Walker & Dunlop - A Bet On The Return Of Commercial Real Estate Lending [View article]
The difference is that the CR mortgages have prepayment penalties and/or lockout provisions that keep refinancings low before the end of the lock-out date.
Atlantic Coast Financial: When Is A $5 Buyout Worth $3 With The Promise For $2 After At Least A Year? [View article]
I imagine that the current price reflects some speculation that the offer will be raised or trumped.
You can look at PRWT for an analogy, where a bit of shareholder activism led to a 25% increase in the buyout price. ACFC has been producing improved results quarter over quarter for the past year; lower NPLs, getting closer to break-even, and the existing offer is a fraction of tangible book, so its not inconceivable that someone steps in and offers more or that shareholders are able to push for a higher price.
In addition the former chairman was pushing back at the board of directors even before this take-over was announced. I wonder if he will quietly accept this offer? That would be a risk you take by shorting at these levels.
Thanks for the work. With respect to Fabrix, which proxy is it that they say that selling Fabrix is a goal for 2013? I would say thats a significant statement.
Impac Mortgage - A Growth And Value Story [View article]
look at the individual items. Warehouse borrowings are up because they are expanding their origination business. The big negative number from financing activities come from Repayments of securitized borrowings. These are payments made by the off-balance sheet trusts and are in offset of cashflow coming into those trusts. I haven't looked closely enough to reconcile cashflows in and out of the trusts to explain it any further. They are nonrecourse and so imo whether they are netting negative cash as a whole is not particularly important to IMH. What matters is that some are netting enough positive cash that IMH is receiving cash back for their residual interest.
Impac Mortgage - A Growth And Value Story [View article]
I would be curious to know too. I actually asked the company this question a few weeks ago and they said they weren't aware of any sell-side analysts following the company.
Impac Mortgage - A Growth And Value Story [View article]
On the Q3 CC the company said that repurchase requests were coming in at a slower rate. They also have said that they aren't seeing the degree of repurchase requests as some others. By way of analogy, PHH has said that they expect to experience elevated requests until the end of 2013.
The series A notes are convertible at $34. The series B notes are convertible at $14 after considering interest adjustment. The 6% convertible is so far out of the money it is not worth considering.
What are the "very large number of shares at cheap prices"?
Why would they exit the MEPPs? Its only a liability if they left the plans and clearly they won't do that. The union already showed willingness to alter terms of plans in the past if required. Its in no one's interest to exit the plan - please explain why this liability needs to be considered?
Impac Mortgage - A Growth And Value Story [View article]
It wasn't stated in full in that sentence. I said the same thing more clearly in the last paragraph of the article:
The current stock price of $12 prices just a two times multiple to the annualized third-quarter earnings of the mortgage origination and real estate services businesses.
Impac Mortgage - A Growth And Value Story [View article]
I guess you never know, but its more likely related to a fund filing that occured after market closed. Iszo Capital announced a 6.2% position in the stock.
Equal Energy: Still Undervalued With Several Near-Term Catalysts [View article]
In the one paragraph you talk about propane and give reasons why propane prices should be expected to rebound but then at the end of the paragraph you state that its ethane pricing that needs to revert to normal. Is it propane or ethane here that matters?
The company argued that right now, because growth is so strong, they are better off using their capital to increase their warehouse lines. But they didn't rule it out in the future.
Impac Mortgage Holdings: 8 Red Flags [View article]
I have a number of questions about the points made in this article.
First,why do you choose to define a leverage ratio where the primary components of leverage are non-recourse trusts that are not a true liability to the company? GAAP accounting forces Impac to hold the non-recourse trusts on its balance sheet because they have a residual interest in the excess profits of the trusts and they have management responsibilities. But they are not leverage in any traditional sense.
Second, what is the point of estimating a book value that is comprised primarily of the non-recourse assets and liabilities of a business that is in run-off?
Third, how can you attribute the 0.86 cent earnings for Q3 to leverage when the mark to market of the non-recourse assets that you have defined as being leverage actually contributed -0.61 cents to earnings? In fact, if you remove this "leverage", earnings for the quarter were $1.50 from continuing operations. I repeat - earnings for the quarter were $1.50 from continuing operations.
Fourth, in your comments about litigation why do you choose not to address the companies statement on the third quarter conference call that "we don't have any large lawsuits currently".
Finally, why are you equating the long term debt of the company to the preferred stock? I don't even know where to start with this one. Yes, the company has long term debt, but it certainly isn't preferred stock.
Walker & Dunlop - A Bet On The Return Of Commercial Real Estate Lending [View article]
Atlantic Coast Financial: When Is A $5 Buyout Worth $3 With The Promise For $2 After At Least A Year? [View article]
You can look at PRWT for an analogy, where a bit of shareholder activism led to a 25% increase in the buyout price. ACFC has been producing improved results quarter over quarter for the past year; lower NPLs, getting closer to break-even, and the existing offer is a fraction of tangible book, so its not inconceivable that someone steps in and offers more or that shareholders are able to push for a higher price.
In addition the former chairman was pushing back at the board of directors even before this take-over was announced. I wonder if he will quietly accept this offer?
That would be a risk you take by shorting at these levels.
Six Catalysts To Move IDT [View instapost]
Impac Mortgage - A Growth And Value Story [View article]
Impac Mortgage - A Growth And Value Story [View article]
Impac Mortgage - A Growth And Value Story [View article]
YRC Worldwide Turnaround Gains Momentum [View article]
What are the "very large number of shares at cheap prices"?
10 Reasons To Buy YRC Worldwide [View article]
Impac Mortgage - A Growth And Value Story [View article]
The current stock price of $12 prices just a two times multiple to the annualized third-quarter earnings of the mortgage origination and real estate services businesses.
Impac Mortgage - A Growth And Value Story [View article]
Equal Energy: Still Undervalued With Several Near-Term Catalysts [View article]
Impac Mortgage - A Growth And Value Story [View article]
How so?
Impac Mortgage - A Growth And Value Story [View article]
http://bit.ly/10m3Mmr
The company argued that right now, because growth is so strong, they are better off using their capital to increase their warehouse lines. But they didn't rule it out in the future.
Impac Mortgage Holdings: 8 Red Flags [View article]
First,why do you choose to define a leverage ratio where the primary components of leverage are non-recourse trusts that are not a true liability to the company? GAAP accounting forces Impac to hold the non-recourse trusts on its balance sheet because they have a residual interest in the excess profits of the trusts and they have management responsibilities. But they are not leverage in any traditional sense.
Second, what is the point of estimating a book value that is comprised primarily of the non-recourse assets and liabilities of a business that is in run-off?
Third, how can you attribute the 0.86 cent earnings for Q3 to leverage when the mark to market of the non-recourse assets that you have defined as being leverage actually contributed -0.61 cents to earnings? In fact, if you remove this "leverage", earnings for the quarter were $1.50 from continuing operations. I repeat - earnings for the quarter were $1.50 from continuing operations.
Fourth, in your comments about litigation why do you choose not to address the companies statement on the third quarter conference call that "we don't have any large lawsuits currently".
Finally, why are you equating the long term debt of the company to the preferred stock? I don't even know where to start with this one. Yes, the company has long term debt, but it certainly isn't preferred stock.
Reviewing MGIC's Complaint Against Freddie Mac [View article]
Your points are valid. It does not appear that it would be in Freddie's best interests to send MGIC to bankruptcy.
Nevertheless I would not have thought Freddie would make this as public as they have. It makes me wonder if there is more going on then I understand.
I am taking the cautious approach and not adding to my position until there is more clarity.
There is some more rambling for you...