This newly-public company reported $3.8 million in earnings for the September quarter, a 165.2% increase. It is a speculative play in the Bitcoin arena.
Metropolitan Bank Holding Corp. (MCB)
From Hughes Investment Management
Metropolitan Bank Holding Corp. (MCB) is a NYC based bank holding company that just sold 3.5 million plus shares at $35 a share last month.
The company has a book value of $26 and fast growth from Bitcoin—over 100% in deposits and more than 30% in loans, in half a year. There could be risk here.
Net income is also up 165%, in the third quarter. If you want a bank with a bitcoin play and 50 times cheaper than say, Overstock.com, I believe there is some real value here, since it’s unlike many other Bitcoin plays that have zero earnings or any real prospects to make money.
Insiders bought a ton of stock, under $40 a share and we would buy up to $45 a share—maybe even up to $50.00 for those who want to play this. If Bitcoin gets mentioned in relation to this bank, the stock could possibly go to $90 to $100, and then we would be out.
This stock is more risk than we usually take to the downside for sure, but with 50% to 100% upside in the short run, we are taking a flyer on this one. The shares trade plenty to get a large position; we’re just investing 7% of our funds due to the risky loans.
Douglas Hughes, Hughes Investment Management, www.banknewsletter.com, 888-814-7575, December 12, 2017