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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