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Andy Schornack October Monthly Investment Report (FNFG)

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Author: Andy Schornack

Disclaimer:  Andy owns FNFG in his Covestor Financial Services model.

October 6, 2010:  The month of September was a surprisingly great month for the overall market with indexes showing strong gains.  The portfolio also performed well in the month.

During the past month, I did make a change in the portfolio with the liquidation of LAB and the addition of another strong regional bank in FNFG. My research and analysis indicates that FNFG is poised to come out of the recession stronger and well positioned for strong shareholder returns. The NAL merger provides an opportunity for the bank to grow with the acquisition of an equally strong partner; however, if the deal is derailed by the Connecticut AG, I see minimal impact to the stock price given the decline in the price since the announcement and the future prospects of the existing operations. Meanwhile, the bank has strong management, good underwriting, and pays an attractive dividend.

As always, the goal of the portfolio is to pursue a stable dividend income with the opportunity for capital appreciation.

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AUTHOR

Andrew Schornack
Andrew Schornack
My goal is to leverage my experience in the financial and real estate sectors in an effort to make profitable investment decisions that offer more potential reward than risk. Since 2005, I have worked in the banking industry. My current position is as a Senior Commercial Lender. It involves assessing risk in arranging working capital, real estate acquisitions, and other loans for clients. I also am the owner of Schornack Capital LLC, which mostly invests in commercial buildings leased to the United States Postal Service. As a portfolio manager on the Covestor platform, I focus only on the financial services and real estate sectors - the two industries that I personally feel that I know the best. I seek companies in those groups with stable history of past dividends that I believe are trading at a discount based on intrinsic value and will continue to pay dividends. I am a Minnesota native, and received my BSB in Finance and Entrepreneurial Studies from the University of Minnesota. My MBA degree is from University of St. Thomas Opus College of Business.

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