CNAF is still cheap — priced roughly the same as in 2014, whereas the BKX index is up 47%.
Today, though, I'm less impressed with Commercial Bank & Trust's Management, which is missing opportunities to cultivate value and is putting CNAF at risk of languishing around book value for another three years.
More responsible caretakers of the stock would reduce the bank's bond market bet, and use excess capital to repurchase shares. CNAF could then reach $30 per share and pay increased dividends.
Disclosure: As of this posting, I own shares of CNAF and may subsequently either dispose of them or purchase more.
Prospective Buyers
| As a unionized bank, Commercial Bank & Trust of PA is highly unlikely to sell in the foreseeable future, but that doesn't mean these local players wouldn't find it to be sweet pickings.
First Commonwealth, Indiana, PA (FCF)
F.N.B Corp, Pittsburgh, PA (FNB)
S&T Bancorp, Indiana, PA (STBA)
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Financial Snapshot
†as of 09/30/2017 |
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The Crew
| George V. Welty, Chairman
Gregg E. Hunter, Vice Chairman, President and CEO
Thomas D. Watters, Executive VP and CFO
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The Skinny
| Sweet Notes I find a lot of things sweet about this stock pick:
On the other hand, every cherry has a pit, and CNAF could choke on any one of these pitfalls:
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Sources
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