NVDA

NFLX

AMZN

BABA

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#35094637)

I'm a millennial fag with 10k

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#35094656)

shit has been ca$h this bull run

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#35095007)

ISDR

CORE

OZRK

BOJA

(not investment advice)

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#35094684)

But Ozarks? Fucking A man that bank is really a hell of a bank - it's run by a major motherfucker in the game who is probably the single best bank manager I have seen.

They have a unique acquisition and capital redeployment model where they go to rural areas and snap up regional banks, get in there and make them greatly more efficient from an operational perspective due to IT and corporate experience (Ozarks has one of the lowest efficiency ratios in the banking sector), so you have the regional banks earning significantly more after the acquisition than before. But it simply does not stop there - the latent capital that is held in these small town banks (sitting in checking accounts or savings accounts) with nowhere to go is redirected by Ozarks across the country by their highly sophisticated and mobile deal team. Ozarks has an extremely efficient loan strategy and will make the maximum amount of available loans that fit their underwriting standards - which itself is extremely high, they are very low on chargeoffs relative to peers.

The final thing is size. BAC will have to do insane, titanic shit to double their market cap size from 300bn to 600bn. It's almost not fiesable - just like how some animals are so massive they will consume vast quantities of stuff to "break even" - But Ozarks? It's a 6.5BN market cap company - that's the sweet spot to really grow, they could easily get to 5x the size in 10 years and be a $35BN bank - making the shares you buy today be $250 a share or so with a substantially higher dividend.

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#35094875)

Dodd-Frank legislation and the Basel capital rules have made the institutions that survived the 08 "extinction event" extremely strong and durable, just somewhat sluggish from an organic growth perspective and raising profitability concerns due to compliance burden.

Small Financials post 2011 or so have been the easiest to analyze, highest quality and lowest risk equities in the market place as a class. Especially MHC companies that have done step 1 or step 2 stock conversions.

We are seeing basically a boom in banking consolidation that has been taking place since the 1980's-90's S&L crisis but has really really REALLY picked up pace since the Dodd-Frank legislation after 2008.

There are like 3-5,000 regional banks in the US now and the number is getting smaller by the month due to them being bought out or merging out.

This is where the money is.

When one bank buys another they are saving, on average, 30% of the acquired institutions costs. So if Small Bank buys Tiny Bank, Tiny Bank's assets become around 30% more profitable "overnight" (realistically this is actually a year long process due to the one time overhaul costs) due to the efficiencies in IT systems, compliance, loan capacity and reach when compared to being a standalone entity.

What Small Bank also gains is access to Tiny Banks deposits - and the ability to deploy those deposits in other areas. Tiny Bank could have been in a bank town, but Small Bank could cover the entire county. If Tiny Bank can only make loans in its single town, and that town is a rural area with uncomplicated deposits primarily in low or no fee checking and savings accounts, and almost everyone in the town owns their home - there is just very little demand for loans in Tiny Bank's town.

But when Small Bank buys Tiny Bank, Small Bank operates in 10 towns or even a medium sized city, and suddenly it can direct that fallow capital from Tiny Bank into areas where there is solid loan demand. I read a statistic that 75% of deposits are in rural areas of non-coastal states, but only 25% of the loan demand is there, this ratio is flipped in the cities of the heartland - which have 75% of loan demand but only 25% of deposit share.

The solution is simple - the emergence of "Consolidator Banks" that are going to roll up the smaller banks and get efficiency gains as well as benefit from the ability to more efficiently underwrite loans.

Oddly enough, simultaneously, regular people and the financial system also benefit from this because there is less systemic risk caused by retards running Tiny Banks who will make any conforming loan to their friend at the country club because they can offload the risk (this was a HUGE problem in 08). Now that you have these Super Regional banks consolidating the small ones, you have more integrity in loan making and less corrupt or fraudulent bullshit.

Basically what I'm saying is that the money is in either finding the banks that will be bought out by larger banks OR finding the handful of medium sized to small banks in each region of the country that have a consolidation strategy - and simply buying and holding the shares for a long time.

Most of the time there is a Stock for Stock merger in these cases and as a result you can defer taxes for two, three or even four transactions and build substantial wealth. Like if you own 1000 shares of Tiny Bank and it gets bought by Small Bank, which gets bought by Medium Bank etc you can create some significant wealth.

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#35095114)

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#40238442)

Author: Refunkulus (never count out a MUSCLE NUT)

OSTK

ISDR

CORE

OZRK

BOJA

(not investment advice)

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#37435846)

WUBA

JUNO

SQ

PYPL

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#35094717)

my loose estimate is followin this guy's advice would have netted a 96% return. Fuck yeah.

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#40238628)

NGRDIK

NGRDIK

NGRDIK

NGRDIK

(http://www.autoadmit.com/thread.php?thread_id=3851171&forum_id=2#35275388)