05/01/2023
For Portfolio II
Avoid the potential real estate downturn
Bank OZK (OZK).
Temporarily close the position of Bank OZK in the Portfolio II due to evaluation.
There are deficits on OZK's balance sheet as 03/31/2023, and these deficits can be a real problem if commercial real estate is in trouble.
Loan/deposit ratio: $22062 million/$22283 million = 99.01%
Uninsured deposit/total deposit ratio is about 35-40%
$1039 million cash on hand is equal to 4.67% of total deposit ($1039 million/$22280 million)
Also, OZK has 22.1% of non-farm/non-residential loans, 39.2% of construction/land development loans. It is hard to real know what will happen if economic continue to slow down as Fed's intent, and slow down spreads into commercial real estate. For the safety of capital, we close the OZK position in the Portfolio II until fed fund rate reverse and economic condition is clearer.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
03/13/2023
For Portfolio III
Position close, cash preservation
Bank OZK (OZK)
Close the position of OZK of Portfolio III
OZK: A simply move to increase cash reserve for better opportunity.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
08/27/2020 - Bank OZK