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Investment Thesis

New Hampshire Thrift Bancshares (NHTB) is the parent company of Lake Sunapee Bank, a prominent savings bank in New Hampshire. This company is a potential acquisition target, and offers a 3.5% dividend yield as a "waiting" fee to patient investors.

Here are the reasons why NHTB deserves a higher valuation:

  • It's currently trading at $15/share which is 19% below its BV of $18.5/share. However I believe it deserves to trade at least at its BV levels since it has a ten year ROE average of 9.5% which is more than decent. And although this average has fallen to 7.23% over the last three years, its performance (as with all banks) is suppressed due to the ultra-low

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