When Can $22 = $27?

When Can $22 = $27?

Got some interesting news on one of my small banks (FUNC) in my miscellaneous portfolio that I have owned since October.  It was up almost 11% today on solid earnings last night.... or so I thought.

But it turns out that it was up for a secondary reason... it is on the border of getting included in the reconstitution of the Russell 3000 index this June.  I have actually tried to front run the reconstitution of this index a few times in the past.  It is generally a bit of an effort as you have to figure out what market cap will qualify a stock for the list and then try and find some that we not above that threshold a year ago.  I did not buy FUNC for that reason - rather I like their price/book ratio and after great success with BYBK, I was trying for another buyout.

But, if FUNC does make the R3K and the price pops towards $27... I will likely sell.  Here is a write up:


Value + Catalysts = 50% Upside