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"My experience has been that if you find a small bank on the outskirts of a booming population area, you'll possibly do very well. But when I say small I mean small. For instance I've been looking for small (one building, no branches) in small towns in northwest Mississippi. They are "public" but are no where near pink sheets... you often have to call the bank to get shares, they'll sometimes have a list of folks and the prices they want to sell at."

My criteria for banks was:
1) started after Jan 1, 2001
2) less than $100 million assets (ideally around $30 million)

I found a lot of banks where you need to call "Sue" or "Bob" who matches up buyers and sellers. I was hoping to find more pink sheet banks that were good investments. I'll definitely return to them, especially if there's any kind of large scale bank selloff.

I relied very heavily on the FDIC database for comparing banks to each other and to peer groups (assets, deposits, assets per employee, various capitalization ratios, etc.) In fact, this was part of the appeal of looking at small banks. They might not report to the SEC, but they always report to the FDIC.

Probably the most startling thing about the pink sheets, in general, is how efficient the market is for pink sheet securities. It says good things about our economy when even these backwater companies often get a fair shake in the capital markets.

DeliLama
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