Daily Stock Pick: Pioneer Bankshares

This week, I'm looking for the sixth financial services representative of seven for my Ivy portfolio.

That financial sector includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.

Today I'm reviewing a nano-cap banks - regional - US firm named Pioneer Bankshares Inc. Their trading ticker symbol is PNBI.

Pioneer Bankshares Inc is a bank holding Company for Pioneer Bank, Inc., which offers a range of banking and related financial services focuses towards serving individual consumers, small to medium size commercial businesses and the professional community.

Its products and services consist of checking, deposits, cards, mobile banking, online services, loans, merchant services, trust and fiduciary services, investment planning, education funding, individual retirement planning, insurance and risk management services.

It operates branch offices in Stanley, Luray, Shenandoah, Harrisonburg, Stanardsville, Charlottesville, and Ruckersville. The company was founded in 1909 and is based in Stanley, Virginia.

I use three key data points to gauge dividend paying equities or funds like Pioneer Bankshares Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

PNBI Price

Pioneer's price per share closed at $27.25 yesterday. A year ago its price was $31.59. Price fell $4.34 or 13.8% in the past year.

Assuming Pioneer's stock trades in the range of $25.00 to $35.00 this year, Pioneer's recent $27.25 price could rise by $1.75 and go to $29.00 by late June 2020.

PNBI Dividends

Pioneer's most recent quarterly dividend was $0.22 paid today, June 28th.

That $0.22 Q payout equates to an annual dividend of $0.88 which produces a yield of 3.23% based on yesterday's $27.25 closing price.

Gains For PNBI?

Adding the $0.88 annual estimated dividend to my $1.75 estimate of Pioneer's price upside shows a $2.63 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little over $1,000.00 today at the $27.25 recent stock price would buy 37 Pioneer Bankshares Inc equities.

A $10 broker fee paid half at purchase and half at sale will cost us $0.27 per share.

Subtract that $0.27 brokerage cost from the estimated $2.63 gross annual gain leaves a net gain of $2.36 X 37 shares = $87.32 or a 8.7% net gain on a $1,008.25 investment.

Therefore, Pioneer Bankshares Inc whose trading ticker symbol is PNBI, now shows a possible net gain of 8.7% including a 3.23% dividend yield.

No brokers track Pioneer Bankshares Inc stock:

No argument form the pros for my wild guess at PNBI's future price.

Therefore, you can look at Pioneer Bankshares Inc and see it has made money, is making money, and could net an 8.7% gain including a 3.23% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if Pioneer Bankshares Inc is worth your time and money.