April 5, 2007
Perspectives: Independent Bank Corp. (IBCP)
My experience as a trader taught me to respect trend followers. My education (especially getting the CPA) taught me to respect value investors. I’m comfortable in both camps, which is probably unusual.
I find Independent Bank Corp interesting here because I know that trend followers caught a huge move these last several years, recently exited the stock, and wouldn’t think about touching it here (see below).
However, I also know that value investors are just now beginning to get interested in adding to (or initially buying) IBCP after many years of patiently waiting for the stock to get cheap again.
I’m not an ideologue about either style. I understand that stocks that represent good value almost never look attractive from a trend follower’s perspective, just as I know that strongly trending stocks rarely appear to be good values. It’s best if you can think about every potential investment from both perspectives.
April 5th, 2007 at 8:49 pm
I would stay away from the regional banks, especially ones based in Ionia, Michigan. These guys are definitely susceptible to a retrenchment in mortgage and home equity loans, I would stay away…
April 5th, 2007 at 11:06 pm
KS: One person’s stay away is another’s come hither. I looked at the numbers and it looks cheap to me.
April 6th, 2007 at 6:46 am
What is your take on KNOT, seems to fit this profile well right at the moment?
April 6th, 2007 at 8:59 am
Rob: I think KNOT. (Sorry, I couldn’t resist.)
April 7th, 2007 at 1:47 pm
CM:
Well said.
The ability to approach the market as a Trend Investor or Value Trader may serve better than an exclusive adherence to one or the other.
But then again I am quite the novice so what do I know.
April 9th, 2007 at 4:16 am
Personally, I like the chart. I look at IBCP: It is in Michigan, with the exception of the Detroit area(and IBCP has no branches there), the realestate market is going to be:…… Stable! Middle America lacks the jazz of the realestate markets of the coasts… I would guess: continued profitablity. Im a HITHER.
April 9th, 2007 at 10:52 am
BP: It’s an ugly chart, but most good values are. If I did another 15 Ideas list, IBCP would be on it.
April 24th, 2007 at 6:56 am
[…] Chop, an absolutely perfect day to lose money trading. Lots of Regional Banks on the new lows list, including one of spoken highly of here before, IBCP. And there’s poor Sirius Sat. Radio (SIRI) under $3. […]
August 6th, 2007 at 12:22 am
hmmmmmmmmmmmmmmm…..Was 20, now 11. Methinks this is a value trap….
August 6th, 2007 at 8:37 am
KS: No, this means that it’s twice as cheap. ;-)