-County Bank Corp recently announced a merger with another local community bank. If it goes through, assets will almost double.
-Local community banks are disregarded by the street. Furthermore, County Bank’s stock price has not reacted at all from the merger announcement.
-I believe that the merger has a high probability of transpiring. Even if it falls through, there is still significant margin of safety in County Bank.
-Macro tailwinds and industry consolidation will act as mid and long-term bullish pushes to the stock price.
-After the merger, I believe there will be a dividend increase. This will act as a catalyst. I am betting that there will be a >50% price increase (mid-term).