Bank OZK (OZK)

[Huggy Bear]

First off Motley Fool is a publication for Fools.

Secondly, that was a chain reaction from ONE analyst - and they have biases like everyone else. Plus his analysis is sloppy - OZK has one of the highest Tier 1 ratios in the mid cap banking industry and has done nothing but outperform for the last 20 years. The loan risk is exaggerated and it's a minor slice of their loan portfolio. I am personally friends with a senior executive VP who moved over from Bank of America 17 years ago, I have had my finger on the pulse here for over twenty years, and my money ( an 11% overall slice of retirement accounts ).

Well, that slice is now 13.5% as of today. I shifted out minor percentages from significantly over performing positions that I don't feel have the upside potential that OZK has in this bear raid.

I am maintaining my very conservative 2024 Fair Value of 60 per share, and that is a mere P/E of 10.

When the confidence in the overall industry is high commonly seen P/E ratios are 15, and higher in many instances.

I understand that the collapses of other mid cap banks recently ( last two years ) eroded the general trust in the industry. But everything is situational in the market, so I'm not phased by today's response to the bearish take by one rogue analyst.

I will tell you this in closing. In 2006- 2007 OZK refused to participate in the sub prime mortgage disaster looming. They escaped unscathed. In fact, stronger than ever.

There are a few incredibly intelligent people in the much misaligned state of Arkansas.