Eastern Bankshares Inc (EBC)

[LordDarley]

Boring profits are no fun. That's the only conclusion I can reach as I "talk" to myself about EBC, now valued at over $3B after the IPO, and still trading less than book.

Now trading at $17.10. Not bad from the $10 subscription price customers were offered on demutualization, and a "conservative" profit since the $12 opening on the IPO date in mid October. Sorry for being such a drag on the FOMO party stampede for worthless companies.

Analysts all plugging this at $18.5 and up, and it will go higher. I see Hingham Savings tradng at close to 2 x book with a $500M cap. It's well-run, with an efficiency ratio of a mere 25%. EBC, coming from a mutual bank culture, has an efficiency ratio over 50%. Do you think they won't reduce that? Money in the bank for earnings increases.

You should listen to the conference call. We will have our first dividend in March. We will no longer contribute 10% of profits to charity (because the EBC Foundation was given an enormous 8% of the stock in the IPO - a huge endorsement for charity with the Foundation now having way over $100M), and no longer a drag on earnings. A Win-win for all, and I hate that expression, but it applies here.

I'll admit, my Bitcoin is doing better, but I sleep well with EBC and see at least $21 (conservatively) before year end with a dividend that will easily grow.

JMHO, of course. Buy Bitcoin.