VersaBank (VB-T)

He likes it. It is a very cheap stock at 8 to 9 times earnings. They paid their first dividend a couple of months ago. It is a sign of a company saying they are now stable and confident in their future revenues. They buy alternative loans. The dividend will grow over time and there is momentum. There is a bit of a pull back that is general weakness in the market. It is an opportunity to add to the shares.

It has been a long painful 10 year period. They have been able to utilize technology. They are a non-brick and mortar bank. Capital is now available to them. It has legs.

It is a charter one bank. It is a small name and it is a tough peer group to complete with. There is no reason to go down to lower capitalization in this business. It does not do you any good to do a lot of work in one particular name in this sector.

He looked at this as a possible investment on its IPO. This is a non-branch bank that does commercial lending on buildings and things and is based in London, Ont. It is down $0.20 from its issue. He would like to see a couple of quarters of earnings and see their track record. Has less than 10% ROE at the moment.