Guru Michael Price (Trades, Portfolio) runs the New York-based hedge fund MFP Investors LLC, which currently owns 122 stocks with a total value of $811 million. Price began his investment career shortly after he graduated from University of Oklahoma with a bachelor degree in science. In 1974, Price began working as a research assistant at Heine Securities. After the founder Max Heine passed away in 1988, Price became the president and chairman of the firm. He ran the firm until 1998, when he founded MFP Investors, which primarily focuses on value investments. MFP Investors LLC currently owns 122 stocks with a total value of $811 million.
On April 4, Price added 79,000 shares of MB Bancorp Inc. (MBCQ, Financial).
MB Bancorp was incorporated in 2014 to be the holding company for Madison Bank of Maryland. The company is the product of the merger of three institutions: The Back & Middle River Building and Loan Association Inc., Madison & Bradford Federal Savings & Loan Association and Bohemian American Federal Savings & Loan Association. The company is headquartered in Forest Hill, Maryland.
MB Bancorp has a Financial Strength rating of 3/10 and a profitability and growth rating of 3/10 with one good sign according to GuruFocus. The P/B ratio for the company is close to a one-year low at 0.73.
It is possible that Price decided to increase his stake in MB Bancorp due to higher median household and per capita incomes in relation to national averages. According to the U.S. Census Bureau, median household income for 2015 was $67,766 for Baltimore County and $79,403 for Harford County, compared to $73,971 for Maryland and $56,746 for the U.S. as a whole. Median household income for 2014 was $64,624 for Baltimore County and $73,169 for Harford County. Above average household incomes per capita is a good sign for MB Bancorp because they are headquartered and conduct much of their business in the state of Maryland.
Another possible reason why Price may have decided to increase his stake in MB Bancorp is because the unemployment rates for Maryland and the Baltimore and Harford County area was 5.1% , 4.9% and 4.3%, respectively, in December 2015, which has decreased from 2014. The more people that are employed, the healthier the economy is going to be, which affects MB Bancorp's revenues and profits.
Another reason that may have influenced Price to increase his stake in MB Bancorp is the company's ability to execute short and long-term loans. The company offers residential mortgage loans, which represented 82.4% of the company's total portfolio as of Dec. 31, 2015. The basis of residential loans enables borrowers to purchase or refinance existing homes, most of which are located in the company's primary market area. MB Bancorp also offers non-residential real estate loans, construction and land loans, home equity lines of credit and consumer loans.
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