The months of September and early October have been particularly busy. The election is nearing and the market has seen further continued stimulus from the Federal Reserve. My portfolios are both heavily focused on the financial sector as this continues to be a particular core competency of mine.
On September 19th (Financial Services), and 25th (Market Maven) we started a new position in Republic Bank & Trust Company (RBCAA), a regional bank based in Louisville, KY. The stock closed on October 8, 2012 at $21.18 and has an indicated yield of 3.12% ($0.165/quarter). The company has $3.3 billion in assets and due to its tax refund loan business is historically one of the top earning institutions in the country.
RBCAA chart via Google Finance
The tax refund loan product will stop in 2012, so the company is seeking growth in its other product lines. It is highly capitalized and trades at a discount to the presented June 30, 2012 tangible book value of $25.01. See this presentation for details on its financials.
Our model provided an attractive indicative dividend yield as of October 8, 2012, and is invested in companies that based on my research provide attractive return probabilities. Thanks for subscribing.
Disclosure: Performance discussed is net of advisory fees.
The investments discussed are held in client accounts as of September 30, 2012. These investments may or may not be currently held in client accounts.The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.
Certain of the information contained in this presentation is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. Covestor believes that such statements, information, and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.
