income of $634 thousand, or $0.03 per diluted share. Weighted average diluted shares outstanding were 21.3 million and 18.8 million for the second quarter of 2005 and 2004, respectively. Net income for the six months ended June 30, 2005 was $3.9 million, or $0.19 per diluted share, compared to net income of $1.4 million, or $0.07 per diluted share, during the same period of 2004. The weighted average diluted shares outstanding for the first six months of 2005 was 20.1 million compared to 18.3 million during the same period of 2004. The current year's net income includes the operating results of George Mason Mortgage, LLC ("George Mason"), which was purchased by the Company in July 2004.

Net interest income increased 83% or $4.1 million to $9.1 million for the quarter ended June 30, 2005, compared to $5.0 million for the quarter ended June 30, 2004, due primarily to the additional income associated with increases in loans held for sale, net and loans receivable, net of fees. Non-interest income increased from $564 thousand for the quarter ended June 30, 2004 to $6.3 million for the quarter ended June 30, 2005, due primarily to a $4.0 million increase in net gain on sales of loans and a $974 thousand increase in management fee income. The increases in net gain on sales of loans and management fee income were attributable to the results of George Mason. Most of the remaining increase in non-interest income is due to increased service charges on deposit accounts and loan service charges. Offsetting these revenue increases were a $506 thousand increase in the provision for loan losses, which was a result of increased loans receivable balances, and a $6.8 million increase in non-interest expenses, primarily attributable to the George Mason acquisition and continued bank branch expansion. During the twelve months ended June 30, 2005, the Company opened seven branch banking facilities, including its 20th branch which is located in Woodbridge, Virginia that opened in June 2005. The Company anticipates opening two additional branch locations during the third quarter, including one in the District of Columbia at 18th & K Streets, a new market area for the Company.

For the six months ended June 30, 2005, net interest income increased by 72% to $16.9 million from $9.8 million during the comparable period of the prior year. Non-interest income for the six months ended June 30, 2005 increased by $10.0 million from the same period of 2004. Offsetting these revenue gains were a $981 thousand increase in the provision for loan losses and a $12.4 million increase in non-interest expenses. As with the results for the second quarter, the increase in net interest income is attributable to the income associated with increased balances of loans held for sale, net and loans receivable, net of fees. Similarly, the increase in non-interest income is primarily attributable to fees from George Mason, and the increase in non-interest expense is the result of the George Mason acquisition and continued branch expansion.

Performance Indicators

The Company's net interest margin was 2.91% for the quarter ended June 30, 2005, compared to 2.82% for the same quarter of the prior year. For the six months ended June 30, 2005, the Company's net interest margin was 2.88% compared to 2.90% for the same period of 2004. For the year ended December 31, 2004, the Company's net interest margin was 2.72%. The Company remains asset sensitive and therefore anticipates that net interest margin will improve in a rising rate environment.

Return on average assets was 0.70% for the quarter ended June 30, 2005, compared to 0.35% for the quarter ended June 30, 2004. Return on average equity was 7.61% for the quarter ended June 30, 2005, compared to 2.76% for the same quarter of the prior year. Return on average assets for the six months ended June 30, 2005 was 0.64%, and return on average assets for the same six months of 2004 was 0.39%. Return on average equity for the first six months of 2005 was 7.16%. Return on average equity for the same period of 2004 was 2.95%. The returns on average assets and average equity for the year ended December 31, 2004 were 0.37% and 3.69%, respectively.

Assets

The Company's consolidated assets were $1.47 billion at June 30, 2005, an increase of $255.7 million, or 21%, from consolidated assets at December 31, 2004.

Loans Held for Sale and Loans Receivable

Loans held for sale, net were $475.1 million at June 30, 2005, compared to $365.5 million at December 31, 2004. Loans receivable, net of fees were $603.3 million at June 30, 2005, an increase of $113.4 million, or 23%, from December 31, 2004. The allowance for loan losses was 1.20% of loans receivable, net of fees at each of June 30, 2005 and December 31, 2004. During the quarter ended June 30, 2005, George Mason originated or acquired approximately $1.17 billion in loans, including managed company loans of approximately $600 million. During the first six months of 2005, George Mason originated or acquired approximately $2.01 billion in loans, including managed company loans of approximately $1.02 billion.

Asset Quality

Asset quality at the Company has improved since December 31, 2004 and remains strong. At June 30, 2005, non-accrual loans were $234 thousand, compared to $547 thousand at December 31, 2004. Non-accrual loans were 0.04% of total loans receivable at June 30, 2005 and 0.11% of total loans receivable at December 31, 2004. The Company did not have any foreclosed real estate properties at June 30, 2005 or December 31, 2004.

Deposits

For the first time in the Company's history, total deposits exceeded $1 billion. Deposits have grown by $178.3 million, or 22%, since December 31, 2004. Brokered certificates of deposit were approximately 5% and 11% of total deposits at June 30, 2005 and December 31, 2004, respectively.

Management Comments

Bernard Clineburg, Chairman, President and CEO, said, "The Company accomplished several significant milestones during its second quarter. We successfully completed a secondary common stock offering which raised $39.8 million and increased our market capitalization. As a result, Cardinal is now included in the Russell 3000(R), the Russell 2000(R), and the Russell Microcap(TM) indices. We are quite proud of this accomplishment. We also completed our previously announced acquisition of Wilson/Bennett Capital Management, Inc. and are integrating it into our operations and working to grow its revenues. However, Wilson/Bennett was accretive to earnings even without the benefit of a full quarter of ownership. We have continued to achieve phenomenal growth through increases in our loans and deposits. The revenue streams of both Wilson/Bennett and George Mason will continue to enhance and diversify our earnings as our recently opened banking offices establish themselves and further contribute to the profitability of the Company. We continue to be one of the largest publicly traded banks headquartered in Northern Virginia, serving one of the best banking markets in the country."

Caution About Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements contain information related to matters such as the Company's intent, belief or expectation with respect to matters such as financial performance, branch expansion and the integration of recently acquired businesses. Such statements are necessarily based on management's assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company's operations and business environment, which are difficult to predict and beyond the control of the Company. Such risks and uncertainties could cause the actual results of the Company to differ materially from those matters expressed or implied in such forward-looking statements. For an explanation of the risks and uncertainties associated with forward-looking statements, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2004 and other filings with the Securities and Exchange Commission.

Learn More About Cardinal

To learn more about Cardinal Financial Corporation and its subsidiaries, please log on to www.cardinalbank.com or call (703) 584-3400.


--------------------------------------------------------------------------------

Cardinal Financial Corporation and Subsidiaries
Summary Statements of Condition
June 30, 2005 and December 31, 2004
(Dollars in thousands)

(Unaudited)
June 30, December 31,
2005 2004 % Change
------------ ------------ ---------
Cash and due from banks $19,134 $15,205 25.8%
Federal funds sold 36,997 8,203 351.0%

Investment securities - available-
for-sale 151,737 151,554 0.1%
Investment securities - held-to-
maturity 127,364 137,953 -7.7%
------------ ------------ ---------
Total investment securities 279,101 289,507 -3.6%

Other investments 7,598 8,110 -6.3%
Loans held for sale, net 475,098 365,454 30.0%

Loans receivable, net of fees 603,257 489,896 23.1%
Allowance for loan losses (7,210) (5,878) 22.7%
------------ ------------ ---------
Loans receivable, net 596,047 484,018 23.1%

Premises and equipment, net 17,259 15,531 11.1%
Goodwill and intangibles, net 20,677 14,694 40.7%
Other assets 15,326 10,854 41.2%

------------ ------------ ---------
TOTAL ASSETS $1,467,237 $1,211,576 21.1%
============ ============ =========

Non-interest bearing deposits $134,992 $105,424 28.0%
Interest bearing deposits 867,494 718,786 20.7%
------------ ------------ ---------
Total deposits 1,002,486 824,210 21.6%

Other borrowed funds 163,344 201,085 -18.8%
Warehouse financing 38,126 30,245 26.1%
Mortgage funding checks 93,660 46,392 101.9%
Escrow liabilities 6,860 3,020 127.2%
Other liabilities 18,859 11,519 63.7%

Shareholders' equity 143,902 95,105 51.3%
------------ ------------ ---------

TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY $1,467,237 $1,211,576 21.1%
============ ============ =========


Cardinal Financial Corporation and Subsidiaries
Summary Income Statements
Three and Six Months Ended June 30, 2005 and 2004
(Dollars in thousands, except share and per share data)
(Unaudited)

For the Three Months Ended
June 30,
2005 2004 % Change
------------ ------------ ---------
Net interest income $9,124 $4,998 82.6%
Provision for loan losses (820) (314) 161.1%
------------ ------------ ---------
Net interest income after provision
for loan losses 8,304 4,684 77.3%

Service charges on deposit accounts 330 262 26.0%
Loan service charges 618 89 594.4%
Investment fee income 291 158 84.2%
Net gain on sales of loans 4,035 48 8306.3%
Net realized gain on investment
securities available-for-sale 33 - 100.0%
Management fee income 974 - 100.0%
Other non-interest income (6) 7 -185.7%
------------ ------------ ---------
Total non-interest income 6,275 564 1012.6%

Net interest income & non-interest
income 14,579 5,248 177.8%

Salaries and benefits 5,566 1,924 189.3%
Occupancy 1,025 465 120.4%
Depreciation 708 322 119.9%
Data processing 486 197 146.7%
Telecommunications 277 105 163.8%
Other operating expense 3,059 1,285 138.1%
------------ ------------ ---------
Total non-interest expense 11,121 4,298 158.7%
Net income before income taxes 3,458 950 264.0%
------------ ------------ ---------
Provision for income taxes 1,166 316 269.0%
-----------------------------------
NET INCOME $2,292 $634 261.5%
===================================

Earnings per common share, basic $0.11 $0.03 215.9%
===================================
Earnings per common share, diluted $0.11 $0.03 266.7%
===================================
Weighted-average common shares
outstanding - basic 21,096,617 18,401,199 14.6%
===================================
Weighted-average common shares
outstanding - diluted 21,321,508 18,797,570 13.4%
===================================


For the Six Months Ended
June 30,
2005 2004 % Change
------------ ------------ ---------
Net interest income $16,946 $9,831 72.4%
Provision for loan losses (1,369) (388) 252.8%
------------ ------------ ---------
Net interest income after provision
for loan losses 15,577 9,443 65.0%

Service charges on deposit accounts 610 502 21.5%
Loan service charges 1,244 285 336.5%
Investment fee income 450 336 33.9%
Net gain on sales of loans 7,615 62 12182.3%
Net realized gain on investment
securities available-for-sale 33 241 -86.3%
Management fee income 1,498 - 100.0%
Other non-interest income 7 16 -56.3%
------------ ------------ ---------
Total non-interest income 11,457 1,442 694.5%

Net interest income & non-interest
income 27,034 10,885 148.4%

Salaries and benefits 10,435 4,064 156.8%
Occupancy 2,071 961 115.5%
Depreciation 1,389 632 119.8%
Data processing 994 391 154.2%
Telecommunications 610 208 193.3%
Other operating expense 5,717 2,598 120.1%
------------ ------------ ---------
Total non-interest expense 21,216 8,854 139.6%
Net income before income taxes 5,818 2,031 186.5%
------------ ------------ ---------
Provision for income taxes 1,915 678 182.4%
-----------------------------------
NET INCOME $3,903 $1,353 188.5%
===================================

Earnings per common share, basic $0.20 $0.08 161.0%
===================================
Earnings per common share, diluted $0.19 $0.07 171.4%
===================================
Weighted-average common shares
outstanding - basic 19,817,872 17,931,094 10.5%
===================================
Weighted-average common shares
outstanding - diluted 20,101,026 18,326,609 9.7%
===================================


Cardinal Financial Corporation and Subsidiaries
Selected Financial Information
(In thousands, except per share data and ratios)
(Unaudited)

For the Three For the Six
Months Ended Months Ended
June 30, June 30,
2005 2004 2005 2004
-------------------- --------------------
Income Statements:
Interest income $15,926 $7,967 $29,417 $15,382
Interest expense 6,802 2,969 12,471 5,551
------------------------------------------------- --------------------
Net interest income 9,124 4,998 16,946 9,831
Provision for loan losses 820 314 1,369 388
------------------------------------------------- --------------------
Net interest income after
provision for loan losses 8,304 4,684 15,577 9,443
Non-interest income 6,275 564 11,457 1,442
Non-interest expense 11,121 4,298 21,216 8,854
------------------------------------------------- --------------------
Net income before income
taxes 3,458 950 5,818 2,031
Provision for income taxes 1,166 316 1,915 678
------------------------------------------------- --------------------
Net income $2,292 $634 $3,903 $1,353
================================================= ====================


Balance Sheet Data: June 30, December 31,
2005 2004
Total assets $1,467,237 $1,211,576
Loans receivable, net of fees 603,257 489,896
Allowance for loan losses (7,210) (5,878)
Loans held for sale 475,098 365,454
Total investment securities 279,101 289,507
Total deposits 1,002,486 824,210
Other borrowed funds 163,344 201,085
Total shareholders' equity 143,902 95,105

Common shares outstanding 24,327 18,463

----------------------------------------------------------------------


For the Three Months For the Six Months
Ended June 30, Ended June 30,
Selected Average Balances 2005 2004 2005 2004
Total assets $1,305,630 $729,516 $1,221,734 $697,070
Loans receivable, net of
fees 559,725 356,959 532,941 346,805
Allowance for loan losses (6,545) (4,417) (6,268) (4,413)
Loans held for sale 387,890 468 338,730 301
Total investment
securities 290,988 338,974 290,424 315,559
Earning assets 1,255,397 709,553 1,178,660 677,131
Total deposits 930,331 541,253 889,309 519,199
Other borrowed funds 202,803 94,650 178,328 84,098
Total shareholders'
equity 120,541 92,039 109,091 91,884
Weighted Average:
-----------------
Common shares outstanding
- basic 21,097 18,401 19,818 17,931
Common shares outstanding
- diluted 21,322 18,798 20,101 18,327

Per Common Share Data:
Basic net income $0.11 $0.03 $0.20 $0.08
Fully diluted net income 0.11 0.03 0.19 0.07
Book value 5.92 4.92 5.92 4.92
Tangible book value 5.07 4.92 5.07 4.92

Performance Ratios:
Return on average assets 0.70% 0.35% 0.64% 0.39%
Return on average equity 7.61% 2.76% 7.16% 2.95%
Net interest margin (1) 2.91% 2.82% 2.88% 2.90%
Efficiency ratio (2) 72.19% 77.27% 74.70% 78.54%
Non-interest income to
average assets 1.92% 0.31% 1.88% 0.41%
Non-interest expense to
average assets 3.41% 2.36% 3.47% 2.54%

Asset Quality Data:
Annualized net charge-offs
to average loans
receivable, net of fees 0.01% 0.06%
Non-performing loans to
loans receivable, net of
fees 0.04% 0.05%
Non-performing loans to
total assets 0.02% 0.02%
Allowance for loan losses
to loans receivable, net
of fees 1.20% 1.18%
Allowance for loan losses
to nonperforming loans 3081.2% 2316.5%

Capital Ratios:
Tier 1 risk-based capital 14.75% 17.16%
Total risk-based capital 15.49% 18.00%
Leverage capital ratio 11.23% 13.52%


(1) Net interest margin is calculated as net interest income divided
by total average earnings assets.

(2) Efficiency ratio is calculated as total non-interest expense
divided by the total of net interest income and non-interest
income.


Cardinal Financial Corporation and Subsidiaries
Average Statements of Condition and Yields on Earning Assets and
Interest-Bearing Liabilities
Three and Six Months Ended June 30, 2005 and 2004
(Dollars in thousands)

For the Three Months Ended
June 30, 2005 June 30, 2004
Average Average Average Average
Balance Yield Balance Yield
---------------------------------------
Interest-earning assets:
Loans receivable, net of fees $559,725 5.96% $356,959 5.45%
Loans held for sale 387,890 4.80% 468 4.45%
Investment securities -
available-for-sale 160,006 3.83% 181,147 3.43%
Investment securities - held-
to-maturity 130,982 3.83% 157,827 3.75%
Other investments 6,515 4.49% 4,566 4.03%
Federal funds sold 10,279 3.02% 8,586 0.90%
----------- ------- ----------- -------
Total interest-earning
assets 1,255,397 5.07% 709,553 4.49%

Non-interest earning assets:
Cash and due from banks 10,110 10,958
Premises and equipment, net 17,333 8,065
Goodwill and intangibles, net 17,622 22
Accrued interest and other
assets 11,713 5,335
Allowance for loan losses (6,545) (4,417)

----------- -----------
TOTAL ASSETS $1,305,630 $729,516
=========== ===========

Interest-bearing liabilities:
Interest-bearing deposits $818,092 2.71% $460,262 2.18%
Other borrowed funds 202,803 2.52% 94,650 2.00%
----------- ------- ----------- -------
Total interest-bearing
liabilities 1,020,895 2.67% 554,912 2.15%

Noninterest-bearing
liabilities:
Noninterest-bearing deposits 112,239 80,991
Other liabilities 51,955 1,574

Shareholders' equity 120,541 92,039

----------- -----------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $1,305,630 $729,516
=========== ===========

NET INTEREST MARGIN 2.91% 2.82%


For the Six Months Ended
June 30, 2005 June 30, 2004
Average Average Average Average
Balance Yield Balance Yield
---------------------------------------
Interest-earning assets:
Loans receivable, net of fees $532,941 5.86% $346,805 5.53%
Loans held for sale 338,730 4.73% 301 4.48%
Investment securities -
available-for-sale 156,974 3.78% 161,637 3.50%
Investment securities - held-
to-maturity 133,450 3.84% 153,922 3.67%
Other investments 5,847 4.35% 4,100 4.10%
Federal funds sold 10,718 2.60% 10,366 0.90%
----------- ------- ----------- -------
Total interest-earning
assets 1,178,660 4.99% 677,131 4.54%

Non-interest earning assets:
Cash and due from banks 6,336 10,607
Premises and equipment, net 17,167 7,449
Goodwill and intangibles, net 16,070 22
Accrued interest and other
assets 9,769 6,274
Allowance for loan losses (6,268) (4,413)

----------- -----------
TOTAL ASSETS $1,221,734 $697,070
=========== ===========

Interest-bearing liabilities:
Interest-bearing deposits $781,225 2.63% $442,504 2.17%
Other borrowed funds 178,328 2.56% 84,098 1.84%
----------- ------- ----------- -------
Total interest-bearing
liabilities 959,553 2.62% 526,602 2.11%

Noninterest-bearing
liabilities:
Noninterest-bearing deposits 108,084 76,695
Other liabilities 45,006 1,889

Shareholders' equity 109,091 91,884

----------- -----------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $1,221,734 $697,070
=========== ===========

NET INTEREST MARGIN 2.88% 2.90%


Cardinal Financial Corporation and Subsidiaries
Segment Reporting at and for the Three and Six Months Ended June 30,
2005 and 2004
(Dollars in thousands)
(Unaudited)

At and for the Three Months Ended June 30, 2005:

Commercial Mortgage Investment
Banking Banking Services
----------- --------- ----------
Net interest income $7,697 $1,632 $-
Provision for loan losses 820 - -
Non-interest income 470 5,505 291
Non-interest expense 5,872 4,426 324
Provision for income taxes 453 960 (17)
----------- --------- ----------
Net income (loss) $1,022 $1,751 $(16)
=========== ========= ==========

Total Assets $1,310,707 $495,017 $7,228


Intersegment
Elimination Other Consolidated
------------ --------- ------------
Net interest income $- $(205) $9,124
Provision for loan losses - - 820
Non-interest income - 9 6,275
Non-interest expense - 499 11,121
Provision for income taxes - (230) 1,166
------------ --------- ------------
Net income (loss) $- $(465) $2,292
============ ========= ============

Total Assets $(511,046) $165,331 $1,467,237


At and for the Three Months Ended June 30, 2004:

Commercial Mortgage Investment
Banking Banking Services
----------- --------- ----------
Net interest income $4,976 $- $-
Provision for loan losses 314 - -
Non-interest income 406 - 158
Non-interest expense 3,728 - 185
Provision for income taxes 448 - (8)
----------- --------- ----------
Net income (loss) $892 $- $(19)
=========== ========= ==========

Total Assets $804,041 $- $701


Intersegment
Elimination Other Consolidated
------------ --------- ------------
Net interest income $- $22 $4,998
Provision for loan losses - - 314
Non-interest income - - 564
Non-interest expense - 385 4,298
Provision for income taxes - (124) 316
------------ --------- ------------
Net income (loss) $- $(239) $634
============ ========= ============

Total Assets $(85,553) $90,833 $810,022


At and for the Six Months Ended June 30, 2005:

Commercial Mortgage Investment
Banking Banking Services
----------- --------- ----------
Net interest income $14,437 $2,943 $-
Provision for loan losses 1,369 - -
Non-interest income 845 10,145 450
Non-interest expense 11,465 8,376 545
Provision for income taxes 831 1,539 (38)
----------- --------- ----------
Net income (loss) $1,617 $3,173 $(57)
=========== ========= ==========

Total Assets $1,310,707 $495,017 $7,228


Intersegment
Elimination Other Consolidated
------------ --------- ------------
Net interest income $- $(434) $16,946
Provision for loan losses - - 1,369
Non-interest income - 17 11,457
Non-interest expense - 830 21,216
Provision for income taxes - (417) 1,915
------------ --------- ------------
Net income (loss) $- $(830) $3,903
============ ========= ============

Total Assets $(511,046) $165,331 $1,467,237


At and for the Six Months Ended June 30, 2004:

Commercial Mortgage Investment
Banking Banking Services
----------- --------- ----------
Net interest income $9,777 $- $-
Provision for loan losses 388 - -
Non-interest income 1,106 - 336
Non-interest expense 7,779 - 424
Provision for income taxes 910 - (30)
----------- --------- ----------
Net income (loss) $1,806 $- $(58)
=========== ========= ==========

Total Assets $804,041 $- $701


Intersegment
Elimination Other Consolidated
------------ --------- ------------
Net interest income $- $54 $9,831
Provision for loan losses - - 388
Non-interest income - - 1,442
Non-interest expense - 651 8,854
Provision for income taxes - (202) 678
------------ --------- ------------
Net income (loss) $- $(395) $1,353
============ ========= ============

Total Assets $(85,553) $90,833 $810,022


Cardinal Financial Corporation, Tysons Corner
Bernard H. Clineburg or Robert A. Cern
703-584-3400

GIFI..
One thing that I would check into is not that they are up and operating but,,, What is the condition of thier supply and distribution systems... If they use outside trucking services or rail transportation the increased cost of shipment will eat into profits rapidly.. Companies are reluctant in times of disaster to pass these added costs to thier customers...Just a thought...hank

My last Message..
I got bumped before I finished..

Posted by: 10 bagger
In reply to: stylecounciler who wrote msg# 21708 Date:9/7/2005 6:46:52 PM
Post #of 21735

PFBX...

Is one small bank that covers the region.. It is well run and I own a small position and it also pays a decent dividend... Was trading at 18.50/18.75 before the storm and has dropped off to the 18.00 level... If storm damage has occured to PFBX properties I am not aware... Loan assets that are damaged due to storms are never a problem due to insurance requirements to keep the loan... The real writeoffs are in the hands of Large Banks that factor inventory and receviables... In most cases these loans have no insurance other than content insurance... Although writeoffs are not a problem,, New asset loans for building will decline due to repair and other insurance initiated use of local builders.. PFBX will make up for this short fall by increasing its cash flow loans to local builders making repairs.... The Large Banks are just too slow to provide assistance in such cases and this is where the local bank excells and builds loyality... In most cases thier spreads on loans are 65 to 125 basis points above the large regionals...Whitney and Hiberina banks are also in the area but not on my radar screens....MSL traded on the ASE is as close to the disaster as you can get,, in fact they just opened an office in Baton Rouge last month... MSL is not in the league of the banks that I follow and the other choices that you have are larger banks from AL..They all have lousey returns on capitol... It will be a long time before any bank emerges from this area with any growth and provides the proper returns on capitol and assets.. LA, MS, and AL banks should not be on any one's buying list because there are no winfall profits in banking to any storm related disaster.. What concerns me more is the direction of the FED and the mismanagement of Treasury actions causing voids in the free flow of capitol...hank

PFBX...

Is a small bank that covers the region.. Was trading at 18.50 before the storm and has dropped off to the 18.00 level... If storm damage has occured to PFBX properties I am not aware... Loan assets that are damaged due to storms are never a problem due to insurance requirements to keep the loan... The real writeoffs are in the hands of Large Banks that factor inventory and receviables... In most cases these loans have no insurance other than content insurance...Although writeoffs are not a problem,, Asset loans for building will decline due to repair and other insurance initiated use of local builders.. PFBX will increase its cash flow loans to local builders making repairs.... The Large Banks are just too slow to provide assistance in such cases and this is where the local bank excells and builds loyality... In most cases thier spreads on loans are 65 to 125 basis points above the large regionals...Whitney bank is also in the area but is not on my radar screen....MSL traded on the ASE is as close to the disaster as you can get,, in fact they just opened an office in Baton Rouge last month... MSL is not in the league of the banks that I follow and the other choces that you have are larger banks AL.. which have all have lousey returns on capitol... It will be a long time before any bank emerges from this area with any growth and provides proper returns on capitol.. LA, MS, and AL banks should not be on any one's buying list because there is are winfalls to any storm related disasters.. hank

JnmcdaO...
Both of you have missed the point... Sure they need the money and it does'nt matter how or who it came from.. If it it is from XOM or Scumbag Inc. the money was sent.. To have a tirate over the ability to donate is as bad as not donating yourself... As for me, I went down and saw the storm results,, Helped with an ear and gave a few hugs and kisses.. I think I got more back than I gave and no one ever asked my name or what I gave... I gave many $5, $10's and $20's,,, Not because I could, but because I had to.. I was not alone and the clothes and baby goods that were recieved in need never had from XOM or hank written on them... The need is so great that the source of the gift is almost with out meaning... That is except to the one giving..As to where we speak or post about this need is really unimportant,,, JUST pick up the phone and call the Salvation Army or a local church,, make a pledge and I promise you will sleep better tonight... hank

Trip tp MS..

I just got to my FLA. house after a 2600 mile trip thru MS., AL., and the Fla panhandle.. As I came from the north I able to see just how far the storm did damage.. The breaking of limbs and shingles did appear until about 100 miles from the coast.. Getting to Rt98 and Rt10 was not as difficult as I thought it would be..

The roads from CT to MS were clear and no one was traveling.. Fuel and gasoline was avail in all but stations in smaller towns.. All truck stops had fuel but some did not have gas.. As I got closer to the storm areas I was surprised by the number of plates from New England and Ohio..There were trailers being pulled by cars full of water,,ice and baby goods..

The people that I saw stranded were for the most part old and probably on SS... There seemed to be much in the way of church and FEMA presence and the lines for help were short.. I was about 65 miles from New Orleans... Almost every other block in the towns that were on the coast had insurance trailors with state farm and allstate standing out...

I stopped in Pass Christian and Biloxi and helped out handing out FEMA forms and giving a frendly ear.. Most did not complain and most did not think about leaving the area... There was a Lowes without half a roof and it was doing business as usual...Food was easy to get at Hardee's, McDonalds and Burger King although They all closed at daek and the menu's were quite limited.. All only had Water in bottles which they gave out free..

The Natioal Guard was there and in the heat they were in full dress.... Most directed trafic and made sure the lines for gaspline were orderly and that no one jumped ahead...Gas was in limited supply at around 3.40 per gal.. I never paid above 2.85 per gallon for Diesel...All in All it was a great trip which I intend on doing again in the next two weeks.. Giving back has rewards and gave me an excuse to go back to Fla. to build more boats...

If you send money find a church or the Salvation Army... it just goes further... Making the donation thru your church is also a good way...What you see on the TV is not what you see on the road... MS and AL had a steady flow of displaced people and except for gas lines had NO disturbances of ungrateful people.. Many of the people that worked the lines that were local invited people home and if they lived close to the coast had thier own problems..Also I believe that MS and AL had plans as to what to do in the event of such a hurricane...One story that kept appearing was when people went around to get people to leave that if they said no,, A magic marker was given and the person was asked to write thier SS# on thier forearm so that they may be identified when found floating face down...hank

Brown and IRA's...

Brown at the end of June imposed a new rule for IRA's.. If you make a sale you must wait until that sale settles before you may use the proceeds... In your account balance they show avil funds and if you place an order that exceeds avil funds it will inform you of that...If you have several open orders that exceed avil funds as a group but none individual you can get into trouble if they execute.. I have had that problem several times but as I have several accounts I instruct to journal the trade to an account with sufficent buying power... This must be done prior to the close otherwise a 90 FED violation occurs and they have no control over that.. Today BROWN's website is down as of now...hank

ALY...

Looks like ALY is getting it done in a big way...hank

Press Release Source: Allis-Chalmers Energy Inc.


Allis-Chalmers Energy Announces $15 Million Asset Purchase
Friday September 2, 6:00 am ET


HOUSTON, Sept. 2 /PRNewswire-FirstCall/ -- Allis-Chalmers Energy Inc. (Amex: ALY - News) today announced that it has expanded its casing and tubing operations by purchasing $15 million in previously used casing and tubing installation equipment, including but not limited to hammers, tongs, lay down machines, and casing and tubing handling equipment including 1000 ton tools from Patterson Services, Inc., a subsidiary of RPC, Inc.
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The acquisition increases the Company's equipment capability and expands its market share, providing immediate revenue opportunity in a market that is currently experiencing a significant shortage of quality casing and tubing equipment for resale and a nine-month to one-year delivery time for new equipment. In addition, by adding first rate equipment to its inventory, Allis-Chalmers Energy expects to be able to better service its customers at a time of increasing demand for casing and tubing equipment due to the high level of drilling activity.

Allis-Chalmers Energy further announced that it has changed the name of its casing and tubing subsidiary from Jens Oil Field Service Inc. to Allis-Chalmers Tubular Services Inc.

Micki H. Hidayatallah, Chairman and CEO, stated, "The purchase of this equipment will enhance our casing and tubing installation capability in our existing locations in both Mexico and Texas, but more importantly, will give us entry into the higher profit margin offshore market. We believe that the change of name of our casing and tubing subsidiary will further enhance the brand recognition of Allis-Chalmers as a provider of high quality equipment and skilled operators to the oil and gas, drilling and production markets.

About Allis-Chalmers Energy

Allis-Chalmers Energy Inc. provides a variety of products and services to the oil and natural gas industry. Through its subsidiaries, Allis-Chalmers Energy is engaged in providing specialized equipment and operations to install casing and production tubing required to drill and complete oil and gas wells, directional and horizontal drilling services, the rental of heavy weight spiral drill pipe and related oilfield services, services to enhance production through the installation of small diameter coiled tubing and chemicals into producing oil and gas wells and air drilling services to natural gas exploration and development operators.

The last 2 days...

During the last two days I have again rethought the direction of my portfolios... Yesterday I had large positions in OIH options and MIND,, EPEX,, BDE,, and ALY.... Most other positions in Oil stocks had been sold during the past week and I have replaced them with SMALL BANKS... Yesterday afternoon while watching the news from AL,MS,and LA, it became apparent to me that we might be at blow off prices in oil and oil related stock prices... The dollar continues to fall but more important the yield curve is getting wider... 4% is now at top of interest rates and short term rates are falling... This weekend is the last weekend of summer and 1/4 of the country will STAY HOME.. Some imposed and some out of fear of being stranded without gas... Next TUES Wall Street will be back in business and Money Managers will nail down profits before a feared slow down in the economy... Oil as a commodity and gasoline as a product must come down because there will be NO panic in the buying of gasoline due to the fact that fewer people will travel... Sure there are those of us like myself who must as I will drive back to FLA this weekend but most will not move... The disaster in the south has crippled the mood of a nation along with mistrust of Fed policys... Most of my employees have already made choices for energy use in the NE weeks ago and the price of gasoline is but an irritation in thier lifestyles.. What we see from the south is not the face of the south but pitifull examples of urban poverty fueled by welfare payments.. If you notice there is very little in the way of looting and displaced dead outside New Orleans and little in the way of violence... The people that did not have before the storm are the same as those today on TV with want of services and in other areas the people helping each other in thier sorrow... The contrast in peoples lives are no different than the streets of any area where violence occurs and the poor become thier own victums... Sad but true and none of this will make a dent in the use of natural resources... We will be back to normal in product flow by the end of Sept and Oil and Gas prices will drop,,, Gas prices have shown a spike without the increase in usage and will fall the most... If you shut off NG the usage is not in backlog and that demand is lost and not waiting to be used... Demands do not spike with natural gas because the delivery system is only capable of a certain supply... Gasoline will spike because all have to replenish depleted inventory but I maintain that there will be less upside pressure due to the fear of most not to stray far from home.. The fear of being stranded will be cause of the fall of gasoline prices.. That will probably be apparent on Tues or Wed after the last weekend of summer.... As I believe these events will happen rapidly,, even as early as today I sold all oil and gas positions yesterday afternoon except for ALY... I made profits on all positions and having a traders mentality will not look back if I am wrong... ALY certificates are in a safe deposit box being protected from any impulses of mine... Another position I did not sell but added to was TGE and that was explained by Bobwins... I have been adding to my Small Banks almost in Panic since yesterday morning and I believe that the FED is done or only one rate hike away from that occurance...(sorry no spell checker as the market is opening)....hank

OIH..

Since this has become an option board I'll let you know what I have bought today... OIH Oct/05 115 20@ 8.30,,, OIH Jan/06 120 10@ 9.20.. Also holding 30 OIH Sept/110 30@ 4.20 bought prior to today....MIND is retracing it's high... hank

Bobwins..

I think that you could add EPEX and BDE to that list.... BDE stalled the other day because all it's production and focus are in the gulf area... EPEX is in my opinon one of the cheapest NGas and oil stocks around and although it is up over 3 points since I first mentioned it still a buy.... In the oil services area in addition to ALY I have bought a sizeable position in MIND which I got from you... MIND has it all without a balance sheet loaded with debt.... IT's growth rate has been flat on top line in recent quarters but because they rent used sesmic equipment the returns on investment and equity should gap to the upside without the usual increase in depreciation and bring much higher earnings to the bottom line.. hank

Stay away from banks...

You presented a list that is in your opinon a list to ride out the rest of the year on... Small Banks do have a place in every ones portfolio...

This list of banks are all Small Cap and have Revenue growth of above 30%,,, Earnings Growth of above 35% and most have return on equity of 16% or greater... Although owning them is like watching paint dry,,, BUT,,It is not hard to achieve returns of 30% per year with out much downside...

In no particular order of my position size.... SAVB, FRGB, CWBS, ACBA, UBFO, ANCX, SOCB, FCEN, GVBK, BKSC, PRWT, CFNL, MBLA, ATCB, ABNS... FRGB and MBLA have growth rates that put them in the top 0.01% of all companies that are public..

I will agree that if buy large banks invested capitol is at the same risk as owning GM or any large company but then this is a Value Microcap board... hank

SAVB...

I love these private placements of unreg stock... The insiders had to pay 33.16 because of my bid....SAVB hasn't traded in a week except for 208 shares that I bought @ 33.50...Great bank and my largest holding... Market Cap. 140.46 mil... First Quarter earnings were up 56% and Second quarter earnings were up 70%...Forward PE should be less than 13.5.. Bought 546 FRGB @ 86.00 today,, FRGB could earn $7.15 this year....hank

The Savannah Bancorp, Inc. Completes $12.2 Million Private Placement Sale of Common Stock
Tuesday August 30, 4:59 pm ET


SAVANNAH, Ga.--(BUSINESS WIRE)--Aug. 30, 2005--The Savannah Bancorp, Inc. (Nasdaq: SAVB - News), announced the completion of the sale of 397,273 shares of common stock to certain accredited investors for approximately $12.2 million in a private placement sale of unregistered securities. Non-affiliated accredited investors purchased 366,148 shares at $30.50 per share and affiliated accredited investors purchased 31,125 shares at $33.16. NASD rules require that affiliated investors' subscription price be at the closing bid price on the day prior to execution of the subscription agreements unless shareholder approval is obtained for a discount to market value. Proceeds to the Company, net of placement fees and estimated expenses, were approximately $11.6 million. The Company's placement agent was Sterne, Agee & Leach, Inc. The Company has 4,591,042 shares outstanding after completion of the private placement sale.
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Of the net proceeds from the private offering, $10 million are intended to be used for the initial capitalization of Harbourside Community Bank, FSB (In Organization), a proposed new banking company on Hilton Head Island, SC. The remainder of the proceeds will be used for general corporate purposes.

This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. The common stock was sold only to accredited investors pursuant to the exemption provided by Regulation D promulgated under the Securities Act of 1933. The shares of common stock have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and they may not be offered or sold in the United States in the absence of an effective registration statement or an applicable exemption from registration requirements. The Company has agreed to file a registration statement with the SEC covering resales of the shares sold in the private placement.

About The Savannah Bancorp, Inc.

The Savannah Bancorp, Inc., a bank holding company for The Savannah Bank, N.A. in Savannah, GA and Bryan Bank & Trust in Richmond Hill, GA, had total assets of $689 million as of June 30, 2005. The company provides banking, trust and mortgage services from six full service offices in Savannah and Richmond Hill, GA, and residential lending services from its loan production office on Hilton Head Island, SC.

Forward-looking Statements

GSCP...

I was high bid for a week at 0.98 and bought a total of 150 shares...hank

PYTM....
I bought 50K a couple of weeks ago on the possibility of debt restructure... This might be what I was looking for......hank

PYTM has earnings...

PORTA SYSTEMS CORP (PYTM)
Industry: Communications Equipment
Sector: Technology

Porta Systems Corp. Hires Duff & Phelps, LLC as Investment Banker


SYOSSET, N.Y., Aug 29, 2005 (BUSINESS WIRE) -- Porta Systems Corp. (OTCBB:PYTM) has hired investment banking firm Duff & Phelps, LLC to assist the Company with an evaluation of strategic alternatives. Duff & Phelps will help the Company analyze opportunities concerning refinancing of the Company's existing debt and other strategic alternatives.
Cary Stanford, a managing director at Duff & Phelps who will be the lead banker on the assignment, said "I believe the Company's recent financial performance will attract a great deal of interest among investors."

Porta Systems' president and chief operating officer, Edward B. Kornfeld, said, "Based on our recent results, we can now address issues relating to improving our financial flexibility. The Company will look to Duff & Phelps for assistance in exploring possible ways of achieving improved financial flexibility and other strategic alternatives."

Porta Systems Corp. designs, manufactures, markets and supports communication equipment used in telecommunications, video and data networks worldwide.

Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the Company's filings with the Securities and Exchange Commission filings, including the Risk Factors included in the Form 10-K for the year ended December 31, 2004 and the Management's Discussion and Analysis of Financial Conditions and Results of Operations in the Form 10-K for the year ended December 31, 2004 and the Form 10-Q for the quarter ended June 30, 2005. In addition, general industry and market conditions and growth rates, and general economic conditions could affect such statements. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

SOURCE: Porta Systems Corp.


CONTACT: Porta Systems Corp.
Edward B. Kornfeld, 516-364-9300

jtomm.....

You have an interesting post and it creates a lot of thought... The problem with your post is that if you are right it would be hard to act upon it.. Demand always goes down in times of national emergencies... The television takes care of that and when people become preoccupied they tend to travel less... Also the school season is upon us and Vacations will cease in most communities... So what may seem to be less dependence on oil is just an extention of normal times with preoccupation to current events thrown in...

I think that this disaster will cause a release of oil from National stockpiles because Bush will not fight two political wars at once with elections just around the corner... 3.00 gas and a war in IRAQ that seems to becoming unpopular are too much confusion to have on the plate at once...

I think that the FED is done with rate increases (I would be surprised if the SEPT increase will be made) and when Greenspan leaves his policy will be reviewed by the new chairman for at least six months before any other rate increases could/would be made...

I expect ALL oil stocks to go up and even the ones that are effected in the Gulf will be able to sell far out contracts to benefit from this desaster... The real money will be made in Oil Services and care must be made that you buy real companies.. The moves to the upsides,, have not even begun and the easy money is yet to be made in oil service stocks....The spike in Oil from this disaster will create bidding pressures on all oil service activities and the price of oil does not have to remain at spike prices once the contracts are made...More important is the effect on our economy and interest rates... Being that Greenspan is in his last days as Chairman his control of the board to continue raising rates will deminish and the possibility of an inverted yield curve is increased.... If the economy even looks like it is to stall as after 9-11 (In reality this disaster creates much more competition for capitol than 9-11) money supplies will be flooded by the fed.. The market will be unstable for the next few weeks but I doubt that any stock that is on my list will go down...SMALL BANKS just don't go down in uncertain times and the rest of my list is in Oil services and natural gas stocks...Good luck to all...If investors become preoccupied with this disaster and IRAQ Sept will be a down month..hank

SOTK, MFIC...When I said I added that is what I meant,,I added more shares to my existing position... Mfic never came across my radar but as you have seemed to make me reply with haste in research,, here it goes...
The difference is in product delivery,,, R&D set asides and balance sheet improvments... MFIC is to just another stock and there is many OPP to buy just another stock... Thier results may reverse in the short term and SOTK could fall on it's face,, but at present SOTK has a running start over MFIC in gaining market share and investor confidence.. I may be the only one who sees any potential in SOTK but I may of been the only one that has spent hours on research...As I said before if and when SOTK gains investor acceptance buying a position in size at that time will be very difficult.... When I first started buying it was avil under 2 and has traded as high as 2.80....It seems that soon it will be hard to buy under 3. As I intend to own SOTK years to find out if I am right,, As long as they continue on this same track I will wait to be paid for my efforts.. hank

SOTK...

I have been adding to SOTK now for about 6 months... MFIC is not my type of stock,, Infact it takes a lot for me to stray from oils and banks.. I usually just don't go there... SOTK has technology that is out of R&D and actually produces revenues and profits... SOTK has cut it's DEBT by 2/3 and REV's are ramping up quite nicely... Earnings are exploding but from a rather small base.. New contracts are in hand for recently established products and all phases of SOTK business applications are coming together producing a foundation from which SOTK should be able to increase sales and earnings at a rate of least 5X compounded producing earnings of 0.35 to 0.40 in the next 3 years...If sales increase at a faster rate than I anticipate thru license agreements SOTK could have it's stockholders equity increase at least 10X during this same period with additional cash flow per share of 0.60 per share.. I would anticipate any fund recieved from license agreement to not flow to the bottom line but rather be consumed in R&D... I consider it a long term hold and have added 1500 to 3000 shares each week for the past 6 months...SOTK is not for everyone and could as every small company of this size fall flat on it's face... This is the first time I really have commented on this position.. Any consideration made to buy SOTK should be made on the basis that SOTK could be dead money until the 2'nd or 3'rd quarter of next year but when recognized I doubt that a major position could be had...hank

10BAGGER Top 14...

SAVB $33.50, BDE $17.01, ALY $10.48, FRGB $88.00, EPEX $18.08, SOTK $2.30, MIND $8.64, SOCB $22.80, SNFCA $3.29, PDC $14.85, FCEN $36.50, PYTM $0.2150, FTK $7.52, UBFO $27.57... Cash position is 24%,,Banks 29%,, Oil and oil related 37%,, Msc 10% Tough week for trading,, Added to BDE, EPEX, SOTK, SNFCA, and established a small position in FTK and UBFO...Congrats to all VPHM holders,,, VPHM missed me by a mile... Hank

CORG..

I haven't taken much time looking but stopped when I saw doubtful acconts... Seems like a high % to billable amounts and actually is higher than last years %.. Can you explan this away..hank

Durable goods down more than 3%..

Oil and the economy seem to be doing the Fed's job... Would not be surprised to see this next fed meeting the last increase in fed funds.. Also after the retirement of Greenspan look for a pause in Fed decisions until the new head gets his feet wet... The feds relentless hike in fed funds rates in spite of rate reductions abroad have given the Fed ammunition to lower rates and keep this expansion going for another 24 to 36 months..Oil at a new high is bullish for interest rate moderation and actually helps deployment of excess capitol... Free funds will aggressively look for places to be invested before the interest rate decline...Small banks again will be one of the best places to invest and remember to look where the shift in demographics will occur, small banks rock.. Northern AL, GA or MS have great possibilities follwed by TX, FL, and TN....hank

Small Banks and down markets...

The small and what should be defined as "micro" banks are those with less than 150 mil in market cap that trade at least once a week with a 2 sided market... My list contains about 65 that are profitable.... They are unique because they rarely go down from year to year have internal supports from patrons and insiders of the bank... I have several positions such as SAVB and FCEN that grow in excess of 30% a year top and bottom line..A bullet proof down market portfolio could contain the following... ACBA, CWBS, PREM, FRGB, OLBK, PFBX, UBFO, MBLA, BNCN, FCEN, ABNS, VCBI...Most if not all consistantly have returns of over 20% per year on SHE,, and have efficency ratios of less than .60... FRGB has returns higher than all but a few public companies with growth rates of over 100% posted each year.. I maintain that any group of companies that grow in excess of 30% per year will not go down even in a bear market.. The only thing that could cause tis to change is a 6% fedfunds rate and that isn't going to happen.. Also small banks have a much easier time maintaining or increasing profit margin spreads than any other business... Where else can a company borrow for free or less than 1% thru deposits and checking accounts and lend at above prime...

Efficency ratios are the most misunderstood funtion in bank investing....The easiest way to explain is that if a new account comes to a bank and earns $100.00 in spread from the deposits of that patron how much does it cost that bank to obtain those funds... $50.00 in this case would be an efficency ratio of .50... Large banks because they compete for funds thru advertising and even tangable giveaways have many times ratios aproaching 1.0 and returns on assets of less than 1.0%...Once the funds are in the bank they have to be kept,, Again large banks have funds shopped for larger rates much as interest rates on credit cards... Large banks once thought of as safe investments are just the opposite... In order to compete they must give marginal companies prime interest rates in order to compete and survive... This causes them to be rate sensitive to the fed and loaded with marginal paper from the GM's of the world... So while major banks loan at prime small banks get prime plus from suppliers to those same marginal companies and with recevables that are many times guarenteed by the marginal companies bank...

That is where its at on the lending side but the greatest asset a small bank has is location, location, location... They are by nature in rural areas on the fringe of spralling towns and all one needs to do is look in how many areas land that 20 years ago sold in 100 acre parcels are now sold in 10, 5 or 1 acre parcels at the same price.. This inflation of raw land prices along with increased population increase asset protection of the lenders in that area.. Again the small bank benefits from it's established footprint by not only retaining old money but being the only game in town for new mortages... Ads on TV offering 125% mortages are for the rural areas and not downtown Detroit..

So with the list That I posted you can have growth in excess of 30% a year,,, assets fully protected and even dividends with the added bonus of a large bank takeover for just the footprint...Not a bad deal and if you were to take the list and change the names to a tech company,,, a double would come so easy... As a bank you will have to wait at least 3 years for the same outcome but if you go back to my weekly postings of old you will see the results appear... One other thing is that most small banks have 10% to 33% stock dividends yearly...

So buy a few banks and add in a couple of oil service companies such as ALY, MIND, SWSI, TGE, NBR, PDC and BRNC,, and don't forget O&G companies like ASPN, BDE, EPEX, NBL, and XEC..

If you do so you will mirror my list (which I am rebuilding after my impulse sells earlier this month) except for the occasional stray like SOTK and SNFCA...Good luck...hank

QRCP....

This is one that I have followed for some time and every time I looked at it it seemed to be trading at 4.00...Methane gas is it's game but I think that you have to look now further than this statement..

Comments on Finances

The Company executed a private offering of one million restricted common shares between July 20, 2005, and August 10, 2005, in exchange for $2 million in cash. Then Quest Resource Corporation loaned the $2 million to Quest Cherokee, LLC and on August 8, 2005, Quest Cherokee, LLC received a $3 million loan from Cherokee Energy Partners, LLC (an affiliate of ArcLight). These new obligations with Quest Cherokee, LLC are represented by promissory notes that provide for interest to accrue on the outstanding principal of $5 million at a 15% per annum rate.

Quest's primary activity is the exploration

Wow.. If oil and gas reserves that are positive in cash flow are worth so much more than last year why would a company pay 15% to borrow money pledging it's assets and as an inducement to sell stock offer it at 0.50 on the dollar.. This at a time when any other moose pasture can go public....Hank

Cramer...

It's sad to see such a talent go to waste... Jim Cramer has owned more reportable positions in small banks than anyone I know.. There were several banks in CT where he actually held more shares than the whole board put together... The phrase " the best business in any small town actually came from him".. I know when we covered all insider transactions and filings it impressed me that on The Street .com he was always a buyer,,, In fact I never saw any filings on him or his wife as sellers..The hedge fund that he ran was sucessfull and he stopped running it because he couldn't make money any longer... That was a brave admission to make and I have always until recently found him one of the few that I followed on a regular basis willing to own up to a mistake.. I think though recently Cramer has gone as mad as "mad Money" and will do any thing to get recognized... It is a true shame and embarresment to all that have at times aligned themselves with him... I promise that no one will ever hear me say again that "Cramer made me do it",,, Even though the trade in GOOG was for the most "POINTS" of any I have made in quite a few years... Hopefully if we all turn him off he will be cancelled and cause himself no further embarrisment.. hank

GOOD Read....from the NY Times.....


The Breaking Point...
By PETER MAASS
Published: August 21, 2005
The largest oil terminal in the world, Ras Tanura, is located on the eastern coast of Saudi Arabia, along the Persian Gulf. From Ras Tanura's control tower, you can see the classic totems of oil's dominion -- supertankers coming and going, row upon row of storage tanks and miles and miles of pipes. Ras Tanura, which I visited in June, is the funnel through which nearly 10 percent of the world's daily supply of petroleum flows. Standing in the control tower, you are surrounded by more than 50 million barrels of oil, yet not a drop can be seen.Oil Runs Through It...for Now: Shaybah, one of Saudi Arabia's oil fields, which all told can produce 10.5 million barrels of oil a day. The Saudis say they can boost production to 12.5 million barrels a day, or 15 million, or more. But there is a limit to how much you can ask of the earth, and it is fast approaching, some experts say.


Forum: Energy

Should America be doing more to prepare for an oil shortage?


Stephanie Kuykendal/Corbis, for The New York Times

Future Shock? Sadad al-Husseini, a former Aramco executive, sees an oil shortage looming. But he says that it is consumers, not producers, who are to blame.
The oil is there, of course. In a technological sleight of hand, oil can be extracted from the deserts of Arabia, processed to get rid of water and gas, sent through pipelines to a terminal on the gulf, loaded onto a supertanker and shipped to a port thousands of miles away, then run through a refinery and poured into a tanker truck that delivers it to a suburban gas station, where it is pumped into an S.U.V. -- all without anyone's actually glimpsing the stuff. So long as there is enough oil to fuel the global economy, it is not only out of sight but also out of mind, at least for consumers.

I visited Ras Tanura because oil is no longer out of mind, thanks to record prices caused by refinery shortages and surging demand -- most notably in the United States and China -- which has strained the capacity of oil producers and especially Saudi Arabia, the largest exporter of all. Unlike the 1973 crisis, when the embargo by the Arab members of the Organization of Petroleum Exporting Countries created an artificial shortfall, today's shortage, or near-shortage, is real. If demand surges even more, or if a producer goes offline because of unrest or terrorism, there may suddenly not be enough oil to go around.

As Aref al-Ali, my escort from Saudi Aramco, the giant state-owned oil company, pointed out, ''One mistake at Ras Tanura today, and the price of oil will go up.'' This has turned the port into a fortress; its entrances have an array of gates and bomb barriers to prevent terrorists from cutting off the black oxygen that the modern world depends on. Yet the problem is far greater than the brief havoc that could be wrought by a speeding zealot with 50 pounds of TNT in the trunk of his car. Concerns are being voiced by some oil experts that Saudi Arabia and other producers may, in the near future, be unable to meet rising world demand. The producers are not running out of oil, not yet, but their decades-old reservoirs are not as full and geologically spry as they used to be, and they may be incapable of producing, on a daily basis, the increasing volumes of oil that the world requires. ''One thing is clear,'' warns Chevron, the second-largest American oil company, in a series of new advertisements, ''the era of easy oil is over.''

In the past several years, the gap between demand and supply, once considerable, has steadily narrowed, and today is almost negligible. The consequences of an actual shortfall of supply would be immense. If consumption begins to exceed production by even a small amount, the price of a barrel of oil could soar to triple-digit levels. This, in turn, could bring on a global recession, a result of exorbitant prices for transport fuels and for products that rely on petrochemicals -- which is to say, almost every product on the market. The impact on the American way of life would be profound: cars cannot be propelled by roof-borne windmills. The suburban and exurban lifestyles, hinged to two-car families and constant trips to work, school and Wal-Mart, might become unaffordable or, if gas rationing is imposed, impossible. Carpools would be the least imposing of many inconveniences; the cost of home heating would soar -- assuming, of course, that climate-controlled habitats do not become just a fond memory.

But will such a situation really come to pass? That depends on Saudi Arabia. To know the answer, you need to know whether the Saudis, who possess 22 percent of the world's oil reserves, can increase their country's output beyond its current limit of 10.5 million barrels a day, and even beyond the 12.5-million-barrel target it has set for 2009. (World consumption is about 84 million barrels a day.) Saudi Arabia is the sole oil superpower. No other producer possesses reserves close to its 263 billion barrels, which is almost twice as much as the runner-up, Iran, with 133 billion barrels. New fields in other countries are discovered now and then, but they tend to offer only small increments. For example, the much-contested and as-yet-unexploited reserves in the Alaska National Wildlife Refuge are believed to amount to about 10 billion barrels, or just a fraction of what the Saudis possess.

Bubble Board..
How many boards does Len moderate????

When does he sleep???? Hank

Len...

Is that like me being 53 on the leaders board while being in 8'th place and being in the top 10 for the past 3 weeks.. I predict that when it all ends that most if not all will have one or two losing stocks and that 80% will have positive gains with the top ten having an ave gain of over 40% which isn't all that bad...Mr Sheep will be in the first half... hank

Wade...10bagger top 3

Glad to see you back... As I sector trade 95% of my positions sometimes I am in the position of moving from one sector to the next... A couple of days ago I had a double wammy... PPI soared and Oil went down.. Banks and oils both sucked and I hit the sell buttons and went 2/3 in cash..I even sold FRGB...(which opened the very next day up 2.35)... I sat today looking at what was a constructive rally in oil and the banks that I sold also made new highs.. It's the impulse of a trader that sometimes makes us do things rather than the patience of an investor... Well one thing was accomplished ,,, the decks are clear and the posting of the top positions this week over $10,000.00 are real simple... ALY, SAVB, SOTK...The rest left is just odds and ends and the possible start of new position building.. Have a nice weekend and it starts all over on Monday...hank

ALY.. If you own ALY...... READ

Just got back from a nice day on the water... I think I have been misled on ALY... The shares were to of been sold for the account of ALY except for 1,000,000 shares and the proceeds were to be around 40,000,000.00 to ALY...Instead the following happened...This is disturbing because after a gross of 0.63 the proceeds are 9.12 and ALY will only receive 9.12 mil and any additional funds to ALY will come from the over allottment... Second how they were able to hold all other seed and early investors from registration must of been the same party line they gave me...I am sure that quick registrations of shares by existing shareholder will be made to keep peace and those shares could be placed on the market.. They as I probably will have the same attitude about ALY... IF ALY had to get rid of Spectrum as they said in thier previous press release and filing statement the other shareholders should of been made aware that the deal with Spectrum was changed back to the original... ALY might of had it's back against the wall but that gives no one the right to dismiss Existing shareholders for the benifit of PARTING shareholders.... As I was away all day this news came to me after 11PM...

Allis-Chalmers Energy Announces Pricing of Secondary Equity Offering


HOUSTON, Aug 18, 2005 /PRNewswire-FirstCall via COMTEX/ -- Allis-Chalmers Energy Inc. ( AMEX:ALY) today announced that it priced the public offering of 5,073,565 shares of its common stock at $9.75 per share. Of the shares to be sold in the offering, 1,000,000 shares will be sold by Allis-Chalmers Energy and 4,073,565 will be sold by Energy Spectrum Partners LP and other non-management stockholders. Allis-Chalmers Energy expects to receive proceeds of approximately $9.1 million, net of underwriting discount but before other offering expenses, which is intended to be used for general corporate purposes and may include acquisitions, capital expenditures and working capital.
The Company has granted Morgan Keegan & Company, Inc. a 30-day option to purchase up to an aggregate of 761,034 shares of common stock, solely to cover over-allotments....

ALY,,

I think after today I'll Take the rest of the summer off...As for ALY it probably will trade within 15% of the issue for the next 3 months if oil stays above 58.00...If oil is higher or lower I would expect ALY to trade up or down 1.00 per 3.00 of oil movement.. Thats the best guess I have as it already has 25% knocked out of it...hank

ALY posts..
The reason you see it so many times when you do a scan is because when I post my updated list each week ALY has appeared along with FRGB,,etc.FRGB shows 35 times since the first of july.. No more is needed on this conversation..hank

Could be that I got a litle carried away but it really had nothing to do with ALY.. I really thought that by the mention of ALY it would show the how strong I felt about SWSI and BDE...But they both tanked from thier highs today so if anyone cares they are now cheaper than when I started pounding... Thanks,,,hank

ALY..

You know this not a kids game and some of us here are serious in what we do.. To waste time on a he said,, she said is not only unproductive but destructive to further input... I said what I said because I felt strongly about it and not because I was trying to insyte further discord....We are here to get stock ideas and not to be put down for suceeding.. To imply that I have touted or mentioned ALY over 100 times for my own pleasure and gradification is nuts, so don't even go there,, Besides results cashed in and the shares of ALY that I hold are all the pleasure and gradification that I need... hank

Spindletop symbol please...
hank

Open to Knowledge..

We are as a group have many talents in various degrees of investment knowledge.. This board except for a few are sincere in thier posts.. I will take credit for only 5 companies that I have brought to this board... They are IHTC at 0.32 which along with ACRG at 0.34 were on the old RB site.. One I hated and one I loved,,, IHTC had a name change and went on the ASE and became a 50bagger and I actually made some sales above 12.00,, ACRG traded as high as 4.19,,,I know because I bought it there.. Sales were made earlier this year for tax purposes and when it was all said and done ACRG was well a 10bagger for me.... The third was ALY of which I still own a substancial position,, actually 15,900 shares at a cost of 3.80....FRGB is a bank that I pounded on in the low 60's that is trading close to 90.. yes it is a small cap and I still own over 1000 shares...This last week I pounded on SWSI and BDE... One I have researched fully and the other is too complicated to understand and that is BDE... My source is though impeccable in direction and I have followed his coattails many times... The ideas and weekly updates that I bring to this board are in no way bragging to make myself feel good,, All I am trying to accomplish is impart some of my knowledge of over 40 years as a full time trader and Financial Newspaper publisher... Be not afraid of me trying to pump and dump because in most of the stocks that I trade ,,, especially the banks I am most often both sides of the market. As for the repeat updates on ALY I stand guilty as charged but using it,, hopefully adds to the importance of me pounding for you to have positions in BDE and SWSI.. If this doesn't cut your mustard try using the ignore button...hank

Bob,,, Thanks for the TGE but don't tell any one it went up today...hank

TELT..
Were there any warrants involved in the debt and how long was it ( the DEBT ) in force... Or was this a non recourse loan.. Why would anyone forgive without benefit unless they were a stockholder or have the option to be... Mabee this loan was to be paid off with the phoney bid... hank

GSCP...

Any thoughts ... hank..

Being right is not bragging but the following post is what..

The Yellow Jersey fits great!

I'm honored to have the PSL1 top spot for at least a week...although my wife doesn't understand what all the fuss is about...LOL. When I told her the ultimate winner gets to be crowned king of his/her own chat board, she said "show me the money" instead!

Anyways, the "secret" to my success so far is not much of a secret at all -- basically I'm a low P/E fiend. At the start of the contest, the P/Es of four of my stocks (GFRP, HCAR, SMID, and TMFZ) were 2,2,3, and 4, respectively. The P/Es on those same stocks now are 5,3,5, and 6 --- room for further upside, wouldn't you think?

As for my other two picks, ROBE and EYDY, I wanted a couple stocks near the $.25/share cut off because, as I tell all my friends and relatives who ask, it's easier for a stock to go from $2 to $4 than from $20 to $40. Taking it one step farther, it should be easier for a stock to go from $.25 to $.50 than...well you get the idea. Plus, ROBE has a nanotechnology angle and EYDY is in the process of merging with a biotech company --- both are very hypable situations under the right circumstances...

Now that I've divulged my "secrets", what I am going to write about when I take over the PSL1 King blog??!!