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For my final question: I've been mulling over the possibility of investing in my personal bank. It is a small, local, 2 branch bank that anticipated and completely avoided the mortgage spectacle, is exceptionally well capitalized, consistently profitable, is strongly liquid, took no bailouts, and generally has weathered things very nicely. In addition, they get very good ratings from the raters like Bankrate and Bauer Financial (4 star and 5 star respectively). It is the most highly rated local bank that trades publicly.
What would spur the idea that it might be good to invest in is the speculation that in the coming year or two we should expect to see many, many more bank failures, and this could benefit a strong "safe haven" bank such as mine.
But of course stocks are not driven by the strictly rational. This one, though it is a good bank and trades on the OTC, had it's stock decline significantly in the crash along with the rest of the market- and it has not recovered as strongly. So maybe it's just too risky simply because it is a stock rather than anything wrong with it as a business.
Secondly, is it possible that a small local bank just can't gain enough traction compared to big, politically advantaged banks?
By the way the ticker is SDBK (OTC). The name is San Diego Trust Bank. Other info found on it's home page: http://www.sandiegotrust.com/
What say ye, good people? A worthwhile investment based on fundamentals? Or is the stock market so screwy and casino-like that it really doesn't matter if this is a good bank or not?
What would spur the idea that it might be good to invest in is the speculation that in the coming year or two we should expect to see many, many more bank failures, and this could benefit a strong "safe haven" bank such as mine.
But of course stocks are not driven by the strictly rational. This one, though it is a good bank and trades on the OTC, had it's stock decline significantly in the crash along with the rest of the market- and it has not recovered as strongly. So maybe it's just too risky simply because it is a stock rather than anything wrong with it as a business.
Secondly, is it possible that a small local bank just can't gain enough traction compared to big, politically advantaged banks?
By the way the ticker is SDBK (OTC). The name is San Diego Trust Bank. Other info found on it's home page: http://www.sandiegotrust.com/
What say ye, good people? A worthwhile investment based on fundamentals? Or is the stock market so screwy and casino-like that it really doesn't matter if this is a good bank or not?