Jim Royal, Author of "Zen of Thrift Conversions", on the basics of Thrift Conversions

Jan 9, 2024

Jim Royal, Author of 'Zen of Thrift Conversions', provides the basics of 'Thrift Conversions' in this podcast. He discusses the safety and management incentives associated with these conversions. Jim also explains how investors can participate in IPOs of thrift conversions and explores the current banking environment. He highlights the characteristics of poor conversions and the importance of investor activism. Additionally, he shares three interesting de-mutualizations to look at. Overall, this podcast offers valuable insights into the world of thrift conversions and their potential benefits for investors.

Ask episode

Chapters

Transcript

Episode notes

Introduction

00:00 • 1min

Basics of Demutualizations and Thrift Conversions

01:19 • 2min

Thrift Conversions and Investing in Banks

03:19 • 26min

The Importance of Stock Repurchases and Thrift Conversions in Creating Shareholder Value

29:31 • 7min

The Role of Activist Investors in the Thrift Invest Space

36:13 • 7min

Day one trading and different stages of stake building in banks

42:43 • 3min

Thrift Conversions and Acquisition Potential

45:45 • 12min

Timeless Insights into Thrift Conversions and Investment Strategies

57:22 • 2min

Jim Royal, Author of "Zen of Thrift Conversions", joins the podcast to provide the basics of "Thrift Conversions", what that means, as well as examples that help illuminate them.

Jim's book, "Zen of Thrift Conversions", available on Amazon: https://www.amazon.com/Zen-Thrift-Conversions-Hidden-Stocks/dp/B08KH3THCR?crid=1RO9I0CVP07JD&keywords=the+zen+of+thrift+conversions&qid=1704737642&sprefix=zen+of+thrift,aps,161&sr=8-1&linkCode=sl1&tag=andrew613880e-20&linkId=aa5821380d1063911549c0014b02427a&language=en_US&ref_=as_li_ss_tl

Chapters:

[0:00] Introduction + Episode sponsor: Fundamental Edge

[1:49] The basics of "Thrift Conversions"

[8:51] Safety

[11:25] Management incentives

[15:46] How can investors participate in IPO of thrift conversions

[19:58] Needham

[23:50] Thrift Conversions in current banking environment

[27:26] Return on equities and repurchases

[35:39] Characteristics of poor de-mutualizations and thrift conversions

[39:14] Investor Activism

[45:08] Why thrift conversions sell during a given time frame and why some don't

[47:36] Worthwhile for investors to look at second step conversions (because so complicated)?

[51:00] Lightening round: why more mutuals in the Northeast than elsewhere? How much does geography matter?

[53:59] Three (3) interesting de-mutualizations to look at, according to Jim Royal

Today's episode is sponsored by: Fundamental Edge

You’ve probably heard it’s an “apprenticeship” system, or that you’ll “learn by osmosis”? But what if there was a better way to learn the equity analyst job? Fundamental Edge is re-defining training on the buy-side. Website: https://www.fundamentedge.com/

Whether you’re already in the seat or looking to break in, the Analyst Academy from Fundamental Edge offers a thorough and flexible path to developing the tools and frameworks employed by leading hedge funds. Breaking in: https://www.fundamentedge.com/breaking-in

Check out the Academy syllabus and sign up for future free content: https://fundamental-edge.ck.page/academyinfo