David Sims
Long/short equity, special situations, activist investor

Impac Mortgage, A Hidden Value?

Occasionally, I come across a real head-scratcher of an investment opportunity. This one recently popped up with Impac Mortgage (NYSEMKT:IMH) preferred stock, and possibly even the common stock.

This company was decimated during the financial crisis. Back in the easy lending mortgage boom days of 2005, this company actually earned $270 million in a single year. In 2012, the company recorded operating earnings of only $13 million. This isn't exactly the way you want to grow your business, but the good news is that operating earnings actually doubled from the prior year.

The bad news is that this company appears to be struggling to redefine itself after the great recession. The executives are paying themselves ridiculous sums of...

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