Tuesday, June 21, 2011

RSY XXXIX: Buy FNLC

Last month, I was Questioning the QE Monetary Transmission Mechanism, and used MyStockFinder tool to find a selection of GARP regional bank stocks. Today, I want to look at one in particular, First Bancorp, Inc.(FNLC).

FNLC shows plenty of attributes we look for in a value, dividend portfolio. Some of the most appealing are: good insider buying by directors, a near perfect forensic accounting score, and most importantly a good dividend yield of nearly 5 1/2. Sabrient Systems states the following about its buy rating of FNLC:
FNLC's exceptional value profile earns it a Buy rating.
• Value: With a Sabrient Value Score of 84.6, FNLC is one of the more desirable stocks with regard to valuation. At its current price, the stock is a superior candidate for value-minded investors who seek high potential gains with low downside risk.

In addition to the good Value Score, it boast above average Earnings and Balance Sheet Scores and an exceptional Fundamental Score of 81.7. The Sabrient Fundamental Score is the broad measure of a company's financial health, including its balance sheet, cash flow, revenue, and earnings quality.
"We continue to post good earnings and our capital ratios remain strong," stated Daniel R. Daigneault, the Company's President & Chief Executive Officer. "Many of our shareholders invest in The First Bancorp because of our generous dividend, and good earnings and strong capital are the two major factors enabling us to maintain the ability to pay dividends at this level."

Certainly music to our ears as they declared a dividend for July 1st ex-dividend date of 19 1/2 cents per share.

RSY recommends a buy order of 400 shares at a limit price of $14.41 (GTC-close before end of month).

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