Pioneer Bankshares
(OTC:PNBI) shares moved up marginally this week after Richard Spurzem
disclosed a 5.2% stake in the company and a letter to the company's
board of directors. The shareholder suggested that Virginia-based
company has limited growth prospects and should put the company up for
sale.
What evidence suggests that any sale would be successful?
Well, the company operates Pioneer Banks in Virginia and may be
attractive to any larger banks seeking to "fill out" their branch
footprint in Central and Western Virginia. Moreover, the recent sale of
Premier in the upper Shenendoah Valley I-81 corridor and Union Bank's
purchase of six branches from Provident.
Mr. Spurzem had
requested to meet with management several times and only recently
received a response from the company indicating that they would speak
with him after the company's next board meeting. Whether or not the
company would be open to a possible sale or interested in engaging a
financial advisor remains to be seen; however, this is definitely a
stock to keep an eye on in the meantime.
Note: This is an OTC
stock, meaning that it is not as liquid as many stocks traded on the
NYSE, NASDAQ or AMEX. On the flip side, being an OTC company saves
million in public company expenses which helps a company with a $24
million market cap.
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