Monthly Stock Pick: A Tiny Financial With Outsized Returns the Market Isn’t Seeing

A low-liquidity, high-ROE compounder trading below peers despite superior performance and why I think it could rise 50% in 1–2 years.

Some ideas look obvious in hindsight. This one still isn’t.

It’s a small name in financials trading at a lower P/E than peers even though its ROE is consistently higher. The only metric that looks “expensive” is P/B, and that’s well-deserved given the its asset quality and durability.

The market shrugs because insiders hold about half the shares, liquidity is thin, and the market cap sits under $500 million. Coverage is light.

I see 50% upside over the next 1–2 years as earnings compound and valuation normalizes. Over five years, this stock could easily double.