The stocks I mentioned are some of those community banks which were hit hard during recession. Before 2008, they were all selling for a lot more than what they're selling today. Since housing is recovering, these banks are benefiting. Now their asset quality has increased. Provision for loan loss (bad loan)..are very much low now compared to 2 years ago and this is helping them to make their balance sheet look more beautiful and so their book value is increasing. Also, if Fed increase the interest, these banks can charge more interest to their customers..Since the Fed has not increased the interest rate for so long..we're just waiting to see when they actually increase. 

There was this bank called PSBK from California which was selling for less than 1 dollar in January of 2013. Recently, another bank has decided to buy PSBK for $6.7 a share. That's more than 6 times and they paid more than the book value of PSBK. 

Even in January of 2013, the book value of the bank was around $6. Nobody wanted to buy at the time, including me.  If you look at MFBP, it's book value is $11.78..

http://finance.yahoo.com/q/ks?s=MFBP+Key+Statistics (book value per share is mentioned down below in the link). Until last week it was selling for $2.6 a share. Today it is $3.2. It will go up sooner or later and be around $11 in the near future (would be triple from here). It will happen but not sure when. There was someone here last year who mentioned about buying bank stocks and he/she had already make 4/5 times on the initial investment. I hope that some here are continuing to make profit from these tiny banks.

Same thing with TEXC..it has been profitable since few quarters. So, I don't think it is pump/dump as well. I like micro caps....companies that have a niche service/product.  So I'm optimistic that these are not pump and dumps..because they're generating revenue quarter after quarter and all of them are profitable after deducting all the expenses from total revenue. 

In the case of ZGNX, when I looked at their balance sheet...they've been losing money every quarter but selling new shares to investors and to the public. They've lost more than $40 million in the last 9 months. Same thing they did million last year during the same 9 months. R&D expenses is understandable but I don't know why their S&G expenses are 10 million per quarter.  It may be a home run but I'd like to see an already profitable company. Hope it works out well for both of us though.