A Cheap Microcap Bank
1st Constitution Bancorp(NASDAQ:FCCY)
This is just a quick idea, I haven’t done any real due diligence yet. FCCY appears capable of a consistent 6%-8% ROE, and it is currently priced at 0.8x book value. If anything, a company that is profitable and will likely stay profitable in the future should be valued at least at book value. I see a prospective 21% return on a return to book value and an ROE of 6% to 8% adding possible returns every year. It might be an interesting place to deploy cash in a crazy market, but I haven’t done any due diligence to really figure out if there is a problem with the company or not so you may want to look at the SEC filings first.