First South Bancorp, Inc. (FSBK)

Rated one star.

Bank focused on basics - FSBK is a good player in a weak area - Strong managment comittment to earnings and dividends.

In anticipation of the eventual rebound of the financial sector. A little early for bottom feeding, but I am just indiscriminately putting all stocks that are tagged S&L.

The only negative impact on this stock's market value is the hysterical volatility of hedge fund managers. Because FSBK is a bank and handles mortgages, they've been tarred with the same brush the "hedgies" have used on all of the lemon banks they've sunk billions into. The problem is FSBK has one of the most capable and aggressive management teams in the industry, is so efficiently managed that no bigger bank wants to acquire them (no savings from e-o-s), and enjoys a peerless reputation in their market area. While BOA and Wachovia, et al, gain reputations in customer service that would make a NYC pimp blush, FSBK "walks the walk," creating tremendous customer and employee loyalty.
When the mortgage and currency crises settle down and trades by hedgies are based on something other than finger bones and sacrificed chickens, FSBK is going to skyrocket into the mid- to upper-$30s, then grow steadily from that point on.
If you pass this one at its current market low point, you'll kick yourself (and I mean HARD) later on.