| Questions about analyzing OTC regional bank stocks. |
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John Henry
Member
Cash: $ 4.00
Posts: 19
Joined: 18 Apr 2006
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| Questions about analyzing OTC regional bank stocks. |
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Hi Folks,
Nice to join your board. 
I'm an amature investor who has put most of his money in Index Funds and a couple of diversified mutual funds. Seperately, I have a large part of my portfolio in an OTC-traded small, New Hampshire bank. It's done well overall and consistantly pays dividends.
Since this OTC holding was a gift, I didn't do any research on it initially; I just held onto it, and have for about ten years now.
Now as I'm getting more interested in learning more about investing, I'm looking for some tips to use when analyzing a stock such as this one.
I understand OTC stocks can be risky, as they aren't held to the standards of stocks on the major exchanges; also, that less information about them is readily available.
So any advice on looking at an OTC small, regional bank stock?
Any and all tips are greatly appreciated. Although I have no intention of selling the stock now, I'd still like to be better able to evaluate it.
Many Thanks,
John
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Tue Apr 18, 2006 4:29 pm |
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John Henry
Member
Cash: $ 4.00
Posts: 19
Joined: 18 Apr 2006
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Hi Tim,
Thanks for the quick reply. If I may, a couple follow-up questions:
quote:
Originally posted by coaster
I like to avoid banks that get much of their revenue from mortgage financing.
Is this because this kind of revenue is tied into the real estate market?
And of these statistics, "interest margin, return on assets, return on equity, efficiency ratio (lower is better), shareholder equity, loan loss ratio, credit quality, non-performing assets" are any more telling than the others? Are there any obvious warning signs to look for, or am I trying to simplify too much?
Thank you again,
John
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Tue Apr 18, 2006 5:59 pm |
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John Henry
Member
Cash: $ 4.00
Posts: 19
Joined: 18 Apr 2006
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Thanks Tim,
That should be enough to get me started.
John
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Fri Apr 21, 2006 9:24 am |
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