Eastern Bankshares Inc (EBC)

[LordDarley]

Slow and steady progression from $10 subscription price (for depositors and employees) to mid October IPO opening at $12. $14.2 as I type. LadyDarley calls this a CD with high interest.

I have no idea how JPM, the junior underwriter on this deal, could have started coverage a few days ago with a 14 point target which is already history. The primary underwriter, the smaller KBW, projected a much more realistic $15.

Frankly, I'm more optimistic than either, because a weakening dollar will raise interest rates, regardless of (or because of) Fed printing. Regional banks like EBC with absurdly low discounted value to tangible book are in the sweet spot. My personal view (no promises) is that EBC is best in class in the best market area (Boston and suburbs, in many of which it does not even have a branch).

EBC ownership is not for bragging at parties. So much better to be in a hot tech or bio with a double or triple, if you want to throw the dice and say you are smarter than all in the room.

For investing, think of Lady Darley's wisdom.

LD