Jacksonville Bancorp Inc. (JAXB)

[Enterprising Investor]

Buying profitable banks below book value is ideal.

As you previously mentioned, book value was last reported as $.32 per share. If the shares decline below book value, it means you are buying a dollar for less than a dollar.

Raising new capital above book value is also ideal!

Book value rises as you sell new shares above book value all else equal. If shares are sold at a discount to book value, then value declines.

Imagine a business with 10 million shares with a $3 book value or equity at $30 million. If the business issues 5 million more shares at $4 for $20 million, book value per share rises to $3.33 ($50 million divided by 15 million shares).