SB Bancorp + Insider Buys

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Here is a special edition 2nd WSR Investing Club piece.

SR Bancorp (SRBK) 

Market cap: $124.25 million 

Book value: $192.39 million 

Price: $14.54 

TBV per share: $18.67 

Feeling Thrifty: 93.67% of SPDR S&P Regional Banking ETF’s (KRE) shares are shorted. The total dollar volume betting against the less-regulated, real estate concentrated banks amounts to roughly $3 billion. When the economy crunches, regional banks get whipsawed. KRE dropped about 70% during the GFC and made the S&P 500’s halving seem somewhat less gut-wrenching. Then, a decade from its nadir, a lethal virus crawled into the United States. KRE gapped down roughly 50% and the S&P 500 was cracked for a mere 30%. Fast forward three years and the United States’ 16th largest bank goes belly up. When depositors departed, shareholders panicked. KRE was cut by 40% or so and the S&P 500 walked to a green 2%. 

Disclosures: I, the sole owner of High Yield Harry LLC, do not own an equity position in this name at this time. The part-time writer of this piece on Meritage Homes has no position in this name at this time.

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