Hermila buys CBSH 45.4: We would be surprised if the market does not act like a weighing machine and bid the stock up.

Upside is 1.3X to 1.5X present share price to reach fair value. The downside is limited by an already reduced valuation and a 2.2% dividend. As a result, GSBC trades at a marked discount to other well-run banks. This is an undiscovered gem - not promoted by management, analysts, or any other commentator we know of. Of the 4 analysts following, only one has a buy recommendation and that is at best a tepid one.


Raina:
It has $4 billion in assets, well under the $50 billion and even $10 billion asset mark that bring heavy Dodd-Frank burdens.

Theodora:
GSBC has a major advantage over most acquisitive banks.

Laticia:
Management does not present at any bank conferences.

Jocelyn:
Response: Loans in process are stronger than at any time in the company's history.

Mattie:
This is a very disciplined bunch.

Onie:
Response: The company has ruled out M&A not accretive to EPS and TBV/share.

Reita:
Despite aggressive M&A, Old National's management has diluted existing shareholders in sharp contrast to Great Southern.

Georgeann:
To point out the valuation discrepancy further, acquisitive Old National Bancorp (NASDAQ: ONB ) trades at a significant premium to Great Southern but has a weaker ROA and ROE.

Collen:
Priced similarly to other acquisitive banks, the bank would trade 1.5X (based on EPS) to 1.7X (based on TBV) current share price.

Lennie:
Priced similarly to other acquisitive banks, GSBC would trade 1.5X (based on EPS) to 1.7X (based on TBV) current share price.

Commerce Bancshares (NASDAQ:CBSH)
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