This small-cap bank beat analysts’ earnings estimates by $0.05 last quarter. The shares have a current dividend yield of 2.44%, paid quarterly. This is a very thinly-traded stock, so please buy shares judiciously.
Middlefield Banc Corp. (MBCN)
From 2 for 1 Stock Split Newsletter
Middlefield Banc Corp. (MBCN) announced its up-coming 2 for 1 split Wednesday last week and, at first, I dismissed it as too small to consider for the 2 for 1 portfolio. I’ve changed my mind and, with appropriate precautions when ordering such a thinly-traded stock, I’ll be buying next week.
MBCN is a small bank holding company in central Ohio. Except for its thin trading volume, this stock has all the good things I look for: PE – 11.95, price-to-book – 1.2, dividend yield – 2.42% and on it goes. Its Beta, a measure of volatility, is running around 0.35, far below the market.
But the standout factor, indicating a very conservative outlook, is an exceptionally strong balance sheet with lots of assets in cash. Banks are supposed to use their cash to lend out to businesses, car and home buyers, etc. Perhaps MBCN has determined it’s not the ideal time to be doing that.
I’ll buy 400+ shares of MBCN over the next week using limit orders and patience, probably 100 shares at a time.
Neil Macneale, 2 for 1 Stock Split Newsletter, www.2-for-1.com, 408-210-6881, October 18, 2019