RE:RE:book valuejaneintoronto wrote: A premium or discount (which Accord's market price is) to book is not that relevant in a financial company. Financials are typically so leveraged that even if they sell at 50% of book, that may only equate to 5% discount on assets. Like many small financials, ACD may be a takeover target, but other than that influence, I don't expect the market to suddenly say, oh, wow, this is undervalued. Small financials will almost always be at a discount compared to larger ones. They are not too big to fail, and one bad rumour, absolute fiction or justified, can undermine confidence and take them down. So, I appreciate the dividend, but I'm not expecting some miraculous, steep rise in market price.
i wholeheartedly disagree. Book value is probably most relevant for financial companies as their assets are often marked to market. This makes book value a reasonable proxy for liquidation value. The leverage is already deducted from the assets to determine the book value so it reads like you are double counting. Good luck in your investments.