As of April 11, 2013, Guru
, founder and manager of MFP Investors LLC, bought 6,080,000
shares of a new holding, First Security Group (
), at an average price of $2.45. The current share price is
$2.46, with a 0% change from average. FSGI stock is up 12% over
the last 12 months. The P/E ratio is 21.9, the P/B is 2.8 and the
P/S is 0.8139.
Price's new buy comes just in time to catch the wave of
anticipated growth from First Security's recapitalization
completed several days ago. The company's strategic
recapitalization includes new capital, TARP CPP restructuring and
the sale of non-performing loans. To improve its risk profile and
enhance profitability, First Security Group injected
approximately $65 million into its subsidiary FSGBank to improve
regulatory capital ratios and to support future growth, according
to the company.
First Security Group's community bank subsidiary, FSGBank, has 30
full-service banks in Tennessee and north Georgia. FSGBank
provides retail and commercial banking services, trust and
investment management, mortgage banking, financial planning and
Internet banking services. The company was founded in 1999.
Guru Michael F. Price is the 271st richest person in the world,
according to Forbes. A renowned money manager, Price learned
finance as a $200-a-week research assistant under Max Heine.
Price manages the private firm, MFP Investors, with $1.6 billion
under management, much of it his own money. In an update from
April 15, 2013, the portfolio of MFP Investors LLC has 101 stocks
(11 of them new) valued at $705 million, with a
quarter-over-quarter turnover of 10%.
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