FirstMerit Corp (NASDAQ:FMER)
A banking organization providing a range of banking, fiduciary, financial, insurance & investment services to corporate, institutional & individual customers throughout northern & central Ohio & western Pennsylvania.
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Recs
Purchase of Citizens bank will put them in a key position in the midwest
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Good small bank paying nice dividend and ready to grow in the Midwest!
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Could take that long to implement fm,s long standing conservitive buisiness model , that has delivered a profit every quarter for the the last 13 yrs !
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Easy to be the tallest midget, ie, stock looks better than it is because previous management avoided market/sub-prime and CRE pitfalls and competitors have been on the shoals. Current management trying to grow to appease analysts but bank is too small to have significant infrastructure to grow. NEOhio is a dead market and customer base/market is aged. Business community also dead in NEOhio. Foray into Chicago with a gnat's presence won't move the needle. If you want safety this is it. If you want growth...forget it.
Recs
Here's the buy rec:
http://www.fool.com/investing/general/2011/08/24/5-banks-to-buy-now-.aspx
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FirstMerit played it safe while larger Ohio banks chased growth before the recession. It has used its healthy capital base to acquire outside its footprint
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Although I am giving it an underperform call in the short term, I believe this is a strong long term play. I think over the long term, this is an excellent play with lots of potential with relatively low risk. There are much better stocks in the short term though.
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Regional banks are making money now
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Trusting Cramer on this one. This bank is solid, no question about that. Whether they aspire to the greatness Cramer sees for them in his crystal ball, I don't know. However, their financials indicate they could.
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Solid bank that doesn't appear to be hurt by the financial crunch. Paying over 6% dividends. Trades in small range, but I think it's just overlooked.
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decent long term play.
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