Jacksonville Bancorp Inc. (JAXB)

[56Chevy]

Short-term price expectations.

In most cases of secondary and rights offerings, the market price will decline in the short run. It is not uncommon for the market price to dip below the rights offering exercise price.

There is always the temptation not to exercise because the market price is less. The thing to remember it is that JAXB is raising capital. The quicker it gets done, the sooner management can refocus on operating the bank.

If the price remains below $.50 per share once the rights offering is completed, you can always continue to average down. I do not expect that phase to last long. All one has to do is review other recapitalizations involving rights offerings to Legacy Shareholders.

Thanx for the sage insights EI.